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Euronews
02-06-2025
- Business
- Euronews
The Big Question: Why should Europe look to invest in Morocco?
Morocco had the fifth highest GDP in Africa in 2024, according to Statista. At the same time, S&P Global Ratings upgraded the country's credit rating to BB+ with a positive outlook, replacing the previously stable outlook. This gives the country the third highest rating on the continent, after Botswana and Mauritius, which are the only nations to achieve 'investment grade status'. According to S&P, the BB+ status denotes an expectation that 'the Kingdom will strengthen its track record of implementing reforms to support growth and reduce its deficits.' This aligns with the country's conscious efforts to attract foreign direct investment and establish itself as a gateway between Europe and Africa. In this episode of The Big Question, Euronews' business editor Angela Barnes is joined by Ali Seddiki, general director of the Moroccan Agency for Investment and Export Development (AMDIE), to discuss the country's future role in the global economy. As Europe grapples with competitiveness challenges and uncertainty over its future economic relationship with the US, it is crucial for the bloc to explore other strategic partnerships. 'When we discuss with our European counterparts, we understand that green and ESG-compatible industries are important for Europeans. They are also looking for additional cost-efficiency, competitiveness, and also for future markets,' Mr Sedikki told The Big Question. 'Africa is also the market of the future [...] and clearly we think that Morocco is part of the solution for the European companies.' Morocco's Investment Charter, first introduced in 2022, seeks 'to raise the share of private investment to two-thirds of total investment by 2035.' The charter implemented investment support mechanisms, an improved business climate by simplifying processes and bureaucracy, improved governance so all regions can benefit, tax incentives and legal safeguards. 'It works on creating a suitable environment for investors, less bureaucracy, more efficiency,' Mr Sedikki explained. The country also created a Ministry for Investors and AMDIE 'to help investors and provide end-to-end services and we work as a one-stop shop for any kind of investor,' he added. Morocco has a growing green energy industry, with a particular focus on wind and solar. The Kingdom is aiming to source at least 52% of its electricity from renewables by 2030, positioning itself as a regional leader in the energy transition in Africa. 'What we want to make sure of is that this potential is used to positively impact the Moroccan economy,' Mr Seddiki noted. 'We have a great young population entering the job market, that's a huge opportunity, but also it's a challenge, we need to create jobs. So now the strategy is how can we leverage our natural, sustainable resources in order to create sustainable jobs for our young people entering the job market?' The Big Questionis a series from Euronews Business where we sit down with industry leaders and experts to discuss some of the most important topics on today's agenda. Watch the video above to see the full discussion with the Moroccan Agency for Investment and Export Development. UK house prices edged up slightly to 3.5% on an annual basis in May, up from 3.4% in April, according to Nationwide's latest House Price Index report. This was ahead of analyst estimates of 2.9%, pointing to a still-resilient UK housing market, despite cost challenges following stamp duty threshold decreases at the start of April. On a month-on-month basis, UK house prices jumped 0.5% in May, bouncing back from a -0.6% fall in April. This was more than the 0.1% increase expected by the market as well. The average UK house price was £273,427 (€324,232.5) in May, up from £270,752 (€321,053.7) in April. Nationwide's chief economist, Robert Gardner, said in the May house price index report on the company's website: 'Official data confirmed that there was a significant jump in residential property transactions in March, with buyers bringing forward their purchases to avoid additional stamp duty costs. 'Owner occupier house purchase completions were around twice as high as usual and the highest since June 2021, which was also impacted by stamp duty changes.' He also noted that mortgage approval data suggests market activity has remained resilient following the end of the stamp duty holiday, with underlying UK housing market conditions staying robust despite broader global economic volatility Alice Haine, personal finance analyst at online investment platform Bestinvest by Evelyn Partners, said in an email note to Euronews: 'While some buyers are clearly pushing ahead with their purchase journey, others may now be mulling their options more carefully as higher costs pose a fresh challenge. Lower stamp duty thresholds have the biggest impact on first-time buyers as they must now save enough to cover a potentially sizable tax bill in addition to their deposit.' She noted that this may encourage lenders to offer 100% mortgages to help first-time buyers get started on the property ladder, especially as several loan providers have already relaxed their requirements in an effort to draw more clients. Falling interest rates as the Bank of England loosens monetary policy somewhat has also helped borrowing conditions, although sticky-high inflation may slow progress. Businesses passing on higher employment costs to consumers, mainly because of changing US tariff conditions, could impact the housing market as well. 'Uncertainty is becoming the new normal and for many first-time buyers or home movers looking to refinance their existing mortgage soon, it may be better to push ahead with a purchase rather than wait for the ideal borrowing conditions,' Haine noted. "Plus, the traditional surge in listings at this time of year is a positive buyers can take advantage of, as a wider stock of homes to choose from raises the potential for heavier negotiation on price,' she added. According to a recent special report by Nationwide, average house prices in mainly rural areas have continued to grow faster than more urban areas, rising 23% between December 2019 and December 2024. This is compared to an 18% increase in mainly urban areas. Nationwide's chief economist, Robert Gardner, highlighted: 'The pandemic had a significant impact on housing demand during 2021 and 2022, with a shift in preferences towards more rural areas, particularly amongst older age groups. Whilst these effects have now faded, less urban areas have continued to hold the edge in terms of house price growth.' The report also revealed that among house owners who have moved in the last five years, 63% moved within the same type of area, mainly between large towns or cities. 9% of homeowners moved to rural areas such as hamlets or villages from towns and cities, whereas 7% did the opposite. Perhaps unsurprisingly, younger movers between the ages of 25 and 34 preferred to move to more urban localities, whereas older people, especially above 55 moved to more rural places.
Morocco World
01-05-2025
- Business
- Morocco World
Morocco Offers Up to 30% Tax Incentives for Foreign Investors
Doha – Morocco is increasingly becoming an attractive investment destination as it strengthens economic and cultural ties to neighboring countries. In an interview with Spanish news outlet El Economista, Karim Zidane, Morocco's Minister of Investment, outlined the country's investment strategy and opportunities. 'Morocco has become a reference destination for investment in both Africa and the Mediterranean region, thanks to a combination of structural factors and strategic reforms driven under the vision of His Majesty King Mohammed VI,' said Zidane during the 'Morocco & Spain – Investing Together For a Sustainable & Shared Future' event in Madrid. The forum, organized by the Morocco-Spain Economic Council (CEMAES) in collaboration with Morocco's Ministry of Investment and the Moroccan Agency for Investment and Export Development (AMDIE), aimed to promote joint investment between the two countries. The minister pointed to Morocco's political and macroeconomic stability, strategic geographic location, and modern infrastructure network as key strengths. This includes world-class ports like Tanger Med, high-speed rail networks, and integrated industrial zones. 'Beyond Africa, our continent of belonging, the quality of our infrastructure now rivals that of several European countries, and even surpasses them in some segments,' he noted. Priority investment sectors Priority sectors for investment include the automotive industry, aeronautics, electronics, agribusiness, pharmaceutical and textile industries, and offshoring. Emerging strategic sectors such as renewable energies — particularly green hydrogen — digitalization, information technologies, and circular economy are also gaining importance. The automotive industry has experienced spectacular growth over the past decade, becoming the country's leading export sector. Morocco currently has a complete ecosystem that includes two manufacturers (Renault and Stellantis) and more than 250 major international manufacturers. Regarding renewable energy, Zidane stated that 'more than 40% of our energy mix comes from renewable sources, and we have already built major solar and wind projects in our country, such as the Noor project in Ouarzazate.' Morocco presents major opportunities for investment across energy infrastructure, production, transport, and export. The country has implemented structural reforms to improve its investment climate, with the cornerstone being the new Investment Charter adopted in late 2022. This charter establishes a modern, transparent, and equitable regulatory framework for domestic and international investors. 'Morocco offers incentives that can reach up to 30% of the total investment amount,' Zidane explained. These include direct investment subsidies granted based on each project's characteristics, geographical location, and sector of activity. The country also provides 'tax exemptions for the first years for new companies or those established in specific zones.' World Cup and Industry 4.0 driving growth Zidane also talked about how major international sporting events are accelerating Morocco's development. 'These sectors are experiencing accelerated momentum today, driven by the prospect of major international sporting events that Morocco is preparing to host,' he said. He added that these include the 2025 African Cup of Nations and, above all, the 2030 World Cup 'which we will have the pleasure of organizing jointly with Spain and Portugal.' The minister also addressed the challenges Morocco faces in attracting more foreign investment, including the need for continued development of high-value-added sectors and integration of new technologies in value chains. 'The challenge of education and technical training continues to be relevant, especially in emerging sectors such as renewable energies or Industry 4.0,' Zidane noted. 'To attract more foreign investment, it is essential to continue promoting a highly qualified workforce prepared for the sectors of the future.' He added that the joint World Cup bid with Spain and Portugal 'embodies this spirit and reflects our mutual trust in the ability to build high-level projects together.' Strategic advantage with US and EU trade In the current global climate with changing US trade policies, Morocco finds itself in a unique position. 'The relations between Morocco and the United States are based on historical bonds of trust, reinforced by long-term economic and strategic commitments,' Zidane said. Morocco is the only African country with a free trade agreement with the United States, in effect since 2006, guaranteeing preferential access to the American market for a wide range of goods and services. 'Only nine countries in the world have free trade agreements with both the United States and the European Union, offering a dual gateway to two of the largest global markets,' the minister added. Zidane noted that Morocco was fortunate not to appear on the 'Liberation Day' tariff table introduced by the Trump administration. He sees this as an opportunity for European and Spanish companies to relocate to Morocco to continue exporting to the United States. 'In this new international context, characterized by the search for resilience and diversification, Morocco offers a clear, solid, and future-oriented value proposition,' the minister asserted. He envisions opportunities for trilateral Morocco-Europe-United States co-investment based on complementary advantages and converging strategic interests. In the context of nearshoring, Morocco's proximity to Europe — particularly Spain at just 14 km away — combined with its stability, infrastructure quality, trade openness, and competitive operating costs position it as a natural partner for value chain relocation. 'We propose a model of strategic relocation, based on sustainability, agility, and reinforced regional integration,' Zidane explained. 'Morocco doesn't just bring production centers closer to major markets: it offers a strategic relocation model.' 'The diplomatic relations between Spain and Morocco are going through an exceptional moment, and we have a 'window of opportunity' that we must seize so that economic relations between our countries continue to grow,' Zidane concluded. While Spain has been Morocco's leading trading partner for more than a decade, he believes the potential for investment is even greater. Read also: Morocco Spotlights Investment Opportunities at 'Morocco Now' Conference in Madrid Tags: Foreign investment in MoroccoKarim ZidaneMinistry of Investment
Zawya
13-04-2025
- Business
- Zawya
Morocco, Oman Underscore Determination to Promote Cooperation in Different Fields
The Kingdom of Morocco and the Sultanate of Oman highlighted, on Sunday in Muscat, their determination to promote and bolster cooperation in different fields. This declaration was made during the 7th Moroccan-Omani Joint Commission, held in Muscat and co-chaired by Moroccan Minister of Foreign Affairs, African Cooperation and Moroccan Expatriates, Mr. Nasser Bourita, and Oman's Foreign Minister, Badr Bin Hamad Bin Hamoud Al Busaidi. On this occasion, MFA Bourita hailed the depth of the distinguished ties between the two countries and the two brotherly peoples, which draw their strength from the close ties between His Majesty King Mohammed VI and His brother His Majesty Sultan Haitham Ben Tariq, may God preserve Them. The minister reaffirmed the Kingdom's determination to breathe new life into these ties at all levels and in different fields, in a 'win-win' approach that will make them more deeply rooted and lasting. MFA Bourita also welcomed the regularity with which Joint Commission sessions have been held in recent years, as a clear expression of the two countries' sincere will to consolidate the tradition of ongoing consultation, cooperation and coordination, and to raise their brotherly relations to a level commensurate with the aspirations of the two Heads of State. He also invited Omani businessmen to open up more to their second country, Morocco, in order to benefit from the incentives offered by the Kingdom's Investment Charter, as well as from investment opportunities linked to Morocco's organization of the 2030 World Cup, stressing the importance of forging solid relations between the two countries' private sectors, through the activation of the Moroccan-Omani Business Council. For his part, Badr Bin Hamad Ben Hamoud Al Busaidi expressed his pride in the distinguished level of relations between the Kingdom of Morocco and the Sultanate of Oman, reaffirming his country's willingness to examine every means of strengthening and developing them to serve the interests of both parties and the aspirations of the two brotherly peoples. Talks between the two ministers provided an opportunity to assess bilateral cooperation, examine ways of promoting it, and exchange views on Arab, regional and international issues of common interest, underlining with satisfaction, in this respect, the convergence of their positions. Distributed by APO Group on behalf of Kingdom of Morocco - Ministry of Foreign Affairs, African Cooperation and Moroccan Expatriates.
