Morocco: Investing

FDI in Figures

According to UNCTAD's World Investment Report 2024, FDI flows to Morocco stood at USD 1 billion in 2023, compared to the 2.2 billion recorded one year earlier. At the end of the same period, the total stock of inward FDI stood at USD 69.3 billion. By sector, in terms of net flows, the real estate sector ranked first in 2023 (+MAD 5.9 billion, accounting for 53% of total net FDI flows in Morocco), followed by the transportation and storage sector (+MAD 2 billion, with an 18.3% share), and then the financial and insurance activities sector (+MAD 1.5 billion, with a 13.4% share). Together, these three sectors accounted for 84.7% of total net FDI flows in 2023. By country, France was the top investor in Morocco in 2023, with a net flow of +MAD 6.8 billion, making up 61.4% of the total net FDI. The net flow from France in 2022 was +MAD 3.8 billion, marking a 79.5% increase. The net FDI from the United Arab Emirates reached +MAD 2.3 billion in 2023, compared to +MAD 2.2 billion in 2022, followed by the United Kingdom (+MAD 1.8 billion, down from +MAD 2.6 billion), and Spain and Germany with +MAD 1.5 billion each. In terms of stock, the main investing countries are France (30.8%), the United Arab Emirates (17.9%), Spain (8.5%), Switzerland (4.9%), the United States (6.3%), the United Kingdom (3.9%), and Saudi Arabia (3.4%); whereas the sectors receiving the most FDI are industry (24.9%), real estate (19.9%), tourism (9.6%), communication (9.4%), energy and mining (6.7%), and commerce (4.9% - data Foreign Exchange Office). According to the latest figures from the Foreign Exchange Office, in 2024, FDI revenues increased by 24.7%, reaching MAD 43.195 billion compared to MAD 34.629 billion in 2023. Additionally, net FDI flows surged by 55.4%, rising to MAD 17.237 billion from MAD 11.090 billion in 2023.

After the positive results of the Industrial Acceleration Plan 2014-2020, a vast project of economic modernisation to attract more FDI, the government launched a second phase for 2021-2025 focused mainly on the consolidation of the achievements made within the framework of the first phase of the plan (which, among other results, created 54 industrial systems in partnership with 32 professional associations and universities in various sectors) and their generalization to all regions, by integrating small and medium enterprises and by placing industry at the heart of technological transformations. Among the reasons to invest in Morocco, are the relatively low cost of labour, its strategic location between Europe and sub-Saharan Africa, good infrastructures, and the stability of the country’s currency and political framework. On the other hand, Morocco still has significant social and regional disparities, weak productivity, low competitiveness and an economy heavily reliant on the price of hydrocarbons and the agricultural sector. Both foreign and domestic private entities can establish and own businesses in Morocco, subject to sector-specific restrictions. Foreign investment in air and maritime transport companies and fisheries is capped at 49%. Foreigners cannot own agricultural land but can lease it for up to 99 years. Phosphate extraction is a state monopoly through the 95% state-owned Office Chérifien des Phosphates (OCP). The Central Bank (Bank Al-Maghrib) has discretion in authorizing domestic and foreign-owned banks, and the state can limit foreign majority stakes in large national banks, though it is unclear if this has been applied. In the oil and gas sector, the National Agency for Hydrocarbons and Mines (ONHYM) holds a mandatory 25% share in exploration and development permits. Morocco ranks 66th among 133 economies on the Global Innovation Index 2024, 101st out of 184 on the latest Index of Economic Freedom, and 99th out of 180 on the Corruption Perception Index 2024.

What to consider if you invest in Morocco

Protection of Foreign Investment

Procedures Relative to Foreign Investment

Freedom of Establishment

Foreigners can generally invest in the country enjoying the same conditions as locals (a few exemptions apply for specific sectors).

Acquisition of Holdings

Foreign investments in air and maritime transport companies and maritime fisheries are capped at 49%. Foreigners cannot own agricultural land, though they can lease it for up to 99 years. In the oil and gas sector, the National Agency for Hydrocarbons and Mines (ONHYM) retains a compulsory share of 25% of any exploration license or development permit. The Moroccan government also has a discretionary right to limit all foreign majority stakes in the capital of large national banks.

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 Organisation For the Declaration

Foreign exchange office

Requests For Specific Authorisations

The financial sector has specific regulations, as well as that of hydrocarbons and air and maritime transport.

Office Real Estate and Land Ownership

Possible Temporary Solutions

Consult Instant Offices, CoWorker, Regus, etc.

The Possibility of Buying Land and Industrial and Commercial Buildings

Guaranteed except for the agricultural sectors, where foreigners may only rent the land for up 99 years. However, foreigners may acquire agricultural land in order to carry out an investment or other economic project that is not agricultural in nature, subject to first obtaining a certificate of non-agricultural use from the authorities.

Risk of Expropriation

Expropriation may only occur in the public interest and with a fair compensation. If the State and owner are able to come to agreement on the value, the expropriation is complete, otherwise the amount of compensation will be established by a judge.

Investment Aid

Forms of Aid

Incentives generally take the form of tax exemptions and customs advantages, subsidies for certain expenses related to investment, etc. Tailor-made incentives can be agreed directly with the government for certain investment projects.
Detailed information is available on the official portal Invest in Morocco.

Privileged Domains

In addition to the tax exemptions granted under the common law, Moroccan law provides specific financial, tax and customs advantages to investors, as part of agreements or investment contracts to be concluded with the State, provided that they meet the required criteria. This concerns:
- the contribution of the state to certain investment expenses through the Investment Promotion Fund;
- the contribution of the state to certain expenses for the promotion of investment in specific industrial sectors and the development of modern technologies through the Hassan II Fund for Economic and Social Development;
- exemption from customs duties under Article 7.I of the Finance Act No. 12/98;
- exemption from import VAT under Section 123-22 °-b of the General Tax Code.

Privileged Geographical Zones

The industrial sector has been at the centre of Morocco's investment development policies, through to the country's "Industrial Acceleration Plan" 2014-20 and 2021-25. Furthermore, Morocco is increasingly investing in the energy sector.
The Agricultural Development Agency (ADA) provides incentives for investments in the agricultural sector.

Free-trade zones

There are industrial parks (Bouskoura, Meknès, etc.), technoparks (Casa Technopark) and free zones (which were recently transformed into “Industrial Acceleration Zones”, providing a 15% corporate tax rate following an initial five years of exemption). Furthermore, the government established the Casablanca Finance City (CFC).
To know more about the incentives available in each zone of the country, refer to the list of the regional investment centres.

Public aid and funding organisations

The Investments Commission, the Hassan II Funds for Economic and Social Development and Funds of Promotion of Investments. For further information, visit the dedicated page on the website of Invest in Morocco.
Furthermore, the Caisse Centrale de Garantie (CCG) is a public finance institution which offers co-financing, equity financing, and guarantees.

Investment Opportunities

The Key Sectors of the National Economy

Textile-clothing, tourism, agriculture, aquaculture, automotive.

High Potential Sectors

Call centers, high-technology, green energy (the country has the world’s largest concentrated solar power facility with storage, near Ouarzazate)

Privatization Programmes

In recent years, Morocco has launched an ambitious program of privatisation in many sectors of the economy. The largest privatisations were carried out in the sectors of mobile telephony, finance, tobacco stores and water supply.
Nevertheless, as of March 2021, the Moroccan Treasury held a direct share in 225 state-owned enterprises and 43 companies, including telecommunications companies, banks, and insurance companies, as well as railway and air transport companies (US Department of State).
The government relaunched Morocco’s privatization program before the Covid-19 pandemic but the plan was delayed. The 2022 budget schedules the privatisation of Marsa Maroc, Maroc Telecom, La Mamounia, Energie Electrique de Tahaddart (EET), Biopharma and Sonacos.

Tenders, Projects and Public Procurement

Tenders Info , Tenders in Morocco
Global Tenders , Tenders in Morocco
MCA Morocco

Sectors Where Investment Opportunities Are Fewer

Monopolistic Sectors

The Moroccan government holds a monopoly on phosphate extraction through the 95% state-owned Office Cherifien des Phosphates (OCP). Moreover, several sectors remain under public monopoly, managed either directly by public institutions (rail transport, some postal services, and airport services) or by municipalities (wholesale distribution of fruit and vegetables, fish, and slaughterhouses).

Finding Assistance For Further Information

Investment Aid Agency

Moroccan Investments and Exports Development Agency (AMDIE)

Other Useful Resources

List of Regional Investment Centres
Invest in Africa (IIA)
Attractiveness of investment in Africa (EY)

Doing Business Guides

World Bank's Doing Business - Morocco
Doing Business in Morocco (PKF International)
Doing Business in Morocco (UHY)

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