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After experiencing a dip in growth from 2008 to 2010, the industrial sector is expanding once again, with government initiatives being put in place to boost value-added sectors such as aeronautics, automotive production and textiles. The industrial sector accounted for 32.3% of GDP and 23.8% of employment in 2011. A new development plan, the National Pact for Industrial Emergence, promises to create 220,000 new jobs in the sector, as well as an €8.44bn increase in exports and a €4.44bn rise in foreign investment. The diverse range of activities, combined with these new initiatives, bode well for growth and employment across the sector. This chapter includes interviews with Saïda Lamrani Karim, Vice-President, Groupe Safari; Guy Hachey, President, Bombardier Aerospace; and Miriem Bensalah Chaqroun, President, General Confederation of Moroccan Enterprises.

With a domestic penetration rate of around 2.8% and the volume of premiums having grown 9.2% year-on-year in 2011, Morocco’s insurance market is now the second largest on the continent after South Africa and the third largest in the Arab world after Saudi Arabia and the UAE. With 17 insurers in the country, the domestic market is becoming more competitive and local players are now looking to develop products to reach uncovered segments of the population. Priorities include increasing comprehensive coverage, including life, health and property insurance for the self-employed, while the government has also begun promoting agricultural insurance. With the growth of industries such as construction, real estate and manufacturing, the sector is expected to continue expanding in the medium term. This chapter includes interviews with Mohammed El Alaoui El Abdallaoui, General Manager, Moroccan Pension Fund; and Moulay Hafid Elalamy, President, Saham Group, and President, CNIA Saada.

Capital markets in Morocco have seen a number of difficulties in the past years, with the slowdown in the eurozone crisis and continued regional unrest putting pressure on the market. The bourse has posted losses for two years in a row, prompting calls for the accelerated institution of legislative reforms to aid regulators in stabilising operations. The Casablanca Stock Exchange is currently dominated by institutional investors, along with high-net-worth individuals and foreign investors. The authorities are working to get more companies to list by offering incentives, particularly to SMEs, and renewing activity on the bourse is a key goal for market regulators. This chapter includes an interview with Karim Hajji, CEO, Casablanca Stock Exchange; and a viewpoint from Younes Benjelloun, Partner and CEO, CFG Group.

While growth at some banking institutions slowed in 2012, due mainly to the pressures of exogenous slowdowns, the sector has remained largely resilient due to prudent regulation by the central bank. The country’s banks posted aggregate net income of €3.2bn in 2011, a 9% increase over €2.9bn in 2010, which translated to 4% growth in net income that year. The government is now grappling with rising fiscal and current account deficits, which became more severe in 2012 due to lower revenues from agriculture and tourism, the country’s main sources of income. To address tightening levels of liquidity, the central bank has cut reserve requirements and approved certificates of deposits. Meanwhile, new regulations set to come into effect will allow for the operation of fully fledged Islamic banks in the kingdom. This chapter includes interviews with Abdellatif Jouahri, Governor, Bank Al Maghrib; and Mohamed El Kettani, CEO, Attijariwafa Bank.

The Moroccan economy experienced several setbacks in 2012 due to a combination of unfavourable global economic trends, a volatile exchange rate and a drought that caused a drop in revenues from its primary sector, agriculture. However, the government is committed to addressing the most pressing concerns for the economy, having laid out development plans for the agriculture and tourism sectors. A strategy to expand emerging industries and exports is also placing emphasis on public-private partnerships, which will likely be key to growth in the coming years. Additional reforms are being implemented to address unemployment, attract foreign investment and create a better business environment. This chapter includes interviews with Nizar Baraka, Minister of Economy and Finance; Chakib Benmoussa, President, Economic, Social and Environmental Council; and Ahmed Fassi-Fihri, Investment Promotion Manager, Moroccan Investment Development Agency.

This chapter outlines investment laws and regulations for foreign companies operating within the Kingdom, and provides information about the options available for diversification of corporate ownership. This chapter also includes a viewpoint with Robert W Jordan, Partner in Charge of the Middle East at Baker Botts, and Former US Ambassador to Saudi Arabia.