Recent figures released by the Moroccan Capital Market Authority showed that in 2022, the cumulative value of stocks owned by foreigners and Moroccans residing abroad reached 156 billion dirhams.
This figure constitutes 27.8 percent of the total stock exchange capitalization, which stands at 561 billion dirhams.
However, this percentage marks a decline from the previous year’s 30.3 percent, reflecting a shift in ownership dynamics. Notably, despite this dip, the current foreign ownership rate remains above the 2012 low of 26.5 percent.
The decrease in foreign ownership is attributed to the downward trajectory of share prices held by foreign investors.
A key influencer of this trend is the 19.75 percent drop in the Casablanca Stock Exchange reference index observed throughout 2022.
Analyzing the demographic breakdown of foreign investors, the report underscores the significance of investors from the Middle East and Europe. This group alone represents more than 93 percent of total foreign investment and holds a substantial 26 percent of the stock market’s capitalization.
When considering geographic distribution, it is apparent that foreign investment is primarily concentrated in the United Arab Emirates and France.
Notably, investments in these regions are focused on companies operating in sectors such as telecommunications, electricity, banking, oil and gas, as well as construction and building materials.
Delving into the investment landscape, the Moroccan Capital Market Authority’s comprehensive report on foreign investment in financial instruments for 2022 highlights the pronounced impact of the stock market’s performance. The total foreign investment in listed shares experienced a decline of 25.3 percent, settling at 156 billion dirhams.
Despite these shifts, the overall investment scene remains relatively stable. Combined investments of foreigners and Moroccans residing abroad, reflecting minimal changes in both scope and pricing from the previous year, amounted to a substantial 2.071 billion dirhams by the year’s end.
This figure closely echoes the investment levels recorded in the preceding year, which amounted to 209 billion dirhams.
Retrospectively, the past five years have showcased a two-phase evolution in the share of foreign investments within stock market capitalization. The initial phase, spanning from 2018 to 2020, maintained a consistent ownership rate of around 33 percent, indicating stability during this period of time.
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