Morocco: a country of investment opportunities
The Spanish Confederation of Business Organisations (CEOE) and Royal Air Maroc (RAM), in collaboration with the Moroccan Embassy in Spain, organised the conference "Morocco, a country of opportunities in full development for the business sector" at the Madrid headquarters of the Spanish employers' association to promote investment opportunities in the Moroccan kingdom.
The event served to showcase the promising investment scenario offered by Morocco, a country in continuous development and with a great industrial and financial evolution promoted through various industrial plans and initiatives such as the New Investment Charter, implemented by the Moroccan state led by King Mohammed VI, who, since his accession to the throne in 1999, has been committed to the modernisation and social, legal and economic development of Morocco.
Javier Calderón, CEOE's Director of Companies and Organisations, was in charge of introducing the main theme of the event with the valuable testimonies of Ali Hajji, Economic Counsellor of the Moroccan Embassy in Spain, and Hassan Benboubker, Area Manager for Andalusia at Royal Air Maroc, who presented Morocco's economic outlook and investment opportunities in the North African country.
Javier Calderón highlighted the importance of internationalisation for Spanish companies and the good relationship between CEOE and the Moroccan employers' association CGEM. The Director of Companies and Organizations of CEOE pointed out that Morocco is a great country with great attractiveness and a bridge between Spain, Europe and Africa.
Ali Hajji was in charge of presenting the economic panorama of opportunities in Morocco, stating that, since the end of the 1990s under the leadership of King Mohammed VI, the Kingdom has undergone a "dynamic process of political, economic and legal reforms to stabilise the macroeconomic framework, improve the productive apparatus and implement development programmes for growth sectors".
According to Hajji, the sectoral strategies established, such as the industrial plans, improved the North African country's infrastructures and made it possible to modernise the industrial fabric in the face of global development, with trade agreements with the European Union (EU), the United States, Arab countries and Africa in general, with a market of one billion consumers.
He highlighted the creation of 650,000 jobs and the improvement in Morocco's Gross Domestic Product (GDP) to 120 billion euros, with an average growth rate of almost 5% during this time. This makes Morocco an "important investment platform".
Ali Hajji also pointed out that the Moroccan economy showed great resilience despite setbacks such as the coronavirus pandemic and the earthquake suffered by Morocco, with social measures to protect citizens and businesses. The Economic Counsellor of the Moroccan Embassy in Spain highlighted the new development model promoted by King Mohammed VI so that the economy generates more added value, with quality employment and sustainable development of the regions.
Hajji also indicated that the New Investment Charter allows to improve the legal framework, promote investment and quality employment, involving the private sector so that it will represent two thirds of investment in Morocco by 2035.
The economic counsellor of the Embassy also stressed that Morocco is a key country in the internationalisation of Spanish companies; in fact, almost 800 Spanish companies are in Morocco in various sectors participating in regional value chains.
It is worth noting that, since 2012, Spain has been Morocco's main trading partner, which, in turn, is Spain's third main partner outside the EU. All this with 21 billion euros in trade exchanges in 2023, a "record figure".
This good economic climate coincides with an exceptional diplomatic dynamic, ultimately represented by the joint organisation of the 2030 football World Cup. All of this is a "testimony to maturity" and "promising prospects" for deepening mutual cooperation.
Morocco is also committed to south-south exchanges with an important network of companies linking the African continent. Thus, the Moroccan kingdom is the leading investor in West Africa and the second in the African continent in general. An example of the strong presence of African banks is the fact that there are African banks in more than 27 African countries.
Ali Hajji highlighted the existing good dynamics, the political stability, the favourable environment for investors with several free trade agreements and Morocco's well-connected infrastructures. He also indicated that Spain and Morocco have more than 260 weekly connections between cities, including more than 60 weekly Royal Air Maroc flights.
He also highlighted infrastructures such as the port of Tangier Med, which is the first port in Africa, and the future port of Dakhla, planned for 2028 with 100% Moroccan construction. In addition to a road network of more than 2,000 kilometres and an extensive rail network of high-speed trains.
Finally, he also said that Morocco is committed to an energy policy focused on sustainable development. The Moroccan state's objective is to have 52% renewable energy as a proportion of the total energy sector by 2030. Green energy is present in all sectoral plans," he said.
Important role of Royal Air Maroc
Hassan Benboubker indicated that RAM is the Moroccan flag carrier with 65 years of experience serving Morocco, being the leading airline connecting the African continent and the rest of the world.
Royal Air Maroc offers more than 50 weekly frequencies and is the leader in the connection between Spain and Morocco, present in most Spanish airports and with the forecast of new routes from Bilbao, Alicante and Palma de Mallorca.
Through the Casablanca hub there is a network of more than 90 destinations and 45 countries, with more than 1,000 weekly flights. RAM connects more than 36 African airports through the One World alliance network of which the Moroccan airline has been a member since 2020. Thus, Morocco is an important bridge between Africa and the four continents. Benboubker indicated that RAM was voted best African regional airline for seven consecutive years, which shows its large size.
In 2023, the new strategic vision is focused on Africa by reinforcing the commitment to the continent's collectivity for the commitment to continental development, within a large-scale process to make RAM a leader in air transport, "proudly African", with a strong commitment to respect for the environment, preserving an international dimension and adapting services to international standards.
Hassan Benboubker also highlighted the great digitalisation process of the company in order to provide a good customer service with a "seamless experience before, during and after the flight".
The head of the Andalusia Area at Royal Air Maroc also explained the contract-programme signed with the Moroccan government for RAM to change its size in order to promote its international projection. The planned objective is to move from being a medium-haul regional hub to become a global operator with a transcontinental hub connecting the south, north, east and west.
Royal Air Maroc plans to increase from 60 to 200 aircraft and to double the number of seats with 39 million seats available to Morocco. RAM becomes with this plan a global operator connecting four continents, connecting Africa to the world through Casablanca, and in this plan will reach new cities from Morocco, reaching the western United States, Latin America and Asia. An "opening of new routes that improves the Moroccan and African market", he explained.
Morocco as a business hub for Africa
Morocco is also an important business centre for Africa and a major pole of attraction for foreign investment, mainly from Spain. This was made clear at the round table with the participation of Mireia Arroyo, Director of Corporate Communication at Gestamp, Ignacio Pérez-Carasa González, Director of International Relations at Alsa, Adolfo Lopez Macías, Deputy and Commercial Director of Banco Sabadell in Morocco, Fátima Rodríguez San Martín, Director of International Business at Banco Sabadell, and Ángel Esquinas López, Regional Director of Barceló Hoteles.
All of them explained their success stories as investment companies in Morocco, highlighting the great investment scenario that the North African country represents for foreign companies.
Ignacio Pérez-Carasa González pointed out that Alsa operates in six major cities in Morocco. Alsa has almost 6,000 vehicles for passenger transport throughout the world and 1,700 of them are in Morocco, which shows the great importance of the North African country for the Spanish company. Alsa is "one of the Spanish companies with the largest presence in Morocco" and with an important process of modernity in its implementation in Morocco, offering in the North African country a service of the same quality as in Spain with stable employment; in fact, there is only 9% turnover and there are 94% of permanent jobs in the company in Morocco.
All of this with social involvement and promoting female employment and the integration of Moroccans in the management team, adapting to Morocco as a foreign company. Moreover, with a commitment to decarbonisation, as in Europe. Ignacio Pérez-Carasa González also highlighted Alsa's "commitment to the transformation and modernisation of transport in Morocco".
For his part, Ángel Esquinas López pointed out that Barceló is celebrating 95 years as a hotel company with more than 240 hotels around the world and now Morocco, after Mexico, is the country where the company invests the most.
The regional director of Barceló Hotels indicated that in 2022 the group had five hotels in Morocco and today there are already nine. The company has more than 1,600 employees in Morocco, all Moroccans, and of the 15 managers there, only three are Spanish. Barceló Hotels even has 10 to 15 projects on the table in addition to the nine existing hotels in Morocco, all of them "not looking for volume, but for quality".
Ángel Esquinas López raised another remarkable point about Morocco, and that is the facilities granted by the Moroccan Administration to attract foreign investment. A global experience that the representative of Barceló Hotels defined as "positive".
Meanwhile, Mireia Arroyo also pointed out that Gestamp's experience has been "tremendously positive" and with "positive projects" in Morocco. The Spanish multinational company that designs and manufactures large metal components for the automotive industry is present in 24 countries and in 2018 arrived in Morocco, with a plant in Kenitra. Gestamp was missing the African continent and arrived to collaborate with Stellantis and Renault-Nissan. There are more than 300 employees in Kenitra, with almost 100% local staff.
For his part, Adolfo López Macías also referred to the success stories of the integration of companies in Morocco. He pointed out that Banco Sabadell arrived in Morocco in 2009 driven by the growing interest of Spanish companies in the North African country. In fact, Banco Sabadell opened a 100% operational office licensed by the Central Bank of Morocco (BAM) to operate as any Moroccan bank.
Adolfo López Macías highlighted Morocco's "spectacular progress" and that the Moroccan kingdom is fundamental for Spain. There are more than 400 companies and customers of Banco Sabadell in Morocco with an open account. The bank also works with many subsidiaries of Spanish groups and with very solvent Moroccan companies. Most of them have commercial and shareholding relations with Spain and "are eager to invest in Spain" as well.
The Banco Sabadell representative also pointed out that the High Level Meeting between Spain and Morocco held in Rabat in February 2023 gave an important boost to the link between the two nations thanks to the meeting of more than 20 ministers who launched very important structural projects of the country.
On the other hand, Fátima Rodríguez San Martín explained that Banco Sabadell is the fourth largest Spanish banking group, with 19,000 employees and 1,450 branches serving 11 million customers. It now has five branches, ten representative offices and two commercial banks in various countries.
The Banco Sabadell representative pointed out that "Morocco is fundamental for Spain". She said that 17,000 Spanish companies export to Morocco and that more than 600 companies hold 10% of Moroccan business capital. Fátima Rodríguez indicated that Banco Sabadell accompanies companies that want to collaborate with Morocco and that the North African country is fully integrated in financial markets. "Companies need financing and we make various tools available for this purpose," she said.
Mireia Arroyo also wanted to highlight that "Morocco is a promising country with an exponential increase in important European and Spanish investments". The "economic-business relationship could not be better" and "the Administration offers advantages for foreign projects", even in critical moments such as the COVID pandemic or the earthquake, when the Moroccan government was sensitive to industrial operations and to the people who are at the heart of the business despite the difficulties, she explained.
Meanwhile, Ignacio Pérez-Carasa González also highlighted the legal security of the Moroccan country. "In 25 years of continuous tendering, we have not had a single litigation with the Administration, something that is not normal. Even in the EU you find legal insecurity", he explained. The head of Alsa also pointed out that Spanish companies such as his have benefited from incentives from the Moroccan government, something which the rest of the speakers agreed on.
Marta Blanco Quesada, president of CEOE International, closed the event by stressing that in Morocco "institutional activity is intense because business activity is also intense".
"We work in almost perfect coordination with the Moroccan Embassy in Spain. The relationship is very productive with permanent dialogue and RAM is a fundamental partner that has saved us from situations with unexpected trips that have arisen on certain occasions", she pointed out.
Marta Blanco Quesada highlighted the great diversity of companies present in Morocco and that this is a country of opportunities with a bilateral dimension, but also as a regional hub, which makes Morocco "a very attractive country".
The president of CEOE International said that Morocco is "Spain's leading trading partner in Africa and the leading destination for Spanish investment, and a market that is growing a lot despite the current situation".