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Despite the kingdom’s dependence on agriculture for strong GDP growth, efforts to strengthen other export sectors, coupled with diversification of trading partners, have allowed Morocco to develop a variety of competitive industries and increase their presence in international markets. Traditional segments such as phosphate production remain important, but a range of emerging manufacturing capabilities are helping to promote growth across a broader base of activities. Morocco has seen a recent influx of investment that has been translated into various projects, such as new industrial and infrastructure developments. With an emphasis on diversifying its commercial partners, Morocco’s African strategy has been raising the kingdom´s political and economic profile, and extending its clout across the continent. This chapter contains interviews with Mohamed Boussaid, Minister of Economy and Finance; and Ahmed Lahlimi Alami, High Commissioner, High Commission for Planning.

Already the leading insurance market in North Africa, as well as a major force in the African market, Morocco’s insurance industry continues to see growth and large-scale regulatory reform, with the foundation of an Islamic insurance segment as well as new forms of compulsory insurance. Factors such as the emergence of the kingdom’s middle class, growing awareness of insurance, remote sales of coverage and the imminent launch of takaful (sharia-compliant insurance) firms should help to sustain expansion rates in excess of GDP growth over the medium to long term. Coupled with growing industry interest in building a wider Moroccan presence in the sub-Saharan African market, these developments will assist in raising sector penetration and further consolidate Morocco’s status. This chapter contains interviews with Ali Harraj, President, Wafa Assurance; and Youssef Fassi Fihri, CEO, Société Centrale de Réassurance.

In conjunction with KPMG, this chapter contains an introduction to Morocco’s taxation system, including a breakdown of rates imposed on corporate income, regulations governing capital gains and double taxation, and a list of goods and services exempted from value-added tax. This chapter contains a viewpoint from Fouad Lahgazi, Senior Partner, KPMG.

In conjunction with Naciri & Associés Allen & Overy, this chapter contains an overview of the legal framework in which local and foreign investors operate in Morocco, with an overview of the regulations governing different sectors, the rules for investment and expatriate employment, and recently introduced legislation on trade and financial services. This chapter contains a viewpoint from Hicham Naciri, Managing Partner, Naciri & Associés with Allen & Overy.

Morocco has made great strides in boosting school enrolment, and ensuring access to education has been a primary goal in recent decades. However, the chief challenge over the medium terms is ensuring finish their studies with not just academic qualifications, but also the skills needed to successful enter and contribute to the labour force. In the wake of the Arab Spring, Moroccan citizens approved a new constitution that promised a range of rights, including universal health care and access to quality health services. The authorities have since taken a number of steps to increase coverage, reduce costs, improve quality, and extend services in rural and otherwise isolated areas. Challenges remain in rural areas, however, and funding efforts are likely to be concentrated on building new health facilities and addressing the significant staff shortages that leave some clinics and hospitals in disuse. Ayman Cheikh-Lahlou, President, Moroccan Pharmaceutical Industry Association, and CEO, Cooper Pharma; and Nawal Chraibi, Acting CEO, Moroccan Foundation for Advanced Science, Innovation and Research.

As average incomes expand along with Morocco’s middle class, the retail sector is seeing a rising number of opportunities for development. Shopping malls have become the norm in the kingdom’s major cities, and while less-formal commerce still accounts for a large proportion of sales, the movement towards modern retail is underpinned by stable economic fundamentals that are expected to continue over the long term. As the kingdom becomes more closely integrated in the international economy, consumers are demanding a wider variety of retail options and experiences. This will present both challenges and opportunities for retail developers, as well as investors aiming to represent international brands in Morocco. This chapter contains an interview with Moncef Belkhayat, President, DISLOG.