Digital Investment - Jordan

Jordan

Highlights

Total transaction value in the Digital Investment market is projected to reach US$590.20m in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 6.38% resulting in a projected total amount of US$804.20m by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$590.20m in 2024.
The highest cumulated transaction value is reached United States (US$1.78tn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Digital Investment market in Jordan is experiencing significant growth and development, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Jordan, customers are increasingly embracing digital investment platforms due to their convenience, accessibility, and cost-effectiveness. With the rise of smartphones and internet penetration, investors are now able to access investment opportunities and manage their portfolios online. This shift in customer preferences towards digital investment platforms is also influenced by the younger generation's tech-savviness and desire for more control over their investments.

Trends in the market: One of the key trends in the digital investment market in Jordan is the emergence of robo-advisory services. These automated investment platforms use algorithms to provide personalized investment advice and manage portfolios on behalf of investors. Robo-advisors offer lower fees compared to traditional financial advisors, making them an attractive option for cost-conscious investors. The increasing popularity of robo-advisory services is also driven by the growing trust in technology and data-driven investment strategies. Another trend in the market is the integration of social and community features into digital investment platforms. Investors in Jordan are increasingly seeking opportunities to connect and share knowledge with like-minded individuals. Digital investment platforms that offer social features such as forums, chat groups, and investment clubs are gaining traction among investors who value peer-to-peer interactions and collective intelligence.

Local special circumstances: Jordan has a relatively young population, with a high percentage of tech-savvy individuals. This demographic profile creates a conducive environment for the growth of the digital investment market. The government of Jordan has also been actively promoting digital transformation and innovation in the financial sector, providing support and incentives for fintech startups and digital investment platforms. These initiatives have helped create a favorable ecosystem for the development of the digital investment market in the country.

Underlying macroeconomic factors: The stability of the Jordanian economy and the growth of the financial sector are important macroeconomic factors driving the development of the digital investment market. Jordan has a well-regulated financial system and a strong banking sector, which provides a solid foundation for digital investment platforms to operate and thrive. Additionally, the increasing disposable income and financial literacy among Jordanians contribute to the demand for digital investment services. In conclusion, the digital investment market in Jordan is experiencing significant growth and development due to customer preferences for convenience and accessibility, the emergence of robo-advisory services, the integration of social features, local special circumstances such as a young population and government support, and underlying macroeconomic factors such as the stability of the economy and the growth of the financial sector. This trend is expected to continue as more investors in Jordan embrace digital investment platforms for their investment needs.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.