Prime Highlights:
The Amman Stock Exchange (ASE) will introduce government bond trading to enhance market liquidity and attract global investment, following regional trends like Saudi Arabia’s debt market reforms.
Efforts are underway to reduce taxes on public shareholding companies and eliminate taxes on capital gains from stock and fund trading, aimed at stimulating investment.
The ASE plans to list more state-owned enterprises, further diversifying market offerings and boosting investment opportunities.
Key Background:
Jordan’s financial market is poised for significant transformation with the introduction of government bond trading, tax reforms, and the listing of state-owned companies on the Amman Stock Exchange (ASE). These reforms, as outlined by ASE CEO Mazen Wathaifi during a recent panel discussion hosted by the Jordanian Businessmen Association, are part of a broader strategy to strengthen investor confidence and stimulate market activity.
The changes are aligned with Jordan’s Economic Modernization Vision, which seeks to enhance the country’s investment environment. A key aspect of the plan is the introduction of government bond trading on the ASE, a move that aims to deepen the local debt market, improve liquidity, and attract global investment. This initiative mirrors similar efforts in the region, such as Saudi Arabia’s recent reforms to its debt instrument listings, which have successfully boosted investor participation.
Wathaifi emphasized that government policies play a crucial role in fostering investment and trading on the ASE. He noted that the ASE has already undertaken significant modernization steps, including implementing advanced electronic systems, redesigning its website, and introducing a market development plan in partnership with the European Bank for Reconstruction and Development. Additionally, new tools like the Total Return Index and electronic disclosure systems have been launched, along with smartphone apps to enable real-time market monitoring.
ASE’s performance in 2024 demonstrated positive growth, with the General Index increasing by 2.4% and the Total Return Index rising by 10.3%. Market capitalization reached its highest level since 2015, and foreign investors now hold 47.1% of the market’s total capitalization. Despite these gains, Wathaifi called for further measures to reduce trading costs, encourage investment funds, and foster greater participation from key entities such as banks and the Social Security Investment Fund. Mohammad Balbisi, vice president of the Jordanian Businessmen Association, also advocated for tax reductions on public shareholding companies and capital gains from stock and fund trading to further attract investment to the ASE.