Economic requirements for the growth of the capital market in Iraq

Economic requirements for the growth of the capital market in Iraq



06/15/2017 12:00

Taha Ahmed Abdul Salam
According to the data and indicators of the Iraqi economy, the capital market growth rates are weak for many reasons, the most important of the poor performance of joint stock companies in various economic sectors indicators and weak innovation of new means of encouraging the recruitment of national and foreign savings in new investment opportunities in direct investment and indirect. In an analytical review should move the savings and direct them towards investing in more than one area of ​​factors, the article will focus here on the classification of growth factors according to their environment. Should target growth, encourage the establishment of contribution to the sectors that need goods and services companies factors that are imported from abroad to stimulate the private sector in contributing to the construction of capital formation of the economy and increasing the contribution to GDP ratio. This course requires indicators and data should be disclosed periodically to the planning aspects of investment
And trends. It should also target growth to stimulate the Iraqi market for securities factors through several factors , the most important to stop the increase of capital operations through underwriting and trend - to - earnings and reserves are capitalized as a source of capital increase required especially from the banking companies, and follow - up to the operational performance of the companies by the power of capital in order to cash dividend to shareholders as an indicator of performance when the preferential participation in the currency window for banks or in the granting of contracts with the public sector for other companies to contribute. The launch of government bonds for trading in the financial market as a source of government funding for projects or to repay government debt and the lack of Aktnazha in the banks as it is considered one of the economy moving and move the multiplier factors of investment by operators in the projects
common.
Derives its economic vision and growth factors on the depth of the market and the rate of stock turnover and the rate of lending and borrowing securities and selling on margin and build houses money licensed will finance short investment operations term and then build a long - term investment by attracting national and foreign funds and invested in new securities.
And it will remain slack in the capital market and not to invent any new investment means existed under the acceptance of the size and the level of investment and trading as it is and will remain the market depth of the subject securities size and type in the Iraqi economy , which has not changed since more than ten
years. With regard to the Iraq Stock Exchange indices, the its target size will not exceed the prevailing borders unless achieved new factors to move and expand the base depth of the market which we mean the importance of diversification of securities, the guarantor of the bank 's activities began Alhaaft secretary to attract new investments in non - traditional, allowing lending and borrowing securities and selling
margin.
Support for financial investment companies, open brokerage firms in the provinces and increasing the volume of securities dealers and obliging joint stock companies to develop their performance and the distribution of profits and eliminate the problems levels , especially in the industrial sector of mixed companies that exceeded the equity decline established in the Companies Law of the border. Executive Director , " the Iraqi market for securities"

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