The Algerian Ministry of Finance is currently examining a draft for a new financial market law, as stated by Youssef Bouznada, President of the Commission for the Organization and Supervision of Stock Market Transactions (COSOB), during the Algerian Financial Market Annual Conference held at the “Abdellatif Rahal” International Conference Center in Algiers. This initiative aims to enhance the market’s appeal and efficiency.
The draft law includes significant reforms such as:
- Incorporation of insurance companies as Stock Market Intermediaries (IOB)
- Introduction of Islamic Sukuk (bonds)
- Promotion of green finance
These changes are intended to update the legislative decree No. 93/10 from May 23, 1993, concerning the securities exchange, transitioning it into a more comprehensive legal framework.
Mr. Bouznada highlighted that the Algerian Stock Exchange is experiencing a revival similar to its initial establishment, driven by governmental support, notably with the listing of Crédit Populaire d’Algérie (CPA) and various incentives included in the new COSOB regulations.
COSOB’s efforts are also focused on promoting financial literacy and encouraging stock market investment among Algerians, as the concept remains relatively novel.
Conference Insights:
- The conference attracted experts and specialists from Algeria, the Middle East, Africa, and the Arab Monetary Fund (FMA), discussing recent developments, challenges, and sharing knowledge in the financial markets sector.
Key discussions included:
- Market Liquidity: Ali Ben Dhabb from the FMA emphasized the critical role of liquidity in enhancing stock market activity, commending the “very positive progress” of the Algiers Stock Exchange while advocating for market expansion through broader participant involvement and increased flexibility.
- Digitalization and Simplification: Ben Dhabb highlighted the necessity of digital tools and procedural simplification to boost market liquidity and efficiency.
- Legal and Regulatory Environment: The importance of a robust legislative and regulatory framework, alongside leveraging fintech and AI applications, was also stressed.
Tunisian Perspective:
- Saleh Sayel, President of the Tunisian Financial Market Commission, shared insights into the development of the Tunis Stock Exchange, which was established post-1995 financial reforms and now boasts a market capitalization of approximately 26 billion Tunisian dinars.
This conference marks a pivotal moment for discussing and shaping the future of Algeria’s financial market, aiming to foster economic growth through improved financial mechanisms.
