The Iraq Stock Exchange is the market through which shares of Iraqi joint-stock companies and other securities are traded, in accordance with specific regulations and instructions. The exchange gives companies access to investors as a way of obtaining financing, while in turn giving investors the opportunity to invest in listed companies and benefit from their growth and financial performance.
When you buy a share in a listed company, you own a stake in that company, and the value of your investment becomes tied to the performance of the stock and the company. Returns can come either from a rise in the share price or from dividends that the company may decide to distribute to its shareholders.
The Origin and Development of the Market
The first law regulating the trading of stocks and bonds in Iraq dates back to 1939, and trading gradually expanded until the number of traded companies reached around forty. At the time, the market was known as the “Baghdad Stock Exchange” and was run directly by the Iraqi Ministry of Finance.
After 2003, the market’s name changed to the Iraq Stock Exchange, and it officially opened in June 2004 with only fifteen listed companies. Since 2005, this market has been the sole representative exchange in Iraq, and it transitioned from direct government management to a self-regulatory body, similar to global exchanges such as the New York Stock Exchange — meaning the market itself, through its member brokerage firms, handles the organization of its daily operations within a framework overseen by an independent regulatory authority.
The Regulatory Bodies Overseeing the Market
The Iraq Stock Exchange operates within a regulatory system made up of three main bodies:
The Iraqi Securities Commission: The senior government regulatory authority over the market, established under Law No. 74 of 2004, enjoying financial and administrative independence, and governed by a board of five commissioners. The Commission is responsible for setting the rules and instructions governing the securities markets and the depository center, granting operating licenses to brokerage firms, approving the listing of companies and their securities for trading, and overseeing everyone’s compliance with the Securities Law.
The Iraq Stock Exchange itself: Responsible for managing daily trading sessions, maintaining their orderly conduct, and suspending or canceling any trade that violates the law or the Commission’s instructions.
The Iraqi Securities Depository Center: The body responsible for electronically registering share ownership in the name of each investor, and settling trades and transferring ownership after every sale or purchase transaction.
As for the execution of buy and sell orders themselves, this is not carried out directly by the investor, but rather through a licensed brokerage firm accredited by both the market and the Commission, which alone is legally authorized to execute orders on behalf of its clients.
Trading Hours
The market operates five days a week, Sunday through Thursday, according to the following schedule for each trading session:
Pre-Opening session: From 9:30 a.m. to 10:00 a.m., during which buy and sell orders are entered without actual execution, in preparation for determining the opening price.
Main trading session: From 10:00 a.m. to 1:00 p.m., the period during which most buy and sell transactions are executed.
Extended session for special deals: From 1:00 p.m. to 1:30 p.m., allocated for large trades or deals agreed upon in advance between two parties.
Listed Companies and Sectors
The Iraq Stock Exchange today includes more than one hundred listed companies, with the number continuing to grow with each new listing. These companies are spread across the following sectors:
Banking
Telecommunications
Insurance
Industry
Hotels and Tourism
Agriculture
Services
Investment, which includes the financial brokerage firms themselves that are listed on the market
This sectoral diversity gives investors multiple options for building a balanced portfolio instead of concentrating on a single sector.