Foreign Direct Investment in Morocco rises 40.6% in early 2025

Foreign Direct Investment in Morocco rises 40.6% in early 2025
Monday 31 March 2025 - 00:07

Foreign direct investment (FDI) in Morocco saw a significant boost in the first two months of 2025, with net inflows reaching 6.12 billion dirhams ($600 million), marking a 40.6% increase compared to the same period last year. Analysts attribute this growth to institutional and financial reforms.

According to the latest data from Morocco’s Exchange Office, FDI revenues surged by 27.9% to 8.96 billion dirhams, while foreign investment expenditures rose by 7.1% to 2.83 billion dirhams.

Decline in Moroccan Direct Investment Abroad

In contrast, Moroccan direct investment abroad declined, with net outflows increasing to -120 million dirhams, compared to -12 million dirhams in February 2024. This decline resulted from decreases in both revenues and expenditures, with divestments falling by 2.6% to 3.01 billion dirhams and investment spending dropping by 6.2% to 2.89 billion dirhams.

Experts Highlight Favorable Conditions

Economic analyst Idriss El Aissaoui noted that Morocco has successfully created optimal conditions to attract substantial foreign investments. “The continuous rise in net FDI inflows over recent months is a key indicator that Morocco’s investment environment is strengthening,” he told Hespress.

He emphasized that this upward trend reflects a broader economic momentum driven by major development projects across multiple sectors.

Promising Outlook for Foreign Investment

Abderrazak El Hiri, an economics professor at the University of Fez, linked the rise in FDI to two main factors: Morocco’s improved economic attractiveness due to business climate reforms and the country’s promising economic prospects.

“The new investment charter has played a crucial role in enhancing Morocco’s investment sector, along with fiscal and financial reforms such as the introduction of a futures market in the financial sector,” El Hiri said.

He also pointed to Morocco’s ongoing infrastructure projects, including preparations for hosting major international sporting events and the expansion of key ports such as Nador and Dakhla Atlantic, as factors boosting investor confidence.

Challenges and Recommendations

Regarding the decline in Moroccan investments abroad, El Hiri cited economic instability in some countries and difficulties faced by Moroccan firms in integrating into regional and global supply chains.

“It’s too early to draw long-term conclusions about investment trends,” he added, stressing the need for Morocco to continue institutional reforms, particularly in digital transformation and administrative efficiency, to attract and retain foreign investors.

El Hiri also recommended improving corporate governance to help Moroccan companies expand abroad, diversifying investment sectors, and leveraging economic diplomacy to support international business ventures.

He highlighted strategic sectors where Moroccan firms have a competitive edge, including construction, agri-food industries, textiles, automotive manufacturing, and mechanical industries, as key areas for expansion.

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