Institutional stability

Because of its institutional stability internationally recognized by all its political and economic partners, Morocco is a standalone case in many ways both in the region and beyond. Here are a few facts to support this observation :

  • Morocco began very early the democratization process by establishing a constitution advocating a multi-party system and economic liberalism as soon as 1961;
  • The Moroccan economy, which lacks oil income, relies on its strengths, such as food industry, tourism, textile, phosphates and has recently diversified into renewable energy and aeronautics;
  • Morocco is considered by many diplomatic representations of third party countries (especially in Europe) as a stable and secure territory.

Strong and resilient economy

Over the past years, the Moroccan economy was characterized by macroeconomic stability coupled with low inflation. It is solid, based on exports, growth of private investment and tourism. Given the richness of the soil which Morocco has, the agricultural sector is predominant: it accounts for nearly 15% of GDP; its weight has however declined in favor of the tertiary sector. The industry contributes to nearly 30% of GDP and employs one fifth of the active population. The industrial sector is essentially made up of textile and leather industries, food processing, and electronic editing. New sectors are booming: renewable energy (Morocco developed since 2016 the largest solar power plant in the world), aircraft industry, automotive and computer equipment, electronics and chemistry. Having no known oil reserves, Morocco’s main mining resource is phosphates which make up more than 20% of its exports. The tertiary sector contributes to more than 55 percent of GDP and employs nearly 40% of the active population. It depends largely on tourism whose recovery is underway after the downturn seen earlier in the decade due to the uncertain geopolitical environment.

    


Morocco has a strategic location. Within a three hours flight from the main European capitals, it has thus as a major asset: the proximity of the first tourist source market in the world. Only 7 hours of flight from New York, Dubai or Moscow, it remains easily accessible to an even broader tourist source market.

Incentives framework

Morocco has been committed for many years to economic liberalization aiming for investment procedure simplification and has a favorable legislative framework taking into account in particular the needs of the international investors :

  • No restrictions on access to land ownership for foreign investors;
  • No restrictions on corporate ownership in Morocco for foreign investors: complete freedom to hold up to 100% of the share capital;
  • A tax system for companies simplified as follows:
 
Net Profit Corporate tax rate
< 300 000 Dh 10%
300 001 < NP < 1 000 000 20%
1 000 001 < NP < 5 000 000 30%
5 000 001 < NP 31%
 
  • Administrative procedures reduced to the minimum for business set up;
  • Complete freedom for foreign investors to convert and transfer the income from their divestments or products of liquidation or profits to their country of origin ;
  • Signature of more than 100 agreements of no double taxation on income taxes and investment protection
Morocco has robust infrastructure at the forefront of which a first-class airport that is dense and modern: 17 operational international airports, emergence of the Mohamed V Airport of Casablanca as the 1st international hub airport serving the African destinations. Morocco has also a motorway network of more than 2000 km and a dense network of railway that will be soon reinforced by the first high speed line in Africa between the cities of Casablanca and Tangier. In addition, Rabat and Casablanca have urban transport recently completed by a modern tram network. Finally, the International Port of Tangier Med North of Morocco ranks among the first African ports and the world's thirty largest ports.