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Following a slowdown in 2013 caused by a range of factors, Morocco’s construction industry returned to growth in 2014 and 2015, driven by high demand for housing and investment in infrastructure projects. While the prices of building materials have fallen with global economic downturn – the steel segment in particular has felt the impact of slow growth in international markets – cement consumption saw a modest return to growth in 2015. In the real estate sector, after a drop in the market following a boom that peaked in 2007-08, recent years have shown signs of a modest recovery. While the luxury segment has remained depressed after the global downturn of 2008-09, state incentives aimed at attracting developers to the mid-range and affordable housing segments, which are marked by a persistent deficit, have helped offset this somewhat, and new legislation allowing for the creation of real estate investment trusts (REITs) is set to attract greater foreign investment in segments that have previously lagged. If such investment picks up in the coming years as predicted, the sector’s recovery will continue. This chapter contains interviews with Abdelaziz El Mallah, General Manager, JACOBS Engineering S.A.; and Nawfal Bendefa, CEO, Vecteur LV.

Morocco has established a solid legal framework in recent years to encourage the development of renewable energy and the implementation of energy efficiency strategies. With the impact of climate change becoming more apparent in the country, the government has developed several initiatives to lower greenhouse gas emissions and improve its management of water resources. In the context of urban sprawl and its impact on water supply and natural ecosystems, Morocco has put in motion a robust plan aimed at enabling the country to better adapt to climate variations. This chapter contains an interview with Hakima El Haite, Minister of Environment.

In recent years Morocco has been working to reduce its energy dependency through renewable energy projects and the rollout of an ambitious oil and gas exploration programme. Its energy consumption has increased by 5-6% a year for the past 25 years, and demand is expected to quintuple by 2050. Though it possesses few oil and gas reserves, Morocco boasts strong potential in renewable energies, and is expected to use the next climate change conference, which it will host in November 2016, as a springboard for its ambitious plan to source 42% of its energy needs from renewables by 2020. Having successfully introduced renewables into its energy mix by developing several wind farms and its first solar plant in Ouarzazate, the country is now looking to share expertise by offering to cooperate on renewable energy projects in neighbouring countries. This chapter contains interviews with Mohamad Abunayyan, Chairman, ACWA Power; and Isabelle Kocher, CEO, Engie.

Capitalising on its strategic location and promising economic environment, the Moroccan transport sector has made significant strides in recent years. A range of major upgrades and expansions to roads, ports, railways and airports have continued to press forward, despite challenges such as the eurozone debt crisis, regional political instability and a tightening of the state budget. Looking ahead, the private sector is set to play an increasing role in financing and managing transport infrastructure. Significant investment in road construction has improved connections between newly developed industrial areas and port infrastructure, and the benefits of lower distribution costs are beginning to appear. Improvements to urban transport, particularly in Casablanca, will help further improve connectivity and reduce congestion, while ambitious plans to expand aviation and maritime infrastructure will ensure a gradual rise in capacity. This chapter contains interviews with Aziz Rabbah, Minister of Equipment, Transport and Logistics; and Mohamed Benouda, CEO, SNTL Group.

With a vision to create jobs and spur growth across the economy, the Moroccan government has focused considerable attention on developing the industrial sector in recent years. Under the framework of several government strategies, key manufacturing segments – including automotive and aeronautic components and agro-industry – have seen injections of capital and the rollout of specialised infrastructure, training facilities and fiscal incentives, helping to transform Morocco’s industrial sector over the past decade. Investments continue in the relatively young aeronautics and automotive industries, and in the recently lagging textiles and pharmaceuticals segments. In the phosphates-dominated mining sector, authorities have sought to increase activity in underdeveloped segments, passing a new mining code after the commodity price drop with the aim of attracting foreign investment, boosting capacity and spurring a more diverse range of output. If local operators and foreign players are able to improve their cooperation, further development of the industrial sector is likely to follow. This chapter contains interviews with Philippe Petitcolin, CEO and Director, Safran; and Ali Bennis, President, Laprophan.

Already the largest and most developed in North Africa, the Moroccan insurance market is currently undergoing a range of reforms aimed at cementing its stability and further boosting premiums growth. While the life segment appears to be growing faster than non-life given its lower penetration rate, auto insurance can expect to see significant expansion as car ownership levels continue to rise. Plans to launch takaful (Islamic insurance) products and relax restrictions on distribution should further support continued growth in the coming years. Moroccan firms’ expansion drive in Africa is also set to continue, cementing the kingdom’s status as one of the continent's major insurance players. This chapter contains an interview with Hassan Boubrik, Chairman, Supervisory Authority of Insurance and Social Welfare.