Baghdad – The Iraq stock market decline reached alarming levels during the first half of 2025, experts reported on Sunday. The Iraq Future Foundation for Economic Studies and Consultations revealed that monthly trading volumes fell drastically compared to last year.
Manar Al-Obaidi, head of the foundation, stated that monthly trading values dropped from an average of 53 billion dinars ($36 million) in early 2024 to just 32 billion dinars ($21.7 million) during the same period in 2025. This represents a 38% reduction. The lowest point occurred in June 2025, with only 22 billion dinars ($14.9 million) traded—the weakest monthly volume in two years.
Al-Obaidi explained that the Iraq stock market decline is mainly due to concentrated activity in five companies out of 104 listed on the Iraq Stock Exchange. These five companies alone accounted for more than 85% of total trading volumes. In addition, foreign investors have significantly withdrawn, despite the market’s accessibility and potential to attract international capital.
He highlighted the urgent need for regulatory reforms. Authorities should strengthen compliance, improve transparency, and implement marketing campaigns. These steps could increase trading activity, encourage broader company participation, and support the listing of new firms.
Al-Obaidi also emphasized that the current contraction reflects a broader loss of confidence in the stock market, beyond the banking sector. Several listed companies report strong financial results, yet investor participation remains weak. Conversely, forex trading platforms continue to grow, attracting young Iraqis despite lacking legal regulation. These platforms pose risks of potential investor losses.
Experts argue that modern technologies, especially artificial intelligence, can improve transparency and regulatory compliance. Al-Obaidi stressed that public awareness campaigns about the benefits of stock market investment could rebuild trust.
He concluded that listing major strategic firms—including state-owned banks, public insurance companies, Iraqi Airways, and profitable enterprises tied to the Ministries of Communications, Oil, and Industry—would increase market appeal. Encouraging private companies to convert into public shareholding firms before listing could further diversify and deepen the market.
Reforming trading mechanisms will not only strengthen local investor confidence but also attract foreign investment. Most importantly, it may prevent small investors from moving to unregulated platforms that threaten their capital. The Iraq stock market decline underscores the urgent need for these reforms to stabilize and grow Iraq’s financial sector.
