FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2009
AMMAN STOCK EXCHANGE
ECONOMIC AND POLITICAL DEVELOPMENTS
Economic and Political Environment
King Abdullah II upon ascending to the
throne following his father's death in 1999,
has provided re-energized economic
leadership. King Abdullah, II bin Al-Hussein
has proven to be a steadfast proponent of
an invigorated program of economic reforms
that includes privatization, structural and
procedural changes that attract foreign
investment and enable foreign debt
restructuring and reduction. He also believes
that efforts should be continued to build a
modern Jordan that provides its men and
women with opportunities for a decent life
and ensures that the gains of development
are distributed equally among the people.
Economic Performance
The real GDP growth reached 5.6% by the
end of 2008 compared to 2007. This growth
was driven mainly by the surge in the activity
of the Finance, Insurance, Business Owners
and Real Estate Sector, and the Transport,
Storage and Communications Sector. By the
end of 2008, exports reached US$7.8 billion
and imports reached US$16.9 billion. Jordan
conducts its monetary policy with a fixed peg
to the U.S. dollar and believes that its trade
performance indicates that the policy still
provides for good international
competitiveness of its exports. In the past
few years, it has also resulted in virtual
stability in the price level with inflation as
measured by both the GDP deflator and the
CPI. Meanwhile, The inflation rate at the end
of the year 2008 was 14.9% the main
commodities and services that contributed to
this increase were fuels and electricity, and
transportation. As for the fiscal policy
performance, re-estimated figures indicate
an increase of 25.2% in total revenues and
grants for the year as compared to the year
2007, and a rise of 26.5% in total
expenditures, putting the fiscal deficit at 6.2%
of the GDP.
King Abdullah belongs to a new generation
of Arab leaders. The king's political agenda
has been focused on economic revival,
greater political openness, social justice and
equality, in order to clearly place Jordan
actively on the regional and international
map.
Jordan's main export commodities are
pharmaceutical products, crude phosphates,
crude potash, fertilizers, textiles and
vegetables. Its main imports include crude
oil, iron and its products, machinery and
electrical appliances, vehicles, motorcycles
and cereals. By the end of 2008, exports
(exports and re-exports) grew by 35.9%, and
imports increased by 23.2%. Foreign direct
investment (FDI) has been increased steadily
in recent years, by the end of 2008, it
reached US$2.0 billion, the same level as for
2007. Jordan's gross foreign reserves have
been rising steadily over the past several
years, at the end of the year 2008, these
reserves stood at US$7.8 billion.
Privatization has moved along quite well. The
centerpiece of the program was the sale of a
large portion of the government ownership in
Jordan Cement factories to Financiere
Lafarge, and selling most of the government
ownership in Jordan Telecom to France
Telecom, Social Security Corporation and to
some institutional investors. Also the
government sold 37% of its stake in the
Jordan Phosphate Mines, 26% of Arab
Potash Company and sold 80% of the Royal
Jordanian Investment. Recently, the
government sold 74% of its stake in Royal
Jordanian through an IPO to public and to
some institutional investors. Many projects
are in the pipeline such as Jordan Post
Company, Jordan Mills Company, and
Jordan Agricultural Marketing and
Processing Company. Furthermore, many
privatization actions are taking place in the
field of aviation, power, transportation, and
mining.*
* Information as provided by the Amman Stock Exchange
Key Information Contacts
Jordan Securities Commission www.jsc.gov.jo
Securities Depository Center www.sdc.com.jo
Jordan Investment Board www.jordaninvestment.com
Arab Monetary Fund www.amf.org.ae
Ministry of Finance www.mof.gov.jo
Central Bank of Jordan (CBJ) www.cbj.gov.jo
National Information Center www.nic.gov.jo
Department of Statistics www.dos.gov.jo
2008-CONTRIBUTION OF MAJOR SECTORS IN THE GDP* (%)
Finance,Insurance, Real Estate And Business Services
Producers of government services
Manufacturing
Net taxes on products
Transport, storage & communications
Construction
GROWTH OF INVESTMENT AND GDP (%)
GDI
Wholesale & retail trade, restaurants & hotels
Community, social and personal services
16.8
Others
GDP
50
40
30
18.3
14.8
20
10
5.0
3.9
0
13.5
-10
4.5
-20
10.5
PAGE 28
12.8
* up to September 2008
98
99
00
01
02
03
04
05
06
07
08