You’ve probably heard the jokes. When you mention the Iraq Stock Exchange ISX, people imagine a dusty room with men shouting over landline phones, or worse, some sort of financial Wild West.
Honestly? They’re wrong.
While the rest of the world was obsessed with tech bubbles and AI hype in early 2026, the ISX has been quietly sitting on a massive pile of untapped value. It is one of the most misunderstood frontier markets on the planet. We are talking about a market that represents one of the world's largest oil producers, yet its total market cap is currently hovering around only 5% of the country's GDP. That is a massive disconnect. In regional neighbors like Saudi Arabia or the UAE, that ratio is often over 100%.
Basically, Iraq’s economy is a giant, and the stock market is a tiny vest that doesn't fit it yet.
The Reality of the ISX in 2026
If you’re looking for high-frequency trading and nanosecond execution, go to Nasdaq. The ISX isn't that. It’s a place for people who understand "frontier" investing—the high-risk, high-reward territory that requires a thick skin and a long-term calendar.
As of mid-January 2026, the Iraq Stock Exchange ISX is tracking around 104 listed companies. The total market capitalization sits roughly at 24.7 trillion Iraqi Dinars (IQD), which translates to about $18.7 billion. Does that sound small? It is. For context, Apple’s market cap is about 200 times the size of the entire Iraqi stock market.
But small isn't always bad. Small means there is room to move.
The market is heavily dominated by the banking sector. In fact, banks like the Bank of Baghdad (BBOB) and National Bank of Iraq (BNOI) often account for the lion's share of daily liquidity. Then you have the heavy hitters like Asiacell (TASC), which provides the kind of telecommunications exposure that is usually a staple for any emerging market portfolio.
Why Investors are Actually Looking at Baghdad
It comes down to the "catch-up" effect.
The Iraqi Securities Commission (ISC) just launched its 2026–2028 strategy. The Chairman, Faisal Al-Haimus, has been very vocal about transforming the exchange into a regional hub. They are pushing for digital transformation, better disclosure rules, and—most importantly for you—stronger protections for foreign investors.
- Valuation Disconnect: Most stocks on the ISX trade at price-to-earnings (P/E) ratios that would make a Western value investor weep with joy.
- Banking Reform: The Central Bank of Iraq is currently forcing local banks to modernize. We’re seeing mergers, capital increases, and a move toward international compliance standards.
- Dividends: Since growth can be stagnant, many Iraqi companies pay out significant portions of their profits as cash dividends. For example, the Baghdad-Iraq Company for Public Transportation recently announced a cash dividend of 0.5 IQD per share. It doesn't sound like much until you look at the share price and realize the yield is quite attractive.
Wait, isn't it dangerous?
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Of course there's risk. There’s currency risk, political instability, and the fact that the "secondary market" for some of these stocks is about as liquid as cold molasses. But the 45% gain seen in 2024 proved that when the market moves, it moves fast.
How You Actually Buy Shares (It’s Kinda Annoying)
You can't just open your Robinhood app and buy Iraq Stock Exchange ISX stocks. I wish you could.
To get in, you have to go through a licensed Iraqi broker. Rabee Securities is the name you’ll hear most often; they handle the bulk of foreign institutional and individual flows. They’ve even got an app now, which makes things feel a bit more 21st-century.
The Paperwork Gauntlet
- KYC is King: You’ll need a valid passport. If you’re a corporate entity, get ready for a mountain of certified incorporation contracts and registration licenses.
- The Iraqi Embassy: Often, your documents need to be certified by the Iraqi Embassy in your home country. It’s a bit of a hurdle, but it keeps the "get rich quick" crowd out.
- The Bank Account: All trades are settled in Iraqi Dinars. Your broker usually helps set up the necessary custody accounts in Iraq to handle the cash movements.
The trading hours are also a bit unique. The market is usually open from 10:00 AM to 1:00 PM local time. That’s a tight window. If you're in New York, you're waking up at 2:00 AM to see the opening bell.
What’s Moving the Needle Right Now?
In the first two weeks of January 2026, we’ve seen some wild swings. Al-Hamraa for Insurance (NHAM) jumped nearly 20% in a single week. On the flip side, Babil for Animal & Vegetable Production (ABAP) took a 21% hit.
This is the nature of the ISX. Because trading volumes are low—weekly volumes are often around $1.4 million—a single large trade can send a stock screaming upward or crashing down. Al Taif Islamic Bank (BTIB) recently saw a transaction of 4 billion shares in one go. That represented 1.6% of the entire company’s capital.
That kind of volatility is a nightmare for some, but a playground for others.
The Three Things You Need to Watch
If you're serious about tracking the Iraq Stock Exchange ISX, stop looking at the news headlines and start looking at these three metrics:
First, the US Dollar to IQD exchange rate. Since you’re likely bringing in "hard" currency, a sudden devaluation of the Dinar can wipe out your stock gains overnight. The "parallel market" rate and the "official" rate often diverge, so keep an eye on the Central Bank’s daily auctions.
Second, watch the ISX 60 Index. It’s the benchmark. It hit an all-time high of 1,073.8 in late 2024 and has been consolidating around the 980 mark lately. If it breaks 1,000 again with high volume, the momentum could be real.
Third, look for Capital Increases. Iraqi companies love "bonus issues" (giving you more shares instead of cash) and "rights issues" (letting you buy more shares at a discount). For instance, Ashur International Bank (BASH) is currently looking at a 20% capital increase through a bonus issue. This is how these companies grow without having access to traditional Western debt markets.
Actionable Steps for the Curious Investor
Don't just dive in with your life savings. That would be reckless.
Start by visiting the official ISX website or the Iraq Securities Commission portal. They publish daily trading reports that list every single transaction. It’s raw, it’s transparent, and it’s the best way to see which sectors are actually "breathing."
Next, find a reputable broker like Rabee Securities or Al-Mohtasham. Download their research reports. They often provide English translations of company financial statements that are otherwise impossible to find.
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Finally, track the "Regular Market" versus the "Non-Regular Market." The regular market has stricter disclosure rules. If you’re new, stay there. The non-regular market is where the real "wild west" stuff happens, and unless you have boots on the ground in Baghdad, you’re likely to get burned.
Investing in Iraq isn't about the next ten minutes. It’s about the next ten years. It’s a bet on the country’s stability and its ability to finally turn that massive oil wealth into a functioning, diversified capital market.
Get your documents ready. The certification process takes longer than you think. Contact a licensed broker today to receive the specific KYC forms for non-Iraqi investors and begin the verification process with the Iraqi Depository Center.