"Iraq's Financial Market" .. a modest indicator of the economy and companies with limited profits

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[size=52]"Iraq's Financial Market" .. a modest indicator of the economy and companies with limited profits[/size]

[size=45]Economists and specialists demanded to expand the work of the Iraqi Stock Exchange, and to attract additional companies to offer their shares to investors, in proportion to the size of the Iraqi economy, especially since the companies listed within the market are estimated at 100, which does not fully reflect the size of the country's economy.[/size]
[size=45]And the Iraq Stock Exchange, located in the capital, Baghdad, and was established in June 2004, and operates under the supervision of the Iraqi Securities Commission, which is an independent body established along the lines of the American Securities and Exchange Commission.[/size]
[size=45]Specialists believe that the Iraqi Stock Exchange - the Iraqi Stock Exchange - is not commensurate with the size of Iraq, the trade balance and the national income, stressing the importance of amending the law of the Securities and Companies Commission to expand the work of the Iraqi financial market.[/size]
[size=45]A member of the Companies Law Writing Committee, Mustafa Hantoush, told Al-Mada that “the Iraqi stock market is not commensurate with the size of Iraq, the trade balance and the national income, as the national income of Iraq reaches 230 trillion, and government spending alone amounts to 127-130 trillion, As for the trade and import balance, it is 50 trillion at least, and it amounts to 60-70 trillion dinars, but the Iraqi stock market has 100 companies, and if the Central Bank had not forced banks, brokerage and financial transfer companies to be included in the stock market, we would not have seen only 20 companies ».[/size]
[size=45]Hantoush added, "This situation came about because of corruption; In 2019, the Companies Law was prepared, a paragraph was drawn up, and it was discussed with legislators and those responsible for registering companies in the Ministry of Commerce to write a new law, stipulating that the company that imports more than one billion must be a joint stock company, and the company that imports more than 10 billion will be A listed joint stock company, and that a company whose capital is more than 12 billion imports or not, must be listed on the stock exchange,” noting that “with this law, the number of companies in the Iraqi Stock Exchange will reach a thousand and more, but due to corruption and corruption in committees. The parliamentarian, who wrote the law, this paragraph was banned and removed from the law.”[/size]
[size=45]He continued, "Now we see that companies import with tens of billions, and they are limited companies, so which company is limited, and it imports 10 and 20 billion a year? Then you see the Iraqi stock market is empty and there are no companies, the weakness of companies led to weak investment, and the lack of companies means the lack of investors and profits.”[/size]
[size=45]The market trades on a daily basis, the number of shares reaching more than one billion shares per day, with different values, sometimes reaching about 4 billion dinars.[/size]
[size=45]For his part, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, believes that “the Iraqi Stock Exchange enjoys a capable and highly efficient technical management in managing market operations, regulating its trading and preserving its property rights, as well as entering the market in the digital age, and establishing the best technical relations.” with global financial markets.[/size]
[size=45]Saleh explained, in a statement to (Al-Mada), that “the main problem and defect is in the institutional structure in the productive activities undertaken by the private sector contributing to that market, as the contribution of these companies whose shares are traded in the market is still low compared to the GDP of Iraq, Or the ratio of the contribution of the activity of listed companies to the total activities of the Iraqi private sector in the GDP itself, which is estimated to be the contribution of the entire private sector so far at about 37% of the national income.[/size]
[size=45]Salih pointed out that «the development of the role of the Iraqi stock market depends primarily on the development of real contributing activities to the gross domestic product, and perhaps the principles of the private sector development strategy, which the private sector is supposed to contribute to the country's GDP in the future, are aware of more than from 50%.[/size]
[size=45]In the period prior to the change of the previous regime in 2003, the current market was called the “Baghdad Stock Exchange”, which was managed by the Iraqi Ministry of Finance, but now it is a self-regulatory body, and as of 2005 the Iraq Stock Exchange became the only stock exchange in Iraq.[/size]
[size=45]When it opened in 2004, there were only 15 companies listed in the market, but now 103 Iraqi joint stock companies are listed, representing sectors; Banking, telecommunications, industry, agriculture, insurance, financial investment, tourism and hotels.[/size]
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