AMMAN — The Association of Banks in Jordan (ABJ) has welcomed recent government measures aimed at stimulating activity in the Amman Stock Exchange (ASE) and reinforcing its role as a key pillar of the national economy.

 

In a statement on Monday, the association, along with other stakeholders, commended the steps announced by Minister of State for Economic Affairs Muhannad Shihadeh, describing them as a “move to enhance the investment climate and send a clear signal to both local and foreign investors about the government’s commitment to supporting capital markets.”

 

Among the key measures highlighted was the Cabinet’s endorsement of a legal opinion issued by the Legislation and Opinion Bureau on the tax treatment of mutual funds. The ruling exempts these funds, as legal entities, from income tax while ensuring that income generated by them remains subject to taxation.

 

“This move constitutes an important milestone in creating a more attractive investment environment and is expected to encourage the establishment of new mutual funds, expand institutional investment, and attract greater capital inflows,” the association said in a statement sent to The Jordan Times.

 

The association also noted that the Jordan Securities Commission’s decision to reduce brokerage commissions by up to 25 per cent would lower trading costs, broaden market participation, and enhance liquidity and operational efficiency.

 

Another decision praised by the ABJ was the extension of trading hours, with the ASE now operating from 10:30am to 1:30pm. The association said that the additional time would provide investors with greater flexibility and allow them to respond more effectively to regional and international developments.

 

Economist Yousef Suboh told The Jordan Times that the package of measures would have a wider economic impact, not limited to financial markets.

 

“These steps will strengthen market confidence, stimulate institutional investment, and channel more savings into productive sectors,” he said.

 

Financial analyst Rania Hasan said that tax exemptions for mutual funds as legal entities could be transformative.

 

“The exemption makes Jordan a more competitive jurisdiction for fund managers and is likely to attract regional capital seeking stable and transparent markets,” she said.

 

The ABJ stressed that the measures are fully aligned with the objectives of the Economic Modernisation Vision, which prioritises the development of capital markets and enhancing their attractiveness.

 

It said that the decisions demonstrate the government’s commitment to supporting the financial sector and enabling it to play a “stronger” role in achieving sustainable economic growth and creating new job opportunities.