Morocco’s House of Representatives, the lower chamber of the Parliament, has unanimously approved Draft Law 76.20 establishing the Mohammed VI Investment Fund.
Moroccan Parliamentarians voted in favor of the legal text on Monday after a presentation from Economy Minister Mohamed Benchaaboun.
According to the bill, the Mohammed VI Investment Fund will take the legal form of a limited company (Societe Anonyme). It will have an initial capital of MAD 15 billion ($1.67 billion) from Morocco’s state budget.
The Moroccan state will control the entire capital of the Mohammed VI Investment Fund at its creation. However, other public and private institutions will be able to collectively hold up to 49% of the fund’s shares.
Private operators cannot control more than 33% of the Mohammed VI Investment Fund’s capital in order to maintain the public nature of the fund.
According to Article 4 of Draft Law 76.20, the fund will finance large-scale investment projects, strengthen the capital of companies, and support productive economic activities, in line with Morocco’s public policies and strategies.
The decision to legally register the Mohammed VI Investment Fund as a limited company aims to allow the fund to benefit from transparency and integrity mechanisms in order to consolidate the trust of private partners, Benchaaboun explained.
The minister announced that the fund will allow Morocco to establish a well-defined investment strategy without heavily relying on the state budget.
King Mohammed VI ordered the fund’s establishment in his 2020 Throne Day speech on July 29. He said the fund should help boost investment in Morocco and revive the Moroccan economy.
“I expect this fund to be a model institution in terms of governance, efficiency, and transparency,” the King said.
Soon after the speech, the Moroccan government began preparing Draft Law 76.20 to establish the fund. The legal text was finalized in mid-November and the Government Council approved it on November 26.
After its approval at the House of Representatives, the bill is nearing the final stages before it becomes official.