The New Significance of “Companies”

The number of companies registered in Jordan during the first nine months of this year carries important economic implications. It shows a rise in new companies and reveals something about investment activity and the private sector’s confidence in the economy’s ability to continue and grow, despite regional circumstances and the pressures surrounding the national economy.

The number of registered companies rose to 6,046, compared with 5,638 in the same period last year, a growth rate of 7.24%. This is a positive indicator of continued economic activity and an expanding private-sector base. The increase came alongside a 15% drop in the number of companies whose registration was dissolved or struck off, from 899 to 764, and a drop of about 50% in dissolutions and strike-offs within the same year of registration.

The rise in registrations despite the war can be explained by the uneven impact on different sectors and by the continued availability of sales and returns. The economy grew by 3% in the second quarter of 2026, and national exports rose by 4.6% during the first seven months. Continued demand for output creates opportunities to establish businesses despite regional risks.

These opportunities are supported by relative price stability and easier incorporation. Inflation stood at 2.2% over the first eight months, a moderate rate that supports financial planning. In January 2026, the Companies Control Department announced that registration time had fallen to under an hour, and the reduced time and procedural cost make it easier for new companies to enter the market.

These figures point to fewer legal exits by companies, though judging their ability to survive requires data on their actual activity. The sustainability of companies means the sustainability of investment, jobs, tax revenues, and activity in related sectors.

On capital, the registered capital of new companies exceeded JD 201 million. Capital increases reached about JD 1 billion for the second year in a row, roughly JD 48 million more than the previous year. This signals movement in private capital, although one should be careful not to treat registered capital as fully realized investment. Its economic impact depends on how much of it turns into projects, production, and employment.

The data also show the continued dominance of limited liability companies, which made up about 77% of registered companies. This reflects how common this legal form is for setting up businesses, though it does not by itself determine a company’s size or activity.

The results still depend on actual performance. A rise in company numbers does not automatically mean higher economic growth or employment unless these companies become productive institutions able to expand, export, and create jobs. The fall in the number of companies that raised their capital, from 1,300 to 990, also calls for a deeper look at the ability of existing companies to expand.

Economically, the most important message of these figures is that the private sector is still moving and investing despite uncertainty. What is needed now is a shift from encouraging company registration to building an environment that helps companies survive and grow, through financing, lower costs of doing business, wider markets, and incentives for productive investment.

The economic value of a new company is realized when it becomes a productive enterprise, a source of jobs, exports, and added value, and a contributor to sustainable economic growth.