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The Casablanca Stock Exchange (CSE) was off to a good start in 2016, and in June saw its largest initial public offering (IPO) in eight years. However, the bourse’s all-share index remains below the levels seen before the global financial crisis, as do IPO and trading activity more generally, and it seems likely to be some time before these return to pre-crisis levels. Nevertheless, the coming months and years will see a wide range of reforms applied across the kingdom’s capital markets, including the launch of new exchanges and a variety of products, all of which should help to boost the CSE’s substantial potential. This chapter contains interviews with Nezha Hayat, Chairperson, Moroccan Capital Markets Authority; Nikhil Rathi, CEO, London Stock Exchange; and Younes Benjelloun, Partner and CEO, CFG Bank.

The banks of Morocco rank among the largest on the continent, with a regional footprint matched only by South Africa’s biggest lenders. Recent years have seen these institutions deepen programmes for small and medium-sized enterprises and expand cashless transactions. The industry is not without challenges, however: having dealt with the issue of depressed liquidity levels several years ago, the sector is now faced with low lending growth and rising levels of non-performing loans, and when faster growth will return is unclear. However, continuing regulatory reform will enhance the stability of the system, and banks’ continuing expansion abroad, as well as the launch of Islamic banking and new payment institutions, will help to maintain profits, bring major new players into the kingdom, diversify the product offering and help boost financial inclusion levels that are already high by regional standards. This chapter contains interviews with Abdellatif Jouahri, Governor, Bank Al Maghrib; and Adnan Ahmed Yousif, President and Chief Executive, Al Baraka Banking Group.

Although Morocco is set to see weaker GDP growth in 2016, due in large part to a poor agricultural harvest following low rainfall, a series of financial reforms and initiatives, and strong foreign investment, have positioned the country well for future gains. The kingdom has had success in its recent efforts to build up export-oriented manufacturing projects, which should take over from more traditional industries in driving growth as well as provide higher-quality employment over the longer term. If Morocco can continue to attract major investment in high-growth-potential industries such as automobiles, aeronautics, agri-business and offshoring while also developing well-integrated business ecosystems in these areas, it could achieve the sort of growth rates seen in other emerging markets, such those in South-east Asia. This chapter contains interviews with Mohammed Boussaid, Minister of Economy and Finance; Tanja Gönner, Chair of the Management Board, GIZ; Hafez Ghanem, Vice-President for MENA, World Bank.

This chapter contains an outline of the legal framework in which local and foreign investors operate, including an overview of the expected future changes to foreign direct investment (FDI) restrictions, a rundown of the recently overhauled workplace regulations and protections, and a look at the implications of the expanded scope and greater emphasis being placed on public-private partnerships (PPPs). This chapter contains a viewpoint from Michael Kerr, Regional Managing Partner, Dentons.

This chapter contains an overview of the tax framework in which local and foreign investors operate, including a look ahead at the GCC value-added tax (VAT) framework that is being created and the considered implementation of a corporate income tax. This chapter contains a viewpoint from Dean Kern, Middle East Tax and Legal Services Leader, PwC.