Morocco

Investing

FDI in figures

2007 experienced an increase in direct foreign investment of 39.5% compared to 2006, to 36.4 billion MAD (1.4 billion Euros), say 6% of the GDP. It is all the more remarkable as there were only few privatisations. France heads the country-wise distribution with 39.6% of the total of the direct foreign investments (progressing 6.5 points compared to 2006).
Primarily depending on the national plan of privatisations, the conversion of foreign debt into investments and operations of concession of public services, the Moroccan authorities have during the last few years attracted a relatively consistent flow of foreign assets. A specific dynamics emerges. However, direct foreign investment is modest and could contribute more to the economic takeoff of the country.

Foreign Direct Investment	2004	2005	2006
FDI of inward flow (millions USD)	1,070	2,946	2,898
FDI inward stock (millions USD)	n.c.	n.c.	29,795.0
Performance Index*, world ranking	66	41	55
Potential Index**, world ranking	90	92	n.c.
Number of Greenfield investments	37	57	46
FDI inwards (in % of GFCF)	8.7	23.1	21.5
FDI stock (in % of GDP)	n.c.	n.c.	52.0

Source: UNCTAD, World Investment Report

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk.

Why you should choose Morocco

Strong points: - A legal framework and assistance measures very favorable to the investors
- Salaries still relatively low
- Strategic position, not far from Europe
- Young and relatively well trained population, a majority speaks French
- Strong growth
Weak points: - Domestic market still relatively limited
- Small, yet very dependent on agriculture and vulnerable to the prices of hydrocarbons
Government measures to motivate or restrict FDI: The government adpoted the "Investment Charter" in 1995. This charter notably plans VAT and corporate tax exonerations during 5 years.
Bilateral investment conventions signed by Morocco: Morocco has concluded agreements with 51 countries including France, Spain, Egypt, Italy, Lebanon, Libya, Portugal, Tunisia and Turkey for guarantee of overseas investments against every risk of nationalization and compulsory purchase. Several of these agreements can be downloaded on the web site of the UNCTAD: click here. Those define the framework of protection of overseas investments for each signatory country.
Besides, theAssociation Agreement between the EU and Morocco, effective in March 2000, envisages also, with article 50: "establishment of a legal framework supporting investment, if necessary, by the conclusion of agreements of protection of investments and agreements intended to avoid double taxation between Morocco and the Member States".

Administrative procedures relative to foreign investment

Freedom of establishment: Guaranteed except for the agricultural sector
Acquisition of holdings: Majority acquisition of interest in an existing or forming Moroccan company, is authorised by way capital subscription or acquisition of already issued securities.
Obligation to declare: Investment system in Morocco is very open as investors do not have to obtain prior approval: they simply have to send the Foreign Exchange Office a report in the six months following the completion of the operation.
Competent organization for the declaration: Foreign exchange office
Requests for specific authorizations: The financial sector has specific regulations, that of hydrocarbons as well as for free zones.