Population (2020): 37 million GDP (2020): US$112.9 billion (S$156.8 billion)1 World Bank “Ease of Doing Business” Rank (2020): 53 Bilateral Trade with Singapore: S$434.5 million
1 World Bank
Morocco is a regional centre for trade, manufacturing, warehousing, redistribution, sales and call centres, and has an array of IT services reaching the European Union (EU), West-, Central- and North Africa, the Middle East and Eastern Europe. It is party to trade agreements which allow the country to trade tariff-free in major markets throughout these regions. With its strategic trading location, the strong endorsement of its financial sector by the World Bank and increased use of English in business, Morocco presents many opportunities for companies wanting to expand their operations in a business environment now more closely aligned with international norms. Its large consumer class, potent economic growth, more than US$100 billion annual gross domestic product (GDP) and successful implementation of financial restructuring programmes supported by the World Bank, the International Monetary Fund and the Paris Club, make this North African nation very attractive to investors.
Morocco has worked with international organisations such as the International Monetary Fund and World Bank to accelerate the pace of economic development over the past few years. The country has now liberalised trade, and is open to the international market. In particular, Morocco is a significant trading partner with the European Union (via France and Spain). The Moroccan dirham has an exchange rate pegged to a basket of currencies, primarily the Euro and US dollar - this has resulted in a low inflation rate of below 1.5% per annum. Morocco’s telecommunications and IT infrastructures are among its fastest growing sectors - most major cities have networks that are almost 100% fibre optic, giving Morocco an edge in emerging e-commerce markets. Morocco’s Casablanca Finance City is the first financial centre in Africa. Since its foundation, it has built a strong network of global financial centres with a strong membership of finance companies, multinational regional headquarters, service providers and holding companies which together have coverage of 50 countries in the African continent.
Morocco shares borders with Algeria, the Western Sahara and the Northern Atlantic Ocean. Its north coast is on the Mediterranean Sea, and this provides a logistical advantage as it is only a short distance from France and Spain. Morocco has approximately 1,835 km of coastline, which makes it ideal for transnational merchandise fleets and general shipping. Morocco counts 24 ports which manage 98% of the country’s external trade. Of note is the Tangier Med Port, the first transshipment platform in Africa, located 14km from Europe and connected to 186 ports around the world with a capacity of nine million containers a year.
Morocco’s geographical proximity and cultural compatibility with Europe make it a preferred destination for nearshoring activities.
Morocco’s physical linkage with the rest of Africa also extends to the financial front as Moroccan banks and insurance companies are present in 34 African countries, enabling trade and projects for companies operating in the wider African continent.
Under King Mohammed VI, Morocco has made education a national priority. The country has deployed strategies to modernise and enhance the quality of education since 2005. Morocco is home to several high-ranked universities that have been developed in partnership with Canadian and European schools. Singapore investors will find a skilled workforce to draw from when setting up businesses or branches in the country.
Morocco has experienced continued peace and stability since its independence from France in 1954. Successive administrations have focused on developing the economy and the welfare of Morocco and its citizens. The monarchy also dates to the 17th century and remains a stabilising presence in the country. This stability is reassuring for foreign investors as there is less risk of their investments being jeopardised by a military coup, riots or political uproar2.
2 http://www.doingbusiness.org/en/data/exploreeconomies/morocco