ANALYSIS OF THE ROLE OF THE GENERAL INDEX OF THE IRAQ STOCK EXCHANGE IN FINANCING LOCAL INVESTMENT IN IRAQ FOR THE PERIOD(2005–2023(

Abstract

This study examines the role of the Iraq Stock Exchange (ISX) general index in supporting and financing local investment during the period(2005–2023). It analyzes the relationship between the performance of the financial market and the level of investment activity within Iraq. The study relied on annual data related to the general index, trading volumes, the number of listed companies, as well as official indicators of local investment.The results revealed a correlation between movements in the general index and the growth of domestic investment. However, this relationship has been negatively affected by several factors, most notably security and economic instability, the absence of consistent financial policies, limited investment awareness, and the weak infrastructure of the financial market. The study also indicated that the Iraq Stock Exchange has not yet effectively fulfilled its role as a key source of investment financing, due to a lack of transparency, limited investment tools, and shortcomings in the legal and regulatory framework.The study concludes with the need to reform and develop the Iraqi stock market by updating legislation, expanding the investor base, and strengthening regulatory institutions. These steps are essential to mobilize national savings, direct them toward productive activities, and achieve sustainable economic development.