Since foreign companies were interested in making their profit on Moroccan market government of Morocco was under the enormous pressure. Over the time they have considered allowing foreign companies to become a part of the Casablanca stock exchange and simultaneously creating a second market that would be dedicated and appropriate for small and medium-sized businesses.
Furthermore, the government was opened to the idea that the foreign companies’ shares should be listed in either foreign currency or in Morocco’s dirham. With this step, Moroccan government made the first move since the early 1990’s which would Casablanca’s stock market. It is necessary to mention that this stock market´s index over the period from 2010 to 2015 has dropped by more than 20%.
Due to these facts and due to lack of market liquidity Morocco was reduced to “frontier market” status by stock market index provider MSCI in 2013. This event made them reconsider their strategies.
According to these plans and the new law, it would be easier for these small and medium-sized companies to get access to capital, which would allow them to make progress for the entire country.At the same time, the North African kingdom planned to allow the creation of Islamic banks thereby enabling private firms to issue Islamic debt.
Furthermore, Moroccans were determined to create a sharia board of Islamic scholars which would help to supervise this new Islamic finance industry. According to the government, this represented another important step in structural reforms of the country.
Also, the government was aware of the fact that the draft law would tighten control by the exchange as well as by the new Moroccan financial authority over brokerage activities. They also proposed the creation of mutual funds, which would include exchange traded funds but also real estate funds, and trading in Sukuk or Islamic bonds.