Reform of UCITS: "Easy, Low-Cost, and Diversified Exposure to the Stock Market" through ETFs

According to Ikhlas Mettioui, Director of Asset Management and Savings Protection at the Moroccan Capital Market Authority (AMMC), this innovation aims to strengthen market liquidity and expand access to the Casablanca Stock Exchange, particularly for individual investors. "The introduction of these funds to the Moroccan capital market should provide easy, low-cost, and diversified exposure to the stock market, especially for individual investors," Mettioui stated. Exchange-Traded Funds (ETFs), also known as listed index mutual funds, offer a simple and diversified way to invest in the stock market at a lower cost. They are traded continuously, combining the benefits of traditional funds with the flexibility of stocks. The development of ETFs is expected to revitalize the Moroccan stock market and enhance its depth. Globally, assets managed in the form of ETFs grew by 2% in 2024, reaching $14.6 trillion, according to figures cited by Mettioui. The introduction of these products in Morocco aligns with an international trend towards democratizing index investment. The AMMC believes this evolution will enhance the attractiveness of the Casablanca financial center and contribute to its openness to foreign capital, in line with the objectives of modernizing the national financial sector.