Research and consulting in Morocco

Country overview:

IOA has acquired data-based expertise into Morocco through conducting targeted research and providing consulting services on the vibrant North African country. Our researchers have found that despite a well-performing economy based on trade ties with Europe, Morocco’s financial well-being is fuelled by the export of raw commodities. However, manufacturing, particularly motor vehicles, is increasing significantly. Two historic challenges are undergoing reform: an absolute monarchy that is yielding to democratic institutions, and economic inequity that accounts for wide-spread poverty in a nation possessed of considerable resources. Rabat’s claims of ownership over Western Sahara have been a decades-old source of conflict with the Saharawi people and the international community.

IOA analysts have determined that well-established agricultural and tourism sectors will continue to attract investment. Main exports are a mix of value-added manufactured items (such as cars, fertilizer, and insulated wire) and raw commodities from agriculture and mining. 2024 saw the sixth consecutive year of drought, highlighting the arid nation’s vulnerability to climate change.

Key opportunities in Morocco:

Vast solar resources have been exploited for renewable energy, and the industry is growing
The tourism sector is strong, taking advantage of natural wonders and a rich culture
An export-driven automotive industry has taken root and is proving successful

Key concerns/risks in Morocco:

Morocco’s actions to support its claim over Western Sahara conflicts with the UN’s determination that the Saharawi people must determine their own political future
The monarchy that still largely controls government has bred an elite, whose corruption is hindering national development and perpetuating economic inequity
Illiteracy, reflecting an unequal education system, impedes the ability of a quarter of the population to advance out of poverty

Find out about how IOA can help you with research and consulting services in Morocco

Tips on doing business in Morocco:

Starting a business:

There are no restrictions on foreigners buying real estate within city limits though non-residents are generally barred from owning agricultural land. Meanwhile, foreigners are allowed to own 100% share capital in locally incorporated firms
LLCs, a popular choice for foreign investors in Morocco can be registered with a minimum of US$3200. The LLC registration process can be initiated by obtaining a so-called “Certificat Negatif” from the Regional Investment Centre in the capital, Rabat
(Read more at: https://www.morocconow.com/)

Doing business:

Morocco has a generally favourable business climate, spurred by committed reforms on the government’s part to enhance the country’s standing as a key export hub to the EU and other developed markets
Morocco has several free zones offering companies incentives such as tax breaks, subsidies, and reduced customs duties. Challenges include a lack of transparency in government procurement, a slow bureaucracy, and a complex legal system based on a mixture of French. Spanish and Islamic law, which foreign companies may find difficult to navigate

Culture and society:

While Morocco is fairly liberal compared to many other Muslim nations, it remains quite conservative compared to western nations and foreigners are thus advised not to offend local sensibilities at the potential cost of legal penalties
Distribution of non-Islamic religious material is forbidden, sexual activity between members of the same sex or unmarried couples is against the law. Intimate physical contact in public is generally considered taboo. The French language and French business culture are the norm