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Morocco: Morocco Finance Profile



The Moroccan economy consolidated its increase in 2013 with GDP rising 4.7% compared to 2.7% in 2012, despite the slowdown in world increase. This was due to a vibrant agricultural sector, in particular, with non agricultural activities somewhat less dynamic, compared to 2012. In general goods exports were down by 4% because of a decline of almost 28% in exports of phosphates and their derivatives. The only exports to benefit from the recovery of external request were capital goods, in particular electric cables and wires.

Sound macroeconomic and fiscal management continued into 2013. A cautious monetary policy held inflation at 1.9% and the current account deficit at 7.2% of GDP, compared to 10% in 2012, while foreign exchange reserves reached 4.5 months of imports of goods and services. The fiscal deficit, however, reached 5.3% of GDP. In response, the government undertook corrective measures to improve revenue collection and lowered public investment for 2014 with a view to bringing the fiscal deficit down to 3% of GDP by 2016. It should as well be noted that the reform of the compensation fund and the application of an indexation system for petroleum products will be needed to achieve that objective.

In general, Morocco’s performance has been encouraging and benefited from a context of political and social stability. The business environment has improved and the country has moved up eight places in the annual World Bank Doing Business statement, climbing from 95th to 87th in one year. In addition, 2013 was marked by improved tourism revenue (+2%), transfers from Moroccans living abroad and a significant increase in foreign direct investment (+20%).

Despite these positive results and the in general economic development, Morocco has not been able to solve the problem of youth unemployment (ages 15-24), which reached 19.1% in 2013. For 2014, Morocco is going to continue to implement its reform programme (subsidies, taxation, retirement, social protection and the fiscal system), with two objectives: i) to improve the efficiency of public finances; and ii) to support the development of an inclusive increase model supported by the private sector and that generates jobs for young people.

Morocco has invested in targeted sectoral strategies to accompany these reforms and to accelerate the transformation and diversification of its economy, leading to additional employment creation. The National Pact for Industrial Emergence (PNEI, 2009-15) aims to revive the industrial sector and to boost its competitiveness, and is thus an significant framework for launching industries in which Morocco can be considered additional competitive. From this perspective, the objective of creating 220 000 new jobs seems feasible for 2015. The new aeronautical and automobile industries represent an significant source of economic increase and innovation for Morocco.


  • The Moroccan economy proved resilient in 2013 with a increase rate of 4.7%, but tressed mainly by domestic consumption and public investment , but as well by a good agricultural year.
  • The reforms that have been underway for several years in favour of the private sector were strengthened in 2013 by a fiscal reform and the continuation of the reform of the compensation fund, which represents a key step in reducing public spending.
  • Morocco has invested in consistent sectoral strategies to accompany the reforms undertaken since the early 2000s, which helped accelerate the economy’s structural transformation and promote new products. New industries, such as aeronautics and automobiles, are presently drivers of increase and areas of innovation for the Moroccan economy. These areas can help Morocco overcome the difficulties encountered by certain traditional sectors such as textiles.


Investment guarantees in Morocco

As part of foreign investment promotion efforts, Morocco has ratified international conventions relating to the guarantee and protection of investment.

The agreements include;

The International Center for Settlement of Investment Disputes (ICSID)
The Multilateral Investment Guarantee Agency (MIGA)
The Inter-Arab Organization for Investment Guarantee Corporation

Membership of regional and international organisations of Morroco

African Development Bank Group (AfDB)
Arab Bank for Economic Development in Africa (ABEDA)
Arab Fund for Economic and Social Development (AFESD)
Arab Maghreb Union (AMU)
Arab Monetary Fund]] (AMF)
European Bank for Reconstruction and Development (EBRD)
Food and Agriculture Organization (FAO)
Group of 77 (G77)
International Atomic Energy Agency (IAEA)
International Bank for Reconstruction and Development (IBRD)
International Chamber of Commerce (ICC)
International Civil Aviation Organization (ICAO)
International Criminal Court (ICCt) (signatory)
International Criminal Police Organization (Interpol)
International Development Association (IDA)
International Federation of Red Cross and Red Crescent Societies (IFRCS)
International Finance Corporation (IFC)
International Fund for Agricultural Development (IFAD)
International Hydrographic Organization (IHO)
International Labour Organization (ILO)
International Maritime Organization (IMO)
International Mobile Satellite Organization (IMSO)
International Monetary Fund (IMF)
International Olympic Committee (IOC)
International Organization for Migration (IOM)
International Organization for Standardization (ISO)
International Red Cross and Red Crescent Movement (ICRM)
International Telecommunication Union (ITU)
International Telecommunications Satellite Organization (ITSO)
International Trade Union Confederation (ITUC)
Inter-Parliamentary Union (IPU)
Islamic Development Bank (IDB)
League of Arab States (LAS)
Multilateral Investment Guarantee Agency (MIGA)
Nonaligned Movement (NAM)
Organisation internationale de la Francophonie (OIF)
Organisation of Islamic Cooperation (OIC)
Organization for Security and Cooperation in Europe (OSCE) (partner)
Organization for the Prohibition of Chemical Weapons (OPCW)
Organization of American States (OAS) (observer)
Permanent Court of Arbitration (PCA)
United Nations (UN)
United Nations Conference on Trade and Development (UNCTAD)
United Nations Educational, Scientific, and Cultural Organization (UNESCO)
United Nations High Commissioner for Refugees (UNHCR)
United Nations Industrial Development Organization (UNIDO)
United Nations Operation in Cote d’Ivoire (UNOCI)
United Nations Organization Mission in the Democratic Republic of the Congo (MONUC)
Universal Postal Union (UPU)
World Confederation of Labour (WCL)
World Customs Organization (WCO)
World Federation of Trade Unions (WFTU)
World Health Organization (WHO)
World Intellectual Property Organization (WIPO)
World Meteorological Organization (WMO)
World Tourism Organization (UNWTO)
World Trade Organization (WTO)


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: 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: 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.

 1.Investment Promotion Fund (IFP)

The Investment Promotion Fund (IFP) manages operations relating to the state’s taking charge of the cost of some advantage granted to the investments that meet the criteria, within the framework of contracts, and in accordance with the investment charter and its implementation decree.


  • Land support: the IFP takes charge of 20% of the expenses of land acquisition necessary for the realization of the investment;
  • External infrastructure: the IFP participates in the expenses of external infrastructure with up to 5% of the overall amount of the investment program;
  • Training: the IFP participates in the expense of vocational training provided as part of the investment program with up to 20% of the cost of this training.

 2.Hassan II Fund

Hassan II Fund for Economic and Social Development (FHII) grants financial assistance for investment projects in some industrial sectors.


  • Building or acquiring professional buildings: the Fund supports up to 30% of the cost of professional buildings on the basis of a maximum unit cost of 2,000 MAD/m2 (excluding taxes)
  • Acquiring new equipment goods: the Fund may contribute up to 15% of the purchase cost of new equipment goods (excluding import duties and taxes).

These contributions are limited to 15% of the investment amount and 30 million MAD.

3. Import Duty Exemption

Businesses that commit to making an investment of an amount equal to or greater than two hundred (200) million dirhams can benefit, as part of agreements to be concluded with the government, from exemption from import duty and the value added tax applicable to goods, materials and tools needed for their project and imported directly by the companies or on their behalf.

This exemption is also granted to the parts, spare parts and accessories imported at the same time as capital goods, machinery and equipment for which they are intended. The investment must be made within thirty-six (36) months from the date of the signature of the abovementioned agreement.

4. VAT exemption

Equipment goods, materials and tools needed to achieve investment projects involving an amount higher than or equal to MAD 200 million are exempt from VAT on imports within the framework of an agreement concluded with the State, in favor for the beneficiaries during a period of thirty six (36) months from the start of business. This exemption is also granted to parts, spare parts and accessories imported at the same time as the aforesaid equipment.