The Rabee Securities Iraq Stock Exchange Index (RSISX) remained stable in February 2025, marking a modest 0.03% increase from January, signaling investor confidence despite evolving market conditions. The Iraq Stock Exchange (ISX) saw a notable 46% jump in total trading volume, reaching USD 33.3 million. Monthly trading volume, excluding cross transactions, rose by 42% to USD 20.5 million.
Tugba Tan Karakaya, Equity Analyst at Rabee Securities, highlighted the market’s resilience, noting the significant rise in trading activity as a sign of sustained investor confidence in Iraq’s capital markets. She pointed to the banking sector’s strong performance in trading volumes, which underscores ongoing demand for financial institutions as Iraq advances its structural reforms. These reforms are aimed at creating a more transparent and efficient financial ecosystem. Karakaya added that the accelerating adoption of digital payments and reinforcing regulatory measures further stabilize the market, positioning the Iraq Stock Exchange for long-term growth.
The banking sector dominated February’s trading activity, accounting for 81.1% of the total volume. Other sectors also showed notable participation: industry (6.4%), telecom (6.6%), agriculture (4.4%), services (1.6%), and hotels & tourism (0.5%). The over-the-counter (OTC) market experienced an 11% increase in trading volume, reflecting a diversification of capital inflows. Among the 23 publicly traded companies that saw price increases, Al-Ameen for Insurance led with a 13.3% surge, followed by Gulf Commercial Bank with a 9.8% gain, indicating renewed confidence in the financial services sector.
February also saw significant economic and regulatory developments that continue to shape Iraq’s financial landscape. The Prime Minister’s Office, in collaboration with the Central Bank of Iraq (CBI) and an international consultancy, launched a banking reform initiative aimed at modernizing Iraq’s financial frameworks. Standard & Poor’s reaffirmed Iraq’s credit rating at ‘B-/B’ with a stable outlook, reflecting positive investor sentiment towards the country’s fiscal management. The CBI reported a surge in digital payment adoption, with 63,000 payment devices now deployed across Iraq, further advancing financial digitization. Additionally, the Association of Iraqi Private Banks introduced the ‘Our Bank and the Smart Robot’ app to improve financial literacy and promote digital banking solutions.
With ongoing economic reforms, strengthening investor sentiment, and increased liquidity, Iraq’s capital markets are on a clear path toward sustainable long-term growth.