We hope that we will represent ideas may get benefits in the future.
This presentation showed at the Beirut international investment conference in 2017, and it talks about (In Dealing With Domestic And International Investors).
2- The role of the market in stimulating and attracting foreign investment
The attractiveness of the Iraqi market to foreign investors
Investment tweaks and constraints
Performance of brokerage firms
Ladies and gentlemen, Excellencies, distinguished audience:
We thank the Iraq Stock Exchange and management for providing us with this opportunity to meet you and speak today, and we are also happy today to meet this gathering of decision makers, fellow mediators, companies listed on the market and investors.
At the beginning of my speech, I would like to focus on the overall Iraqi economy as the main catalyst for investment in the financial market.
The Iraqi economy is characterized by many qualities as a catalyst for attracting foreign investment, and Iraq today offers investment opportunities to be optimized in the region with a balanced risk and meaningful returns where Iraq passes in what can be one of the most ambitious rebuilding efforts of the world recently with resources Huge yet untapped and a large number of well-equipped youth population to regain its status as a regional economic power.
One of the most important positive economic features of our economy is:
1. Owning the world’s fourth-largest oil reserves, which is about 143 billion barrels.
2. Low oil extraction costs.
3. The gross domestic product (GDP) per capita grew at an accelerated rate, with GDP rising from $1300 in 2004 to $6300 in 2012.
4. Economic growth accelerated from 5.5% in 2010 to 4.8% in 2012 and 9% in 2013, where oil production is expected to rise by 400 to 500,000 by throwing daily at an annual rate of up to 5.7 million barrels per day in 2018 so we expect to continue growth by 8% per year for the next four years.
4. Inflation rates declined from 6% in 2011 to 3.6% in 2012.
5. The foreign exchange reserves of the Central Bank of Iraq increased by 70 billion in 2012, which is equivalent to 33% of the gross domestic product (GDP).
5. Stability of the official exchange rate since 2010 despite a reduction in the cash supply by the Bank of Iraq to address concerns about money laundering and the financing of terrorism.
6. Labour force: Iraq has a large population of young people, with 41% of the population under 15 years of age.
7. Availability of water, fertile land and transport lines.
Second: The World Bank’s intakes and work in Iraq
But the lack of diversification in the economy and oil dominated by the largest proportion also dominated the public sector in the Iraqi economy where the government employs almost half of the workforce and the majority of the population in its income are dependent on government employment. Through this, the public sector has become the main means of distributing Oil riches.
Third, the market relationship with the economy. The kidney
Money markets are an important instrument in the financial sector and represent the backbone of economic development processes and the economic literature has indicated and studies clearly the nature of the relationship between financial markets and economic growth is an interrelationship linking both directions through many instruments such as fiscal policy Monetary policy, inflation rates, interest rates, exchange rate and gross domestic product (GDP), where these variables affect the economy on the financial markets, have been taken up first before speaking on the stock market.
Therefore, Iraq’s stock exchange was a part of Iraq’s economy, and the market capitalization rose from 3 billion in 2009 to 9, $8 billion in 2013, especially after the first Telecom Asia company was listed last year and is expected to continue to rise in the coming years, especially after the inclusion of the Atsa companies. and to carry out the privatization process on public sector companies that are within 220 public companies which we hope will be privatized through the market and from this the value of the market is expected to rise compared to the total values of the Arab stock exchanges from the current 6% to the future weakening of these ratios as well as the high volume of trading and intend The banking sector has dominated the bulk of the trades over the past 10 years.
IV. Foreign investment
As for foreign investment in the market: Iraqi legislation provided an equal opportunity for foreign investors in terms of ownership and investment in the Iraq Stock exchange providing them with an opportunity to invest and take advantage of the positive benefits of the Iraqi economy and invest in its medium-term growth and long the indicators shown by the market data were clear in this area where during 2013 foreigners traded over 60 companies sold and 66 companies are listed with a net positive investment and the value of these companies accounts for more than 80% of the market capital.
With regard to the obstacles to investment in Iraq, the majority are generally represented by investment-disruptive laws, which were among the legacies of the former regime, in addition to the sometimes deteriorating and political security situation.
With regard to market-specific obstacles, the existence of the guarantor Bank as a supporter of foreign investment in Iraq is one of the most important issues that continue to be a hindrance to investment.
As well as applying corporate governance standards to listed companies we have found in the last secretariat how the differences between major shareholders have affected the company and oppose their interests with their companies and their effects on small shareholders and on the market share prices have been highlighted during the past year
Role of mediator and brokerage firms
But the role of the broker remains important in terms of attracting investments as the buyer and that’s what we missed in a lot of our company colleagues mediation where they still use traditional mechanisms at work and are useless in the long term to expand the market and keep up with its development.