Baghdad, Iraq — The Rabee Securities Iraq Stock Exchange Index (RSISX Index) recorded a solid increase of 13.7% in 2025 in both Iraqi dinar and U.S. dollar terms, extending the market’s positive momentum following a 44.8% surge in 2024. The performance exceeded that of several neighboring markets, including Abu Dhabi (+6.1%), Bahrain (+4.1%), Qatar (+1.8%), and Saudi Arabia (-12.8%), underscoring the strengthening position of Iraq’s capital market within the region.

The RSISX Index’s performance was supported by contributions from key constituents, including National Bank of Iraq, Baghdad Soft Drinks, Asiacell, and Al-Mansour Bank, reflecting selective investor confidence and improving fundamentals across core sectors of the economy.

Commenting on the market’s performance, Tugba Tan Karakaya, Equity Analyst at Rabee Securities, said:"The 2025 performance of the Iraq Stock Exchange reflects steady progress in market structure, regulation, and institutional discipline. While sector-level outcomes remained uneven, the overall results point to a market that is becoming more resilient, better governed, and increasingly aligned with international standards."

Total shareholder returns were further enhanced through dividend distributions during the year. The RSISX Total Return (RSISXTR) Index rose by 22.9% in 2025, supported by the 13.7% increase in the RSISX Index alongside dividend contributions from six companies. Bank of Baghdad recorded a dividend yield of 13.4%, followed by Asiacell at 11.5%, Iraqi for Seed Production at 8.9%, Baghdad Soft Drinks at 7.5%, National Bank of Iraq at 4.9%, and Mansour Hotel at 0.4%.

She added:"Dividend growth and the expansion of total returns are important signals of increasing market maturity. Sustained progress in governance, transparency, and capital strength will remain essential to building long-term confidence and supporting the continued development of Iraq’s capital markets."

Dividend activity broadened across the market in 2025, with 24 out of 104 ISX-listed companies distributing cash dividends, compared to an average dividend yield of 4.0% in 2024. The average dividend yield increased to 5.7% during the year. Kurdistan International Islamic Bank recorded the highest dividend yield at 25.0%, followed by Bank of Baghdad at 13.4%.

As part of ongoing efforts to enhance market benchmarking and transparency, Rabee Securities launched two new indices on November 2, 2025. The RS Iraq Halal Companies Index (RSIHX) and the RS Iraq Banking Index (RSIBX) are price-return indices calculated since the beginning of 2022. In 2025, the RSIHX increased by 6.6%, while the RSIBX rose by 14.0%, reflecting differentiated sector performance within the Iraqi market.

Trading activity during the year remained concentrated in the banking sector, which accounted for 72.3% of total trading volume, followed by the industry sector at 13.9% and telecommunications at 7.5%. Agriculture (2.6%), services (2.2%), and hotels and tourism (1.5%) accounted for smaller shares of trading activity. Separately, trading volume in the over-the-counter (OTC) market declined by 25% year-on-year to USD 1.5 million, with 14 companies eligible to trade in the segment.

Equity price performance across the market was mixed. Thirty-four listed companies recorded share price increases in 2025, nine of which rose by 50.0% or more. In the telecommunications sector, the share prices of both listed companies increased, each recording gains of over 25%. By contrast, within the banking sector which accounts for the largest share of trading activity only 10 out of 43 banks reported price increases, while 19 banks recorded declines and 10 did not trade during the period.

The banking sector in 2025 was shaped by regulatory developments, as the Central Bank of Iraq advanced its reform agenda for private banks. New regulatory requirements became a key focus across bank Annual General Meetings, with institutions outlining compliance plans, capital strengthening strategies, and governance adjustments. These measures are expected to enhance confidence in the sector and support the international acceptance and integration of Iraqi banks.

Beyond the capital markets, 2025 was marked by broad-based economic, financial, and institutional reforms in Iraq. The launch of the National Development Plan (2024–2028), continued engagement with the International Monetary Fund and World Bank, and large-scale investments in the energy, telecommunications, and transport sectors underscored efforts to support economic growth and diversification. The year also saw progress in electronic payments, affirmed sovereign credit ratings, and capital market integration through regional partnerships and ESG implementation. Political developments, including the November parliamentary elections, contributed to institutional continuity.