Morocco is set to be included in a new frontier market local currency debt index being developed by JPMorgan, a move that could increase the country’s visibility among global investors and deepen participation in its domestic bond market.
According to sources familiar with the matter, the Wall Street bank is finalizing plans for the index after extensive consultations with major asset managers. A formal announcement is expected by mid-2026, with the index’s launch anticipated in 2027.
The benchmark is designed to track local-currency government bonds issued by 20 to 25 frontier economies, providing investors with exposure to domestic interest rates and currencies while allowing governments to raise funds without taking on foreign exchange risk. Morocco is expected to be among the countries with the largest weightings, alongside Egypt, Vietnam, Kenya, Nigeria, and Bangladesh.
Under the proposed rules, no single country will account for more than 8% of the index, down from earlier drafts suggesting a 10% ceiling. Bonds included must meet a minimum issuance size of around US$250 million, ensuring sufficient liquidity for large institutional investors.
Inclusion in the index would represent a significant step for Morocco’s gradual integration into global capital markets. The country has spent years developing a relatively deep and stable local bond market, supported by predictable issuance schedules, a broad domestic investor base, and prudent macroeconomic management. Analysts say that being part of a JPMorgan index could attract more foreign institutional funds to Moroccan bonds, potentially lowering borrowing costs and increasing market liquidity.
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“Morocco’s inclusion underscores the progress of its domestic debt market and the country’s growing appeal to global investors seeking frontier market exposure,” said one fixed-income strategist familiar with the discussions.
JPMorgan already manages several of the world’s most widely used emerging market debt benchmarks. These indices serve both as investment vehicles and as performance measurement tools for asset managers. By extending its coverage to frontier markets, the bank is aiming to capture a segment of the debt market that has grown steadily but remains underrepresented in traditional emerging market indices.
Local-currency debt is seen as increasingly attractive to international investors who wish to diversify currency exposure and benefit from potentially higher yields in frontier economies. Analysts say that Morocco’s stable macroeconomic environment and sound debt management practices make it a strong candidate for inclusion.
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Investors are watching closely how Morocco’s weighting will be determined relative to other countries. While Egypt and Vietnam are expected to hold significant shares, Morocco’s position among the largest allocations could amplify foreign inflows and strengthen its domestic debt market.
In recent years, Moroccan authorities have taken steps to deepen the local bond market, including modernizing issuance mechanisms, expanding the investor base, and enhancing transparency. Officials have also sought to align market practices with international standards to facilitate foreign participation.
The launch of the frontier local-currency debt index reflects a broader trend among global asset managers seeking to tap into high-growth but less accessible markets. As frontier markets attract more attention, Morocco’s inclusion is likely to reinforce the country’s reputation as a stable and investable economy in the MENA region.
For Morocco, joining JPMorgan’s index is more than a technical milestone; it represents a potential catalyst for increased market participation, lower borrowing costs, and enhanced investor confidence in its debt markets. With careful macroeconomic management and continued market development, analysts say Morocco could leverage this inclusion to solidify its position as a regional financial hub.
