Evaluating the role of indirect foreign investment in the performance of the Iraqi Stock Exchange

Many countries, including Iraq, have given special importance to foreign indirect investment (FDI). The Iraqi Investment Law allows non-Iraqis to invest in the Iraq Stock Exchange (ISX) through stock trading. This shift in trading has had repercussions, including the role of FDI in stimulating the performance of the ISX. The research was based on a basic hypothesis: FDI indicators (number of shares, number of companies, trading volume) play a role in stimulating the ISX indicators. The study aimed to analyze the role of FDI in the ISX, as well as to determine the role of FDI in the ISX indicators, using ISX indicators for the period (2017-2022). The study reached a set of conclusions, the most prominent of which were: The role of FDI remains limited in the ISX due to the weak contribution of the private sector, the relative novelty of Iraq's stock market experience, and the lack of investment awareness. The study recommended a set of recommendations, the most prominent of which are: increasing the supply and diversity of securities and investment instruments by adopting the necessary legal procedures that encourage companies to list on the Iraq Stock Exchange and provide a suitable investment environment for foreign investors.