The Iraqi University of Sciences was established in 1994 at the request of the Association of Economists under the name "Baghdad College of Economic Sciences University." Approval for its establishment was granted by decree numbered (dated 17/1/1994) under the same name. It ranks amongst the oldest private colleges in Iraq, being sixth in order of establishment among 108 private universities and colleges.

According to its internal regulations, a College Council was established to oversee academic and administrative affairs, chaired by the Dean and including Vice-Deans, Heads of Departments, a representative of the academic staff, and a representative of the founding body.

In the academic year 1996–1997, studies commenced in only three departments: the Department of Commerce (currently Business Administration), the Department of Economics, and the Department of Computer Sciences.

Comprising several departments and branches, the university opened its doors to students in 1996–1997. Many teachers and students joined, with numbers exceeding 160 male and female students.

In the academic year 1998, the Department of Banking and Financial Sciences was established, followed by the Department of Accounting in 2002, and the Department of Computer Technology Engineering in 2004. The college has since expanded its infrastructure, academic departments, and student numbers accordingly. Thus, it evolved into a university, and consequently twelve faculties were established:

1. College of Dentistry

2. College of Pharmacy

3. College of Engineering

4. College of Sciences

5. College of Technical Engineering

6. College of Law

7. College of Administration and Economics

8. College of Physical Education and Sports Sciences

9. College of Health and Medical Technologies

10. College of Fine Arts