The Amman Stock Exchange (ASE) has recently achieved a milestone not seen in more than a decade which the general index surged past the 3,000-point mark in 2025. For many investors, policymakers, and ordinary Jordanians, this breakthrough symbolizes not only a recovery from years of stagnation but also a potential turning point for Jordan’s capital markets. Understanding the drivers behind this performance is crucial for assessing whether the momentum is sustainable or merely a short-term rally.

 

The ASE index had languished for much of the past decade, weighed down by regional instability, subdued economic growth, and limited investor appetite. Since the early 2010s, the index had struggled to break above previous highs, with trading volumes often reflecting tepid confidence. Against this backdrop, the climb above 3,000 points in 2025 marks both a psychological and financial breakthrough.

 

This surge is not an isolated event but the result of several interlinked developments global, regional, and domestic that have strengthened investor confidence and fueled capital inflows.

 

The index’s rise this year has been characterized by gains across multiple sectors rather than a narrow rally driven by a handful of companies.

 

For the Banking Sector, it is known that Jordan’s banks, which dominate market capitalization, have reported stronger profits in 2024 and early 2025, supported by higher interest margins, robust fee income, and improved asset quality. The Central Bank of Jordan’s prudent regulatory stance has bolstered investor trust in the sector.

 

While for the mining and natural resources sector, the phosphate and potash companies among Jordan’s flagship exporters have benefited from sustained global demand, particularly from Asian markets. Rising commodity prices in the first half of 2025 further boosted revenues.

 

Industrials and services sectors have seen stronger performance due to recovering regional demand, especially in Iraq, while ICT and financial services are emerging as growth stories, reflecting Jordan’s diversification efforts.

 

The breadth of this rally suggests that investor sentiment extends beyond speculation; it is rooted in improving fundamentals.

 

Several factors explain why the ASE has gained momentum in 2025. Jordan’s economy has shown resilience in the face of global challenges. Inflation has remained moderate compared to regional peers, helped by effective monetary management and stable food and fuel supplies. Fiscal reforms, while gradual, have signaled commitment to reducing deficits and managing debt sustainably. For investors, macroeconomic stability is a critical precondition for equity market confidence.

 

The Federal Reserve’s recent decision to begin lowering interest rates has had a spillover effect on global capital markets. Lower U.S. yields are prompting international and regional investors to seek higher returns elsewhere. Jordan, with its stable currency and improving corporate earnings, has emerged as a beneficiary. The ASE’s crossing of 3,000 points cannot be detached from this global shift in liquidity even though we are still in the beginning of the expected Fed Reserve’s easing policy cycle which might have another interest rate cuts.

 

Jordan is strategically positioned to capitalize on opportunities in Iraq’s reconstruction, Gulf diversification projects, and cross border investments. Jordanian listed companies, particularly in construction, services, and ICT, are tapping into these trends, providing investors with exposure to regional growth stories.

 

Earnings reports for 2024 showed robust profit growth across key sectors. The banking sector’s return on equity has improved, non-performing loans have declined, and export-oriented companies have reported strong foreign revenues. Dividend distributions have also increased, providing an additional incentive for investors.

 

The ASE has made strides in digital transformation, disclosure standards, and corporate governance. Enhanced transparency and better access to information have gradually rebuilt investor trust, encouraging greater participation by both institutional and retail investors.

 

Jordan’s stock market performance in 2025 mirrors a broader Middle East trend of stronger equity markets, though the ASE’s rally is particularly noteworthy given its earlier years of underperformance. Gulf markets have seen mixed results some supported by oil and gas revenues, others weighed down by global interest rate volatility. Compared to these, the ASE’s steady gains highlight its defensive qualities and attractiveness as a stable emerging market play.

 

Despite the euphoria of breaching 3,000 points, risks remain. Trading volumes, while higher than in previous years, still lag behind regional exchanges, and greater liquidity is necessary to attract long term institutional investors. Jordan’s proximity to regional flashpoints always carries potential risks that could weigh on investor sentiment. Global commodity cycles, interest rate paths, and capital flows also heavily influence the ASE, meaning a reversal in global sentiment could quickly impact valuations. At the same time, the Jordanian economy continues to face structural challenges—high unemployment, particularly among youth, and fiscal pressures from debt servicing—that could temper long-term optimism.

 

Looking ahead, sustaining the ASE’s rally will depend on several factors. The government must continue reforms that improve fiscal health and attract investment. Encouraging more private firms, especially in ICT, renewable energy, and services, to list on the exchange would broaden investment opportunities. Expanding retail participation through financial literacy and digital access can provide a more stable base of domestic investors. Deepening financial ties with Gulf and regional markets could also channel additional liquidity into the ASE.

 

The Amman Stock Exchange crossing 3,000 points in 2025 is more than just a number. It symbolizes renewed confidence in Jordan’s economic stability, corporate profitability, and market reforms. While challenges persist, the rally reflects the market’s resilience and its potential to play a larger role in channeling savings into productive investment.

 

For policymakers, this milestone is a reminder that sound macroeconomic management and investor-friendly reforms pay dividends in capital markets. For investors, it is both a validation of confidence and a call to remain vigilant. The 3,000-point threshold may be a psychological barrier broken, but the real challenge lies in building sustainable growth and ensuring that Jordan’s capital market becomes a true engine of economic development.

 

Faris Al Hadidi is a banker and economist