The relationship between financial markets and indirect foreign investment and their role in achieving financial stability – the experiences of selected countries with special reference to Iraq

Submitted by the student

Shaima Abdulhadi Hussein Al-Sharifi

To the Council of the College of Administration and Economics – University of Karbala

As part of the requirements for obtaining a Doctor of Philosophy degree in Economics

Supervised by

Assistant Prof. Dr.            Assistant Prof. Dr

Kadhim Saad Abdul Redha Al-Araji          Mohammad Naji Mohammed Al-Zubaidi

Abstract:

          Given the role that financial markets occupy and the vital center in economic systems, especially in those countries that depend on attracting capital through their markets, given what these markets do in enhancing their economic efficiency by linking savers and investors through their main tools and financial institutions in attracting investment. The indirect foreigner, as the financial markets are linked to indirect foreign investment in a positive relationship, and in turn, they affect the achievement of financial stability. First in terms of financial stability  , and this reflects the strength of the banking system and its ability to face challenges to support the UAE economy. In the second place, the Arab state of Egypt was occupied, and Iraq ranked third, although the banking system is able to continue to perform its functions and achieve financial stability, but the political turmoil and challenges that afflicted the Iraqi economy It had a significant negative impact on its economy, and this in turn led to the weak performance of the Iraqi stock market in relation to the size of its economy, as it did not have a significant role in raising the level of the volume of investments compared to other countries (Egypt and the UAE).

        The researcher recommended to benefit from the experiences of countries in achieving financial stability by raising the efficiency of financial markets and their ability to attract indirect investments (such as the United Arab Emirates and the Arab Republic of Egypt), and to work on increasing the efficiency of financial markets by paying attention to infrastructure, enacting laws and regulations and modernizing them, including It serves the work of the financial markets, especially the Iraqi stock exchange, making data available to investors and giving them special privileges characterized by clarity and transparency, as well as supporting banks and taking care of them by issuing the necessary laws to protect them and increase their ability to face crises and maintain a large amount of reserves and cash liquidity and encourage the attraction of deposits in order to increase credit and enjoy sufficient financial stability.