Introduction. One of the serious consequences of capital market dysfunction which exists in Iraq›s economy is the imbalance of its sectoral structure. Hypertrophied development of extractive industries leads to inefficient investment activity, weak capital formation, and unsustainable economic growth. Overcoming these destructive dysfunctions in financial and investment sphere of Iraq›s economy is an urgent task of the state financial and investment policy. The necessity and possibility of solving this problem is the subject of the article presented.
