Comparative Studies of North African Financial Markets

This research conducts a comprehensive analysis of North African financial markets, exploring their intricacies, strengths, and weaknesses while focusing on potential future developments. Examining historical evolution, regulatory landscapes, market participants and overall performance across all North African countries from 2010 to 2023, the study utilizes statistical analyses as its methodological approach. North Africa's stock markets exhibit unique characteristics distinguishing them from developed and emerging markets, marked by underperformance and challenges rooted in legislative, regulatory, and economic factors. Obstacles include a weak financial sector, insufficient financial intermediation, low investor awareness, limited political will, and financial solvency vulnerabilities. Despite efforts to activate and integrate securities markets, results remain modest, necessitating fundamental elements for an enhanced investment climate. Empirical findings emphasize the necessity for tailored economic policies and market reforms in response to the varied performance of North African exchanges. Governments in the region must prioritize evaluating and adjusting policies hindering the fluid flow of funds from stock exchanges to the broader economy. Upholding political stability and embracing good governance are vital for attracting investments and aligning exchanges with national economic growth objectives. North Africa's stock exchanges stand at a pivotal juncture, where the intricate interplay of political and economic dynamics will shape their contributions to regional development. Through understanding nuanced dynamics, implementing targeted reforms, and capitalizing on opportunities, North Africa can unlock the full potential of its financial markets, fostering sustainable and inclusive economic growth.