Despite the turmoil seen in Iraq over the past few months, the Iraqi market managed to show some strength close to the year. Investors are clearly seeing through the turmoil, and after a seldom seen 6 year long bear market (the stock market crash of 1929 lasted 2.8 years) in Iraq, there are opportunities at hand and great returns can be achieved for those with a stout heart.
The economic recovery has mainly been driven by government spending, supported by the 19% rally in Brent in 2019 and oil production levels at all time high. Much is at stake for Iraq in 2020, and we believe that the actions taken and underway as a result of the protests, could give Iraq what they have been lacking for almost two decades; a strong majority government in parliament that will be able to push through its agenda. Previous governments have been a (bad) mix of all the major parties that has not managed to deliver as promised as they have worked against each other. It’s time to work together for a better future.
Sources: CBI, Bloomberg, Rabee Securities