Capital Markets
From The Report: Morocco 2020
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Macroeconomic stability, a thriving private sector, and a pivotal location bridging Europe and Africa have helped cement Morocco’s position as a major continental financial hub. By African standards, the kingdom’s capital markets are relatively deep, liquid and sophisticated. Recent years have seen challenges arise on all of these fronts, however. Against a backdrop of subdued economic activity, the market saw scarce new equity issues; falling liquidity; and delays to long-planned innovations, such as its small and medium-sized enterprises window. Although efforts to increase depth and liquidity have been hampered by weak economic growth, the 2018-19 period saw the implementation of a number of regulatory developments, which are set to bear fruit in terms of increased activity in alternative financial products and markets in the years ahead. This chapter contains interviews with Karim Hajji, CEO, Casablanca Stock Exchange; Abdeslam Ababou, Managing Partner, Red Med Finance; and Souad Benbachir, Partner and Executive Managing Director, CFG Bank.

Articles from this Chapter

Overview

Tools of the trade: Regulatory reform and alternative financial instruments are set to inject greater dynamism into the market
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Macroeconomic stability, a thriving private sector, and a pivotal location bridging Europe and Africa have helped cement Morocco’s position as a major continental financial hub. By African standards, the kingdom’s capital markets are relatively deep, liquid and sophisticated. Recent years have seen challenges arise on all of these fronts, however. Against a backdrop of subdued economic activity, the market saw scarce new equity issues; falling liquidity; and delays to long-planned innovations,…

Interview

Continental integration: Karim Hajji, CEO, Casablanca Stock Exchange (CSE), on strategies aimed at increasing market capitalisation and inclusiveness
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Interview:Karim Hajji What changes will the CSE undergo following the passage of its new articles of association? KARIM HAJJI: The new articles of association, part of our Ambition 2021 development plan, will boost the attractiveness of our marketplace by diversifying the product offering. The implementation of real estate investment trusts will make the exchange particularly attractive, as they have great integration potential. This will allow business to rent rather than buy premises, freeing…

Interview

Building attractiveness: Abdeslam Ababou, Managing Partner, Red Med Finance, on bringing a new dynamic to the Casablanca Stock Exchange (CSE)
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Interview:Abdeslam Ababou How can the CSE boost its liquidity? ABDESLAM ABABOU: The CSE is working towards easier access for foreign investors and hopes to regain liquidity through the privatisation of state-owned companies. In order to make the exchange more attractive and garner more liquidity, the government has already launched a major privatisation policy, and was allocated Dh6bn ($625m) by the 2019 Finance Law. Some of this privatisation is likely to take place through the CSE, which…

Analysis

New yields: Alternative assets spark interest in a low interest rate context
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The 2009-13 period was marked by a strong deterioration of the twin deficit in 2012, when the budget deficit and the current account deficit slowed by 6.8% and 9.5%, respectively. However, with the market starting to recover since 2014, interest rates have begun trending downwards, prompting investors – both globally and in Morocco – to turn to alternative assets for higher yields. Challenges In the challenging political context of the Arab Spring, public deficit worsened between 2009…

Interview

Liquid assets: Souad Benbachir, Partner and Executive Managing Director, CFG Bank, on reform and diversifying funding options
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Interview:Souad Benbachir How can regulatory reforms galvanise the market? SOUAD BENBACHIR: Capital market regulation is becoming more flexible and autonomous. The Moroccan Capital Markets Authority and the Casablanca Stock Exchange (CSE) now have more authority to adapt to the economic situation. In addition, the introduction of real estate investment trusts (REITs) will bring a new class of assets to the market and new boards to operate with qualified investors. This will allow for the…

Overview

Rise of robo-advisers: Growing competition in the automated consultancy market to lead to further consolidation, innovation and investment
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The use of sophisticated algorithms in wealth management is leading to improved efficiency and transparency in the financial services sector, benefitting both providers and clients. In particular, so-called robo-advisers are disrupting the industry and helping to boost financial inclusion. Primarily concentrated in developed markets such as the US and the UK, the technology is starting to make inroads in other parts of the world as traditional financial institutions and tech start-ups seek to tap the segment’s potential. The robo-advisory model allows customers to manage their wealth or retirement plan online by completing a simple…

Overview

Rise of robo-advisers: Growing competition in the automated consultancy market to lead to further consolidation, innovation and investment
OBG
plus

The use of sophisticated algorithms in wealth management is leading to improved efficiency and transparency in the financial services sector, benefitting both providers and clients. In particular, so-called robo-advisers are disrupting the industry and helping to boost financial inclusion. Primarily concentrated in developed markets such as the US and the UK, the technology is starting to make inroads in other parts of the world as traditional financial institutions and tech start-ups seek to tap the segment’s potential. The robo-advisory model allows customers to manage their wealth or retirement plan online by completing a simple…