Amman — Jordan’s Investor Confidence Index recorded a notable increase during the second quarter of this year, rising by 21.9% to 186.6 points, compared with 153.1 points in the first quarter. The development reflects improved investor assessments of the performance of the national economy and expectations for economic activity, amid regional challenges and continued global uncertainty.
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Economists said the increase reflects an improvement in the investment climate and investors’ confidence in the Jordanian economy’s ability to maintain stability and enhance its attractiveness, particularly as it coincided with GDP growth, higher foreign direct investment inflows, improved performance on the Amman Stock Exchange, growth in national exports and a narrowing trade deficit.
They told Al-Ghad that the significance of the improvement extends beyond the rise in the index itself, as it could support investment decisions, encourage expansion of existing projects, attract new investments, create jobs, and strengthen production and exports.
Experts stressed that capitalizing on the improvement requires building on positive indicators by accelerating the implementation of economic projects, continuing legislative and procedural reforms, reducing production and operating costs, and removing obstacles facing the private sector. Such measures would help turn rising confidence into actual investment and sustainable economic activity.
Economic Activity Drives Confidence Higher
The Jordan Strategy Forum reported that the Jordanian Investor Confidence Index rose by 21.9% in the second quarter of 2026 to 186.6 points, compared with 153.1 points in the first quarter.
The increase was driven primarily by a sharp rise in the confidence-in-economic-activity index, which climbed 74.3% to 200 points, compared with 114.7 points in the first quarter. This marked its highest quarterly level in the past three years.
Meanwhile, the confidence-in-monetary-system index fell to 161.4 points from 182.8 points in the first quarter, while the confidence-in-financial-system index declined to 185 points from 200 points over the same period.
These movements reflect differing performances among the sub-indices, with the overall rise in investor confidence driven by a significant improvement in assessments of economic activity despite declines in confidence in the monetary and financial systems.
On financial markets, the Amman Stock Exchange index rose by 305 points to 7,517 points in the second quarter, compared with 7,212 points in the first quarter, providing another indication of improved market performance during the period.
This coincided with real GDP growth of 3% in the second quarter of this year, while foreign direct investment inflows reached around JD458 million, the second-highest quarterly level recorded over the past three years, according to data presented by the forum.
The Jordanian Investor Confidence Index is a quarterly indicator measuring confidence in the national economy. It is based on three sub-indices covering confidence in economic activity, the monetary system and the financial system.
According to the forum, the index reflects efforts to increase investment in Jordan and develop the business environment in ways that support economic growth and improve citizens’ living standards.
Salah Al-Din Al-Bitar, a board member of the Jordanian Businessmen Association, said the 21.9% increase in the Investor Confidence Index during the second quarter reflects improved investor perceptions of the national economy and confirms its ability to maintain stability and strengthen its investment appeal despite regional challenges.
Al-Bitar said the importance of the increase lies in its indication of improved investor expectations and confidence in the national economy’s ability to respond to changing circumstances. He noted that growing confidence is an important factor in supporting investment decisions, expanding existing projects and attracting new investments.
He added that the results are particularly significant given current regional conditions, as they demonstrate the Jordanian economy’s ability to adapt to external developments while benefiting from economic and financial stability, as well as Jordan’s strategic location and investment opportunities across multiple sectors.
He said continued improvement in confidence could positively affect economic activity by increasing investment, expanding existing projects, creating jobs, and strengthening production and exports.
Al-Bitar stressed that the main challenge is to translate confidence into actual investments and sustainable productive projects. Maintaining the positive trend, he said, requires continued development of legislation and procedures, simplifying business requirements, reducing costs and strengthening public-private partnerships.
He called for intensifying promotion of available investment opportunities in Jordan, targeting investors in regional and international markets, and directing investment toward productive, high-value-added sectors that can support economic growth and employment. He stressed that continued economic reforms and improvements to the business environment are essential to capitalizing on the rise in investor confidence and turning it into sustainable economic growth.
The Real Test Is Turning Confidence Into Investment
Economic expert Mohammad Al-Hadab Al-Sarhan said the significant rise in Jordan’s Investor Confidence Index carries added importance because it occurred during a period marked by regional tensions and global uncertainty.
He said the most prominent increase was the 74.3% rise in the confidence-in-economic-activity index to 200 points, its highest quarterly level in three years. This reflects a clear improvement in investors’ assessment of the direction of economic activity rather than a limited improvement in a single financial indicator.
Al-Sarhan explained that the strength of the result is linked to its coincidence with improvements in several economic indicators, including economic growth, investment inflows, exports, the performance of the Amman Stock Exchange and a decline in the trade deficit.
He added that the movement of several indicators in the same positive direction gives the rise in confidence a stronger economic foundation and increases the likelihood that it will influence investors’ decisions.
Improved confidence, he said, can affect economic activity by encouraging investors to expand existing projects or enter new investments, particularly when it is accompanied by stable growth, improved financial indicators, continued investment inflows and rising valuations of domestic assets.
However, Al-Sarhan stressed that assessing developments in the investment environment requires sustained improvement over several consecutive quarters and should be linked to practical indicators, including the number of new projects, the scale of reinvestment by existing companies, jobs created by investments, and growth in exports and productivity.
He stressed that the rise in the index should be treated as an opportunity to be capitalized on rather than an end result in itself. He called for accelerating the implementation of projects that are ready to proceed, following up with investors who have previously expressed interest in the Jordanian market, and turning the improvement in investment sentiment into capital and productive projects within the national economy.
He also called for reducing the costs of doing business and strengthening the ability of relevant institutions to address problems facing projects during implementation, thereby narrowing the gap between announcing investment opportunities and their actual realization.
Monetary Stability and Major Projects Support Positive Indicators
Economic expert Munir Diah attributed the significant improvement in Jordan’s Investor Confidence Index to a number of positive factors and indicators that supported the national economy during the second quarter of this year.
He said these factors include economic growth, higher foreign investment inflows, an increase of more than 70% in confidence in economic activity, as well as growth of more than 14% in national exports and an increase in workers’ remittances from abroad.
He explained that these indicators carry added significance given the geopolitical challenges and regional conditions, noting that the Jordanian economy has managed to maintain its momentum despite the difficult external environment.
Diah attributed part of the improvement to the monetary policies pursued by the Central Bank of Jordan, which, in his assessment, have contributed to maintaining the stability of the Jordanian dinar’s exchange rate, alongside bank deposits exceeding JD50 billion and continued stability in banking activity.
He also noted that the implementation of Economic Modernization Vision programs and the launch and commencement of major economic projects, including infrastructure, transport, energy and water projects, have helped stimulate the economy and strengthen confidence in macroeconomic indicators.
Diah stressed that maintaining the positive momentum requires implementing programs, plans and projects according to their established timelines, alongside government decisions suited to the requirements of the current stage, particularly in encouraging investment, removing obstacles facing investors, reducing the costs of doing business and maintaining stable inflation rates.
He expected continued implementation of major projects and attraction of investments to generate further positive macroeconomic results that would gradually benefit the labor market, incomes and living standards through the creation of new jobs, increased economic activity and improved services.
He stressed that maintaining this trajectory requires continuous government follow-up to ensure projects are implemented on schedule, completion of legislative and procedural reforms, lower production costs and removal of obstacles facing the private sector.
From Confidence to Investment: The Next Challenge
The second-quarter results reflect a notable improvement in investor confidence, driven primarily by the sharp rise in confidence in economic activity, alongside a range of positive indicators related to growth, investment, financial markets and foreign trade.
However, sustaining this improvement will depend on the national economy’s ability to turn positive expectations into continued investment inflows and new productive projects that contribute to employment, productivity and exports.
In this context, accelerating economic projects, improving the efficiency of government procedures, reducing production and operating costs, and providing a more flexible environment for the private sector are increasingly important. Investment should also be directed toward sectors capable of generating added value and sustainable employment opportunities.
The significance of the rise in the Investor Confidence Index, therefore, lies not only in reaching 186.6 points, but in the ability of economic policies to build on this confidence and translate it into tangible investment activity that expands Jordan’s productive base and strengthens its ability to withstand regional and global challenges.
Source: Al-Ghad
