Jordan Strategy Forum: Sustaining economic improvement requires productive investments and an effective partnership with the private sector

In its report, the Forum indicated that since the beginning of the last decade, the Jordanian economy has faced the repercussions of successive regional crises and conflicts that affected shipping, supply chains, and commodity and energy prices, directly impacting productive, commercial, service, tourism, and investment activities due to its openness and connection to regional and international markets.

It added that these pressures are exacerbated by internal challenges, most notably limited resources and fiscal space, high unemployment, and declining purchasing power.

It noted that the World Bank has confirmed that regional conflicts are testing the ability of the Jordanian economy, its sectors, companies, and households to maintain stability, continue activity, and adapt to new conditions.

Regarding economic growth, the Forum explained that the Jordanian economy has continued to achieve gradual improvement in its growth rate over the past two years, rising from 2.5% in the second quarter of 2024 to 2.8% in the second quarter of last year, and then to 3.0% in the second quarter of the current year.

It emphasized that this pace of growth indicates the possibility of the real growth rate approaching 3% for the current year, with higher rates achievable if economic activity continues at this level during the second half of the same year.

It added that the stability of the inflation rate at a moderate level of about 2.2% during the first eight months of 2026 contributes to reducing pressures on purchasing power and business and production costs.

The Forum explained that a group of vital sectors contributed to a significant portion of economic growth, led by the manufacturing sector, which grew by 6.2% and contributed about 33% of the total growth achieved, in addition to the agriculture sector, which grew by 7.8% and contributed about 11.3% of the growth achieved.

It also pointed to a 6% decrease in the trade deficit and an improvement in the export-to-import coverage ratio from 51% to 55% during the first seven months of 2026 compared to the same period in 2025, as a result of a 10.3% increase in the total value of exports to reach about 6.40 billion dinars, compared to an increase not exceeding 2.4% in imports.

Regarding employment, the net job opportunities created during 2025 reached about 96.2 thousand, 91% of which were for Jordanians, the highest historical level of job opportunities created for Jordanians. Conversely, the unemployment rate among Jordanians fell to 21.0% during the second quarter of 2026, compared to 21.3% during the same period in 2025. The number of active social security subscribers also increased by 4.3% to 1.69 million individuals by the end of September 2026.

The Forum also noted an improvement in tourism sector indicators despite regional uncertainty, as the total number of visitors to Jordan rose to 4.97 million during the first eight months of 2026, a growth rate of 2.9% compared to the same period in 2025. Tourism income also maintained its levels, reaching about 3.94 billion dinars during the first half of 2026, compared to 3.83 billion dinars for the same period in 2025.

Remittances from workers to Jordan increased during the first seven months of 2026 by 14.1%, reaching 2.1 billion dinars, noting that these flows provide an important source of household income and foreign currency, supporting domestic demand and the ability to finance imports.

The report indicated a 4.7% increase in licensed areas to reach 5.84 million square meters during the period from January to July 2026, with a 10.7% increase in residential areas, which may indicate a potential improvement in construction activity and related demand, noting that licenses do not necessarily reflect the actual execution of construction works.

In terms of business activities, the expansion of business financing granted to micro, small, and medium enterprises continued, reaching about 3.56 billion dinars by the end of the first half of 2026. The number of newly registered companies also increased by 7.24% to reach 6,046 companies during the first nine months of the current year compared to 5,638 companies during the same period last year, against a 15% decrease in the number of companies whose registration was canceled or struck off, which reinforces the positive image of the business sector.

Meanwhile, development zones witnessed an expansion in investment and employment levels, as their investment balance rose during the first half of 2026 by 18.8% to reach 6.9 billion dinars, thereby increasing the number of workers in them from 117 thousand to about 123 thousand.

The report showed an increase in the balance of foreign direct investment in Jordan, which reached 28.4 billion dinars by the end of the second quarter of 2026, compared to 26.4 billion dinars last year. This indicates the continued presence of an important foreign investment base within the Jordanian economy, which is capable of resilience despite regional uncertainty.

Regarding the financial market, the Forum indicated that listed companies achieved remarkable profit growth during the first half of the current year, reaching 1.20 billion dinars, an increase of 14.3% compared to the first half of last year, noting that this level is the second-highest historical level for first-half profits.

The Forum also praised the performance of the Amman Stock Exchange during the past year, which received the award for the best Arab stock exchange in terms of performance, based on the growth of the weighted index, after the general index rose by 45.1%.

In a related context, the Jordan Investor Confidence Index, issued by the Jordan Strategy Forum, recorded an increase of 21.9% during the second quarter of the current year compared to the first quarter of the same year.

The Forum pointed out that this increase was the result of a 74.3% rise in the confidence index for economic activity during the second quarter of the current year, the highest quarterly level recorded in the past three years.

The Forum noted that the International Monetary Fund's assessment in June 2026 confirmed the continued macroeconomic stability in Jordan despite regional conflict, highlighting the role of foreign currency reserves, the soundness of the banking sector, and Jordan's strong performance in implementing reform programs.

The Forum concluded its report by stating that this improved economic performance provides a foundation for further progress that can be built upon by attracting more foreign and domestic investments in partnership with the private sector, and by working to improve productivity levels and create rewarding job opportunities to enhance the resilience of the economy and businesses and raise living standards.

The Forum also emphasized the importance of the Jordan-Europe Investment Conference, scheduled to be held on November 19, 2026, at the Dead Sea, which represents a strategic opportunity to connect Jordanian projects with European sources of funding, technology, and expertise.