This study aimed to develop a comprehensive strategic development model for the Iraq Stock Exchange (ISX), emphasizing a next-generation marketing ecosystem, adopting a qualitative approach grounded in Grounded Theory. The core problem addressed was ISX’s inability to function effectively as a non-oil financing engine, attract domestic and foreign investment, or mitigate youth unemployment amid post-war conditions, sanctions, and heavy reliance on oil revenues. The proposed model offers a localized, forward-looking framework for ISX’s strategic transformation through the integration of a modern marketing ecosystem, digital transformation, and Islamic financial instruments seeking to overcome structural constraints and position ISX as a regional financial hub by 2030. A qualitative Grounded Theory approach was employed. Data were collected via in-depth semi-structured interviews with 23 senior capital market experts in Iraq (mean professional experience: 16.8 years; broad institutional diversity; gender-balanced sample). Theoretical saturation was achieved by the 20th interview. Data analysis followed open (150 codes), axial (42 codes), and selective coding (6 core categories). Validity was confirmed through fourfold triangulation and Shannon entropy matrix analysis (6.91 bits). The central paradigm emerging from the study is the Blue Ocean Digital Islamic Ecosystem, guiding ISX toward creating new markets aligned with Islamic values. Key success factors include sustained political-institutional support, enhanced transparency and corporate governance, widespread financial literacy programs, regional and global networking, and convergent digital transformation. The implementation mechanism centers on hybridizing and localizing global best practices, leveraging the Iraqi diaspora. Major barriers identified include political instability,sanctions, cultural resistance, and infrastructural weaknesses. Implementing the proposed model is expected to increase trading volume and liquidity, diversify the non-oil economy, ensure sustainable growth of the ISX index, and position the exchange as a gateway for post-war reconstruction financing and a regional hub for Islamic financial instruments. Practical recommendations include: (1) formulating a national digitalization roadmap; (2) reforming investment regulations; (3) establishing an Islamic FinTech hub; and (4) launching a nationwide financial literacy campaign.