Last year ended with foreigners holding a total of MAD 200.19 billion ($20.85 billion) of Morocco’s market capitalization.
Rabat – The Moroccan Capital Market Authority (AMMC) has released its report on foreign investment and financial instruments for the year 2019, revealing foreign investors held 31.94% of market capitalization at the end of the year.
The report shows that 2019 ended with foreigners holding a total of MAD 200.19 billion ($20.85 billion) of market capitalization, which translates to an increase of 5.61%.
In terms of strategic participation, AMMC revealed the exceptionally high presence of foreign investment in the electronic equipment and electricity sectors, through two companies, Taqa Morocco (with an 86% holding rate) and Nexans Maroc (84%).
Foreign investment holdings also surpassed 50% in 2019 in the sectors of beverages, telecommunications, engineering and industrial capital goods, and utilities.
AMMC also revealed that non-resident foreign investors held 99.11% of foreign investment in listed shares by the end of 2019, reaching a total of MAD 198.41 billion ($20.6 billion).
Investors from Europe and the Middle East accounted for 95% of foreign investment. The two demographics held more than 30% of market capitalization, representing MAD 190 billion ($19.7 billion) and marking an increase of 4.39% compared to 2018.
Almost 99.98% of the market capitalization in 2019 was kept with Moroccan account holders affiliated with the Maroclear central depository, except for Maroc Telecom. The telecommunications company’s value is kept in part outside of Morocco, with account holders affiliated to the French central depository, Euroclear France.
According to AMMC, foreigners accounted for a total of 19.07% of the overall transaction volume of the block and two central markets, or MAD 11.03 billion ($1.15 billion).
Morocco attracting foreign investment in its COVID-19 economic recovery
Last month, Morocco’s interministerial commission for investments approved 45 investment projects for a total budget approximately MAD 23.38 billion ($2.42 billion). The commission approved the projects on June 24 before the head of the Moroccan government, Saad Eddine El Othmani.
The 45 investment projects are expected to create 3,194 direct jobs and 5,406 indirect positions, of which Morocco is in particular need due to the COVID-19 pandemic’s impact. The economic crisis left 726,000 formal sector employees temporarily or indefinitely jobless.
On July 7, the Moroccan Investment and Export Development Agency (AMDIE) and the Ghorfa Arab-German Chamber of Commerce and Industry signed a Memorandum of Understanding (MoU) to enhance business and investment opportunities between Morocco and Germany.
Citi’s Head of EMEA Emerging Markets, Atiq Rehman, stressed on July 2 that foreign investors should not have concerns about integrating into Moroccan markets again after the COVID-19 crisis, which, according to him, was “very well” managed.