Amman, April 4 (Petra) – The Amman Stock Exchange saw a notable improvement in the performance of publicly traded companies in 2025, with total net profit after tax rising approximately 12.9 percent to JD2.35 billion from about JD2.08 billion in 2024, according to an analysis by the Jordan news agency (Petra).

Pretax profit also increased to JD3.27 billion from JD2.98 billion, reflecting genuine growth in operating activity rather than merely a tax effect. The development points to an overall improvement in operating efficiency across several sectors, although performance continues to vary markedly between consumer, cyclical, and strategic sectors, indicating an economy in a phase of recovery and sustained growth.

The banking sector continued to play a pivotal role in boosting the Jordanian market’s profitability, with bank profits rising from about JD1.17 billion to approximately JD1.26 billion. This moderate growth reflects a stable operating environment and improved financing margins due to higher interest rates, which helped boost returns on deposits and loans. However, the relatively limited growth suggests the sector has reached a stage of maturity where high growth rates are less common, while credit risks remain under control, making banks a key player in supporting the country’s financial and economic stability.

The insurance sector showed positive performance, with profits rising from JD26.2 million to more than JD39.2 million. This improvement reflects the ability of insurance companies to enhance underwriting results and manage claims more effectively, although some volatility persists in the performance of individual firms, indicating that the sector is still in a phase of internal restructuring aimed at boosting operational efficiency and profitability. Further improvement is possible if demand for insurance products continues to grow, accompanied by amendments to sector legislation currently going through the legislative process.

The diversified financial services sector recorded a strong rise in performance, with net profit increasing from JD15.2 million to about JD27.7 million. This resulted from improved activity in financial markets and increased investment and asset management operations, as well as some companies benefiting from the revaluation of their investments. This growth reflects the sector’s ability to adapt to market changes and turn investment risks into profits, highlighting its importance in enhancing market liquidity and supporting investment activity in Jordan.

In the real estate sector, performance swung from losses in 2024 to strong profits exceeding JD4.4 million, driven by higher demand for property projects, improved asset revaluation operations, and a partial improvement in the financing environment. However, the improvement remains relatively fragile because part of the profits depends on non-operating items, raising questions about the sustainability of growth in this sector over the long term, particularly given fluctuations in local demand and mortgage financing rates.

In the health services sector, companies recorded notable profit growth from about JD1.49 million to approximately JD2.2 million, supported by sustained increases in demand for medical services, expanded capacity at hospitals and health centers, and improved operational efficiency. Similarly, the education sector saw profits rise from about JD20.5 million to more than JD30.1 million, driven by higher student numbers, increased tuition fees and better utilization of capacity at private schools and universities. This performance indicates that the health and education sectors are relatively stable and attractive for investment over the medium term, particularly as local and regional demand for quality services continues to grow.

The hotels and tourism sector saw a tangible improvement, with losses narrowing and some companies turning to profitability, bringing the sector total to about JD298,000 after having suffered significant losses. This improvement reflects a gradual recovery in tourism activity following the impact of the coronavirus pandemic and previous regional disruptions, although tourism activity remains sensitive to geopolitical fluctuations, fuel prices and volatile demand for domestic and international travel.

The transport sector saw exceptional growth, with profits rising from about JD4.8 million to more than JD9.4 million, supported by improved demand for transport and tourism services and better operational efficiency at some companies. This points to a phase of relative expansion and stability in this vital sector, which is directly linked to improved economic and tourism activity in Jordan.

The industrial sector, particularly extractive and mining industries, continued its strong performance, with profits rising from about JD641 million to more than JD764 million, supported by higher global prices for phosphates and potash, making this sector one of the main drivers of economic growth. By contrast, the food and beverage sector saw a sharp decline in profits due to rising production costs and a limited ability to pass on prices to consumers, reflecting real inflationary pressures on this key consumer sector.

The pharmaceuticals and medical industries sector recorded good growth, with profits rising from about JD7.5 million to JD9.8 million, driven by increased regional demand and improved exports, while the commercial services sector remained relatively stable with a slight decline in profits, reflecting a slowdown in local commercial activity.

The technology and telecommunications sector maintained relative stability with very marginal growth, reflecting local market saturation and high competition, while the energy and utilities sector saw a limited improvement in profits from JD120.7 million to JD126.1 million, with continued pressure from operating costs and fuel price volatility.

The performance analysis shows that growth in 2025 was driven primarily by operating activities, with relative stability in the tax burden across most sectors, although its intensity varied clearly from one sector to another. This situation reflects a Jordanian economy in a phase of gradual recovery, relying on major sectors such as banking and mining, with a gradual recovery in cyclical sectors such as tourism, transport and real estate, while some consumer sectors remain under clear economic pressure due to rising costs and inflationary challenges.

The kingdom’s real gross domestic product grew by 3 percent in the last quarter of 2025 compared with 2.6 percent in the final quarter of 2024, despite the effects of the war in Gaza and the Iranian-Israeli confrontation in 2025.

Inward foreign direct investment flows to the kingdom also grew by 25.1 percent in 2025, reaching $2.024 billion compared with $1.618 billion in 2024, the highest level for such flows since 2017, an indicator that reflects growing investor confidence in the national economy, the soundness of economic policies, and the attractiveness of the kingdom’s investment environment.

//Petra// AF