The Bank of Baghdad was the first bank licensed in Iraq. It started its banking operations in 1992, putting the needs of the national economy within its priorities. The Bank of Baghdad was established after the amendment of Article (5) of the Central Bank of Iraq Law.

Until September 25, 1998, the Bank of Baghdad practiced only commercial banking, then diversified its service portfolio to include banking services on a wider scale after the Central Bank of Iraq allowed all private banks to practice all banking activities.

2005 marked the turning point for the Bank of Baghdad; as the United Gulf Bank and Iraq Holding Company acquired shares of the bank's capital. In 2009, Burgan Bank acquired United Gulf Bank's share to become the largest shareholder.

This contribution enabled the Bank of Baghdad to diversify its international banking activities through attention to technology and competitive services.