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Morocco, more businessNovember 2013

Morocco Overview

2

Capital Rabat

Institutional SystemDemocratic and social Constitutional

Monarchy

Area 710 850 km²

Population 32.5 million

Time Zone GMT (GMT+1 in summer)

LanguagesArabic and Amazigh (official)

French, Spanish, English

GDP835 Billion MAD (2012)

US$ 100 Billion

GDP per capita25 681 MAD/ inhabitant (2012)

US$ 3 500

Average growth 4.9% (over the last 5 years)

GDP Distribution

(2012)

Primary Sector 12.7%

Secondary Sector 28.1%

Tertiary Sector 59.2%

Inflation Rate 1.3% (2012)

Source: Haut Commissariat au Plan et Office des Changes

Contents

Morocco: An attractive country for investorsI

� Political and economic stability for investment

� Ambitious sectoral strategies

� Modern infrastructure

3

II Morocco’s offer

AMDI, serving investorsIII

� Modern infrastructure

� A monarchy established in the year 788 (12 centuries ago)

� A bicameral parliamentary system

� Both chambers vote on all laws

� The Constitutional Council reviews the constitutionality of all laws

� The judicial branch remains independent from the legislative and executive branches

� A multi-party system

A stable political environment

A continuing drive for openness and democratisation

4

� A multi-party system

� Over 85 000 associations and NGOs

� In July 2011, a referendum established a new Constitution, guaranteeing:

• Human rights

• The legality of the State and its institutions

• Individual and collective liberty

Morocco, most pacifist

country in North Africa in

2013

Morocco, most democratic

country in Arab region in 2013

According to Global Peace Index 2013 According to the Egyptian center

Ibn Khaldoun

Morocco, most stable country

in North Africa in 2012

According toThe Association

For International Affairs

• Improved moral standards in public life

• The plurality of the Moroccan identity

Plus de 50

conventions de

No restrictions

to capital for

non-residents

Free

repatriation of

profits and

capital for non-

residents

More than

100 protection

foreign

investment

agreements

A business environment favourable to investment

5

conventions de

non double

imposition+pr

otection de

l’investisseme

nt

3

residents agreements

and double

taxation

21 3

A business environment favourable to investment

• 51 Double Tax Avoidance Agreements

• 62 Investment Protection Agreements

• Member of OECD Investment Committee

• Member of International Centre for Settlement of Investment Disputes (ICSID)

• Member of MIGA (Multilateral Investment Guarantee Agency)

• 51 Double Tax Avoidance Agreements

• 62 Investment Protection Agreements

• Member of OECD Investment Committee

• Member of International Centre for Settlement of Investment Disputes (ICSID)

• Member of MIGA (Multilateral Investment Guarantee Agency)

• The creation of the Business Environment National Committee (CNEA) to

facilitate procedures and access to information, and to carry out legal reforms

• The modernisation of business law

• The strengthening of intellectual property protection

• A new law on arbitration and mediation

• New banking regulations

• Administrative simplification

• The creation of the Business Environment National Committee (CNEA) to

facilitate procedures and access to information, and to carry out legal reforms

• The modernisation of business law

• The strengthening of intellectual property protection

• A new law on arbitration and mediation

• New banking regulations

• Administrative simplification

Investor

Protection

Investor

Protection

Legal ReformsLegal Reforms

6

• Administrative simplification• Administrative simplification

• Reduction of tax burden

• The creation of funds specifically for investment promotion

• Reduction of tax burden

• The creation of funds specifically for investment promotion

An Incentive Tax

System

An Incentive Tax

System

Morocco gained 8 positions in the global ranking of “Doing Business 2014”

Morocco : the country that " improved the most" its business regulations in 2011

International

Instruments

International

Instruments

• Morocco adhered to the OECD Declaration on Propriety, Integrity and

Transparency in the Conduct of International Business and Finance and to the

OECD Declaration on Green Growth

• Morocco adhered to the OECD Declaration on Propriety, Integrity and

Transparency in the Conduct of International Business and Finance and to the

OECD Declaration on Green Growth

International analysts highlight the Moroccan

exception…

…and praise its democratic push.

A stable political environmentMorocco, a true exception in the MENA Region

"The Council of Europe welcomes its cooperation with Morocco, the most advanced country in the Arab region in terms

of democracy and respect for human rights and the rule of law"

Thorbjorn Jagland, General Secretary of the Council of Europe – 10/08/2012

“Morocco is one of the few countries in the region to move forward resolutely on the path of socio-economic reforms “

11/26/2013

7

"The positive trend that Morocco has known in 2011 shows that the political transition took place in good conditions

unlike other countries in the region who face enormous difficulties in this regard. Morocco has distinguished by a

rapid implementation and effective political and economic reforms. "

Arnaud Louis, Associate Director of Fitch Ratings - 09/11/2012

"Morocco has been engaged for more than a decade of large-scale reforms that deserve to be praised"

Jean-Marc Ayrault, French Prime Minister - 12/12/2012

"The United States sees in Morocco, a leader and a role model, that is why the King of Morocco Mohammed VI

deserves a great tribute to the achievements in reforms"

Hillary Clinton, U.S. Secretary of State - 09/14/2012

4.8% * Growth of GDP

1.7% * Controlled inflation

Morocco

maintains A4grade - 2012

Affirms

Morocco's

Strong macroeconomic drivers

8

1.7% * Controlled inflation

8.7% Stable rate of

unemployment

Morocco's

Investment rating

2012

#1Inflation control

2012-2013

Sources: Haut Commissariat au Plan & Ministère de l’Economie et des Finances

* Average on the last decade

End of 2012

Ambitious sectorial strategies

Objectives:

INDUSTRY: EMERGENCE PACT

• 1.6 % in additional GDP growth

• 220 000 jobs to create

• Key sectors: automobile; aeronautics; electronics; Offshoring; fishing and agriculture; textile Renault’s factory in Tangier

9

ICT: DIGITAL MOROCCO 2013

Objectives:

• Internet = 2.3% of GDP

• 58 000 jobs to create

• US$ 830 million of direct additional GDP

• US$ 2.5 billion of indirect additional GDP

Headquarters of Maroc Telecom in Rabat

Sources: Pacte Emergence Industrielle; E-gouvernement; Chambre de commerce suisse au Maroc

Launched in 2010

Objectives:

• To improve the country’s logistical competitiveness

• To reduce logistical costs from 20% to 15% of GDP

• An integrated national network of 70 multi-flow logistical zones

LOGISTICS


Logistics zone in Tangier

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Launched in 2010

Objectives:

• 20 million tourists in 2020

• 200 000 new beds

• Tourism GDP: from US$6 billion in 2010 to US$17billion in 2020

TOURISM: VISION 2020

Four Seasons Hotel in Marrakech

Sources: Ministère du Transport et de l’Equipment; Ministère du Tourisme

Launched in 2008

Objectives:

• US$10 billion in additional GDP from agriculture

• US$15 billion in public and private investments

• Creation of 24 000 jobs

AGRICULTURE: GREEN MOROCCO PLAN


Sprinkler system in Marrakech

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Launched in 2008

Objectives:

• US$1.5 billion in additional GDP

• Creation of 75 000 jobs by 2020

FISHING: HALIEUTIS

Fishing port in Agadir

Sources: Ministère de l’Agriculture et de la Pêche; FENIP; Ministère de l'Economie et des Finances

Launched in 2008

Objectives:

• A GDP from trade of US$ 12 billion, representing 12.5% of the country’s GDP.

• The creation of over 200 000 jobs.

TRADE: RAWAJ 2020


« Morocco Mall » in Casablanca

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HOUSING

Launched in 2009

Objectives:

• To reduce the shortage of units (800 000)

• To build 100 000 units per year

• To expand social housing

Modern city in Fès

Sources: Ministère de l’Habitat; MCINET

Launched in 2009 (Solar) and in 2010 (Wind) with a budget of US$ 15 billion

Objectives:

• Renewable energy >40% of national production by 2020

• Capacity: 2 000 MW of solar power + 2 000 MW of wind power

ENERGY: MOROCCAN SOLAR PLAN


Wind park in Tétouan

13

wind power

Launched in 2010

Objectives:

• To make of Casablanca a regional hub for the Maghreb and Western Africa.

FINANCE: CASABLANCA FINANCE CITY

Source: MASEN

Modern infrastructures

Airports•15 international airports•Casablanca is #1 Europe-Africa hub

Tramways•Rabat and Casablanca •€1 billion

Ports:

• Morocco has two coastlines

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Highways • 2015: it will connect all the big cities of

Marocco

Railway Network•First high-speed train in Africa

(Tangier-Casablanca) in 2015 –€1.8 billion

• Morocco has two coastlines (Mediterranean and Atlantic)

• More than 95% of trade in Morocco go through the seaway.

• Morocco has 38 ports of which 18 are devoted to foreign trade.

Tangier Med port:

• Ideal port platform to serve Europe and West African countries

22 Integrated Industrial Parks (P2Is)« Plug & Play »

RABAT

CASABLANCA

TANGER

KENITRA

TETOUAN BERKANE

OUJDA

FES

MEKNES

MARRAKECH

AGADIR

CASANEARSHORECASANEARSHORE

TETOUAN SHORETETOUAN SHORE

FES SHOREFES SHORENOUASSEUR

AEROSPACE CITY

ATLANTIC FREE ZONE

TECHNOPOLISTECHNOPOLIS

AGROPOLIS

TANGER FREE ZONE

OUJDA SHORE

CLEANTECH

TANGER AUTOMOTIVE CITY

15

LAAYOUNE

DAKHLA

MARRAKECH SHORE

GENERAL P2I

OFFSHORING P2I

AUTOMOBILE P2I AGRICULTURAL

P2I

RENEWABLE

ENERGY P2IAERONAUTICS P2I

Free zones in Morocco

� Exemption from custom fees and

simplified customs procedures

� Full exemption from corporate tax

for first 5 years and a rate of 8.75%

for the following 20 years.

� Exemption from custom fees and

simplified customs procedures

� Full exemption from corporate tax

for first 5 years and a rate of 8.75%


Incentive benefits in Free

Zones

Incentive benefits in Free

Zones

TANGER AUTOMOTIVE CITYTANGER AUTOMOTIVE CITY

RABAT

CASABLANCA

TANGER

KENITRA

TETOUANOUJDA

FES

MEKNES

MARRAKECH

AGADIR

OUJDA SHORE

CLEANTECH

OUJDA SHORE

CLEANTECH

ATLANTIC

FREE ZONE

TANGER FREE ZONE

TECHNOPOLIS

RABAT

TECHNOPOLIS

RABAT

16


� Full exemption from income tax for

first 5 years and a reduction of 80%



� Full exemption from income tax for

first 5 years and a reduction of 80%

for the following 20 years.LAAYOUNE

DAKHLA

NOUASSER AEROSPACE CITYNOUASSER AEROSPACE CITY

Tangier Free Zone won the Best International Logistics Project in 2013

InternaXonal LogisXcs Fair (SIL) in Barcelona, June 2013

Contents



17


A strategic geographical location

18

At the crossroads of the continents

PARIS

ROME

FRANKFURTNEW YORK

MADRID

1h

1d

2h

2d

3h

3d

2h

2d

7h

10d

19

Flight duration

Sea/land route

SAO PAULO

CAIRO

ACCRA

BEIJING

DAKAR

MADRID22h

30d

3h

4d

10h

25d

4h

4d

4h

5d

Sources: Royal Air Maroc; COMANAV

Morocco: an unparalleled connection between Europe, the Middle East, and Africa

Direct connections to 32

European cities

Number of international

passengers:

Steadily growing

Direct connections to 24 cities

in Africa and the Middle East

In millions

10,111,5 12

13,5

15,1 15,1

20

8,5

10,1

2006 2007 2008 2009 2010 2011 2012

Sources: Office National des Aéroports & Royal Air Maroc

Mohammed V Airport in Casablanca: best airport in North Africa in 2012According to the International Association of AirportsAccording to the International Association of Airports

Access to custom fee exemptions

Located just 14 km

from Europe

Agreement under negotiations

with Canada

Association Agreement with European Union

(1996)

21

from Europe

Agreement with Turkey (2003)

Agadir Agreement (2004)

United Arab Emirates Agreement

(2003)

Arab League Agreement (1998)

Agreement under negotiations with the

Economic Community of West African

States (ECOWAS & CEMAC)

Agreement with United States of

America (2005)

Tangier Med Port:Connections to 120 ports in 56 countries, with 40 services

Index of maritime connectivity in Morocco

7783 84 80

3323

18 18 19

22

2004 2005 2006 2007 2008 2009 2010 2011 2012

Current capacity of 3.5 million3.5 million containers (8.5 millions 8.5 millions in 2015)

2 2 container terminals

2.1 million TEUs 2.1 million TEUs * at the end of October 2013

Ambition: To be included in the World Top 15World Top 15

Current capacity of 3.5 million3.5 million containers (8.5 millions 8.5 millions in 2015)

2 2 container terminals

2.1 million TEUs 2.1 million TEUs * at the end of October 2013

Ambition: To be included in the World Top 15World Top 15

*TEU: Twenty foot equivalent unit

Source: UNCTAD; Chambre de Commerce Suisse au Maroc

Des coûts compétitifs

€ per month € per container

Exports costs*Competitive salary (average) Corporate Tax Rates**

50%

59%62% 64% 65%

577

975 994

2035

2817

23 Source: World Bank 2012; Caisse Nationale de Sécurité Sociale; Doing Business

Morocco Spain Tunisia China France

443 460

Morocco China Tunisia Spain France

*Associated costs with all procedures

required to export goods

** Amount of taxes and mandatory

contributions by the company during the

second year of activity, expressed in % of

commercial profits

225 292 375 394

803912

A young and qualified workforce

• 64% of Moroccans are aged under 34 years

• 6 million young people (between 18 and 35 years old)

• An active population of 12 million

• 175 000 university students

• Training of 15 000 engineering graduates per year for 2015 and 25 000 for

2020

• Over 100 public universities and schools

• Over 200 private universities

• 64% of Moroccans are aged under 34 years

• 6 million young people (between 18 and 35 years old)

• An active population of 12 million

• 175 000 university students

• Training of 15 000 engineering graduates per year for 2015 and 25 000 for

2020

• Over 100 public universities and schools

• Over 200 private universities

A young and educated population

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• 16 million internet users

• 4,4 million Facebook users (+38k Twitters, 1st in arab countries)

• 20 millions of french speakers

• 6 millions of spanish speakers

• Steady growth of English (Morocco ranked 45th worldwide and 2nd in North Africa, in

terms of mastering English*)

• Strong cultural and linguistic affinity with Europe

• 16 million internet users

• 4,4 million Facebook users (+38k Twitters, 1st in arab countries)

• 20 millions of french speakers

• 6 millions of spanish speakers

• Steady growth of English (Morocco ranked 45th worldwide and 2nd in North Africa, in

terms of mastering English*)

• Strong cultural and linguistic affinity with Europe

A youth open to the world

Sources: Arab Social Media Report, Dubai School of Government; Haut Commissariat au Plan, Ministère de l’Enseignement Supérieur, Agence Nationale de Réglementation des Télécommunications

* World index of english level, by the organism « Education First »

An attractive incentive packageConventional regime

� Eligibility Conditions:

• Investment ≥ US$ 25 million

• Jobs created ≥ 250

• Transfert of technoloy

• Implementation in a priority area

• Protection of environment

Investment Promotion

Funds

(IPFs)

� Eligibility Conditions:

• Total investment ≥ US$ 1.2 million

• Investment in goods and equipment ≥ US$

0.6 million

• Sectors:

Automobile, aeronautics, nanotechnology,

microelectronics, and biotechnology.

Hassan II Fund

And

/or

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� Land Assistance: A contribution up to 20% of

acquisition costs

� External Infrastructures: assistance of up to 5% of

total amount of investment programme

� Training: A contribution of up to 20% of training

costs.

microelectronics, and biotechnology.

� Contributions are limited to a maximum of 15%

of the total investment and US$ 3.6 million as

the following:

• Land Assistance: 30% of costs of land

acquisition and development.

• Equipment: 15% of costs of new equipment

(excluding taxes and import duties).

� Eligibility Conditions

• Activities with non-

resident businesses

• Compliance with financial

legislations and

regulations, foreign trade

and foreign exchange

Casablanca Finance

City


• 70% of sales to be

achieved abroad

� Unlimited exemption from

customs duties

� Simplified customs procedures

� Corporate tax = 0% for 5 years and

Free zone regime

An attractive incentive package


• Investment ≥ US$25

million

� VAT exemption for the

importation of equipment

goods, materials, and tools for the

36 months following the start of

General Tax

Code

26

For service companies CFC status:

� Total exemption from corporate

tax for companies during the first

5 years of operation and 8.75%

thereafter.

For regional and international office:

� Taxed at a reduced rate of 10%

(corporate tax)

� Specific taxation rate of 20% for

wage income (income tax)

� Exemption acts of incorporation

and capital increase

� Corporate tax = 0% for 5 years and

8.75% for 20 years

� Income tax = 0% for 5 years, then

80% tax reduction for 20 years

� Business tax exemption for 15

years

� Value Tax Added : unlimited

exemption for goods delivered

and services

� Registration fees: exemption acts

of incorporation and capital

increase

36 months following the start of

the activity.

This exemption is also granted to

parts, spare parts and accessories

imported at the same time as the

above equipment

� Exemption from import of

equipment goods, materials, and

tools for the 36 months after the

signing of the Investment

Agreement



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Who we are

AMDI

Structure to host, inform and support investors

Services for Files

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AMDI Services for free

Public entity with legal personality and financial autonomy

Files confidentiality

What we do

Helps you settle Helps you carry With you

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Helps you settle

and thrive

Facilitates the integration of your

business into the local economy.

Helps you carry out your project

Assists you in accelerating procedures and guides you in the

contacts with government services.

With you

along the way

Ensure the satisfaction of investors thanks to its

after care service

Where to find us

AMDI Headquarters RabatAdresse: 32, rue Honaine, angle avenue Michlifen, Agdal- Rabat – Maroc

Tél: +212 5 37 22 64 00E-mail: [email protected]

AMDI France14, Avenue d'Eylau - 75116 Paris

Tél: +33 1 73 02 15 09

E-mail: [email protected]

AMDI SpainPaseo de la Castellana, 141, Planta 20

Edificio Cuzco IV – 28046 – Madrid

Tél: + 34 917 893 441


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AMDI ItalyVia Boezio, 6 – 00193 - Rome

Tél: +39 0632 803 204


AMDI GermanyBockenheimer Lands street 17/19-

60325 Frankfurt

Tél: +49 69 710 455 222


AMDI United StatesRockefeller Group Business Centers 1221 Avenue of

The Americas, Suite 4200 – New York

Tél: +1 212 899 5577


AMDI United Arab

Emirates

Tél: +971 503 383 295


Thank you for your attention

31

www.invest.gov.ma

APPENDIXES

32

APPENDIXES

Per sector in 2012 (billion MAD and %) Per country in 2012 (billion MAD and %)

16

5

32

6

23

9

27 26

38

2823

35

24

32

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

FDI evolution (billion MAD)

FDI in Morocco

33

France

12,6

39%

United Arab

Emirates

7,9

25%

United States

1,6

5%

Spain

1,3

4%

Saoudia Arabia

1,2

4%

Switzerland

1,1

3%

Holland

1,0

3%

Great Britain

0,8

3%

Qatar

0,5

2%

Others

3,9

12%

Industry

8,3

26%

Real Estate

7,9

25%

Energiy and mine

5,7

18%

Holding

2,5

8%

Bank

2,0

6%

Tourism

1,6

5%

Commerce

1,4

4%

Big works

0,7

2%

Transport

0,3

1%Autres

1,5

5%

Major investment projects of 2011

• Thales establishes its African Headquarters in Morocco (formerly in France)

• Morocco = 15% of turnover in Africa

• 50/50 Joint Venture: new factory for the production of harnesses and electricity

cabinets for tramways and high-speed trains.

• €160M invested in aerospace manufacturing factory.

• Start of implementation in 2012 and of manufacturing in 2013.

34

cabinets for tramways and high-speed trains.

• €30M

• 400 jobs

• 1st Four Seasons in North Africa.

• €160M investment on 15 hectares.

• Inaugurated November 2011

• €90M

• Acquisition of 63.9% of Moroccan pharmaceutical manufacturer Promopharm.

Major investment projects announced in 2012

• Inauguration of new 3 000 m² factory in Berrechid.

• €3.2M investment and additional €11M investment for 2014.

• Should employ 2 500 people.

• The Indian number one in generic medicine manufacturing opens in Casablanca.

• Approximately €2M invested.

• Launch of its new 13 000 m² logistics platform in Sapino Industrial Park.

• €3.5M investment.

35

• Approximately €2M invested.

• €20M investment.

• Established in Tangier Automotive City, near Tangier.

• €40M investment in its Nouaceur factory for a new production line for “Pulpy”

juice, the newest addition to its Miami brand.

• Total investment of €80M for the whole of its Moroccan activities in 2012.

The Morocco-EU Advanced Status

� In October 2008, Morocco and the European Union (EU) signed and ratified an advanced status that guaranteed the

strengthening of relations between the Kingdom of Morocco and the 27 members of the EU.

� On the political level:

� The organisation of a regular Summit between Morocco and the EU.

� The holding of informal meetings to discuss security, immigration, and crisis management concerns, as well as any other

political issues pertinent to both sides.

� The participation of Morocco in all EU Community programmes and proceedings.

� On the economic level:

36

� On the economic level:

� Closer collaboration and an approximation of Moroccan legislation to the EU acquis.

� The completion of a more comprehensive Free-Trade Agreement.

� The promotion of European investments in Morocco.

� The strengthening of research and innovation policies in the industrial sector.

� Support for Moroccan SMEs.

� The introduction of the Moroccan energy market into the European market.

� The Advanced Status reflects the trust Morocco has generated in its efforts for political and economic reforms, the strengthening

of the State’s legality, a better justice system, social cohesion, and the fight against poverty.

Islamic Banking

� In the near future, a law concerning three types of establishments will be submitted to the Lower House. The

types of establishments concerned are: banks, assimilated establishments, and Islamic banking institutions.

� The government predicts that the Islamic banking system will be a model to emulate, having already proven its

worth by resisting economic crises, all the while displaying significant growth potential.

� In 2011, an estimated amount of $1 trillion in funds were in circulation in the global Islamic banking system, an

increase of over 50% since 2008 and 21% since 2010.

37

increase of over 50% since 2008 and 21% since 2010.

� The basis: Money, as capital, can be a means of doing business, but not its ends.

� A very beneficial principle for investors.

� The Islamic banking institution includes: investment funds; investment and financing businesses; stockbrokers

and financial intermediaries; financial consultants; and credit rating agencies.

Emerging Real Estate

� Morocco has implemented a property investment organism, whose strategy is to specifically invest in:

industrial sites and units, storage and logistics platforms, and office buildings.

� The mission of the Emerging Real Estate is to be the financial backer for these types of investments, and to

support investors in their development and/or expansion projects.

� The Emerging Real Estate was created thanks to the initiative of three main Moroccan sponsor banks, allowing

it to have access to very generous financing conditions.

38

� The Emerging Real Estate has a target size of DH1.05B and DH 1.05B particioned between Banque Centrale

Populaire, Attijariwafa bank et BMCE Bank.

� i.e. an investment capacity of DH2.1B for the whole of the national territory.

� Investments made by the Emerging Real Estate average from DH100M to DH300M.

� Industrial and logistics buildings constructed under these programmes will reach 40 000 m² in area.

� Office buildings constructed will reach a total useable area between 5 000m² and 20 000 m².

The fight against corruption in Morocco

� Morocco signed the United Nations Convention against Corruption on 9 December 2003 and

ratified it on 9 May 2007.

� In May 2012, Morocco joined the integrity , honesty and transparency OECD instrument in

the conduct of international business and finance

� The Central Authority for Corruption Prevention was created in March 2007.

� The Council of Competition and the ICPC were constitutionalised in June 2011.

39

� The Council of Competition and the ICPC were constitutionalised in June 2011.

� A harmonious and coherent system to fight against corruption was implemented in June

2011.

� The new Constitution guarantees free elections, strict neutrality, fair access to

resources, protection for witnesses of corruption, etc.

� The new government is immediately and firmly committed to fighting corruption, having

launched 59 measures related to good governance while strengthening the ICPC’s acting

authority.

Morocco in the world

� Member of the United Nations (UN) since November 1956.

� Non-permanent member of United Nations Security Council (UNSC) until 2013.

� Member of the World Trade Organisation (WTO) since January 1995.

� Member of OECD Investment Committee.

� The Kingdom of Morocco is a very active member of the NATO Mediterranean

Dialogue, established by the foreign ministers of NATO countries in December 1994.

� Major non-NATO ally since January 2004.

40

� Major non-NATO ally since January 2004.

� Major partner of the European Union (EU).

� Signature of Morocco-EU Advanced Status in 2008.

Since February 2012, Morocco has gained the right to participate in all current and future EU

programmes.

� Morocco is also a member of the Arab League (AL), the Arab Maghreb Union

(AMU), Francophonie, the Organisation of the Islamic Conference (OIC), the Group of 77, the

Union for the Mediterranean (UfM), and the Community of Sahel-Saharan States (CEN-SAD).

FARO (Seed capital, development, and orientation fund)

� Faro, the seed capital, development, and orientation fund ,was launched on 27 May 2010 in the

context of the Union for the Mediterranean to boost the development of innovation on both

sides of the Mediterranean.

� With a budget of 1 million Euros, the Faro fund enables European entrepreneurs to study the

feasibility of innovative projects undertaken in collaboration with partners from the South of the

Mediterranean. Each project backed by the Faro is allocated a subsidy of 20,000 Euros

maximum, to finance up to 50% of the total costs involved in the works.

� The subsidy allocated will enable the promoters of small innovative projects to undertake

feasibility studies for their partnership project from various points of view:

technical, financial, legal, commercial or managerial.

41

technical, financial, legal, commercial or managerial.

� The creation of this fund is an example of the Union for the Mediterranean logic of encouraging

the development of SMEs, and associates the French Development Agency (Agence française de

développement – AFD), to the Caisse des Dépôts (CDC) and OSEO, around three main

objectives:

� To encourage the creation of businesses and promote employment,

� To support innovation in the countries on the southern shores of Mediterranean,

� To develop North/South partnerships.

� Project leaders having received assistance from the fund will be privileged, gaining access to

sponsoring, sharing of past experiences, and innovation evaluations.

Morocco offers a solid banking system with local players who are developing internationally thanks to their presence in Africa.

• The highest penetration of banking services in Africa after South Africa.- Bank assets reached 73% of GDP, as opposed to 69% in Egypt and 33% in Algeria.

• 3 national banks in African Top-10- Attijariwafa Bank: #6- Groupe Banque Populaire: #8- BMCE Bank: #9

• A strong presence in African countries to support Moroccan businesses.

Key Factors

42

Attijariwafa Bank BMCE Bank (and Bank of Africa)

2010: African Bank of

the Year

$1.5B Turnover

$35B Assets

$0.8B Turnover

$19B Assets

Source: BCEAO, IMF – World Economic Outlook, April 2010, PNUD – HDR database (2010), Bank Al-Maghrib, websites & annual reports, BCG analysis

Morocco offers a solid banking system

In the report about the Financial Development Index 2012 of World Economic

Forum, Morocco is ranked 45th out of 62 countries (1ST in the region of North

Africa)

He overtops:

� Legal and regulatory issues:

- Expenses with administrative regulations (22nd)

- Regulation of securities exchanges (25th)

- Public confidence in politicians (26th)

� Tax:

- Distortive effect of taxes and subsidies on competition (21st)

� Size index:

- Financial system deposits to GDP (24th)

- Bank deposits to GDP (24th)

� Efficiency index:

- Aggregate profitability indicator (19th)

� Business mergers - acquisitions:

43

- Distortive effect of taxes and subsidies on competition (21st)

- Marginal tax variation (26th)

� Cost of starting a business:

- Time to start a business (24th)

- Time for closing a business (23rd)

� Monetary stability:

- External vulnerability indicator(4th)

- External debt to GDP (18th)

� Banking system stability:

- Frequency of banking crises (10th)

- Output loss during banking crises(25th)

� Business mergers - acquisitions:

- M&A transaction value to GDP (24th)

� Insurance:

- Relative value added of insurance to GDP (16th)

� Equity market development:

- Stock market capitalization to GDP (23rd)

� Commercial access:

- Financing through local equity market (24th)

� Retail access:

- Commercial banks branches (22nd)

- Loan accounts at MFI’s(11th)

“The Moroccan Monarchy is the guarantor of the State’s stability

and continuity. The Monarchy imposes itself, within the

framework of the Moroccan political process, as an arbiter and a

foundation stone, underlining the Moroccan society consensus

on the Monarchy, a consensus that was mirrored in debates on

reforms carried out last year.”

Claire Spencer, Head of Middle East and North Africa

Programme at Chatham House Royal Institute of International

Affairs – 06/01/2012

“Morocco may emerge as the winner of uncertainly in the Middle

East. It is more stable and predictable than Egypt.”

“Morocco's constitutional reforms stand as a source of

inspiration for other countries in the region.”

Vidar Helgesen, Secretary General of the International

Institute for Democracy and Electoral Assistance (IDEA)-

06/01/2012

“The Monarchy in Morocco has a "historical legitimacy" and is a

"source of stability””

Ronald Meinardus, regional director for North Africa and the

Middle East at the German Friedrich Naumann Foundation -

06/05/2012

“Morocco has always been committed to a better economic and

trade integration between the Maghreb countries.”

José Fernandez, U.S. Assistant Secretary for Economic and Business

Affairs – 06/05/2012

Morocco, seen from abroad (1/3)

44

East. It is more stable and predictable than Egypt.”

Financial Times, daily British financial publication-05/29/2012

06/01/2012

“Morocco is a special case in the Arab world because the

Kingdom carried out a revolution within its Constitution. The

Monarchy has made the choice of becoming a constitutional

Monarchy, allowing for a democratic transition that will reassure

investors in Morocco.’’

Philippe de Fontaine Vive Curtaz, Vice President of the

European Investment Bank(EIB)-06/01/2012

“Thanks to the free trade agreement between Morocco and the

US, the Kingdom will become a trade platform for American

businesses wishing to gain a foothold in Africa, particularly in

the MENA region.”

José Fernandez, U.S. Assistant Secretary for Economic and

Business Affairs – 06/05/2012

The World Bank has recognized Morocco’s progress in promoting

investment and particularly the efforts of the Moroccan

Investment Development Agency (MIDA) to attract foreign

investors and meet their demands for information.

Morocco is the highest ranked country in Africa in terms of

overall prosperity ranking (73rd out of 141 countries).

Morocco, stands out in the sub-indices "social capital" (23rd)

and "economy" (35th)

“NATO should build durable ties with other key regional

partners in the Middle East and North Africa such as Morocco.

“

Atlantic Council Think Thank Report-05/16/2012

“‘King Mohammed VI showed great insight and wisdom in

leading Morocco’s democratic, economic and constitutional

development process.”

Andrew Murrison, Conservative MP at the British House of

Commons-05/15/2012

“Morocco is well committed on the path of political reforms

initiated by HM King Mohammed VI in his speech of March

2011.”

M. Luca Volontè, rapporteur of Parliamentary Assembly of

the Council of Europe (PACE)'s Political Affairs Committee

on the "Evaluation of the Partnership for Democracy in

respect of the Parliament of Morocco. - 04/25/2012

“The Mediterranean Parliamentarians welcomed the

relevance of the reforms undertaken in Morocco, which

enabled the Kingdom to make profound change in several

“Morocco ranked second in Africa in terms of Foreign Direct

Investment (FDI), behind South Africa and ahead of Kenya, in 2011.”

FDI Intelligence, subsidiary of the Financial Times Limited –

05/22/2012


45

“The United States reiterates its “strong support ”for the

reform efforts in Morocco and other efforts on the economic

level.”

Victoria Nuland, spokesperson for the United States

Department of State – 05/01/2012

French President Francois Hollande has reiterated his

commitment to the exceptional friendship between Morocco

and France, also praising the democratic reforms initiated by

King Mohammed VI that are currently underway, further

underlining that France stands by Morocco.

François Hollande -05/24/2012

“King Mohammed VI is a reformer, secular and legitimate, making of

Morocco an exception in its region.”

The Journal of International Security Affairs -05/26/2012

enabled the Kingdom to make profound change in several

areas in serenity and continuity.” – 05/01/2012 The presidents of European Parliament groups and

commissions praised Morocco’s remarkable progress toward

democracy and human rights. – 06/07/2012

“The king enjoys the legitimacy and credibility that enabled

him to make democratic reforms in Morocco, culminating in

the adoption of a new Constitution and legislative elections

in November 2011.”

The National Interest, 04/13/2012

“The new Constitution, approved by the Moroccan people in

“As an enlightened monarch, King Mohammed VI has the

unique ability to defend traditional and tribal cultures while

seeing the wisdom of developing a diversified, modern

economy based on individual achievement.”

Forbes Magazine-04/26/2012

The President of the Republic of Guatemala, Otto Pérez

Molina, hailed the positive democratic momentum that

Morocco sees under the leadership of HM King Mohammed

VI – 9/04/2012

“Morocco is “on the right track” in democracy and can “serve

as a model for other countries.”

Thorbjorn Jagland, Secretary general of European Council -

04/05/2012

“Under the leadership of King Mohammed VI, Morocco is

leading the way in terms of sustainable development, within


46

“The new Constitution, approved by the Moroccan people in

July 2011, guarantees human rights, particularly freedom of

speech and gender equality.”

Philip Luther, Director, Amnesty International Middle East

and North Africa – 05/24/2012

leading the way in terms of sustainable development, within

the framework of a conscious approach which assures dignity

and quality of life for Moroccans.”

Susan Bass, Vice President, Earth Day Network-03/30/2012

“Morocco tends to align more with Europe than with its

Southern and Western neighbors“

CNN - 21/02/2011

“Despite regional troubles, Morocco continues its

progress…Various factors point to encouraging prospects for

the Moroccan economy in 2011, namely an excellent harvest

and a continuous diversification of the Moroccan economy”

International think-tank Oxford Business Group (OBG)-

29/07/2011

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