Morocco

Morocco is one of the fastest-growing emerging markets in Africa. It is rapidly expanding, developing, and opening up opportunities for businesses. Morocco is strategically located in northwest Africa and is less than 15 km. away from Spain. It boasts a range of climates and geographical features from Atlantic and Mediterranean coastal lands on the north and west through the Atlas Mountains and fertile valleys in the heartland and continuing on to the Sahara Desert in the south and east. Arabic is Morocco's official language, but French is widely spoken in business contexts.

Since its independence from France in 1956, political reforms have resulted in the establishment of a bicameral legislature in 1997: the Chamber of Counselors and the Chamber of Representatives. King Mohammad VI has been the king of Morocco since 1999 and has provided a strategic vision for the development of the country—socially and commercially. For example, Morocco is following the social trends of the West, such as equal rights for women. Commercially, government policies and business practices have joined forces to become competitive in the global marketplace.

Current Economic Development

In 2004 Morocco and the United States signed a free trade agreement to develop commercial links between the countries. As a result, an increasing number of businesspeople began to capitalize on the agreement. Soon, Morocco received the attention of tourists. Now the government plans—through the implementation of the strategic plan called Vision 2010—to create jobs and increase tourism to boost the economy. This strategic plan is designed to develop vacation property and to encourage the growth of Morocco's tourism industry, among others. Under the plan, the government hopes to create 600,000 new jobs and reach 10 million visitors in 2010. In fact, since the launch of the plan in 2001, more than 20,000 new hotel beds have already been created and thousands more are to be renovated. It is expected that by 2010, Morocco will have more than 250,000 hotel beds, including 180,000 located in and around the cities.

Similarly, the popularity of the Moroccan property market has increased significantly in the last few years due to its low price and high demand. Property investors, however, need to conduct thorough due diligence on all possible real estate purchases to ensure that they are legitimate before proceeding, because property developers may be so eager to cash in on Morocco's promising market that they may not follow all the necessary regulations or have the required government permissions.

The new favorable political environment has made the climate conducive to conducting businesses, resulting in massive foreign direct investment such as development of hotels, high-rise buildings, offices, and airports, among others. Furthermore, building a tunnel between Spain and Tangiers is also on the horizon. Morocco is poised to become the Dubai of north Africa in the next five years.

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A swimming pool at a hotel development in Morocco, which is expected to have more than 250,000 hotel beds by 2010.

Future Economic Development

Morocco's proximity to Spain and relatively high proportion of university graduates who have knowledge of French as a second language gives Morocco the potential for becoming a powerful offshore center for French- and Spanish-speaking countries. Partnering with a leading provider of outsourcing services may help in this regard, as it reduces costs and improves business performance significantly. It is expected that from 2003 to 2018, business process off-shoring in Morocco could add 0.3 percent annually to its GDP growth, reduce its international trade deficit by around 35 percent, and create a total of some 100,000 new jobs. Morocco's unique educated workforce and its geographical position make it an ideal center for services, manufacturing, distribution, call centers, and an array of information technology (IT) services reaching the European Union; west, central, and north Africa; the Middle East; and eastern Europe. However, Morocco's need for industrial development is immediate. Without a proactive industrial-development policy, it is likely that Morocco's employment level will stagnate, its trade deficit will increase, and its economy will grow less than half the expected rate.

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