Portfolio investment and its role in activating the Iraqi stock market

Abstract

Portfolio investment has received great attention from developing countries due to its positive role in financing the development process and accelerating its acceleration. After the year (2003), the Iraqi government established the Iraq Stock Exchange with the aim of attracting this type of investment. The research aimed to explain the role of portfolio investment and its importance in revitalizing the Iraqi market of securities by analyzing and measuring the total trading volume of non-Iraqis in some indicators of the Iraqi Stock Exchange (market value index). The study revealed a sustained exponential correlation between the aggregate trading volume of non-Iraqis and the market value index. Specifically, a one-diar increase in the total trading volume results in a seven-diar increase in the market value. This finding aligns with economic theory. It also recommends creating an attractive investment climate for foreign investors, in addition to developing the Iraqi stock market by benefiting from the steps of other countries in developing their markets.