Jordan Banking & Financial Services Q3 2019
With no major changes to our forecasts this quarter we remain broadly positive in our view on the Jordanian banking andfinancial services market. With economic growth forecast to accelerate across the first three years of our five-year forecast period -building on the resilience it has shown to the volatility which has negatively affected other economies within the region - wecontinue to see asset growth and client loan growth in the banking sector continuing to accelerate at a consistent rate through to2023. Well-capitalised and with bad loans in decline, the sector is well insulated from any further headwinds. Furthermore,the Central Bank of Jordan's (CBJ) shift to a more neutral stance of Monetary tightening comes as a most to credit demand. Theoutlook for the country's underdeveloped insurance market is less bullish. While our forecasts for gross premiums remain positive,we caution that there is significantly more downside risk to our outlook based around the fragmentation of the competitivelandscape in both major segments and large numbers of low income households. In the capital markets arena, while the AmmanStock Exchange (ASE) does not represent a leading player in the MENA region or globally, we highlight that efforts to grow Jordan’scapital market that is compatible with Islamic sharia offers plenty of upside for growth going forward following the first Islamic suckcompleted on the ASE in Q418.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook