Investing in Morocco

The country’s strategic trading location, large consumer class, potent economic growth, more than $90 billion annual gross domestic product, and successful implementation of financial, economic and legal restructuring programs make Morocco very attractive to investors. The country is a world leader in phosphates production and an increasingly popular destination for offshoring, the kingdom is making inroads into global business thanks to its “advanced status” with the EU (the only country to enjoy such status outside Europe) and free trade agreements with the US and other Middle Eastern countries. The government continues to pursue reform, liberalization, and modernization aimed at stimulating growth and creating jobs.

The opening up of most sectors of the economy to foreign investment and ownership has removed many barriers to foreign investors and reduced red tape. Signing an open Sky agreement with the EU helped Morocco register record number of visitors in 2009 (over 8 million). The adoption of an investment charter that is non-discriminatory to foreign investors and makes provisions for cutting investment costs and simplifying administrative procedures has been very successful in attracting an unprecedented number of foreign investors.

Economic reform

Morocco has implemented several economic reforms since 1980 to bolster the country’s microeconomic balance and accelerate its integration into the world marketplace. The measures are boosting per capita income, lowering fiscal and current account deficits and are credited with subduing the country’s rate of inflation to less than 2 percent in 2009.

Reforms have modernized the stock market, eased the availability of credit, repealed the nationalization law (a measure that imposed rigid hiring practices and other restraints on foreign-held businesses), revised laws that regulate corporations, relaxed foreign trade and exchange systems, protected intellectual property rights, established commercial law courts, and opened all economic sectors to foreign investment.

Economic Indicators

Morocco’s GDP growth was 5.0 percent in 2009. Although the figures have not yet been certified, a slight lower growth is expected for 2010. The decreased growth rate from 2008 of 5.6% is mainly attributed to the international economic downturn which has slowed exports especially in the textile and automobile industries. 

Source: Moroccan Office of Statistics

Inflation (Consumer Prices)

 Through a foreign exchange rate anchor and well-managed monetary policy, Morocco has held inflation rates to industrial country levels over the past decade. Inflation was 2% in 2007, but did spike to 3.9% in 2008 as a result of rising international commodity prices. In 2009 the figure is estimated to be no more than 2%.

Source: Moroccan Office of Statistics

The June 2009 the International Monetary Fund (IMF) study on Morocco concluded the following: “Moreover, inflation is low, the financial system is robust, and the fiscal situation is largely under control, while the mission noted the importance of continuing to ensure the medium-term sustainability of the public debt. “

Major International Treaties

Morocco is a signatory to international agreements on the non-proliferation of biological weapons, chemical weapons, and nuclear weapons as well as various other international agreements on civil aviation, customs cooperation, human rights, and intellectual property. Notable agreements on the environment include the following: biodiversity, climate change (including the Kyoto Protocol), desertification, endangered species, hazardous wastes, marine dumping, ozone layer protection, ship pollution, wetlands and whaling.

Trade Agreements:

• Free Trade Agreement with the US
• Free Trade Agreement with EU
• Trade agreement with Middle East countries
• Free Trade Agreement with Turkey