Kingdom of morocco emerging economy

Kingdom of Morocco Emerging Economy

Discover Opportunities

A Regional Hub

WELCOME to a New

Investment Era

Why Morocco?Only 14km south of Europe, Morocco is a competitive platform for export :

• Low wages: The average wage is 360$/month, i.e. almost 8 times lower than in Spain.• Low logistic cost• Low Tax rates

Cost Competitiveness

Strong and Stable Macroeconomic PerformancesPreserving macroeconomic stability is a major concern for Moroccan governments. Several actions and structural reforms have been undertaken to put the country on the path of strong and sustainable growth:

• Access to new growth levels• Decreasing unemployment• Controlled inflation• Reducing debt levels• Growth driven by domestic demand and public investment

Free Trade Access to One Billion ConsumersThanks to diverse free-trade agreements, Morocco offers investor free duty access to a market of 55 countries representing more than 1 billion consumers and 60% of world GDP.:

• Morocco-European Union association agreement and Advanced Status• Morocco-United States Free Trade Agreement• Morocco-Turkey Free Trade Agreement• Arab Free Trade Zone (Tunisia - Egypt - Jordan) Agadir Agreement• Morocco-African Countries Preferential Trade Agreement

Highly Attractive Incentives for InvestmentInvestments superior to 25M$ or creating over 250 jobs

• 10% of land acquisition costs• 5% of infrastructure costs• 10% of professional training costs• Several tax reductions (Examples: VAT; import

duties on equipment; income tax…)

Agrement in progress with Canada

• No tariff and simplified customs Procedures• No company profit tax for 5 years then

8.75% for 20 years• No personal revenue tax for 5 years then

80% reduction for 20 years• No restriction on benefits repartition

Free Zones Area

Morocco

Agrement with the U.S 2005

Agrement with the European Union (1996)

Agadir Agreement 2004Arab League Agrement 1998

Agreement in progress with the West African Economic & Monetary

Union

Why Morocco?For over a decade, Morocco launched large-scale projects aimed at elevating its infrastructure to international standards:

• Tanger-Med Port entered into service in 2007 with a total capacity of over 3 million containers (8 million in 2016)

• With the completion of the complementary program, the highway network will pass from a length of 1500 km in 2010 to 1800 km in 2015

• 15 international airports in Morocco (largest airport hub in the region) are used by a multitude of international companies and are connected to major cities and economic platforms of world affairs.

• Telecommunications infrastructure meeting international standards : 7500 km of optic fiber (AFRICAN LEADER IN THE FIELD OF TELECOMS)

• First High speed railway in Africa by 2015

World Class Infrastructure

Development Plans

In Morocco, human resources have all the ingredients to become the pivots of a competitive investment and value creator; education level, cultural openness, language skills and the use of new technologies, commitment to entrepreneurship, adaptation capacity to change and competitive labor costs:

• A young and active population• Qualified Human Ressources• Advanced linguistics capacities• Vocational training adapted to market needs• Training institutes for each sectorial strategy

Human Ressources

Morocco launched numerous strategic sectorial plans that ensure strong and sustainable economic growth. This reform momentum is marked by an innovative contracting approach and public private partnership advocating greater and coordinated participation of the private sector in the development of sectoral strategies and policies along with the funding of projects allowing to refocus the State’s role on its regulatory powers.

These strategies are part of a process to speed the development of strategic sectors like agriculture, fishery, mining, renewable energy, logistics and promising sectors such as automotive, aerospace and services with high added value.

Constantly improving business ClimateTo promote the investment act, a particular attention is given to improving the business climate. A set of mechanisms to increase competition and transparency was put in place:

• Simplification of administrative procedures for businesses• Strengthening the business law framework (law on competition and

free pricing, law on economic interest groups, law on industrial and in-tellectual property ...)

• Improving regulatory transparency• Development and modernization of financial markets• Creation of the Business Environment National Committee• Creation of the Central Authority on the Prevention of Corruption• Creation of the Moroccan Office for Intellectual and Commercial Property• Promotion of the Charter on Corporate Social Responsibility

Investment OpportunitiesFacing the challenges of an evolving global economy, the National Pact for Industrial Emergence aims to build a strong industrial sector and create a virtuous circle of growth.The state and the private sector have sealed this covenant by signing a contract program covering the period 2009-2015 :

• Creation of 22 Industrial platforms & Free-Trade Zones• Objectives –Generate +1.6 % additional annual GDP growth –Create 220.000 industrial new jobs

Priority Sectors • Automotive industry : Morocco a prime partner Morocco is gradually acquiring key status as a base for the automobile industry worldwide. With the development of a strong network of equipment makers and the installation of assembly plants, vehicles assembled in Morocco are today exported to Egypt, Tunisia and the European Market.

• Aviation and space : Morocco at the leading edge Morocco is becoming a particularly attractive place by offering itself today as a competitive destination for setting aviation industries.

• Offshoring : Morocco has joined the top 30 offshoring countries Morocco offers in offshoring a world class infrastructure and services , a competitive pool of ressources and training assistance and an attractive incentive's framework. Morocco has become in a few years world leader in the call centre business. The country has also been able European information technology companies.

• Electronics : Aiming at a more and more integrated industry In Morocco, electronics is a dynamic sector because of the quality of the infrastructure and the qualified engineers and technicians available. By 2015, there will be a trained work force of 9 000.

• Textile and leather : Morocco specializes in medium and top range goods As a major player in the Mediteranean textiles and leather industry. Morocco possesses a vast range of SME's of great technical quality, with a highly-skilled workforce and geographical proximity to the main markets and an important logistics standpoint. These advantages, together with the historical background of the country, enable investors in this sector to place themselves confortably in medium and high range.

• Agro-business : Mordern Morocco With its long agriculture tradition, Morocco had developped a modern, competitive and diversified agro-business sector.

Industry

LogisticsThe "Logistics" plan was launched in 2010 to improve logistics effectiveness.• Objectives Reduce cost of logistics in GDP Inegrated national network of 70 Multi Flow Logistics Zones Incentives to build up integrated logistics players

Investment Opportunities

Tourism Morocco is undeniabily a major tourist destination. With its 3500 Km of coastline, the wealth and variety of its natural beauty, its centuries-old history, the legendary hospitality of its people and its ancient traditions, Morocco since its independance has choosen tourism as a priority towards advancing socio-economic development.

The country has attached great importance to sustainability in its ten-year strategy "Vision 2020" : building new tourist destinations compete in a regional approach to a broader distribution of wealth from tourism and establish a strategy for sustainable development.

The ambition for the sector is to raise Morocco among the 20 leading tourist destinations and especially to position itself among the destinations models for sustainable developpment in the Mediteranean.

The agricultural sector contributes with 19% to the national GDP, divided between agriculture (15%) and agro-industry (4%). This sector employs over 4 million people including about 100,000 in agro-industry.

The new agricultural strategy, Green Morocco Plan, was launched in 2008 to mordernize agriculture.• Objectives : ~10 $Bn additionnal agriculture GDP ~15 $Bn investment

Agriculture

The fishing sector in Morocco has developed an integrated, ambitious and comprehensive development plan called "Halieutis for the explotation and the protection of the fishing potential.

It is based on three main axes declined as projects: • Sustainable exploitation of ressources and promotion of responsible fishing;• Development of an efficient and quality fishing industry by ensuring optimum traceability of the

product throughout the value chain;• Obtaining the best value for processed products through out the ease of acess to raw material,

encouragement of product innovation, penetration of the most profitable markets(creation of 3 regional competitiveness hubs in Tanger, Agadir and Laayoune-Dakhla

Fishing Industry

AMDI is an institution to serve foreign investors by offering a free professional public service to all investors who could therefore use a wide international netwok and a range of institutional partnerships with all Moroccan administration and private sectors.

http://www.china-invests.net/ma/InvestMorocco/ (in chinese)

The Marocan Investment Development Agency (AMDI)

"Maroc Numeric 2013" plan to position Morocco as a regional technology hub

The "Maroc Numeric 2013" plan intends to make information technology one of the pillars of the Moroccan economy, a vector of human development and a source of value added for the economic and public administration sectors. As an international player in information technology and host to the large international operators, Morocco also wants to increase the diffusion of these technologies and their general use by the ordinary citizens, companies and administrations.

Information Communication and Technology (ICT)

Opportunities in energy Morocco has planned ambitious investments

between 2010 and 2020• Additional ~6 000 MW capacity by 2015, over 10 $Bn investment• Government-supported large projects launched, in particular in Wind and Solar energy –Wind: 2GW capacity by 2020, ~6 $bn investment –Solar: 2GW capacity by 2020, ~9 $bn investment

Strong opportunity to manufacture equipments and parts in Morocco, in particular Wind and Solar, to serve Morocco, Africa and Europe markets

Heavy investment in energy infrastructures, in particular in Wind and Solar

• 5 power plants on 10.000 ha, due date : 2019

–1st project of 500 MW in Ouarzazate, to be set up by 2015 (Project tendering in process )

Others projects to be launched in the future :

The project of Ain Beni Mathar of 400 MWThe project of Sebkhate Tah of 500 MWThe project of Foum Al Ouad of 500 MWThe project of Boujdour of 100 MW

5 new sites

• Tanger2 (150 MW)• Koudia II in Tetouan (300 MW)• Taza (150 MW)• Tiskrad in Laayoune (300 MW)• Boujdour (100 MW).

Moroccan Solar Plan: >2 GW by 2020

Moroccan Wind Plan: >2 GW by 2020

Beyond Morocco's needs, mega investment potential in Solar and Wind to serve Europe

• Desertec : 15% of European Electricity in 2050, 500 $Bn investment, 100 GW capacity• Morocco is the most favorable location given Wind/Solar potential and proximity to Europe

Strong Government support for industrial investment in Renewable Energy

• Dedicated Industrial park already in progress for green energies (Kyoto Part, Oujda)• Attractive set of financial Incentives

General InformationsCapital Rabat

Main Cities Casablanca, Fes, Marrakech, Oujda, Agadir, Tanger, Dakhla, Laayoune

Institutional System Constitutional democratic and social monarchy Administrative Regions 16 regionsSuperficie 710 850 km²Official language Arab Aamazigh Language Comonly used French , Spanish, English

DemographyPopulation 31 millions unhabitants Active Population 50,60%Urban Population 56,90%Life expectancy 72 years

Macro EconomyGDP (2011) 802 600 million MADGDP/capital (2010) 23 996 MAD / CapitalGDP/sector (2010) Primary Sector 18,00%

Secondary Sector 26,00%Tertiary Sector 56,00%

Inflation Rate 0.9 % ( 2011 )GDP growth 5 % ( 2011 )Average Growth 4.9 % (over the last 5 years)

Commercial TradeExport Volume 174 000 million MAD (2011)Imports Volume 358 000 million MAD ( 2011 )Main Customers France - Spain - India - Italy - United StatesMain Providers France - Spain - China - United States - Saudi Arabia

foreign Direct Investments

FDI 1,952 millions $(2009), 1,304 millions $(2010), $ 847.6 millions $(2011)

FDI cumul 40,719 millions $(2009), 42,023 millions $(2010),$ 42,8706 millions $(2011)

Main sectors(2010) Communications - Industry - Real Estate - tourism - BankingMain Investors (2010) France - Spain - United Arab Emirates - Switzerland - U.K

TelecommunicationMobile Subscribers 34,9 millions june 2101 Fixed Phone Subscribers 3,6 millions june 2011 Internet Subcribers adsl 527 016 june 2011Internet subscribers 3G 1,816 millions june 2011

InfrastuctureInternational Airports 15International port 14Highways 1 416 km² ( 2011 )

1.00 MAD=0.116682 USD

Algeria

Mauritania

Portugal Spain

办 公 处：三里屯路16号

Chancery : No. 16, San Li Tun Lu电话（Tel）：6532 1489

传真（Fax)：6532 1453

电子邮件 E-mail）：[email protected]

www.moroccoembassy.cn

摩洛哥王国驻华大使馆Embassy of the

Kingdom of Morocco