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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 22nd November 2018).

Please click here to download a table of listed companies and their associated ticker codes.

The RSISX index ended the week at IQD663 (-0.14%) / $711 (-0.02%) (weekly change) (-18.3% and -14.9% YTD change, respectively). The number of week traded shares was 1.7bn and the weekly trading volume was IQD1.1bn ($0.9mn).

ISX Company Announcements

  • The second issued national bonds started trading on Nov. 21, 2018 on the ISX. 350 units of IQD5.0 mn class bonds (CB125) traded and thus total trading volume occurred at IQD1.83 bn. The opening price of the bond was IQD5.22 mn and the bond closed at a price of IQD5.23 mn. (Annual interest of the bond is 8.0% and the bond maturity date is Apr. 2, 2019.) [Table (2.3)]
  • According to ISX announcement, the opening price of the bond (CB125) will be IQD5.260.822 on Nov. 25.
  • ISX will suspend trading of Al-Mosul for Funfairs (SMOF) starting Dec. 4, 2018 due to the AGM* that will be held on Dec. 9, 2018 to discuss and approve 2015, 2016 and 2017 annual financial results.
  • ISX will suspend trading of Middle East Producing & Marketing Fish (AMEF) starting Dec. 2, 2018 due to the AGM* that will be held on Dec. 5 to discuss and approve the financials of the ending year Mar. 31, 2018.
  • ISX will suspend trading of Mansour Hotel (HMAN) starting Nov. 28, 2018 due to the AGM* that will be held on Dec. 3, 2018 to discuss and approve 2017 annual financial results.
  • ISX will suspend trading of Ready Made Clothes (IRMC) on Nov. 25, 2018 if the company fails to explain why the prices touched the higher limit on Nov. 21, 2018 and Nov. 22, 2018.
  • Kharkh Tour Amuzement City (SKTA) resumed trading on Nov. 22, 2018 after discussing and approving 2017 annual financial results.
  • ISX suspended trading of Asiacell (TASC) starting Nov. 21, 2018 due the AGM* that will be held on Nov. 26, 2018 to discuss and approve 2017 annual financial results.

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Note: ISX will be closed on Tuesday (Nov. 20, 2018) due to a religious holiday (Birth of the Prophet). The next trading session will be on Wednesday (Nov. 21, 2018).

Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 15th November 2018).

Please click here to download a table of listed companies and their associated ticker codes.

The RSISX index ended the week at IQD664 (+1.6%) / $711 (+1.6%) (weekly change) (-18.1% and -14.9% YTD change, respectively). The number of week traded shares was 49.2 bn and the weekly trading volume was IQD18.3 bn ($15.1 mn).

ISX Company Announcements

  • ISX will suspend trading of Asiacell (TASC) starting Nov. 20, 2018 due the AGM* which will be held on Nov. 26, 2018 to discuss and approve 2017 annual financial results.
  • The national bonds owned by Al-Kindi of Veterinary Vaccines Drugs (IKLV) will start trading on the ISX on Nov. 18, 2018. The total number of the bonds that will start trading is 350 and each of them are from IQD5,000,000 category (ISX ticker: CBI25). Opening price for each bond will be IQD5,252,945 (IQD5,000,000 (price of the bond) + IQD252,945 (interest)) with +/-5% price change limit, and thus, the total value of the bonds that will start trading be IQD1,838,530,750 (350 X IQD5,252,945). Annual interest of the bond is 8% and the bond maturity date is Apr. 2, 2019.
  • Original shares of Dar Al-Salam for Insurance (NDSA) will resume trading on Nov. 18, 2018 after deciding to increase the capital from IQD5.0 bn to IQD7.0 bn through 40% rights issue. The opening price will be IQD0.64 with +/-50% price change limit for the first session and after that, price will be able to change with +/-20% limit per day.
  • Palastine Hotel (HPAL) will resume trading on Nov. 18  due to disclosing 2017 annual financial results.
  • The National Bank of Iraq (BNOI) signed a trade finance agreement on Tuesday with the International Finance Corporation (IFC), a member of the World Bank Group, to help the bank’s client businesses access global markets, boosting trade and spurring economic growth. In addition, a Memorandum of Understating (MOU) was also signed between the two parties whereby the IFC will provide NBI with support related to the field of Corporate Governance. (BNOI Website)
  • Baghdad Hotel (HBAG) resumed trading Nov. 13, 2018 after discussing and approving 2017 annual financial results and deciding to distribute 44% cash dividend (0.44% dividend per share, 4.9% dividend yield).
  • Cross Transactions: 44.6 bn shares of Zain Al-Iraq Islamic Bank (BZII) on Nov. 14, 2018, which represents 17.8% of BZII capital.

By John Lee.

The National Investment Commission (NIC), in cooperation with the Babylon Investment Commission, is pleased to announce the following investment opportunities:

  1. Educational Research Center and Environment Laboratories within the main university site area of 1300 m² plot number 1/3474 m 17 Tajia.
  2. The Central Student Club of the University of Babylon within the main university site with an area of 2000 m² plot number 1/3474 m 17 Tajia.
  3. Medical Research Center and Specialized Educational Laboratories within the university’s main site with an area of 2900 m² plot number 24/17859 m 17 Waseya.
  4. Educational swimming pools with multi-purpose hall within the main university site with an area of 12500 m² plot number 1/12908 m 17 Tajia.

Those who wishes to invest in the above-mentioned investment opportunities can visit Babylon Investment Commission to review the special requirements of each opportunity, knowing that applications are accepted until the end of official working hours on Wednesday 5/12/2018.

(Source: National Investment Commission)

(Picture: Business opportunity word cloud, from ibreakstock/Shutterstock)

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 8th November 2018).

Please click here to download a table of listed companies and their associated ticker codes.

The RSISX index ended the week at IQD654 (-1.3%) / $700 (-1.3%) (weekly change) (-19.4% and -16.2% YTD change, respectively). The number of week traded shares was 32.8 bn and the weekly trading volume was IQD14.8 bn ($12.2 mn).

ISX Company Announcements

  • ISX will suspend trading of Al-Ahlyia for Agricultural Production (AAHP) starting Nov. 20, 2018 due to the AGM* which will be held on Nov. 27, 2018 to discuss and approve the financial results of the ending year Mar. 31, 2018.
  • Iraqi Carton Manufactories (IICM) will hold an AGM* on Nov. 15 to discuss and approve 2016 annual results. IICM has been suspended since Aug. 6, 2017 for not disclosing 2016 and 2017 annual financial results.
  • Iraqi Islamic Bank (BIIB) invited its shareholders to visit the company’s headquarter starting Nov. 11, 2018 to receive their cash dividend.
  • Ready Made Clothes (IRMC) resumed trading on Nov. 8, 2018 after discussing and approving 2017 annual financial results and deciding to distribute 5% cash dividend (IQD0.05 dividend per share, 0.6% dividend yield) in its AGM which was held on Nov.5, 2018.
  • ISX suspended trading of Dar Al-Salam for Insurance (NDSA) starting Nov. 8 due to the AGM* which will be held on Nov. 13, 2018 to discuss increasing the capital from IQD5 bn to IQD7 bn through 40% rights issue.
  • Metallic & Bicycles Industries (IMIB) will hold a GA on Nov. 25, 2018 to discuss the company’s investment contracts as well as electing 4 new original and alternative board members. The company has been suspended from trading since Aug. 8, 2018 for not disclosing 2017 annual financial results.
  • Cross Transactions: 24.7 bn shares of Zain Al-Iraq Islamic Bank for Investment (BZII) on Nov. 6, 2018, which represents 9.9% of BZII capital. 3.7 bn shares of International Development Bank (BIDB) on Nov. 4, 2018, which represents 1.5% of BIDB capital.

By Ahmed Tabaqchali, CIO of Asia Frontier Capital (AFC) Iraq Fund.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

The end of the month brought with it the end of the multi-month paralysis in government as the designated prime minister was confirmed by parliament through the approval of his proposed cabinet on October 25th. Although, parliament has not approved all of his ministerial choices- a function of the fragmented politics of the new parliament and a possible marker of risk for the government’s future stability.

Nevertheless, the new government is in a position to implement its policies, as articulated by the prime minister in presenting his government, which are focused on the provision of security, services, and investment in much needed infrastructure. The implementation of these policies is made possible by the accumulated budget surplus for 2018, which was about USD 14.5bn at the end of August- and on course for a two-year accumulated surplus of USD 24.5bn by the end of 2018.

Coinciding with this has been the end of the 40-day Arbaeen pilgrimage that brought the country to a standstill as millions of pilgrims took part in “the largest annual gathering of people anywhere on earth.”, including almost two million Iranian pilgrims.

The end of the Arbaeen, summer, and the government formation should be followed by the end of the period of, probably, the lowest daily trading volumes on the Iraq Stock Exchange (ISX) since it first witnessed an expansion in volumes in 2010. Average daily turnover in October, while higher in percentage terms than the dismal levels of September, was among the lowest for some time (chart below). In tandem the market, as measured by the RSISUSD Index, declined ending down -5.3% for the month, continuing to test the major bottom of May 2016.

(Source: Iraq Stock Exchange, Rabee Securities, Asia Frontier Capital)

While, the anomaly of these low levels can be seen in the chart above, they come into sharp focus when viewed statistically in the form of a frequency distribution. The two charts below drill down into actual daily turnover for two periods: (1) January 2013-April 2014-representing the bull-market phase of rising prices and high turnover; (2) January 2016-October 2018- representing the bear -market phase of declining prices and low turnover. The frequency refers to the number of trading days corresponding to ranges for the daily turnover index on the LHS of the above chart. The contrast between the two periods is extreme from both the level of the average daily turnover, the concentration of daily turnover around the average (standard deviation) and the full range of turnover.

(Source: Iraq Stock Exchange, Asia Frontier Capital)

Almost 63% of the lowest turnover days, for January 2016-October 2018, were in the last two months, while the other 37% was spread out as odd days throughout the whole period. As such, it seems that with the end of the political paralysis and summer slowdown that turnover should revert to the mean. While neither this nor the direction of the market are assured, a clue can be obtained from the initial recovery in M2 (see chart below) which has ticked up over the last few months, following months of sharply increasing oil revenues. While the October M2 figure is an estimate, it is based on actual M0 figures for the month and the recent M2/M0 multiplier figures. As such, this could mean that liquidity has finally begun to filter down into the economy – which should accelerate as the new government begins to act on its investment programme.

(Source: Central Bank of Iraq, Iraq’s Ministry of Oil, Asia Frontier Capital)
(Note: M2 as of Sep. with AFC est.’s for Oct, Oil revenues as of Oct)

The strong improvement in the finances of the country following years of conflict lie behind the reason for the continued expectations, expressed here over the last few months, that the market would be correcting and then bottoming. However, these expectations continued to be tested as the market sustained its dismal performance, and its divergence from its past close relationship with oil revenues is currently at the widest it has been for the last few years (see below).

(Source: Iraq’s Ministry of Oil, Rabee Securities, Asia Frontier Capital)
(Note: Oil revenues as of Oct)

The end of the political paralysis, the sharply improving government finances and tentative signs of liquidity reaching the wider economy could act as the catalyst to change the direction of the market to the upside. If similar experiences in other frontier markets were to be repeated here (a big if) then the anomaly of the current low trading volumes coupled with the market’s sharp divergence from its historic association with oil revenues would suggest that the next move could be a sharp reversal of the recent trend.

The irony for the market (having risen sharply this time of the year in each of the last the two years only to lose almost all gains within a few months) is that its real recovery would be greeted with the same scepticism that met the “boy who cried wolf”

Please click here to download Ahmed Tabaqchali’s full report in pdf format.

Mr Tabaqchali (@AMTabaqchali) is the CIO of the AFC Iraq Fund, and is an experienced capital markets professional with over 25 years’ experience in US and MENA markets. He is a non-resident Fellow at the Institute of Regional and International Studies (IRIS) at the American University of Iraq-Sulaimani (AUIS), and an Adjunct Assistant Professor at AUIS. He is a board member of the Credit Bank of Iraq.

His comments, opinions and analyses are personal views and are intended to be for informational purposes and general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any fund or security or to adopt any investment strategy. It does not constitute legal or tax or investment advice. The information provided in this material is compiled from sources that are believed to be reliable, but no guarantee is made of its correctness, is rendered as at publication date and may change without notice and it is not intended as a complete analysis of every material fact regarding Iraq, the region, market or investment.

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By Veronica Cotdemiey, CEO of Citizenship Invest.

Turkish Nationality: The Most Desired Citizenship Program among GCC Expats

Citizenship by Investment programs have been witnessing some major changes and one of them is the introduction of the new Turkish citizenship program which was published on the Official Gazette and entered into force in September 2018. The new law requires a minimum Real Estate investment of USD 250,000 and the citizenship could be obtained in approximately 6 months.

With over 4 million Arabs residing in Turkey, the country is certainly one of the most desirable destinations for Middle Eastern people. Historically Arabs feel at home in Turkey, love Istanbul and the demand for the newly launched citizenship program shows so. Turkey has the 17th largest economy in the world and its on its way to hit the 1 billion USD mark in GDP in 2020.

In 2018 Turkey has seen an increase in real estate sales by over 20%. This is largely due to the drop of the property prices after the imposed US sanctions that weakened the Turkish Lira. Buying a property in Turkey today is almost 50% cheaper than a year ago only due to the exchange rate.  With the amendment of the citizenship legislation, sales in Turkey are set to fly.

There are many advantageous aspects of becoming a Turkish citizen. Firstly, investors can obtain the citizenship without ever residing in Turkey and within a period of approximately 6 months from submission of the citizenship application.

There is a high number of expats from countries like Iraq, Lebanon, Syria, Yemen and Egypt to name a few, who currently reside in the GCC, facing difficulties to obtain visas due to their current passports and looking for options. Turkey poses a good investment choice for them as it allows the option of owning property as well as a strong passport simultaneously and the possibility of moving to Turkey if they wish.

Turkey offers applicants the eligibility to become citizens through multiple ways such as a fix deposit of USD 500,000 for 3 years in a bank operating in Turkey; a fixed capital investment; or even generate employment in Turkey. However, the most interesting option is through investing in Turkey’s suppressed real estate market.

Investors are scrambling to find the property of their choice to qualify for the citizenship knowing that they can sell it after 3 years and keep the citizenship for life. An additional advantage is that the property can be passed to children without paying any form of inheritance tax.

A foreigner acquiring Turkish citizenship by investment has the same rights as any Turkish born in the country, therefore for those wanting to make Turkey their home this is a great advantage having the same level of equality, included the ability to pass the citizenship to future generations. The Turkish passport allows  visa free travel to 111 countries, including Japan, South Korea, Singapore and other major countries in Asia, Africa and South America.

Investors do not need to reside in Turkey at any point in time, which means they do not need to disrupt their lives and can just keep it as an option for the future. Spouse and all dependents under 18 years of age are eligible for the Turkish citizenship as well.

If the investor decides to live in Turkey, the country offers amazing quality of services and is considered to be one of the most low-cost places to live in. Basic costs like Electric and gas, council tax, rent, renovations, maintenance, food and drink, everyday groceries, transport and even petrol costs are just a fraction of what it costs in the EU and other developed countries.

Turkey’s infrastructure makes transport in Turkey convenient and reliable with easy access to a number of airports all year round, your journey home is normally within half an hour in most popular locations.

 Rebuilding & Reconstruction

– Iraq –

Delivering the Vision

Register Now

IBBC returns to Dubai on 25 November with a full agenda of expert speakers to discuss the most important issues facing Iraq’s economy.

Baroness Nicholson of Winterbourne, President of IBBC and The Prime Minister’s Trade Envoy to Iraq, Azerbaijan, Turkmenistan & Kazakhstan will open the conference, alongside H.E. Mr Abdullah Ahmed Al Saleh, Undersecretary of the UAE Ministry of Economy for Foreign Trade & Industry, H.E. Mr Bangen Abdullah Rekani, Iraq’s Minister for Housing, Reconstruction & Public Municipalities, Dr Mehdi Al Alak, Secretary General of the Council of Ministers, Michael Townshend the Regional President of BP Middle East and Jon Wilks CMG Her Majesty’s Ambassador to Iraq.

A delegation of high-profile Iraqi Governmental Officials will be in attendance including Dr Hamid Ahmed, Deputy Chairman of the Prime Minister’s Advisory Committee (PMAC), Dr Sabah Mushatat, Investment and Reconstruction Advisor of the Prime Minister, Mr Louay Al-Yassiri, Governor of Najaf, Mr Nawjad Hadi, Governor of Erbil, Dr Wijdan Salim, PMAC and Mr Abas Imran, Technical DG, Ministry of Transport. Delegates will have the opportunity to engage with the speakers in dynamic and concentrated debates during Roundtable Discussions. Further Iraqi officials are expected to confirm their attendance in the coming weeks.

Other confirmed speakers include Christopher M. Cantelmi, Principal – Infrastructure & Natural Resources – International Finance Corporation (World Bank) and Kareem K. Ismail, Resident Representative for Iraq and Yemen, International Monetary Fund (IMF). Additional expert speakers are drawn from the Department of International Trade, Shell, Rolls-Royce, Siemens, Serco, SKA International Group, Basrah Gateway Terminal, Khudairi Group, G4S, National Bank of Iraq, Management Partners, EY, AFC Iraq Fund, Chevron, Wood and more.

Download the Full Agenda

Conference sessions will focus on:

  • Infrastructure, Rebuilding & Utilities Supply 
  • Oil & Gas – Increasing Production
  • Regulatory & Financial Framework – Encouraging International Investment
  • Logistics & Trade

A Pre-conference Reception and Networking Event is planned for Saturday 24 November at the Address Dubai Marina, where delegates can enjoy the spectacular surroundings and view. With Dubai being a hub for local and international companies in the region operating in Iraq, the conference attracts suppliers, investors, producers and buyers from Iraq, the UK and the wider international business community.

IBBC will also be holding a Tech Forum on 25 November, which will run in parallel to the conference at the same venue. Ticket holders will get complimentary access to the forum, where some of the key innovators of Tech in Iraq will be speaking on Fintech, the Consumer Economy, E-Government and the Start-Up Economy. Speakers include representatives from EY, Citi Bank, Restrata Group, MediaWorld, Khudairi Group, Avaya and the Technology Department of the Kurdistan Regional Government.

For any queries please email London@webuildiraq.org

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 1st November 2018).

Please click here to download a table of listed companies and their associated ticker codes.

The RSISX index ended the week at IQD662 (+2.2%) / $709 (+2.2%) (weekly change) (-18.3% and -15.1% YTD change, respectively). The number of week traded shares was 4.5 bn and the weekly trading volume was IQD1.2 bn ($1.0 mn).

ISX Company Announcements

  • Dar Al-Salam for Insurance (NDSA) will hold a GA on Nov. 13, 2018 to discuss increasing the capital from IQD5 bn to IQD7 bn through rights issue. ISX will suspend trading of NDSA starting Nov. 8, 2018.
  • Ready Made Clothes (IRMC) will hold an AGM* on Nov. 5, 2018 to discuss and approve 2017 annual financial results. ISX suspended trading of IRMC starting Oct. 31, 2018.
  • National Chemical & Plastic Industries (INCP) resumed trading on Oct. 28, 2018 after disclosing 2017, 3M18 and 6M18 financial results.
  • Mosul Bank (BMFI) resumed trading on Oct. 28, 2018 after discussing and approving 2017 annual financial results and to distribute 0.4% cash dividend (IQD0.004 dividend per share, 2.7% dividend yield).
  • Asia Al Iraq Islamic Bank for Investment (BAIB) having a capital of IQD100 bn started trading on Oct. 28, 2018 after discussing and approving 2017 annual financial results.

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 25th October 2018).

Please click here to download a table of listed companies and their associated ticker codes.

The RSISX index ended the week at IQD648 (+2.2%) / $694 (+2.4%) (weekly change) (-20.1% and -17.0% YTD change, respectively). The number of week traded shares was 9.1 bn and the weekly trading volume was IQD7.1 bn ($5.9 mn).

ISX Company Announcements

  • Tourist Village of Mosul Dam (HTVM) will hold an AGM* on Nov. 29, 2018 to discuss and approve 2013 and 2014 annual financial results. The company has been suspended from trading since Aug. 8, 2018 by an ISC decision.
  • Iraqi for Seed Production (AISP) will hold an AGM* on Nov. 22, 2018 to discuss and approve 2017 annual financial results. ISX will suspend trading of AISP starting Nov. 19, 2018.
  • Kharkh Tour Amuzement City (SKTA) will hold an AGM* on Nov. 18, 2018 to discuss and approve 2017 annual financial results. ISX will suspend trading of SKTA starting Nov. 13, 2018.
  • Al Janoob Islamic Bank for Investment and Finance (BJAB) will hold an AGM* on Nov. 14, 2018 to discuss and approve 2017 annual financial results. ISX will suspend trading of BJAB starting Nov. 11, 2018.
  • Elaf Islamic Bank (BELF) will hold an AGM* on Nov. 12, 2018 to discuss and approve 2017 annual financial results. ISX will suspend trading of BELF starting Nov. 7, 2018.
  • Investment Bank of Iraq (BIBI) will hold an AGM* on Nov. 8, 2018 to discuss and approve 2017 annual financial results. ISX will suspend trading of BIBI starting Nov. 5, 2018.
  • Baghdad Hotel (HBAG) will hold an AGM* on Nov. 7, 2018 to discuss and approve 2017 annual financial results. ISX will suspend trading of HBAG starting Nov. 4, 2018.
  • Ready Made Clothes (IRMC) will hold an AGM* on Nov. 5, 2018 to discuss and approve 2017 annual financial results. ISX will suspend trading of IRMC starting Oct. 31, 2018.
  • Mosul Bank (BMFI) will resume trading on Oct. 28, 2018 after discussing and approving 2017 annual financial results and to distribute 0.4% cash dividend (IQD0.004 dividend per share, 2.7% dividend yield). The opening price will be IQD0.15 with +/-10% change.
  • Asia Al Iraq Islamic Bank for Investment (BAIB), having a capital of IQD100 bn, will start trading on Oct. 28, 2018 after discussing and approving 2017 annual financial results. The opening price will be free for the first three sessions, and then will have +/-20% price change limit.
  • National Chemical & Plastic Industries (INCP) will resume trading on Oct. 28, 2018 due to disclosing 2017 annual financial results, 3M18 and 6M18 financial results.
  • Karbala Hotels (HKAR) started trading on Oct. 23, 2018 after completing the procedures of depositing the increased shares amounted at 2.5 bn shares after completing its capital increase procedures from IQD5.0 bn to IQD7.5 bn through 50% rights issue.

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 18th October 2018).

Please click here to download a table of listed companies and their associated ticker codes.

The RSISX index ended the week at IQD634 (-3.8%) / $678 (-3.8%) (weekly change) (-21.6% and -18.9% YTD change, respectively). The number of week traded shares was 148.2 bn and the weekly trading volume was IQD55.5 bn ($45.7 mn).

ISX Company Announcements

  • Mosul Bank (BMFI) held an AGM* on Oct. 18, 2018 to discuss and approve 2017 annual financial results. ISX suspended trading of BMFI starting Oct. 15, 2018.
  • Iraqi Middle East Investment Bank (BIME) resumed trading on Oct. 15, 2018 due to disclosing 2017 annual financial results.
  • ISX requested AL-Sadeer Hotel (HSAD) to provide a subscription letter on the shares issued on Oct. 15, 2018 after the company’s decision to increase capital from IQD1.239 bn to IQD1.735 bn through 40% rights issue.
  • The Companies’ Registrar announced on Oct. 9, 2018 that the transfer process of the management center of Cihan Bank for Islamic & Finance (BCIH) from Baghdad to Erbil has been completed. The Companies’ Registrar requested a copy of the new adjusted contract.
  • Cross Transactions: 145.9 bn shares of Zain Al-Iraq Islamic Bank for Investment (BZII) (on Oct. 15 and Oct. 18, 2018) which represent 58.2% of BZII capital. 300 mn shares of Iraqi Agricultural Products Marketing Meat (AIPM) (on Oct. 17, 2018) which represents 6% of AIPM capital.