Rabat - Morocco has received an important amount of foreign direct investment (FDI) in the last few years. In 2015, the North African country received $3.2 billion of FDI Compared to other Arab countries it is light years ahead. Until a few years ago, Tunisia used to receive the largest chunk of foreign direct investment among Arab league nations. However, this changed due to the Arab spring.
Rabat – Morocco has received an important amount of foreign direct investment (FDI) in the last few years. In 2015, the North African country received $3.2 billion of FDI Compared to other Arab countries it is light years ahead. Until a few years ago, Tunisia used to receive the largest chunk of foreign direct investment among Arab league nations. However, this changed due to the Arab spring.
Morocco was unharmed by the Arab spring, unlike other nations. Coupled with a stable government, energy concerns did not exist in Morocco. What’s more the country was open to new technology. This and the following factors make Morocco a prime country for foreign direct investment.
So as to incentivize foreign direct investment, Morocco has ratified various international treaties and laws relating to the protection of investment. This includes Multilateral Investment Guarantee Agency, The Inter-Arab organization for investment Guarantee Corporation among others. Free transfer of capital and income is allowed due to these treaties being ratified. In case disputes occur the matter can be referred to any court or tribunal of your choice as an investor.
An added bonus is the treaties protect you from double taxation. Double taxation occurs where you are taxed in both your home country and your investment country. Having this agreement makes business easy to run in Morocco.
Morocco has a unique way of bringing together both the government and private institutions. A national committee of business environment was created in order to enhance communication between the two arms. Once certain issues are brought up, a resolution is reached on how to resolve them.
On top of that new policies are created in order to make Morocco attractable to outside investment. The committee is always on hand to make business as smooth as possible for all investors.
In 2015 an investment fund was created by the government. The main aim of the fund was to give aid to businesses. Your business could receive a 30% bonus of investment (before tax). This bonus is received should your company invest in the following areas: Research and development costs, start-up costs for the first three years and purchasing or renting real estate or industrial equipment.
An export growth bonus is provided for in the fund, with a cap set at 10% of export turnover. It means the more your business exports, the higher bonuses you receive from the government.
As an investor stability of a country is key to putting in your hard-earned money. You will be pleased to learn that Morocco is one of the most stable countries in the Arab-league nations. King Mohammed VI has been in power for the last 17 years since succeeding his father. There have been no major political upheavals in that period.
Democratic elections occur and the Islamic government is currently in power. International companies such as Renault have invested heavily in this country. This goes to confirm the level of investor confidence this country currently experiences.
Morocco is turning into a major international hub and as an investor, your investment would be both safe and appreciated.