Investing In Morocco

Signature team
Jun 17
5 min read

Updated: Jun 27

Morocco: A Rising Star on the Global Investment Horizon

Parliament in Rabat

Morocco – June 17, 2025 – Morocco is steadily cementing its position as a highly attractive destination for international investors, driven by robust economic growth, a proactive government committed to reform, and a strategic embrace of key high-potential sectors. Recent data paints a compelling picture of a nation on an upward trajectory, signalling significant opportunities for those looking to expand their global footprint.

Surging Investment and Economic Resilience

The Kingdom has witnessed remarkable foreign direct investment (FDI) inflows, with net FDI flows in the first quarter of 2025 surging by an impressive 63.6% compared to the same period in 2024, reaching over MAD 9.15 billion (approximately $992 million). This follows an already strong 2024, which was described as the "second-best year in Morocco's history" for foreign investment, with net FDI inflows reaching MAD 16.29 billion ($1.6 billion), a 52.5% increase from the previous year. This consistent upward trend underscores growing international confidence in the Moroccan economy.

Morocco's economy has also demonstrated resilience in the face of various challenges, including drought. GDP growth rebounded to 3.02% in 2023 and is projected to reach 3.5% in 2024, strengthening further to 3.9% in 2025, largely supported by increased investment and robust non-agricultural growth. Inflation has decelerated significantly, projected to stabilize at 2.2% in 2025, allowing the central bank, Bank Al-Maghrib, to cautiously ease monetary policy. Furthermore, a strong external position, marked by a moderate current account deficit financed by the rising FDI, and healthy international reserves, add to the country’s macroeconomic stability.

Diverse Sectors Presenting Opportunities

Morocco's diversified economy offers a wealth of opportunities across various sectors:

Automotive: This sector remains a powerhouse, leading national exports and attracting major global manufacturers and an extensive network of international suppliers.
Renewable Energy: Morocco is emerging as a regional leader in green energy, with over 40% of its national energy mix already derived from renewable sources. Ambitious targets aim for 52% by 2030, with projects like the Xlinks Morocco-UK Power Project and the massive Noor Ouarzazate Complex demonstrating significant commitment. The country is also exploring opportunities in green hydrogen production.
Tourism: A vital pillar of the economy, tourism continues its robust recovery, welcoming 17.4 million international visitors in 2024, a 20% increase over 2023. Government roadmaps are in place to sustain this growth.
Digital Economy: Morocco is actively positioning itself as a digital hub in Africa. Initiatives like GITEX Africa Morocco, a major technology and startup event, foster investment and collaboration in areas such as AI, fintech, cybersecurity, and smart cities.
Mining: Recent high-grade copper findings near Ouarzazate indicate significant potential for new investments in the mining sector.
Other priority sectors attracting foreign capital include aeronautics, electronics, agribusiness, pharmaceuticals, and textiles, alongside the growing offshoring industry.

Fostering a Pro-Investment Environment

Morocco's government has undertaken significant structural reforms to enhance its business climate and attract foreign capital:

New Investment Charter (2022): This modern and transparent framework is a cornerstone of Morocco's investment strategy. It offers attractive incentives, including direct investment subsidies that can cover up to 30% of total investment costs, depending on project characteristics, location, and sector. It also provides tax exemptions for new companies or those established in designated zones.
Infrastructure Development: The country boasts world-class infrastructure, including the Tanger Med port, a high-speed rail network, and modern airports.20 Preparations for co-hosting the 2025 Africa Cup of Nations and the 2030 FIFA World Cup are fueling massive investments in sports infrastructure, expanding highways, and modernizing airports, creating significant economic spin-offs. The National Program for Drinking Water Supply and Irrigation (PNAEPI) is also driving major construction and water security projects, including new dams and desalination plants.
Removal from FATF Grey List: In February 2023, Morocco's unanimous removal from the Financial Action Task Force's (FATF) "grey list" significantly boosted investor confidence by affirming its adherence to international anti-money laundering and counter-terrorist financing standards.
Free Trade Agreements: Morocco benefits from a comprehensive Free Trade Agreement with the United States, in effect since 2006, as well as numerous economic agreements with European Union nations, providing preferential access to major global markets.
Public Sector Reforms: The government is actively working on restructuring State-Owned Enterprises (SOEs) and operationalizing the Mohammed VI Investment Fund, which aims to stimulate productive activities and support major public-private investment projects.

Addressing Challenges for Sustainable Growth

While the outlook is overwhelmingly positive, Morocco acknowledges ongoing challenges. Job creation remains a critical priority, particularly for youth and university graduates, with the government focused on policies to generate more employment opportunities, The country is also vulnerable to climate change, particularly water scarcity, but is implementing "ambitious" strategies, including dam construction, wastewater reuse, and desalination, to ensure water and food security. Furthermore, efforts continue to enhance operational efficiency within the business environment, addressing areas like the costs and barriers to formal hiring and further digitizing administrative processes.

Conclusion

Morocco's commitment to economic diversification, strategic reforms, and infrastructure development positions it as a dynamic and increasingly attractive investment destination. With a stable macroeconomic environment, a growing array of opportunities across key sectors, and a government actively working to improve the business climate, Morocco offers a compelling proposition for investors seeking growth and long-term value in the African and Mediterranean regions.

Sources:

Morocco World News. (2025, May 21). Morocco's Foreign Investment Surges in Early 2025. Link
Hespress EN. (2025, May 21). Morocco's foreign direct investment inflows exceed MAD 9.15 bln in Q1 2025.30 Link
Morocco World News. (2025, April 22). IMF Projects Morocco's Economy to Grow by 3.9 Percent in 2025.31 Link
International Monetary Fund (IMF). (2025, April 7). Morocco and the IMF. Link
World Bank. (2025, March 26). Strategic and Targeted Reforms Can Strengthen Morocco's Business Landscape: Report. Link
Morocco World News. (2024, December 5). Morocco Continues to Strengthen Focus on Renewable Energy for Sustainable Growth. Link
UN Tourism. (2025, February 5). UN Tourism in Morocco: Driving Investments and Celebrating Innovation in Africa's Most Visited Destination. Link
Morocco World News. (2025, May 19). Morocco Offers Up to 30% Tax Incentives for Foreign Investors.32 Link
African Business. (2025, March 14). Ministry of Digital Transition and Administration Reform, the Digital Development Agency and GITEX Africa Morocco 2025 organiser announce the landmark third edition in Marrakech.33 Link
Walaw. (2025, April 29). Morocco reports high-grade copper findings at BMR property near Ouarzazate.34 Link
7News Morocco. (2025, February 19). Morocco's construction boom: Mega-projects reshaping the industry.35 Link
Diplomat Magazine. (2023, March 5). FATF: Financial Action Task Force unanimously removed Morocco from its "grey list". Link
United States Trade Representative (USTR). Morocco Free Trade Agreement. Link
Maroc.ma. (2025, April 7). Morocco Implements 'Ambitious' Strategies to Address Water Stress and Food Security.36 Link
IMF. (2025, April 8). IMF Executive Board Concludes 2025 Article IV Consultation, Third Review under the Resilience and Sustainability Facility with Morocco. Link
Mohammed VI Investment Fund. Fund - FM6I. Link