The economic development of Morocco is based on appropriatestrategic plans« (…)As far as strategy is concerned, these infrastructure projectsand plans have enabled us to upgrade our economy, boostproductivity, enhance competitiveness, increase public investment,and create integrated, regional development hubs. Our country now has a clear, stable framework for economicdevelopment, making it possible for our economy to withstandthe adverse effects of the global financial crisis. Similarly, Morocconow enjoys an enhanced status as an attractive destinationfor productive investment, and as an important regional andinternational trade hub (…)”. Extract from the speech of H.M. King Mohammed VI on Throne Day, 30 July 2010
06 / 07 INVEST IN MOROCCO Summary Europe 08 / 09 Morocco in figures 10 / 11 Geostrategic position Morocco12 / 13Moroccan economyin full expansion14 / 15Social and economicreforms
28 / 29 Sectional plans 40 / 41 Qualified human resources16 / 17Business-friendly environment20 / 21World classinfrastructure 42 / 43 Life in Morocco 44 / 45 Sustainable development policy 46 / 47 Moroccan Investment Development Agency
08 / 09 INVEST IN MOROCCOMorocco in figures Geographical situation Area 710 850 square kilometers Position North Africa 14 km from Europe Climate Mediterranean Time zone GMT (GMT+1 in summer) Capital Rabat Principal cities Casablanca, Marrakech, Tangiers, Agadir, Fez, Oujda, Laâyoune, Dakhla Demography Population 31 million inhabitants Density 67.59 inhabitants/ Sq. kilomete Active population 50,6% Urban population 50,9% Life expectancy 72 years Official language ArabicCommonly used languages French, Spanish, English. Institutions Institutional system Constitutional democratic and social monarchyAdministrative distribution 16 regions Currency Moroccan Dirham 1 MAD Exchange rate (average for 2009) 1 US Dollar 8,1 MADs 1 Euro 11,3 MADs Economic growth indicators 2009 GDP 730,5 billion MADs (about 63,5 billion €) GDP/inhabitant 22 095 MADs (1 921 €) Growth of GDP in 2009 4,9% Average growth 5% (over the past 5 years) Rate of inflation 1,0% Average rate of inflation 1,9% (over the past 10 years) Data : Year 2009 Source : High Commissioner’s Officer for Planning (HCP), Morocco
Tetouan Tangiers Al Hoceima Larache Fez Oujda Rabat Casablanca Essaouira Marrakech Ouarzazate Agadir Laayoun DakhlaLagouira
10 / 11 INVEST IN MOROCCOGeostrategic location Opening to a market of 1,3 billion consumers. • Morocco: regional hub Located 14 kilometers from the shores of Europe, the Europe country is washed by two seas, the Mediterranean in the North and the Atlantic all along the West coast. This has enabled it to place itself at the crossroads of the main international trade routes linking America, Africa, Europe and the Middle East. An obvious asset to incorporate your investment into Morocco the big international trade flows and increase the competitiveness of your company by simplifying logistics.Flying time from Casablanca airport :Madrid 1hour and 35mnParis 2hour and 45mnLondon 3hour and 30mn ASIANew York 8hour and 15mn uNITED STATES EurOPE MOrOCCOSailing time from the port of Tangiers : AFrICAMarseille (France) 36 hoursBarcelona (Spain) 24 hoursGenoa (Italy) 44 hoursCrossing time from Tangier Med port :Algeciras or Tarifa 35 minutes by Ferry(Spain) Morocco, a founding member of the World Trade Organization, is also a member and/or associated to many multilateral and regional organizations.
• Open to the outside world Agreement of Association and Advanced Status : Morocco – European Union As it accounts for almost two-thirds of the Kingdom’s foreign trade the European union is our largest economic partner. Morocco is among the top Mediterranean countries in the field of financial cooperation with the European union with a sizable commitment of 290 million € in 2009 as part of the support projects included in the National Indicative Program, PIN-Morocco, for «With 750 French companies, Morocco the 2007-2010period. is the preferred destination for French investment in the Africa/Middle East region» Free Trade Agreement (FTA): Source: French Embassy, Morocco, June 2010 Morocco – United States The Free Trade Agreement with the united States (Moroccan’s 2th trading partner after the European union) forms part of the controlled global openness strategy of the Moroccan economy and its insertion into the world economy. Commercial exchanges between Morocco and the united States have more than doubled since the FTA was implemented in 2006. Since October 2008, Morocco has been linked to the EU by an advanced Agadir Agreement 2004: status. Morocco – Tunisia, Egypt and Jordan The Agadir Agreement, implemented in 2007, has enabled member States to increase the volume of their trade by almost 45% . Agreement: Morocco – Turkey Morocco - Turkey exchanges have continued to grow and according to 2009 figures they have reached an annual volume of 900 million dollars (812,5 million €) versus 260 million dollars (234,5 million €) in 2003. Morocco is also linked to numerous African countries through trade and economic cooperation agreements.
12 / 13 INVEST IN MOROCCOMoroccan economyin full expansion «Morocco’s recent performance is sustained by a more diversified economy, a consolidated budgetary situation and a sound financial sector. Morocco is well positioned to pursue its development despite the difficult world situation». IMF report, July 2008.• A diversified economy As it has diversified, the Moroccan economy has achieved a remarkable performance in Average export in Millions of € the primary (agriculture, mining), secondary (industry) and tertiary (services, tourism, offshoring) sectors. 14 806 Similarly, Moroccan exports are more and more impressive and diversified : from an average 8 283 of 8,2 billion € p.a. for the 2000-2004 period, exports rose to 14,8 billion € p.a. for the 2005 - 2009 period, i.e. an increase of 78%. 2000 - 2004 2005 - 2009 Source: Moroccan Foreign Exchange Office Structure of GDP 2009 Primary acti- vities 18,1% Tertiary activities Secondary 58,9% activities 23,3% Source: High Commissioner’s Office for Planning (HCP)
Rate of average growth of GDP (%)• A strong and stable 5% growth over the past 10 years For a decade, the Moroccan economy has shown an upward trend in its growth rate, due mainly to the dynamism of some sectors: Tourism, Industry, Telecommunications, Infrastructure, Services, Agriculture,… Source: Moroccan High Commissioner’s Office for Planning (HCP)• Inflation controlled at less than 2% Average rate of inflation (annual slide) For more than 10 years, Morocco has succeeded in reconciling economic development and control inflation. Purchasing power has thus improved by 4,6% annually.• Consolidated budgetary equilibrium Source: Moroccan High Commissioner’s Office for Planning (HCP) Such economic performance has enabled Morocco to pursue the consolidation of the government budget and contain the budgetary Budgetary deficit (% of GDP) deficit. 2000-2005 2006-2009 -0,7% -3,7% Source: Economy and Finance Ministry In 2009 Morocco registered the highest growth rate in North Africa: +4,9% Economic report on Africa 2010 by the United Nations Economic Commission for Africa.
14 / 15 INVEST IN MOROCCOSocial and economicreforms Morocco, a kingdom more than 12 centuries old, is at a crossroad of civilizations combining its own strong identity with openness and modernity with its rich religious and cultural heritage. It is a country governed by principles of tolerance and respect for other spiritual and cultural communities. under the impetus of His Majesty King Mohammed VI who acceded to the Throne on 31 July 1999, the Kingdom has entered a new era of reforms and activity, thus creating a political, economic and social dynamic enabling the country to evolve with determination and ambition in the new international context of the 21st century. With a population where 70% is younger than 25, Morocco is a country ready to seize the challenge of globalization and it maintains with vigor the pace of reform and change. Students in the amphitheatre of the Ain Sebaa University – Casablanca• Morocco on the move > Some important reforms from the past 10 years: • Consolidation of democracy with two parliamentary elections held in 2002 & 2007 in compliance with the Constitution ; • Reform of the electoral law in 2006, and new laws on political parties ; • Implementation of the new Family Law in 2003 ; • Reform of the press code and creation of the High Commission on Audiovisual Communication (HACA) ; • Implementation of a new Education charter ; • Launch of the National Initiative for Human Development (INDH); • Human rights: Reorganization of the Consultative Council of Human Rights (CCDH) and establishment of the Equity and reconciliation Board (IEr).
16 / 17 INVEST IN MOROCCOBusiness-friendlyenvironment Morocco has been granted the Investment grade category from the agency Standard & Poor’s, obtained an advanced status with the EU, and joined the OECD Investment Committee. Investment Grade Standard and Poor’s for Morocco in 2010.Principal reforms enacted for improving thebusiness climate: • Reforms to encourage• Simplification of administrative procedures ; competitiveness• Reinforcement of the business law system ; During the course of the past decade, Morocco• Improvement of regulations transparency ; has done considerable work in order to improve• Development and modernization of financial markets ; the business climate, making it more favorable to both national and international investors.• Creation of the National Commission of Business Capacity building has led to the consolidation of Environment ; the attractiveness of the country and its status as• Creation of the Central Anti-Corruption Authority ; a top destination for foreign investors.• Reinforcement of the Moroccan Intellectual and Commercial Property Agency; • Morocco is the second Arab• P r o m o t i o n o f t h e c h a r t e r c o n c e r n i n g t h e country to become member of companies’ social responsibility ; the OECD Investment Committee• Creation of the Moroccan Investment Development Agency (AMDI). and signatory of the OECD declaration on international investment and multinational corporations (Nov. 2009) Morocco, which has signed to join 41 other countries, is committed to establish an environment open to international investment and to promote responsible investment by multinational corporations. Investment in Morocco is controlled by the blueprint law N° 18-95 dated 8 November 1995, called the Investment Charter, to encourage international investment. Any project can thus benefit from the same advantages without any discrimination among national and international investors. The Tangiers Med Port
• Attractive incentives Moroccan and foreign investors could sign a contract or an investment agreement with the government. These agreements open their way to specific particularly attractive incentives. Hassan II Economic and Social Development Fund This mechanism for promoting investment in certain industrial sectors, set up in September 2000, consists in bringing financial assistance to projects for the acquisition of the land, construction or the purchase of buildings. The amount of investment required must be greater than 5 million MAD before tax (about 450 000 €). The amount of investment in capital goods must be greater than 2,5 million MAD before tax (about 227 000 €). Investment Promotion Fund - FPI The Tangiers Med Port With the aim of reducing the cost of investment, theFiscal and customs measures: FPI grants companies, having an investment plan that satisfies certain conditions, a partial amount of• Exemption from company income tax on exports for 5 the land cost and the expenses involving external years and a reduction of 17,5% after that ; infrastructure and training.• Exemption from import duties applicable to capital goods, materials and tools necessary to complete projects and imported directly or on behalf of the company for investment projects greater than or equal to 200 million MAD (about 18 million € ) ; Article 7.1 of the Finance law• Exemption from value-added tax applicable to imports under this law investors take advantage of the of capital goods, materials and tools necessary to exemption from imported duties and VAT for complete projects and imported directly or on behalf importing capital goods, materials and tools of the company during the first 36 months of business, necessary to complete their investment program. for investment projects greater than or equal to 200 This exemption follows the signing of an million MAD (about 18 million €). investment agreement with the Government and the commitment to invest more than 200 million MAD (about 18 million €).
18 / 19 INVEST IN MOROCCO - Business-friendly environment Morocco is the country in North Africa which has received the biggest direct foreign investment over the 2000-2009 period (18 billion dollars). Source: UNCTAD• Institutions to serve investors Morocco has set up a framework of institutions in order to support investors projects. > The Moroccan Investment Development Agency - AMDI AMDI offers a free professional public service to all investors who who could therefore use a wide international network and a range of institutional partnerships with all Moroccan administrations and private operators. > Investment Commission - CI AMDI undertakes preparatory work for the CI as part of the Technical Preparation and Monitoring Committee for investment projects under the conventional system. under the leadership of the Prime Minister, the commission has for a task to : • approve investment agreements and contracts requiring a contribution from the Government ; • implement all measures aimed at improving the investment environment of the country ; • rule to clear blockages to the completion of investment projects. > Regional Investment Centers - CRI CrIs have greatly improved and facilitated the investment process. Located in 16 regions, they aim at decentralizing and simplifying procedures through providing a single local interlocutor at the regional level. CrIs consist of: • 2 counters: one to assist the creation of companies ; • And the other to assist the investors. Casanearshore, Casablanca
«I believe that what has finally struck me is that the capacity for doing business has greatly expanded in Morocco … Morocco has seen its position improve quite considerably and therefore it attracts foreign investment capital.» Dominique Strauss Kahn, 2009 – Head of the International Monetary Fund. Evolution of average net flow of incoming FDI (US$ million/year) 2 125 1 384 725 390 1990-1994 1995-1999 2000-2004 2005-2009 Source UNCTAD Technopolis, Rabat• FDI: Leading country in North Africa Distribution of FDIs per industry in 2009 Over the period 1999-2009, Morocco attracted Holding Companies: 2% Trade: 2% almost uS$18 billion in FDI (cf. uNCTAD Insurance: 2% Transport: 3% 2009). Other Services: 5% Industry: 8% Real Estate: 29% In 2009, 5 sectors attracted more than 90% of Tourism: 17% Morocco’s FDIs real estate, banking, tourism, Telecom: 15% telecom and industry. Source: Moroccan Foreign Exchange Office Europe - major economic partner - represented 70% of FDIs in 2009. Distribution of FDI’s per country of origin in 2009 Since 2002, Arab countries have continued to increase their FDIs and at the end of 2009 they Italy: 3% Saudi Arabia: 2% United States : 3% Jordan: 3% represented nearly a quarter of all FDIs. Germany: 3% Portugal: 7% Great Britain: 3% Switzerland: 4% France: 37% United Arab Emirates: 3% Spain: 8% Kuwait: 18% Source: Moroccan Foreign Exchange Office
20 / 21 INVEST IN MOROCCOWorld classinfrastructure «Over the period 2008-2012, Morocco plans to strengthen its transport infrastructure by launching many large projects with an estimated investment volume of 120 billion DH (11 billion €).» Karim Ghellab, Equipment and Transportation Minister.• Transport infrastructure: A national network linked to the international one For more than a decade, Morocco has been investing in the development of its transports infrastructure. Today, the Kingdom possesses world class facilities, which interlink in the best and most efficient way all the regions of the country and connect with the rest of the world through its sizable and perpetually developing network of highways, roads, railways and airports. Highway in Morocco • 1 800 km of highways ; • 1 907 km of railway lines ; • Start of work on a 1 500 km high-speed rail line. Sources: Ministry of Equipment and Transport ; Moroccan National Railways Board (ONCF) ; Highways of Morocco (ADM).
• Port of Tangier Med: Crossroads of the great ocean routes In July 2007, Morocco opened the new Port of Tangier Med for business. It is a huge infrastructure project, a symbol of Morocco’s ambition to dominate at a crossroad of major intercontinental maritime exchanges. An additional sign of this proactiveness is the recent extension of the port: new Tangiers Med II harbor. The tax-free industrial zones adjacent to the port are already occupied by substantial export-oriented manufacturing plants. • Tangiers Med II, the second phase in the port extension, will have 73% more capacity than Tangiers Med I ; • Capacity: more than 8 million Twenty Feet Equivalent containers; • Installations of the world’s biggest shipping companies : Maersk, MSC, CMA-CGM ; Tangiers Med Port • 2 000 hectares of professional real estate available with tax-free zones (by 2015). EUROPE PORT OF TANGIERS MEDITERRANEAN
22 / 23 INVEST IN MOROCCO - World class infrastructure «Morocco has 15 international airports» Source: National Airports Authority (Morocco) ONDA• Airport infrastructure: Open to the whole world As a tourism country, traditionally open to the world, Morocco possesses a dense and high quality airport network. Thanks to its Open Sky policy, the international airports of Morocco are served by a large number of international companies and are connected to the main economic capitals and business platforms in the world. These facilities have been developed under a vast modernization and expansion program which has increased the reception capacity of Moroccan airports to 30 million passengers per year. Mohammed V International Airport (Casablanca) Number of flights per week: • Paris: 79 • London: 14 • Frankfurt: 12 • Dubai: 7 • Toulouse: 7 • New York: 6 • Montréal: 6 Number of passengers per year: more than 5 millions Number of destinations: 70 different airport destinations Source: ONDA (Moroccan Airports Authority) Tangiers Free Zone, Tangiers
The contribution of telecoms to GDP, standing at 5% in 2004, will exceed 10% in 2012. Estimate: ANRT (Moroccan Telecom Regulation Agency).• Telecom and fiber optic infrastructure : Morocco, the leader in Africa In a decade, Morocco, with its network of 7 500 km of optic fiber, is an African leader in the field of telecoms. With its telecom infrastructure at international standard, completely digital, secure and diversified, the telecommunications sector has recorded a continuous increase based on : • Landline and mobile operators (GSM, 3G) ; • Operators such as VSAT; GMPCS, Radio Trunk and ISP. Individuals Value Date Penetration (mobile) (%, per inhabitant) 88,50% June-2010 Penetration (landline) (%, per household) 35% June-2010 Penetration (Internet) (%, per household) 20% June-2010 Number of Internet users 13 million End 2009 Corporate Connected to Internet 93% End 2009 Corporate website 40% End 2009• Energy infrastructure Morocco possesses 26 hydro-electric power stations and 5 thermal power plants reaching a total installed power of 5 292 MW. The transport and distribution network is as follows : • 19 575 Km for Very High Voltage lines ; • 66 398 km for High Voltage lines ; • 121 022 km for Low Voltage lines. The country possesses substantial capacity for renewable energy, especially solar and wind, extending over 3 500 km of coastal areas. ST Microelectronics company, in Casablanca
24 / 25 INVEST IN MOROCCO - World class infrastructure• Infrastructure specifically devoted to investment > The P2Is: “Ready for Output” industrial facilities Morocco has developed a new concept of areas devoted to industrial and service projects: the Integrated Industrial Platforms Occupied Lots Lots available (P2I). The P2Is, new generation specialized or general-purpose parks, sometimes with a tax-free zone status, offer investors ready-to- use buildings, either for purchase or lease. The Nouasseur Aviation hub, a first- class hub intended for the aviation and These parks are provided with basic infrastructure and shared space industries supporting services in order to reduce installation and running • Area: 80 ha ; costs: • Real estate available: - Hub of aviation industries ; • Zone operating services: maintenance of infrastructure, security ; - Hub of aviation services; • General services: telecoms, catering, health centre, banking ; - Industrial hub (innovative units) ; • Business services: business centre, hiring support ; - Training hub (International Mohammed • Advanced services intended for industry: industrial maintenance, VI Academy, IMA); engineering facilities, recycling, logistical areas ; - ”rEADY TO OuTPuT” and “rEADY FOr • One-stop-shop, to include: SErVICES” zone. The National Agency for the Promotion of Employment and Skills (ANAPEC), local authority services, the regional Investment Centre (CrI), National Social Security Office (CNSS), income tax office ; • Public or private training center. TANGIErS FrEE ZONE Jorf Lasfar Industrial Park Located in the North of Morocco, covering an area of 500 hectares, Tangiers Free Zone (TFZ) has modern infrastructure and numerous • Located 17 kilometers South of El Jadida supporting services. In addition, it enjoys an advantageous and and 100 km from Casablanca, this estate preferential tax and customs system. is host to industrial support services and This duty-free zone has gained the confidence of many covers an area of 500 ha. multinational companies : • Main sectors: YAZAKI, SOurIOu, DAHEr, SuMITOMO, LEAr, ANTOLIN, DION, - Heavy industry in the fields of energy, SHCLEMMEr, EMDEP, DELPHI, and POTYTECH. metallurgy, chemistry and para-chemistry, and industrial logistics.
Tangiers Tetouan Fez Oujda Rabat Casablanca Essaouira Marrakech Agadir Laayoun P21 Offshoring P21 Automotive P21 Aviation Dakhla P21 General Agriculture hubs Example of P2I: Kenitra Automotive City • Surface: 345 hectares ; • Real estate available:Some business operators - rental of buildings ‘ready for output’ ; already in Morocco - Sale or lease of non-built serviced sites ; - Sale or lease of custom-built buildings . • Training centers for automotive trades ; • One-stop shop (local authority services, ANAPEC (Job promotion agency), CNSS (Social Security agency) ; • Duty-free zone status.
26 / 27 INVEST IN MOROCCOSectorial plansExceptional opportunities «Morocco is a country that has taken off; it is an emerging country now, so it is must think ahead to what is best for the future.» Hubert VEDRINE, Former Minister of Foreign Affairs (France), 2009 The Emergence plan: For the development of Morocco’s Textiles and leather world industry paths Discover the new Morocco, the Morocco of today, the industrial Morocco. The Moroccan government has identified six industry paths which are to become the pillars of the Kingdom’s industrial development. For each of these Morocco’s world industry paths, a specific strategic approach has been created so as to offer private national or international operators opportunities for competitive, profitable and fast-growing projects. Offshoring
28 / 29 INVEST IN MOROCCO - Sectional plans • 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 up aviation industries. > Opportunities for investment in aviation in Morocco • Composite materials; • Metal-working ; • Assembling; • Engineering and design ; • Engine and equipment repairs ; • Maintenance; • Electrical systems and cables ; • Transformation and modification of aircrafts. What Morocco has to offer in the field of aernonautics • Real estate : integrated industrial platform at Nouasseur (Casablanca) ; • Training (objective of 15 000 skilled trainees by 2015): - Institute of Aeronautical Trades, - Contirbution fort raining, recruiting and AIRCELLE, Casablanca employment of up to 40 000 MAD (about 3 600 €)/ person/type of training.They have placed their trust in • Tax and customs advantages: tax-free status in Morocco specific zones ; • Contribution from the Hassan II Fund : up to 10% of the investment ; • State subsidies: land, off-site, training.
The investment of more than 236 million MAD (about 20 million €) by the Japanese group Yazaki for the construction of a factory manufacturing automobile wiring in the city of Kenitra, will enable more than 1 600 direct steady jobs to be created. • 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. > Opportunities for investment in the automotive industry in Morocco • Plastics engineering: Injection molding, Equipment ; • Metallurgy: Pressing /Stamping, Forging/ Stamping, Shaping/ Profiling ; • Cables: Metal working/Plastics, Stacking ; Somaca, Casablanca • Paper/ filter/ glass: Molding, Pressing, Weaving ; • Textiles: weaving/non-woven, Assembling/Stacking ;A leading manufacturer in Morocco: • Plastics engineering/ textiles: Injection molding, Assembling/ Renault Stacking ; • Rubber: Extrusion ;• Assembly plant on the site of Melloussa • Electronics: Mecatronics. (adjacent to the Tangier Med port complex), What Morocco has to offer to the automotive• Site of 314 ha, industry• Investment of 1,1 billion €• Goal for 2014: 400 000 vehicles • Real estate: 2 integrated industrial platforms in assembled per year. Kenitra and Tangiers ; • Training: - Specialized Institutes in automobile tradesThey have placed their trust in (goal: 70 000 skilled workers trained by 2015) ; Morocco - Training contribution with an amount of up to 33 000 Moroccan MAD (about 3 000)/person. • Tax and customs benefits: tax-free status in specific zones ; • Contribution from the Hassan II Fund: up to 10% of the investment ; • State subsidies: land, off-site, training.
30 / 31 INVEST IN MOROCCO - Sectorial plans • Offshoring: Morocco world leader in French-speaking nearshoring With its international standard of telecommunications infrastructure and its high quality human resources, Morocco has become in a few years a world leader in the call centre business. The country has also been able to attract the main European information technology companies. CASANEARSHORE > Key numbers • 30 000 employees in the Offshoring sector;The largest nearshore hub in North • 70 000 trainees in offshoring jobs by 2015 ;Africa • Projected sectional turnover of more than 20 billion MAD (about 1,8 billion €) in 2015 ;Casanearshore is a business park intended • Leading job region in Africa for call centers ;for businesses specializing in software • More than 430 call centers operating in Morocco ;development, infrastructure management, • 8 billion MAD’s (about 727 million €) turnover in the solebanking and back office insurance, customer customer relations management (CrM) sector.relations management, etc. > Opportunities for investment in Offshoring in Morocco • Information Technology Outsourcing (ITO) - Software development - Infrastructure management - Applications maintenance • Business Process Outsourcing (BPO) - Specific job type activities - Banking - Insurance TECHNOPOLIS • CUSTOMER RELATIONS MANAGEMENT - General administration - Accounting and finance - Human resources• Offshoring hub and Information - General back offices & Communications Technology• Industries and high-tech hub• University hub Establishment of the National Commission for the Control of the Protection of Morocco ranks 5th worldwide in terms Personal Data. of attracting Francophone offshoring activities. Source : Mc Kinsey rating.
Casanearshore opened new premises in June 2010 : • The largest DELL Business Center in the Europe, the Middle East and the Africa region (20 000 sq.meters, more than 1 800 workers). • The new headquarters for Cap Gemini Morocco (more than 260 workers). Adoption of Law N° 09-08 concerning the protection of individuals regarding the treatment of personal data > What Morocco has to offer in Offshoring .Morocco is one of the first Arab or African countries to adopt such a complete system • World-class infrastructure and services of protection guaranteeing the circulation of personal data. - P2I offshoring (Casanearshore, Technopolis, Fès shore, Tétouan shore…) measuring up with the best international standards ; - First class telecom supply ; - A “ready for Output” approach with fully-equipped offices and on-site support business services Morocco has joined the top available. 30 Offshoring countries. • Competitive pool of resources and training assistance Gartner rating of the most interesting offshore destinations. - National training plan ; - Complete exemption from social security contributions for 24 months for the first use (maximum wage 550 €) ; They have placed their trust - Direct training assistance during the first 3 years in Morocco rising to 6 500 €. • IT Provider • Framework incentives - Substantial and exceptional labor tax relief: tax ratio • BPO tied to personal income tax not exceeding 20% ; - Substantial and exceptional tax relief in company taxation with exemption from corporate income tax during the first 5 years, and 17,5% thereafter; - reduced administrative scheme: one single office for • Captive Insurance the region, flexible Labor Code, simpler administration process, especially for SME’s • Available financing - Commitment of member banks to create a fund• Call centers specifically for industrial real estate and services development ; - Offers of financing and services to investors in the sector.
32 / 33 INVEST IN MOROCCO - Sectional plans • 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. > Opportunities for investment in the automobile industry in Morocco • Mecatronics ; • Industrial electronics ; • In-car and in-plane electronics. What Morocco has to offer in the electronics industry • Available Real estate availability : electronics sectors in the integrated industrial platforms of Kenitra, Nouasseur and Tangiers; • Availability of training: ST Microelectronics, Casablanca - Specialized training centers (OFPPT:They have trusted in Morocco Moroccan Vocational Training Agency) ; - Training contribution of an amount up rising to 40 000 MAD (about 3 600 €)/ person. • Tax and customs advantages: duty-free zone status in specified areas ; • Contribution from the Hassan II fund of up to 10% of the total investment amount; • State subsidies (land, off-site, training).
• Textiles and leather : Morocco specializes in medium - and top - range goods As a major player in the Mediterranean textiles and leather industry, Morocco possesses a vast range of SMEs 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 comfortably in the medium and high range. > Opportunities for investment in the textiles and leather sector in Morocco: • Fast fashion and ready-to-wear fashion lines; ; • Jeans and sportswear ;Tavex company, in the city of Settat • Niche products in 3 new areas: lingerie, domestic textiles and shoes. What Morocco has to offer in textiles and leather • Real estate availability : integrated industrial platforms ; • Installation assistance: finishing - dyeing – printing rising to 20% of total investment ; • Tax and customs advantages ; • State subsidies (land, off-site, training) ; • Areas reserved for logistics and delivering supplies.Tavex company, in the city of Settat
34 / 35 INVEST IN MOROCCO - Sectional plans • Agro-business: Modern Morocco With its long agricultural tradition, Morocco has developed a modern, competitive and diversified agro-business sector. > Opportunities for investment in agro-business in Morocco • Processing of fruit and vegetables ; • Olive and Argan products ; • Spices ; • Aromatic and medicinal plants ; • Meat and milk processing. What Morocco has to offer in agro-business • Development of channels with strong export potential ; • Development and restructuring of domestic consumer goods ; • Implementation of training programs suited to the sector ; • Creation of a network of agro-hubs in the regions of Meknès, the Oriental, Souss, Gharb, Haouz and Tadla ; • Tax and customs advantages ; • State subsidies (land, off-site infrastructure, training). International Agriculture Show in Morocco-SIAM 2010
• Green Morocco plan to modernize agriculture The Green Morocco plan’s objective is to facilitate the development of a modern and competitive agriculture. It is based on the following principles: • To make agriculture the principal growth driver over the next 10-15 years ; • To ensure the overall development of Moroccan agriculture: - Modern high value-added agriculture and concerning irrigated land and favorable bour (rainfed areas), - Basic agriculture situated in areas of mountains, oases and unfavorable bour (rainfed areas). Meknès • To adopt a clustering model for organizing agriculture ; • To encourage private investment ; • To safeguard natural resources for sustainable agriculture.International Agriculture Show in Morocco-SiAM 2010
36 / 37 INVEST IN MOROCCO - Sectional plans «……Everyone must be encouraged to accept the implementation of a strategy of energy efficiency, particularly through the development of different forms of clean renewable energy…» Extract from the speech of His Majesty King Mohammed VI on Throne Day, Tetouan -30/07/10• Renewable energy: Development of existing A plan for the future power structure Acceleration of the economic and social development of Morocco brings an increase in demand for energy, which is to reach over 36% by 2015, and to triple by 2030. In order to tackle this increase in demand, 4 priorities have been identified: • To secure energy supplies • To optimize access to energy supplies • To rationalize consumption of energy • To protect the environment through different forms of clean energy Different forms of renewable energy are the best response to these priorities. The principal issue will be to ensure their development by extracting the value from the potential from the sun and the wind and feeding into the regional and international markets. Morocco’s ambition is to reach by 2020 a 42% of available 2008 2020 capacity supplied by clean energy. Nuclear Coal Natural gas > Key numbers Oil Hydro-electric Wind 36%: Increase in electricity consumption per inhabitant in Sun Source: ONE Morocco by 2015; 45GW: Potential of sun and wind energy in Morocco; 42%: Share of electric power obtained from renewable forms of energy in 2020. > The recently created Energy Investment Company (SIE) is a prime investor for Morocco’s new energy strategy The SIE is required to invest in projects aimed at increasing energy production capacity, developing renewable energy resources and improving energy efficiency. Wind farm, Tangiers The Moroccan solar energy plan is not only an equipment program, but it also includes the industrial , R&D, and training component .
• Solar energy Tangiers Rabat Oujda Casablanca > Creation of a specialized agency supported by the Government, the Moroccan for Solar Marrakech Energy (MASEN) MASEN’s goal is to implement the Moroccan solar energy plan, Agadir Ouarzazate i.e. 2,000 MW by 2020 through: • Designing integrated solar development projects within the territory areas ; Laayoun • Preparing technical, economic and financial studies needed for sites qualification ; • Designing, completing and operating solar energy projects; • Contributing to research and the mobilization of finance necessary to the completion and operation of solar energyDakhla project; • Submitting proposals to the government for the conditions for industrial integration of each solar energy project; • Presenting the program to national and foreign investors ; > Project for producing solar energy Morocco has launched an ambitious project for producing solar energy that will place the Kingdom among worldwide leaders. The program, which has already begun its implementation phase, plans for: • The production of 2000 MW from five sites totaling 11 000 ha in the south of the Kingdom ; • An investment of US $ 9 billion ; • The production of 38% of the 2008 existing Solar energy power and 14% of electric power by 2020 ; • A saving of 1 million tons in oil fuel equivalent and the non-emission of 3,7 million tons of CO2.
38 / 39 INVEST IN MOROCCO - Sectional plans "I think that Mazagan is one of the most beautiful and exciting resorts we have built anywhere in the world.". Sol Kerzner, CEO of Kerzner International• Tourism: Success of a vision Morocco is undeniably tourist destination par excellence. With its 3 500 Kilometers (about 2 000 miles) 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 independence has chosen tourism as a priority towards advancing socio-economic development. In 2001 Morocco, fully aware of its natural advantages and the wealth of its cultural heritage, set up the “Vision 2010 for tourism”. > The goals of Vision 2010 • Receive 10 million tourists; • Increase hotel capacity to 230 000 beds ; • Create six new resorts on the Mediterranean and Atlantic coast ; • Generate more than 48 billion MAD in foreign exchange revenues; • Create 600 000 new stable jobs. In order to reach these goals, “Vision 2010” set up 4 plans: • The Azure Plan which planned the creation of 6 coastal resorts (Mogador, Lixus, Mazagan, Saidia, Taghazout and Plage Blanche) on 3 000 hectares of land and with a total investment of around 46 billion MAD (about 4 billion €) ; • The Biladi Plan devoted to the strategy of developing domestic tourism ; • The Mada’In plan aiming at improving the level of existing destinations (Fez, Casablanca, Agadir…) ; • The “Niche and rural plan” with the mission of creating jobs and achieving a regional balance in tourism development. Today, despite the difficult international situation, Morocco is holding steady, with more than 8 million tourists by end of 2009. The Mazagan and Saidia resorts are operating and most of the world’s big tour operators are present via their world-class resorts and hotels. Enriched by the experience gained from the application of Vision 2010, Morocco will embark on the second phase of its tourist development via ‘Vision 2020’.Resorts launched under the Azureplan and the Azure plan extension > Principles of Vision 2020 • To capitalize on the achievements of Vision 2010 ; • To move on to a structuring approach to the country in terms of employment and investment ; • To develop the competitiveness of Moroccan tourism by adopting trends and new opportunities; • To stress differentiation in Moroccan tourism by putting sustainable development at the heart of the strategy. Shop signs installed in Morocco
• Strategies for future >Logistics program: Launched in April 2010, the logistics strategy aims at reducing costs of logitics from 20% to 15% of GDP in 5 years by an overall investment of 63 billion MAD (about 5 billion €) by 2015 and 116 billion MAD (about 10 billion €) by 2030. It will also contribute to the sustainable development of the country through the reduction of pollution. In order to reach these general objectives, the program is built around five key themes: development of Multi-flux Logistics Zones, optimization of the flow of goods, incentives to encourage the emergence of integrated and efficient logistic operators, development of skills and implementation of a framework for the sector’s governance . > Rawaj Vision 2020 plan to accommodate the development of dometic distribution and internal commerce: The rawaj Vision 2020 plan aims at a radical transformation of the distribution landscape which has resulted in the blossoming of supermarkets, the opening of shopping malls, the implementation of the largest international franchises, and the modernization of local businesses. This plan includes numerous measures to develop wholesale and medium distribution, independent businesses, chains and franchised stores. This plan includes numerous measures to develop wholesale and medium distribution, independent businesses, chains and franchised stores. > Halieutis plan for the exploitation and the protection of the fishing potential: The Halieutis plan is based on the following principles: • Sustainable exploitation of resources 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 access to raw material, encouragement of product innovation, penetration of the most profitable markets (creation of three regional competitiveness hubs in Tangier, Agadir and Laâyoune-Dakhla). > “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 Tangier Med, Tangier 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 increase the diffusion of these technologies and their general use by the ordinary citizens, companies and administrations.
40 / 41 INVEST IN MOROCCOQualified humanresources • Higher education of international standard Moroccan higher education is made up of a broad spread of universities and colleges which provide quality education for diversed professions. The development program for this sector is growing with the opening of new establishments: College of Fashion, International university of rabat, International university of Casablanca, School of Government and Economy of rabat partnered with SciencesPo Paris, Al Akhawayn university, etc. • Qualified human resources In Morocco, human resources have all the advantages needed to become the pillars of competitive investment and value creation: good level of training, good cultural attitudes, fluency in languages and new technologies, attachment to entrepreneurial spirit, capacity to adapting to jobs change, and competitive salary costs. • Professional training adapted to company needs Morocco conducts a very dynamic professional training policy which enables companies to possess trained and available human resources. • Considerable and competitive pool of potential resources for High School (Baccalureate) + and undergrad levels (2 and 4 years after the High school degree) ; • Training subsidy for every new Moroccan employee rising from 35 to 65 K-MAD’s over the first 3 years; • National Training Programme with the collaboration of universities, colleges, the private sector, ANAPEC and OFPPT ; • Support and assistance in hiring. University of Ain Sebâa, Casablanca - More than 100 000 high school graduates per year ; - 370 000 is the total number of public/private higher education teaching staff ; - More than 40 000 graduates per year in public/private higher education ; - 250 000 trainees per year are to be accepted for public/private training for 2009-2012 ; - More than 120 000 graduates for the OFPPT* agency in 2009/2010 *Office de la Formation Professionnelle et de la Promotion du Travail (Moroccan Vocational Training Agency) Source: Moroccan Ministry of National Education, Higher Education, Management Training and Scientific Research)
Higher education in its three large components (university, management training and private) includes 16 universities and 339 schools and institutes. Source: Moroccan Ministry of National Education, Higher Education, Management Training and Scientific Research) The share of GDP in scientific research 2009 0.8% 2010 1% 2015 1.5%• Research and innovation www.emarrakech.com encouraged Morocco has voluntarily committed itself to support and improve the value of scientific research and innovation via ambitious projects which increase added value. Created as part of the “Envol” (“Take-off”) plan, the MASCIr project (Moroccan Association For Scientific Innovation and research) aims at establishing the physical and technological infrastructure to create an R&D triangle in the fields of New Information and Communication Technologies, nanotechnologies, biotechnology, environment, and materials and polymers. rabat Technopolis, a symbol of Morocco’s commitment to research, is a ‘smart’ city devoted to microelectronics, Protenia, in the city of Ifrane nanotechnology and technological development. They have trusted Morocco
42 / 43 INVEST IN MOROCCOLiving in Morocco «Morocco is ranked 26th out of 195 in the list of countries where it is good to live». ’ International Living’, observer of the quality of life• Pleasant lifestyle 2009. With its millennial history, its culture, its gastronomy and its legendary hospitality, Morocco has always been a country at the crossroads. Its geographical position has given its inhabitants a character combined with openness and tolerance. Morocco is one of the countries on the south shore of the Mediterranean where living conditions are very pleasant; and its mild sunny climate adds comfort to this fact. The Kingdom offers all the conveniences to afford the expatriate with an agreeable experience: • High quality health care, with a large network of private clinics and specialized clinics ; • A large network of foreign schools, particularly French, Spanish and American ; • Several cultural centers belonging to different countries ; • Shopping centers and many international franchises and shop signs ; • A considerable number of world-famous cultural and music festivals such as the Mawazine festival, the Essaouira festival, the Marrakech International Film Festival, and the Dakhla surf festival.• A tradition of openness Morocco, although a Muslim country attached to its ancestral values, is nonetheless open-minded and fully tolerant, and foreigners can practice their religion in perfect liberty and security. The number of churches and synagogues is a good illustration. Railway station, Marrakech «Morocco, Largest North African country and 10th in the MENA area in the field of economic freedom». Index of Economic Freedom, 2010.
«Morocco, golfing destination for 2010 in the Africa, the Gulf and Oceania area.» Prize awarded by International Golf Travel Market, 2009 • Wide range of tourist destinations With nearly 3500 kilometers of coastline, mountain ranges and the dunes of the Sahara desert, Morocco offers an extraordinary variety of natural advantages. • Beach tourism, with five new generation resorts: Mazagan, Mogador, Lixus, Saïdia, Plages Blanches ; • Cultural tourism, with an exceptional architectural heritage and many classified uNESCO World Heritage sites ; • Mountain tourism and eco-tourism, with two principal ski resorts at Oukaïmeden and Michlifen ; • 21 world-class golf courses and the Hassan II Golf Trophy (included in the European Tour) ; • Various car-treks (raids) and rallies including the Aicha Gazelle Trophy ; • International Automobile Grand Prix (FIA - WTCC) ‘Marrakech Grand Prix’.Hôtel Mazagan, El Jadida
44 / 45 INVEST IN MOROCCO A sustainable development policy «The sustainable development policy initiated by Morocco is part of a long term environmental strategy featuring the protection of natural resources and eco-systems, the constant monitoring of the environment by the Government in the regions, and the planning of operations towards improving the environmental framework of citizens.» Amina Benkhadra, Minister of Energy, Mining, Water and the Environment • Environmental Protection at the heart of the Kingdom’s priorities Sustainable development is an option adopted by Morocco in the same way as has been the case for the international community. The Kingdom has created several public bodies to assist its sustainable development strategy: • Mohammed Foundation VI for Environmental Protection; • National Environment Observatory; • Maritime Transport Observatory ; • Environment and Water Department; • Maritime Fisheries Department; Marrakech • N a t i o n a l A g e n c y f o r t h e D e v e l o p m e n t o f renewable Energy and Energy Efficiency (2010) ;6 fundamental principles of the CNEDD* Charter: • Moroccan Solar Energy Agency (2010).• Precautions ; A Charter for Environment and Sustainable• Preventive action; Development (CNEDD) will be adopted in 2010. It will• “Polluter-payer” principle; offer a framework for the protection of Morocco’s• Participation ; natural wealth by means of a general approach that• Responsibility with regard to repairing environmental balances protection of the environment with economic damage ; development.• Integration of environmental problems into all government policies.* National Charter for Environment and Sustainable Development
" In 2010 Rabat was declared the World’s Green City. Itwas chosen by the “Earth Day Network” association as apremier city for the celebration of the 40th anniversaryof Earth Day, from April 17 to April 25, 2010» Tangiers
46 / 47 INVEST IN MOROCCOMoroccan InvestmentDevelopment Agency• AMDI serving investors > Your partner for investment and business. With its international network and a wide range of institutional partnerships with all Moroccan administrations as well as with private operators, AMDI offers a free professional public service to all investors. AMDI is here to assist you along all the stages of your investment: • To inform you ; • To offer you assistance ; • To accompany you in your investment formalities; • To facilitate contact with your local and department partners; • To enable you to take advantage of the best environment to develop your enterprise. Equipped with all logistics and technological facilities, a reception and information office is at your disposal at the headquarters of the Agency.• A mission to promote and develop investments The primary mission of AMDI is to promote investment in Morocco, especially by conducting communication activities, proposing legislative or regulatory reforms, and supporting foreign investors throughout all the stages of their investment project. AMDI
Moroccan Investment Development Agenc y Rabat -Morocco Tel. : + 212 5 37 67 34 20/21 - Fax : +212 5 37 67 34 17/42 Spain – Madrid Agencia Marroquí de Desarrollo AMDI is also committed on the field and to develop investments in de Inversiones the sectors of industry, trade, and new technologies. Oficina de representación España It is also responsible for: Paseo de la Castellana, 141, Planta 20 Edificio Cuzco IV 28046 Madrid • Making proposals for a government investment development Phone: + 34 917 893 441 Fax: + 34 915 707 199 program ; • Carrying out prospecting of potential investors ; • Appointing representatives abroad in collaboration with the Moroccan Ministry of Foreign Affairs and Cooperation. France – Paris• A cooperative approach Agence Marocaine de Développement AMDI plans to act with a collaborative logic and works with many des Investissements Bureau de institutions in order to attain its objectives : représentation – France • regional Investment Centers (CrI’s), in order to optimize and 14 Avenue d’Eylau - 75116 PArIS Phone: +33 1 73 02 15 09/10 simplify the treatment of investment agreements ; Fax: +33177 726499 • The bodies in charge with the economic promotion of Morocco, such as Maroc Export, La Maison de l’Artisan (The Artisan’s House), The National Tourism Board (ONMT), the Chambers of Commerce and Industry, the Ministry of Foreign Affairs and Cooperation, and others ; • Other national economic institutions such as the Agricultural Development Agency (ADA) or the Moroccan Tourism Engineering Company (SMIT) ; • Offices have already been opened in Paris, Madrid and Milan. Others will open in 2011, in the united Kingdom, Germany and the united States.