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News Release

Doing Business in Morocco

Morocco has emerged as an important destination for foreign investment due to its strategy to attract foreign investors, its strong and diversified economy and its free trade policies towards international capital markets.

Over the past few years the economy of Morocco has been characterized by a stable macro economy, low inflation rate and a relatively stable economy growth.

The government continues to enact several and multi sector reforms and pursues to continue liberalizing the economy in order to further stimulate growth and create new jobs in what could be considered an emerging economy.

A strong performance indicator is not only supported by international growth data but also by domestic data, such as where investment grew at a Compounded Annual Growth Rate (CAGR) of 13% over the last 10 years, higher than GDP which grew at 10% over the same period. This sustained momentum puts Morocco at an Investment-to-GDP ratio of close to 35% which is considered an above average for comparable emerging markets in this region such as Turkey, Egypt, Tunisia or South Africa.

Country’s Strengths

  • Still relatively low salaries, education continues to become more professionalized and education more accessible.
  • A Strategic position, whereby the location is not far from Europe and as education is general of French origin, French practices and legal codes have a common factor – business and the economy is similar to a French business culture.
  • A young and relatively diversely well trained population.
  • Strong GDP and economic growth with a population that has access to financing.
  • Strong banking and finance services based on strong domestic retail banking and African banking units less exposed to financial risks. The financial sector is relatively “protected” and the Dirham is non-convertible currency which acts as a buffer to hard currency fluctuations.
  • A well-developed communication network and improving transport connections such as ONCF’s (Organisation National des Chemins de Fers) projects to improve train stations and permit the use of high speed trains, a first for Africa. Road and highway infrastructural programs which will allow improvement and reduce travel times or inclusion of trustworthy transport system (i.e. tramways are under development in Casablanca and Rabat).
  • A legal framework and assistance, based on a 1960’s French code, measures very favourable to the investors
  • Excellent platform and access point to international markets in terms of geographic location.
  • Encouraging FDI through incentives such as modified company taxation system (exemption for VAT and corporate tax for 5 years or more) in specific areas of Morocco for different economy sectors.

In the global rankings by the International Finance Corporation (IFC) and the World Bank Morocco triumphed for most improved economy achieving top ranking by simplifying the construction permitting process, easing the administrative burden of tax compliance and providing greater protections to minority shareholders.