Doing business in Morocco

Last updated: January 2013 UK Trade & Investment Doing business in Morocco

Are you a member of a UK company wishing to export overseas? Interested in entering or expanding your activity in the Moroccan market? Then this guide is for you!

The main objective of this Doing Business Guide is to provide you with basic knowledge about Morocco; an overview of its economy, business culture, potential opportunities and an introduction to other relevant issues. Novice exporters, in particular will find it a useful starting point. Further assistance is available from the UKTI team in Morocco. Full contact details are available at the end of this guide.

Important Information - Sanctions and Embargoes

Some countries maybe subject to export restrictions due to sanctions and embargoes placed on them by the UN or EU. Exporting companies are responsible for checking that their goods can be exported and that they are using the correct licences. Further information is available on the gov.uk website

The purpose of the Doing Business guides, prepared by UK Trade & Investment (UKTI) is to provide information to help recipients form their own judgments about making business decisions as to whether to invest or operate in a particular country. The Reports contents were believed (at the time that the Report was prepared) to be reliable, but no representations or warranties, express or implied, are made or given by UKTI or its parent Departments (the Foreign and Commonwealth Office (FCO) and the Department for Business, Innovation and Skills (BIS)) as to the accuracy of the Report, its completeness or its suitability for any purpose. In particular, none of the Reports contents should be construed as advice or solicitation to purchase or sell securities, commodities or any other form of financial instrument. No liability is accepted by UKTI, the FCO or BIS for any loss or damage (whether consequential or otherwise) which may arise out of or in connection with the Report.

UK Trade & Investment Doing business in Morocco

Content
INTRODUCTION........................................................................................................................4 PREPARING TO EXPORT TO MOROCCO..............................................................................9 HOW TO DO BUSINESS IN MOROCCO................................................................................10 BUSINESS ETIQUETTE, LANGUAGE AND CULTURE........................................................13 WHAT ARE THE CHALLENGES? ........................................................................................14 HOW TO INVEST IN MOROCCO............................................................................................15 CONTACTS..............................................................................................................................16 RESOURCES/USEFUL LINKS...............................................................................................17

UK Trade & Investment Doing business in Morocco

Introduction
Morocco is situated in the north west of Africa and has a unique & strategic position - 3,000 km of coastline on the Atlantic Ocean & 550 km on the Mediterranean Sea, with mountains, plains, desert, rivers and about 1,000,000 hectares of forests. The total area is 446 550 km2. Morocco has made remarkable progress over the past few years in democratisation, respect for human rights and social and economic reform. A vibrant civil society and a vocal press contribute to one of the most open and tolerant of Middle East and North Africa countries. Morocco enjoys financial stability and economic reform is firmly on the Governments agenda. On October 13, 2008, the European Union granted Morocco "advanced status, reflecting the EU's decision to strengthen trade and political ties as well as to reward Morocco for its economic and democratic reform process. An EU-Morocco Agricultural Agreement liberalising trade in agricultural products, fish and fishery products came into effect in July 2012. The EU also began negotiating a Deeper Comprehensive Free Trade Agreement with Morocco in 2012. Its main objective is the progressive integration of Moroccos economy into the EU single market. The agreement will cover a full range of regulatory areas of mutual interest, such as trade facilitation, technical barriers to trade, sanitary and phytosanitary measures, investment protection, public procurement and competition policy. In June 2011, the Parliamentary Assembly of the Council of Europe (PACE) granted the Moroccan parliament the "Partner for Democracy" status. Diplomatic links between Britain and Morocco go back at least seven centuries. Britain is one of Moroccos oldest partners, and was Moroccos main trading partner during the 19th century. Over 400,000 British tourists visited Morocco in 2012 ranking third after the French and the Spanish. Research by the Boston Consulting Group in 2010 identified 40 African companies that are growing rapidly and emerging as global competitors. Five of those companies are headquartered in Morocco. The research also identifies a group of fast-growing nations which it describes as African Lions, Algeria, Botswana, Egypt, Libya, Mauritius, Morocco, South Africa and Tunisia, who will drive the continents growth, similar to the Asian Tigers. The UK is among the top six foreign investors in Morocco.

Strengths of the market

Unique and strategic location at the threshold of Europe Platform for reaching other international markets, especially North and West Africa Good communication network and global transport connections by air, sea and road Open Skies Agreement with the EU and introduction of several new airlines including low cost flights between the UK and Morocco. Strong banking and finance facilities Advanced Status with the EU since 2008

Attractive facilities and rebates for trade and investment Free Trade Agreements with several countries Industrial Parks/Off shoring centres. Free Trade Zones, Export Processing Zones and logistics centres Availability of Regional Investment Centres (one-stop-shops for inward investors) in all regions. Tax incentives and ease of repatriation for profits and dividends Petroleum Code / Mining code / other sectorial codes

Government sponsored development programs (e.g. Hassan II Fund) Investment Promotion and Protection Agreement and Double Taxation Agreement with the UK for the protection of existing and future investments.

Opportunities in Morocco
Morocco offers opportunities in all sectors. Sectors where UK expertise particularly matches Moroccan demand includes: Construction and Infrastructure - there are major urban and rural infrastructure projects, new motorways, road and rail construction, urban and national transport development programmes, port and airport upgrading, building of new towns and industrial areas. Tourism and Recreation the governments ambitious tourism agenda offers wide scope with leisure facilities, hotel construction, marina and resort development, management training and catering. Safety and Security one of Moroccos top priorities. Great opportunities for fire, safety and security companies border and access control, surveillance and detection equipment, imaging and police technology. Financial Services The Casablanca Stock Exchange is the second largest in Africa and aspires to be the regional hub for raising finance. Moroccan Banks are expanding throughout West Africa, including through purchase of privatised local banks. Morocco launched its regional financial services centre (Casablanca Finance City) in 2012 and is developing it in collaboration with Singapore. Morocco is starting to show an interest in Islamic Finance; Energy and Environment privatisation of utilities continues. Morocco has ambitious plans to develop renewable energy resources, both due to increased awareness of environmental issues and in order to reduce dependence on imported energy; Water and waste management improvements in the water infrastructure are a key national objective. Concessions are being awarded to private companies to run water and sewerage networks. Those areas where Morocco is concentrating its own efforts in accordance with its industrial development plan (the plan dmergence) e.g. automotive, aeronautics, etc offer opportunities for cooperation between UK and Moroccan companies. Opportunities also exist in areas that underpin Moroccos development such as education and training, healthcare etc which attract both a considerable budget from the Moroccan Government and International aid money. Agriculture continues to be an important part of Moroccos economy (14% of GDP, albeit falling, and employs some 40% of the population) and offers niche opportunities.

Trade between the UK and Morocco

The Prime Minister recently announced the appointment of Lord Sharman as Trade Envoy with responsibility for Morocco. Lord Sharman is one of eight Trade Envoys tasked to promote trade for UK businesses in selected high growth and developing markets. These roles will raise the profile of the market amongst UK business where the opportunities tend to be less well known. The Moroccan-British Business Council is a private sector group set up in 2001 to promote UK trade with Morocco. It is currently in a transitional phase. Most of Moroccos external trade is with EU countries. Its two biggest trade partners are France and Spain. Trade with China is expanding rapidly. UK exports of goods and services to Morocco in 2010 were 673m up, to 44% compared

to 2009 figures. The upward trend continued in 2011 as exports increased by 9.8% to a total of 739m. Moroccan exports to the UK in 2011 totalled 719m. Main products exported to Morocco from the UK are as follows: TOP UK EXPORTS JAN-SEP 2012 Gas natural & manufactured Road vehicles Petroleum & related products Metalliferous ores & metal scrap Textile yarns & fabrics Medicinal and pharmaceutical products Power generating machinery & equipment Electric machinery & Appliances Beverages General industrial machinery Miscellaneous manufactured articles Chemical materials & products Machinery specialised for particular industries TOP UK EXPORTS 2011 Gas natural & manufactured Petroleum & related products Metalliferous ores & metal scrap Road vehicles Iron & Steel Medicinal & Pharmaceutical products Textile yarns & fabrics Other Transport Equipment Machinery specialised for particular industries Plastics in primary forms Power generating machinery & equipment Chemical materials & products Miscellaneous manufactured articles Beverages TOP UK EXPORTS 2010 Gas natural & manufactured Petroleum & related products Road vehicles Miscellaneous manufactured articles Textile yarns & fabrics Medicinal & Pharmaceutical products Metalliferous ores & metal scrap Specialized industrial machinery Cereals & Cereal preparations Plastics in primary forms Beverages Office machinery & ADP machinery Power generating machinery VALUE M 104.7 66.9 45.7 31.4 27.6 16.6 11.4 8.9 7.8 7.7 7.2 7 6.3 VALUE M 70.9 64.9 60.6 53.9 50.2 36.2 34.6 26.1 12.4 12.3 11.5 10.1 9.9 8.7 VALUE M 112.5 77.5 49 45 35.5 22 20.5 16.5 13 12 11 11 10.5

There is an Investment Promotion and Protection Agreement and Double Taxation Agreement with the UK for the protection of existing and future investments. British companies represented in Morocco include household names such as Shell, Unilever, GlaxoSmithKline, Cadbury, G4S and Imperial Tobacco. UK Trade & Investment Doing business in Morocco

Economic Overview
Over the last decade, Morocco has significantly liberalised its trade regime and strengthened its financial sector. These reforms have enhanced the overall productivity of the economy and heightened its resilience to shocks. In 2011 Morocco had a GDP of $99 bn and a GDP per capita of $3,084. According to the IMF GDP growth in 2011 was 4.9%, but the IMF forecast this will dip in 2012 to 2.9%, before rebounding to 5.3% again in 2013. Inflation has remained at around 1% over the last three years, but the IMF forecast that it will rise to 2.2% in 2012 and to 2.5% in 2013 due to the impact of rising global energy and food prices. The budget deficit at the start of 2012 was around 7% of GDP but the Government hopes to reduce this to 5%. Estimated public debt as a ratio of GDP was 65% in 2011 (2011 estimate for UK is 79.5%). Unemployment reached 9% in 2011 and the IMF predicts that it will decrease slowly to 8.9% in 2012 and 8.8% in 2013. Agriculture remains an important part of the economy. It employs around 39.5% of the population and represents about 14-6% of GDP, a percentage that is falling but remains substantial. Low rainfall and unusually low temperatures in early 2012 have resulted in lower cereal crop yields, so Morocco will have to increase cereal imports. Increased spring rainfall has however improved the outlook for the fruit and vegetable crops. There is a large public sector, and long-term challenges include preparing the economy for freer trade with the US and EU, raising living standards, and improving education and job prospects for Morocco's youth. The authorities have realised that reducing poverty and providing jobs is key to domestic security and development. The coalition government appointed in 2012 has made several announcements stressing their intention to improve governance, reform the justice system, and increase transparency in order to boost the economy and attract foreign investors. Morocco has displayed clear regional ambitions with projects such as the Tanger Med and Nador West med ports and the upcoming Casablanca finance city. It has signed Free Trade Agreements with the EU and the US for a gradual liberalization of trade and dismantling of customs tariffs by 2012/13. Morocco has also signed free trade agreements with Turkey, Jordan, Tunisia and Egypt and maintains growing business ties with Sub-Saharan African countries. Negotiations on an EU-Morocco fisheries agreement will resume in 2012 after an extension of the previous agreement was rejected by the European Parliament in late 2011.

Population
The current population of Morocco is approximately 33 million. 52 % live in urban areas and 48% in rural ones. Almost half the population is below the age of 20 and a very high percentage of the population is uneducated and illiterate. However, illiteracy rate in Morocco dropped from 43% in 2004 to 30% in 2010, according to recent figures issued by the Education Ministry.

Political Overview
Morocco has a history as an independent nation state stretching back to the 9th century, interrupted only by the brief interlude of the Protectorate (1912-1956) when the country was divided into French and Spanish zones. For many years Manchester had powerful commercial links with Morocco, especially Fes, and as a result a number of Moroccans became British protected, which included the right to a passport. Morocco, unlike most of the rest of the Middle East, was never part of the Ottoman Empire. Morocco is a constitutional monarchy. King Mohammed VI, who came to the throne in 1999, retains much of the executive power, but the Parliament and part of the government (with the exception of the Prime Minister and key Ministers) is democratically elected. Morocco has a bicameral Parliament consisting of an Upper House or Chamber of Counsellors, and a Lower House or Chamber of Representatives.

King Mohamed VI has recently taken steps to address some of the demands of the population, including a call for major constitutional reforms to move the country towards more democracy. A new constitution was approved in July 2011 and parliamentary elections took place on 25 November 2011. The moderate Islamist party (Development and Justice Party PJD) won most votes but not a majority so formed a coalition government with four other parties plus some independent MPs in January 2012. The new government is giving priority to social issues, with particular emphasis on healthcare, education, employment, housing and justice. The Moroccan Government sees itself as a force for stability in the region. Morocco has played a solid role in support of the Middle East Peace Process, has d taken part in a number of UN peacekeeping operations and is currently a non permanent member of the UN Security Council. To the South, the Moroccans administer the disputed territory of the Western (formally Spanish) Sahara. Moroccan/Algerian relations are strained over the question of Western Sahara and the land border between the two remains closed. Both Governments are however working to improve relations and there has been an increase in Ministerial visits in both directions. This improvement in relations has led to hopes that the Arab Maghreb Union might be revitalised leading to greater regional trade integration and consequently to greater prosperity.

UK Trade & Investment Doing business in Morocco

Getting here and advice about your stay

FCO Travel Advice

The FCO website has travel advice to help you prepare for your visits overseas and to stay safe and secure while you are there. For advice please visit the FCO Travel section

Getting here
Passports/visas British citizens holding valid British passports can travel to Morocco for up to three months without a visa. But passports should be valid for at least six months beyond the planned date of departure. By Air There are several International airports throughout Morocco, most having regular services to Europe although not necessarily the UK. But only Royal Air Maroc have direct flights between London and Casablanca (in addition to flights between London and Marrakech). Several low cost airlines (e.g. Easy jet, Ryan Air and Air Arabia) and BA operate flights from the UK to Marrakech and other tourist destinations. Taxis from Casablanca airport to the city centre cost approximately DH 250 (around 19) and the trip may take up to 1 hour depending on traffic conditions. There are also airport buses and a frequent train service to the City centre.

UK Trade & Investment Doing business in Morocco

Preparing to Export to Morocco

Potential exporters should first check the tariff, import licensing and documentary requirements for the products they intend to sell. Some products may be liable to high duty rates or may require an import licence. In the absence of separate Moroccan standards, goods that are freely available within the EU are considered to meet safety requirements. In most cases local representation, in the form of an agent or distributor, is necessary in order to do business in Morocco (this is a matter of practicality, rather than a legal requirement). Once possible contacts have been identified (see below for how UKTI can help here), exporters should prepare a brief outline of the firms activities, in French, including a summary description and brief technical specifications of the principal products for which they are seeking outlets in Morocco. The UKTI team in Morocco (based in Casablanca see the end of this guide for contact details) can provide a range of services to British-based companies wishing to grow their business in the Moroccan market. Services include the provision of market information, lists of agents/potential partners, key market players or potential customers; establishing the interest of such contacts in working with the UK company; and arranging appointments. In addition, they can also organise events for you to meet contacts or promote your company and its products/services (e.g. launch events). You can commission our Overseas Market Introduction Services to assist your company to enter or expand your business in Morocco. Under this service, the Embassys Trade & Investment Advisers, who have wide local experience and knowledge, can identify business partners and provide the support and advice most relevant to your company's specific needs in the market. To find out more about commissioning work, please contact your local UKTI office. See also: www.ukti.gov.uk

Morocco is not a market that can be successfully entered or cultivated by correspondence. There can be a reluctance to disclose information over the telephone. Regular visits and personal contact are vital in establishing a relationship of confidence with potential agents and customers in Morocco. The business language is French. Whilst knowledge of English is growing rapidly, with increasing numbers of businessmen fluent in the language, ability to work and supply material in French will greatly increase your options. Gateways/Locations - Key areas for business Although Rabat is the capital city and seat of Government, Casablanca is by far the largest city with a population of around 4 million people. It is the commercial and industrial heart of the country, accounting for over 60% of the countrys economy. 30% of the banking network and 38% of industrial units are based in the city. Virtually every significant business enterprise has its headquarters/main office in Casablanca. Tangiers, especially with the development of the new Tangier Med port and Free Zone, is also a major centre. For business in the tourism sector, Marrakech, Fes and Agadir are the main tourist destinations The UK Trade & Investment Team in Morocco is based at the British Consulate General in Casablanca there are no UKTI staff in Rabat.

UK Trade & Investment Doing business in Morocco

10

How to do business in Morocco

Market entry and start up Considerations
British companies can approach the Moroccan market in several ways: Export direct Set up a company Appoint a distributor/agent Form a joint venture or manufacture under licence/sub-contracting agreement with a Moroccan company

However, as already noted, even when exporting direct it is advisable to appoint a local representative. The main types of local company are: General Partnership Limited Partnership Private limited Company (Societ Responsabilit Limite - S. A. R. L) Limited liability Company (Societ Anonyme - S. A.) Limited partnership with shares Joint - venture company

The most common are the limited liability company and the private limited company.

Customs and Regulations

Morocco is a member of GATT and the WTO and has adopted a liberal foreign trade policy. Most products can be imported without an import licence but duty rates can be very high. Morocco signed an Association Agreement with the European Union in February 1996, which came into force on 1 March 2000. In accordance with the timetable set by the agreement, customs tariffs for industrial products (capital goods, primary products, locally produced goods and processed agricultural foods) entering Morocco were dismantled by 1st March 2012. Morocco applies a 10-digit tariff nomenclature according to the Harmonised Commodity and Coding System. Imports face the following levies: 1) Customs import duty which depends on the product 2) Para-fiscal import tax of 0.25% 3) VAT (Value added tax) of 20% (7% and 14% rates are applied to specific products and services) For further information on the EU agreement and customs duties and tariffs, consult Morocco's customs website: www.douane.gov.ma. The Admission Temporaire (temporary admission) scheme allows goods to be imported duty free where they are to be processed and re-exported as finished articles or sub-assemblies. Whilst exchange controls remain, they allow for the repatriation of the initial capital invested and the transfer of capital gains (when closing down) and net profits/dividends. The Programme dInvestissement scheme allows capital goods to be imported at 2.5% customs duty only.

UK Trade & Investment Doing business in Morocco

11

Legislation and Local Regulations

In general, companies are always advised to seek legal advice before entering into partnership with local companies. A list of English speaking lawyers and chartered accountants is available from the British Consulate in Casablanca.

Responding to Tenders
In Morocco all supplies and services to government bodies are awarded through public tender. These are published in local newspapers (essentially in Le Matin and LEconomiste), on individual bodies websites and on www.marchepublic.ma. Although increasing numbers of tenders are issued in English, correspondence and bid documents should be submitted in French unless the tender specifies otherwise. Bids that fail to adhere strictly to the published requirements will be rejected. Companies may submit their bids direct but it is generally helpful to have a local representative to advise on procedures and requirements and to attend the bid opening in order to answer any queries.

Recruiting and Retaining Staffing

Moroccan labour costs are relatively low but certain skills (e.g. fluency in English) attract a premium and the labour market is not as flexible as in the UK (source: World Bank ease of Doing Business report). Changes to the standard minimum wage, social security, pension rights, etc need to be monitored carefully to ensure continuing complicity. The opening of an industrial or commercial establishment must be reported to the Labour Inspectorate within whose area the company is to operate. The employer must first try to recruit personnel through the employment office of that area. There are also large numbers of local recruitment agencies in Morocco who can help recruit staff at all levels.

Documentation
Documentation must be prepared with great care, and strictly in accordance with the customer's specification; any discrepancy, however minor, can lead to difficulties with the customs and to substantial delays in payment. The documents should be sent in advance of the goods. The documents most often required are: Proforma invoices (the country of origin of the goods must be shown with the name of the manufacturer) Bill of Landing (airway bill for goods imported by air) showing gross weight, size and volume of the consignment and the name and address of the consignor Import or export documents Certificates of origin: documents that certify the origin of the goods with a view to application of preferential rates (mainly for temporary import) Banker's certificate for customs clearance of imports (issued by the bank where the import document holder is domiciled) Packing list

Labelling and Packaging Regulations

Language used should be French (but Arabic is required for foodstuffs). Marking and labelling must be clear and not misleading. The name of the product, name and address of the packer or manufacturer, country of origin and weight of the contents must be shown on the labels of canned or packaged foodstuffs, toiletries, cosmetics, pharmaceuticals and drugs. Compound drugs or pharmaceuticals must list the component constituents and their proportions in legible letters. In the case of pharmaceuticals and foodstuffs, the trade mark, date of manufacture and date limit for consumption or use must be shown.

12

Getting your goods to the market

The main options are road, airfreight, sea-freight, post, air parcel post and express or courier service and rail freight. Most incoming parcels (even those containing brochures of no commercial value) are subject to customs clearance. For all shipping methods, it is often easier to use a freight forwarder. Forwarders should be approached in the early stages of market research rather than waiting until the goods are ready to go.

Standards and Technical Regulation

The Moroccan Standards/Technical Regulation authority is the Direction de la Qualit et de la Normalisation at the Ministre du Commerce et de lIndustrie (www.mcinet.gov.ma ).

Intellectual Property Rights

It is essential for foreign companies to protect their trademarks in Morocco by applying for trademark protection with the Moroccan Office for Industrial and Commercial Property (Office Marocain de la Propriet Industrielle et Commerciale www.ompic.org.ma . Detailed information on legislation regulating patents, trademarks and copyright can be found on the web site of the Moroccan authority for industrial and intellectual property OMPIC.

UK Trade & Investment Doing business in Morocco

13

Business Etiquette, Language and Culture

The social customs and forms of address of the business community are mainly European (in particular French and Spanish) as much of the foreign trade is still conducted by firms with European connections.

Language
Arabic and Tamazight are the official languages of Morocco, but the business language is French although an increasing number of business people can speak English. It is advisable that written correspondence and trade literature should be in French. The forms of address acceptable in France are also acceptable in Morocco. Thus, a Minister may be addressed as Monsieur le Ministre; the director of a company would be addressed as Monsieur le Directeur etc. A list of local translators and interpreters is available from the British Consulate in Casablanca.

Meetings and Presentations

It is unusual for business meetings to start before 09H00 in the morning or 15H00 in the afternoon, particularly with government authorities. There are of course some exceptions with private companies. Moroccans also enjoy discussing business over a lunch meeting in a restaurant. They prefer face to face contacts to correspondence by phone or mail, at least until a close relationship has been established. Appointments should be made at least one to two weeks in advance and reconfirmed a few days before the meeting. Moroccans expect to be warned in advance if a meeting has to be cancelled. It is much easier to arrange a meeting if you have a known contact to facilitate the introduction. Many local businessmen and officials take their holiday in August and it might be difficult to set up a worthwhile programme of appointments at this time. Many companies also work reduced hours during the holy Muslim fasting month of Ramadan, which will fall during July in 2013. Climatic conditions (extremely high temperatures) also make visiting during July or August difficult.

Negotiations
Contacts need to be cultivated by personal contact and regular visits to the market for a successful business partnership. Morocco is also a price sensitive market and the quality/price ratio must be attractive for the business relationship to go any further.

UK Trade & Investment Doing business in Morocco

14

What are the challenges?

Morocco faces similar challenges to other emerging markets - public service reform; servicing the external debt; preparing the economy for freer trade with the EU (and later the US); improving education and especially literacy; further reform of the legal system; and attracting foreign investment to boost living standards and job prospects for Morocco's youthful population. Specific challenges for UK companies seeking to do business with Morocco: Competition from traditional trading partners (France, Spain, Italy, etc) and increasing competition from new countries such as China, Russia, Brazil, Turkey (however the Moroccans themselves are keen on increasing trade with the UK) Price sensitive market

Getting Paid - Terms of Payment

Credit is normal; indeed payment in advance is difficult. Depending on the reliability of the local firm, 30, 60 and 90 days are fairly common (or even longer for certain classes of goods). At least at the outset, new exporters are recommended to insist on payment by 90-day Irrevocable and Confirmed Letter of Credit. This method is widely accepted and used, although Moroccan importers will try to negotiate payment against documents or even straightforward credit arrangements of 30 or 45 days. A list of some credit information, debt collection agencies and lawyers can be obtained from the British Consulate in Casablanca. Lawyers will normally offer negotiated settlements on behalf of foreign creditors. Otherwise, enforcement of outstanding debts must be pursued through the law courts. This is a slow and expensive procedure.

Development Assistance
Morocco is a substantial recipient of aid and loans from the World Bank, the United Nations Development Programme and other United Nations agencies, Arab and Islamic development funds, the EU and the European Investment Bank. A wide range of developmental and infrastructure projects have been financed with this aid in agriculture, education, energy, mining, ports, roads, transport, water supply, health and housing. Morocco also receives various forms of aid through bilateral programmes and international donors and remains one of the largest beneficiaries of MEDA (Euro Mediterranean Partnership an EU programme) funds. Morocco is also one of the beneficiary countries of the Deauville Partnership, which agreed in April 2012 to launch a new initiative to help five Arab countries, including Morocco, to access capital markets to accelerate their development. Britain is one of the largest single contributors (Euros 100 million over 3 years) to the EU development programme for Morocco, as well as a major contributor to UN programmes on governance, health, environment and rural development in Morocco. During his visit to Morocco in October 2011, Foreign Secretary William Hague launched the UKs Arab Partnership programme in Morocco to support reforms related to political participation, fight against corruption, and good governance. Under this programme the UK is funding projects worth just under 1 million in 2012-13.

UK Trade & Investment Doing business in Morocco

15

How to Invest in Morocco

Resident or non-resident foreign nationals are entitled to invest freely in Morocco in most economic sectors without prior authorisation. The legal and fiscal framework is intended to attract foreign investors and includes freedom to repatriate capital. The Moroccan Government is keen to attract foreign investment in order to create jobs. It sees sub-contracting, with the goods to be sold in the buyers home market or in third markets, in a similar light. Investment codes exist to encourage investment in various sectors including industry, tourism, fisheries and marine transport, real estate, mining and export-orientated industries. These offer incentives to foreign firms. Recent sectors attracting investment include telecommunication, tourism/real estate, building and construction projects. The Investment Agency (Agence marocaine de Developpement des Investissements AMDI www.invest.gov.ma) provides help to potential investors. 16 Regional Investment Centres (CRIs) were established in 2002 in order to provide 'one-stop shops' to facilitate the investment process by eliminating cumbersome bureaucratic procedures. Details of the CRI Casablanca can be found at www.casainvest.ma. Development Plans/Government investment A series of programmes have been launched by the government to upgrade and develop various sectors: Plan Azur National tourism strategy for the development of six coastal areas in Morocco through two programmes, Vision 2010 (MAD 48.9 Billion) and vision 2020 (MAD 140 Billion, Euro 13 Billion). Plan Halieutis Programme aimed at modernising the fishing industry. The government plans to invest MAD 9 Billion over 10 years to create industry clusters in Tangier, Agadir and LaayouneDakhla ports and launch the construction of Heliopolis, a MAD 6.6 Billion fish processing zone. Plan Maroc Vert Programme launched in 2008 to improve the yield and the capacity to ensure food self sufficiency in Moroccos agricultural sector. The Moroccan government plans to invest MAD 150 Billion by 2020 to increase the sectors added value 2.5 fold. Plan Emergence Industrial development programme launched in 2001 to create 220,000 new jobs in 12 industries by 2015 with financial incentives for investors and government subsidies for strategic industries. The programme budget is MAD 12.4 Billion for 200 - 2015. Plan Energie: Active plan to develop Renewable Energy (solar, photovoltaic, wind, biomass, hydroelectric). Morocco plans to invest 13.4 Billion Euros to increase its electricity production capacity, 10 Billion of which in renewable energy (sun, wind, hydraulic power), with the ambition that by 2020, renewable energy should account for 42% of the electricity produced in the country. There is also a 2bn state investment budget in the water sector for 2008-2012 and a 9.6 bn investment in 2008-2012 for transport and infrastructure development. Other projects include motorway construction, airport upgrading, TGV (high speed train) Tangier-Casablanca for completion by 2016, port development (Tangier Med port, Nador West Med complex with port, industrial and commercial infrastructure, upgrading of Casablanca port infrastructure etc). The banking system in Morocco has undergone a number of key reforms which make it more efficient at financing investments and creating a competitive banking environment. The Central Bank (Bank Al Maghrib) and other government agencies regulate banking, credit facilities, stock market, interest rates, insurance, offshore banks, accounting standards and protection for deposits. UK Trade & Investment Doing business in Morocco

16

Contacts
If you have a specific export enquiry about the Morocco market which is not answered by the information on this report, you may contact: Ms Badia Mrani - Trade & Investment /IT Support Officer Email: badia.mrani@fco.gov.uk Tel: +212 (0) 522 85 74 17

UK Trade & Investment Enquiry Service

Tel: +44 (0)20 7215 5000 Email: enquiries@ukti.gsi.gov.uk You will be signposted to the appropriate section on our website or transferred at local call rate to the British Consulate General in Morocco. If you prefer to contact the team in Morocco direct, please contact:

In the UK
Kate Roye Senior Country Manager, Morocco UK Trade & Investment 1 Victoria Street, London SW1H 0ET Tel: 020 7215 4892 Email: kate.roye@ukti.gsi.gov.uk Sandrine Jayet Country Manager, Morocco Tel: 020 7215 4947 Email: sandrine.jayet@ukti.gsi.gov.uk

British Consulate, Casablanca

British Consulate General 36 Rue de la Loire Polo Casablanca Morocco Tel: +212 (0) 522 85 74 00 Fax: +212 (0) 522 83 46 25 Email: british.consulate2@menara.ma Mr David Flint - Consul General / Director of Trade Promotion for Morocco Sectors: Oil & Gas Power /Energy Financial Services Email: david.flint@fco.gov.uk Tel: +212 (0) 522 85 74 70 Mrs Clorinda Russotto Senior Trade & Investment Adviser / Deputy CG Sectors: Safety & Security Agriculture Water & Environment Transport - Textiles Email: clorinda.russotto@fco.gov.uk Tel: +212 (0) 522 85 74 22 Ms Najat Benyahia Trade & Investment Adviser Sectors: Education Tourism & Recreation Healthcare IT Construction Email: najat.benyahia@fco.gov.uk Tel: +212 (0) 522 85 74 13

Others
British Embassy 28 Avenue Sidi Mohamed Souissi - Rabat Tel: +212 (0) 537 63 33 33 Fax: +212 (0) 537 75 87 09 Web site: ukinmorocco.fco.gov.uk Mr Clive Alderton HM Ambassador (from December 2012) Mr Alan Gogbashian Deputy Head of Mission British Chamber of Commerce for Morocco (BCCM) 65 Avenue Hassan Seghir Casablanca Tel: +212 (0) 522 44 88 60 Fax: +212 (0) 522 44 88 68 Email: britcham@menara.ma Web site: www.bccm.co.ma Mr Mohamed Raihani - President Mrs Ilham Bennis General Manager The British Chamber of Commerce in Casablanca, which has about 400 members, works to increase trade between Morocco and the UK and is a successful example of its kind. Its mission is to help businesses succeed by promoting their interests and expanding their opportunities in the UK market.

Ms Fatima-Zahra Kerdoum Trade & Investment Officer Sector: Renewable Energy E-mail: fatima-zahra.kerdoum@fco.gov.uk Tel: +212 (0) 522 85 74 21 UK Trade & Investment Doing business in Morocco

17

Resources/Useful Links
Gov.uk
GOV.UK provide an overview of export basics including licensing, customs procedures, classifying and movement of goods, other regulatory information and export paperwork issues. It also introduces exporters to the UK Trade Tariff.

Essential reading for exporters!

Find out more at:

https://www.gov.uk/browse/business/imports-exports

Country Information:
BBC Website:

http://news.bbc.co.uk/1/hi/country_profiles/default.stm https://fco-stage.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by-country/

FCO Country Profile:

Culture and communications:

CILT National Centre for Languages - Regional Language Network in your area:

http://www.cilt.org.uk/workplace/employer_support/in_your_area.aspx

Kwintessential culture guides: http://www.kwintessential.co.uk/

Customs & Regulations:

HM Revenue & Customs: www.hmrc.gov.uk

Economic Information:
Economist:

http://www.economist.com/countries/

Export Control
Export Control Organization:

https://www.gov.uk/government/policies/controlling-defence-security-and-dual-use-strategicexports--2 Export Finance and Insurance:

UK Export Finance: http://www.ukexportfinance.gov.uk/

Intellectual Property

Intellectual Property Office: www.ipo.gov.uk

18

Market Access
Market Access Database for Tariffs (for non-EU markets only):

http://mkaccdb.eu.int/mkaccdb2/indexPubli.htm

Overcoming Trade Barriers (EU Markets only)

https://www.gov.uk/government/topics/europe

Standard and Technical Regulations:

British Standards Institution (BSI):

http://www.bsigroup.com/en/sectorsandservices/ Disciplines/ImportExport/
National Physical Laboratory: http://www.npl.co.uk/ Intellectual Property: http://www.ipo.gov.uk/

Trade Statistics:
National Statistics Information: http://www.statistics.gov.uk/hub/index.html UK Trade Info: https://www.uktradeinfo.co.uk/

Travel Advice:
FCO Travel: http://www.fco.gov.uk/en/travel-and-living-abroad/

NHS: http://www.nhs.uk/nhsengland/Healthcareabroad/ Travel health: http://www.travelhealth.co.uk/

Produced by the UKTI team in Morocco Last Updated: December 2012 Crown Copyright 2012 You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk. This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 5000.

19