Morocco is planning to start derivatives trading by the end of this year, according to Nezha Hayat, chair of the Moroccan Capital Market Authority, who spoke with Bloomberg. The move is expected to help Morocco expand its capital markets to finance infrastructure projects scheduled ahead of the 2030 World Cup, the business newspaper reported on Monday. Hayat emphasized the urgency of financing World Cup projects, stating the need to significantly broaden the market by attracting more retail investors. «We now need to focus on significantly broadening to retail investors to enable the market to play its full role», she said. Hayat announced plans for Morocco's stock exchange to launch a derivatives market before the end of the year. The legislation is meant to allow for «exchange-traded funds, foreign currency-denominated mutual funds, and Sharia-compliant mutual funds», she told Bloomberg. It's also expected to greenlight mutual funds for professional investors with less restrictive constitutions and investment rules. «The kingdom needs to let private investors contribute much more to financing the economy, by boosting the small retail investor community at home and raising the profile of the local financial market for foreigners», she said. Hayat added that banks are aware they cannot provide financing for all ambitious planned projects, underlining how capital market reform will benefit some of those initiatives. It's worth noting that Morocco will need to spend 200 billion dirhams ($20 billion) on such strategic projects as it gears up for the 2030 World Cup, according to head of government Aziz Akhannouch. Morocco will co-host the 2030 World Cup with Spain and Portugal.
