Difficult access to real estate constitutes one of the main obstacles to encouraging investment and enhancing the competitiveness of Moroccan enterprises and start-ups, finds a recent official report from the Moroccan Competition Council.
In its annual report for 2021, the council found that shrinking real estate reserves and the scarcity of an adequate industrial real estate base are among the biggest obstacles.
To address this situation, the Council suggested establishing an effective mechanism for valuing the industrial real estate base, a step that would contribute to easing industrial land prices and eliminating real estate speculation.
The report stressed the need to provide some important components to enhance Morocco’s competitiveness as a country incubating foreign investments, especially its ability to create specialized competencies, adapt to external demand requirements and fuel competition within the framework of local production systems.
The Competition Council pointed out that the process of restructuring global value chains appears as a major determinant of a new movement of foreign investment, as the idea of resettlement within the regional blocs emerges as one of the most serious scenarios for establishing this new restructuring to reorganize production and align value chains with geographical markets.
In the opinion of the Council, the process of regional resettlement, and the opportunities it provides to Morocco, especially in the sectors of cars, textiles and electronic parts, imposes on Morocco a set of special conditions to attract investments that are not limited to providing human, energy and material capabilities, but also extend their scope to include the business climate. and the efforts of the public authorities to improve it.
The report indicated that the return on investments in Morocco remains weak compared to emerging countries, where the Incremental Capital Output Ratio coefficient of production is about 7.9 points, while this coefficient in Turkey and South Korea is 5.2 and 2.9 points, respectively.
The Competition Council explained the weak investment productivity by the dominance of public investments over the total volume of investments, reaching in 2021 about 67 percent, representing MAD 230 billion out of MAD 344 billion.
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