Rabat - Foreign direct investments (FDI) in Morocco as of April 2016 declined 27.7 percent compared to April 2015, according to figures from the Foreign Exchange Office.
Rabat – Foreign direct investments (FDI) in Morocco as of April 2016 declined 27.7 percent compared to April 2015, according to figures from the Foreign Exchange Office.
In April, the kingdom received MAD 9.35 billion in investments, but this year, the number fell to MAD 6.77 billion, statistics from the first four months of the year show. .
The office attributed the decline to a 9.6 decrease in revenues, which coincided with a 73.6 percent increase in business costs over the same time period.
Remittances from Moroccans abroad increased four percent from MAD 18.7 billion in April 2015 to MAD 19.4 billion this year during the same month.
The travel trade surplus – which measures the amount of money foreigners spend in Morocco versus how much money Moroccans spend abroad – increase by 7.8 percent year-over-year, bringing in MAD 12.6 billion in foreign spending this April.
FDI funds into Morocco have been increasing in recent years along with the Kingdom’s economic and social development, according to data from the United Nations.
A June 2015 FDI Attractiveness Survey by Ernst and Young said investors had begun “returning enthusiastically” to Egypt and Morocco after the uncertainty of the 2011 Arab Spring began to fade away.
The total number of foreign projects in the kingdom – especially in the financial services sector – rose by 52 percent in 2014, with French capitalists investing more than their Spanish counterparts for the first time that year.
Morocco benefits from its “proximity to Europe, a proactive FDI policy, and availability of skilled workers at lower wage rates than those in most developed countries,” according to the report’s analysis.