Between January and August 2023, Arab investments in the Amman Stock Exchange (ASE) reached a total of JD5.564 billion, making up 32.3 percent of the market’s total value.Statistical data from the Jordan News Agency (Petra) revealed that during this period, there were 35,927 Arab investments and 1.888 billion securities, which accounted for 24.9 percent of all securities listed on the stock exchange.Investments from Arab countries in the ASE were mainly focused on the banking sector, accounting for 46.6% of the total investment value in this sector. These investments amounted to JD3.530 billion and involved a total of 1.268 billion securities by the end of August.Based on the available data, it appears that the industrial sector had a contribution rate of 25.8 percent and a value of JD1.670 billion, which translates to 7.238 million securities, placing it second.Following this, the services sector secured third place with a rate of 5.8 percent, a total value of JD289 million, and 6.312 million securities.
Finally, the insurance sector came in last with a rate of 27 percent, a value of around JD74 million, and 68 million securities.Furthermore, foreign investments in the ASE totaled approximately JD8.7 billion during the same timeframe, which accounted for 47.4% of the total market value. Investment legal institutions, including companies, institutions, and funds, accounted for 36.2%.Investments can take the form of direct investments or be directed towards the national capital market, which includes not only the stock market but also sectors such as banking, insurance, mortgage, financial leasing, and non-banking financial institutions.Investing indirectly in foreign markets can boost the liquidity and depth of stock markets. This type of investment usually comes from institutional investors who make decisions based on sound scientific research and focus on long-term gains. This approach can expedite decision-making and implementation in this type of investment.Financial market expert Wajdi Makhamreh told Petr
a that Arab investments play a crucial role in supporting Amman’s financial market. He emphasized the importance of attracting more Arab investments, as most come from well-established and strategic companies.He mentioned that Jordan focuses on large-scale strategic projects as part of its economic modernization vision. These projects will help the stock exchange increase its liquidity and attract institutional investments from both Arab and foreign sources by establishing public joint-stock companies to oversee the national carrier project, railway project, untapped resource projects, and copper and uranium projects.Makhamreh emphasized the importance of welcoming Arab investment into the ASE by encouraging their participation in existing companies, merging with other companies, or establishing new giant companies that emulate Arab investment. These investments mainly originate from sovereign institutions and funds, which focus on large-scale investments.The financial markets have a crucial role in driving e
conomic growth and enhancing a nation’s reputation. They reflect the state of the economy, making it essential to remove any obstacles that hinder the financial market’s ability to attract Arab investments and provide opportunities for growth.A stable political and economic environment is crucial in attracting investments. When the economy is stable, growth rates are higher and unemployment is lower, indicating a strong economy. Investing in institutions listed on the financial market during these times can result in profitable returns for investors.Having good governance in official institutions, avoiding bureaucracy, and achieving administrative goals as outlined in the modernization plan are all factors that can boost investment. An advanced banking sector that caters to the needs of investors and allows for smooth and hassle-free transfer of funds is also a crucial element.

Source: Jordan News Agency