Cuban is an avid tech enthusiast and invested in the sector in its earliest years.
Rabat — Mark Cuban, an American billionaire investor, is considering investing in Morocco’s emerging Fintech and High-tech sectors, reported Israeli media.
Israel Valley quoted a source close to Cuban, saying the billionaire is interested in these emerging investment segments in Morocco.
Cuban’s interest comes as no surprise following Morocco’s decision to establish ties with Israel. The announcement of the move came on December 10, after the US officially recognized Morocco’s sovereignty over Western Sahara.
Interest in investments in the country from American and Israli entities and financiers can be linked directly to this diplomatic decision, as it represents a state backed safety factor, which plays an important role in attracting foreign investments.
American investments in Morocco have experienced a steady rise during the past decade, as Morocco remains the only North African country with a free trade agreement with the USA. Observers expect the investments to multiply, now that the trilateral accord has influenced the political climate.
Investors know Morocco for its strong and reliable services sector, ranging from finance to tech and offshoring services.
Mark Cuban’s business portfolio
Cuban is famous as the owner of the Dallas Mavericks American basketball team, and as one of the judges on the famous start-up reality show “Shark Tank.”
After college, Cuban started his own computer systems company, MicroSolutions, which he sold to CompuServe for $6 million in 1990. Five years later, Cuban and a friend, Todd Wagner, started the internet radio platform Broadcast.com. acquired by Yahoo in 1999 for $5.7 billion in stock.
Since then, Cuban has invested in hundreds of successful companies, in various sectors. He also owns MLW Air VIP transport airline, which provides regular transport for sports teams such as Paris Saint-Germain, Manchester United, Chelsea FC, Real Madrid, as well as transports heads of state and government. According to Forbes, MLW Air has flown the “500 largest companies in the world.”
The diversity of Cuban’s investments and his great eye in regard to emerging sectors and successful investment opportunities have built him a remarkable reputation.
Morocco as a Fintech investment hub
After Morocco’s decision to establish ties with Israel, many Israeli and American investors are looking to Morocco for possible investments in infrastructure, tourism, and industry.
But Cuban’s interest lies in the FinTech and High-Tech sectors.
Mark Cuban is, like many other millionaire and billionaire investors, very keen on the endless possibilities in the tech sector, due to its constant evolution and innovation. As the world becomes increasingly tech dependent, the virtual sphere is continuously expanding to accommodate more sectors into its digital sphere.
Many observers regard Morocco’s Tech sector as a fertile and safe investment ground. Considering the country was the first in North Africa to install a 3G Network, is an important destination for offshoring and call centers, and has consistently updated its long-term strategic plans to develop the IT sector, it represents a logical investment subject.
FinTech stands for financial technology. The 2016 World Bank Financial Sector Assessment of Morocco reported that the country’s financial assets had reached levels comparable to high income countries. The banking system is among the largest in the region, with assets exceeding 130% of the GDP. It included 19 banks, of which five are public.
Morocco’s evolving finance sector
As the financial industry and its services expand, banking, insurance, pension funds, and asset management services will require exceedingly sophisticated systems to keep up with the quality of services, especially considering the flow of foreign investors Morocco is expecting.
Casablanca is also one of the most important Arab financial centers in the MENA region, with a market capitalization of around $71.1 billion in 2018.
The years 2005 and 2006 were very profitable for the Casablanca market thanks to a record inflow of capital from the Middle East. Recently reported American and Israeli investment plans may result in a similar positive outcome for the Casablanca Stock Exchange, requiring Morocco to stay up to date with the technologies facilitating its financial services.
That is where the opportunities of FinTech come in. In July 2020, Casablanca-based fintech company OnePay raised over $400,000 (MAD 3.6 million) from MITC Capital’s Maroc Numeric Fund II, as reported by MEGAbytes. With a strong return-on-investment (ROI) in place, Morocco’s financial and FinTech sectors are becoming exceedingly more attractive to foreign investors such as Mark Cuban.