AMMAN — Amid growing regional and global uncertainty, investor confidence in Jordan has shown a “notable” increase, according to the 13th round of the Investor Confidence Survey published by the Jordan Strategy Forum (JSF).

 

The survey, conducted periodically, assesses investor sentiment and monitors the impact of the Economic Modernisation Vision and the Public Sector Modernisation Roadmap, three years after their launch.

 

The survey, cited by Al Mamlaka and was based on responses from 570 companies of various sizes across different sectors, revealed an improvement in investors’ perception of Jordan’s general economic situation.

 

The proportion of investors who consider the economy better than the previous year rose to 23.2 per cent in 2025, up from 16 per cent in 2024, while those who saw it as worse fell to 50.9 per cent from 63.1 per cent.

 

For the first time since 2019, more investors believe the country is moving in the right direction than the wrong one, with 46.7 per cent expressing optimism. Key drivers cited include security and stability (36.5 per cent), economic reforms and improvements in the investment environment (25.2 per cent), and government decisions (13.9 per cent). Those pessimistic (46.3 per cent) point to weak economic conditions, complex regulations, market stagnation, and rising costs.

 

In terms of business performance, 27 per cent of companies reported better results than in 2024, while 41.2 per cent said conditions had worsened, and 31.6 per cent indicated no change. Looking ahead, optimism is high: 57 per cent expect improvements in the economy next year, up from 36.6 per cent in 2024, and 68.2 per cent anticipate stronger business activity. Industrial firms were the most optimistic (71.6 per cent), followed by services (68 per cent) and agriculture (66.7 per cent).

 

The investment environment also showed positive trends, with 45.4 per cent of investors describing it as encouraging, up from 31.7 per cent, while those who found it unwelcoming declined to 52.5 per cent from 66.2 per cent. Most companies (73.7 per cent) have no plans to relocate abroad, although 26 per cent are considering it, mainly citing better foreign investment environments or complex domestic procedures.

 

When it comes to business expansion, 53.3 per cent maintained current operations, while 22.1 per cent expanded—led by large companies (40.6 per cent) compared with small firms (17.7 per cent). Key obstacles to growth remain high taxes, complex procedures, and rising production costs.

 

Adoption of artificial intelligence (AI) tools is growing slowly, with 26.8 per cent of companies using AI primarily for marketing and promotion. Industrial and agricultural sectors are leading in adoption, particularly among large firms.

 

Regarding layoffs, 67 per cent of companies did not reduce staff in the past 12 months; layoffs were attributed to market weakness and rising operational costs, not AI.

 

The survey also explored public–private partnerships and government economic initiatives.

 

More than half of investors (55.3 per cent) found government efforts to attract investment satisfactory, up from 38.5 per cent, while 59.5 per cent were pleased with initiatives to enhance collaboration between public and private sectors.

 

Reducing taxes, streamlining procedures, and offering investment incentives were highlighted as priorities for attracting further investment.

 

Views on the Economic Modernisation Vision showed mixed results. Although some investors reported seeing no change, 36.7% observed positive outcomes, particularly in “Jordan as a Global Destination” and “Sustainable Environment” drivers.

 

Sixty per cent believe the vision is progressing in the right direction. Meanwhile, 67 per cent of investors view the Public Sector Modernisation Roadmap as moving correctly, with “procedures and digitisation” seeing the most tangible improvement (89.6 per cent).

 

Most companies (81.4 per cent) reported being able to withstand external shocks, with large firms particularly resilient. Over half of the companies rely mainly on local suppliers, while 23.3 per cent have diversified international supply chains. Strategies to strengthen resilience include expanding into new markets (31.4 per cent) and diversifying suppliers (21.5 per cent).

 

Financial risk management remains limited, with 39.3 per cent of firms lacking formal systems. Investors identified regional economic integration, strengthening domestic investment, and attracting foreign investment as key priorities to enhance resilience.

 

The forum concluded that the next phase of administrative modernisation should focus on simplifying procedures, strengthening legislation, and accelerating the implementation of the Economic Modernisation Vision, particularly the investment component.

 

Enhancing economic resilience through market and supply chain diversification, adopting financial risk management and AI tools, and supporting business expansion, especially for small and medium enterprises, are also vital.