Iraq stock market decline marked one of the toughest periods in recent years. A new report showed that trading activity dropped sharply during the first half of 2025. The Iraq Future Foundation revealed that the exchange faced a 38 percent decrease in monthly trading volume compared to the same period last year.
The study, prepared by expert Manar Al-Obaidi, highlighted serious challenges. Average monthly trading value fell from 53 billion dinars in early 2024 to 32 billion dinars this year. The situation reached its lowest point in June, when volume dropped to only 22 billion dinars. Analysts pointed out that these figures reflected weak investor confidence and limited market participation.
Iraq stock market decline was linked to the absence of foreign investors. Trading remained heavily concentrated in only five companies out of 104 listed firms. These five accounted for over 85 percent of the entire volume. While some companies presented strong financial results, they still failed to attract investors. Experts believe that concentration of activity creates risks and limits the development of the exchange.
Al-Obaidi outlined several recommendations to improve the situation. He suggested launching a wide marketing campaign to raise awareness about stock market investment. He also stressed the need to encourage more private firms to go public and list shares. Listing large government-owned companies such as banks, insurance firms, and profitable entities from the oil and communications sectors could also strengthen the exchange.
The report further called for new technology. Artificial intelligence tools could increase transparency and help enforce fair competition rules. Modern systems would make the market more attractive for investors while ensuring compliance with international standards.
At the same time, experts expressed concern about a dangerous trend. Many young Iraqis are turning to unregulated Forex platforms. These platforms lack oversight and increase the risk of financial losses. Al-Obaidi warned that if this trend continues, it could further weaken confidence in the official stock market.
Despite these challenges, the exchange still holds potential. With reforms, greater transparency, and broader participation, Iraq could build a stronger market. The Iraq stock market decline shows that urgent steps are needed to protect investors and ensure sustainable growth.