Economist: Decline in stock markets and banks portends a crisis of confidence in the Iraqi economy.

[RJG]

economy Today, 10:04 | 239

 

 

Economist: Decline in stock markets and banks portends a crisis of confidence in the Iraqi economy.

 

Baghdad Today - Baghdad

Economic expert Munar Al-Abidi confirmed, on Sunday (August 31, 2025), in an in-depth analysis of the Iraqi economic situation, that the decline in the stock markets and banks portends a crisis of confidence in the Iraqi economy. 

Al-Obaidi said in a post on his Facebook account, followed by Baghdad Today, that "countries usually rely on withdrawing the monetary mass to their financial institutions through two main sectors: the banking sector and the stock market sector. In the banking sector, investment is less risky but also less profitable, while the stock market sector is characterized by higher levels of risk but offers opportunities for large profits."

He added, "Although the focus has always been on banks' ability to attract deposits, 2025 saw a decline in this regard," noting that "private sector deposits in banks decreased by 7% compared to the previous year."

Al-Obaidi pointed out that "the Iraq Stock Exchange experienced one of its worst declines in monthly trading volume during the first half of 2025. Trading value fell from an average of 53 billion dinars per month in the first half of 2024 to an average of only 32 billion dinars per month in the first half of 2025, a decline of 38%. The decline peaked in June 2025, when the market recorded its lowest trading volume in the past two years, at just 22 billion dinars." 

He pointed out that "the most prominent problem in the market lies in the concentration of trading in the hands of just five companies out of 104 listed companies, as these companies account for more than 85% of the total trading volume. This is compounded by the clear withdrawal of foreign investors from the market, despite the fact that this market was supposed to be a major gateway for attracting foreign investment due to its ease of access and ease of trading."

Al-Obaidi stressed that "the decline in trading volume, coupled with the withdrawal of foreign investors, necessitates a comprehensive regulatory review, including strengthening compliance and transparency standards, and launching marketing plans aimed not only at increasing trading volume, but also at expanding the contribution of other companies from various sectors and encouraging the listing of new companies." He noted that "this contraction reflects a loss of confidence, not only in the banking sector, but also in the stock market itself, despite the fact that many listed companies achieved strong financial results that could have attracted various investors."

Al-Obaidi explained that "the current situation requires swift action by the responsible authorities, by aligning the market with global markets and introducing modern technologies, most notably artificial intelligence, to enhance transparency and compliance with competition laws, in addition to extensive marketing campaigns that help educate Iraqi citizens about the importance of investing in the Iraq Stock Exchange."

He concluded by saying, "Listing major strategic companies such as government banks, general insurance companies, Iraqi Airways, and profitable companies affiliated with the Ministries of Communications, Oil, and Industry will enhance the market's attractiveness and consolidate a trading culture. Likewise, encouraging the private sector to transform into public joint-stock companies in preparation for listing will increase the market's depth and diversity." He indicated that "reforming market mechanisms not only contributes to building the confidence of local Iraqi investors, but also opens the door to foreign investment and protects small investors from being drawn to unregulated platforms that could expose them to loss."

https://baghdadtoday.news/282165-.html

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8 hours ago, RJG said:

"the current situation requires swift action by the responsible authorities, by aligning the market with global markets and introducing modern technologies, most notably artificial intelligence, to enhance transparency and compliance with competition laws, in addition to extensive marketing campaigns that help educate Iraqi citizens about the importance of investing in the Iraq Stock Exchange."

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they need to flick the switch!

[horsesoldier]

Another manufactured EPIC CRISIS in the making...