After several years of economic sanctions and battling through war situations, the
Iraq financial market is gradually shaping up and gearing for a new beginning. The return has been announced through a two billion dollar issue of bonds. Several banks and foreign groups have stretched a helping hand by agreeing to cancel more than 80% of the $20 billion worth debts in return for partial payments. This bond has been signed for a period of twenty years and the return will be 5.8% a year.
Over the years, the economy of Iraq has been heavily dependent on its rich oil reserves, but prolonged years of warfare with Iran and America have left it almost bereft of its resources. Inadequate investments have also affected the financial market of Iraq. Iraq financial market has recently experienced an upsurge because of the good performance of the Iraqi stock market. A large amount of financial stock is in circulation in the market. This has been very encouraging for investors and there is increased competition in the financial market in Iraq.
The financial institutions and markets are working jointly towards rebuilding the economy of Iraq. Good banks and efficient capital markets are the need of the day. The Saddam Hussein government rigidly controlled the Baghdad Stock Exchange, established in 1992. Stocks within a stipulated price range were traded in the market. This system has now changed with the fall of Saddam Hussein and the subsequent confusion that ensued as a result. Now the exchange has 89 companies on the list.
Some of the major financial service providers in Iraq are as follows:
- Bank of Babel, Baghdad
- Al-Baraka For Investment And Financing Bank, Alawiyah
- Basra Private Bank For Investment (S.P.A), Basra
- Dar Es Salaam Investment Bank, Alawiyah
- Estate Bank, Baghdad
- Gulf Commercial Bank, Alawiyah
- Bank of Baghdad, Alawiyah
- Agricultural Co-Operative Bank, Baghdad
- Industrial Bank, Baghdad
- Economic Bank for Investment & Finance, Baghdad
- Investment Bank of Iraq, Alawiyah
- Commercial Bank of Iraq, El Sanak
- Credit Bank of Iraq S.A, Alwiya