Invest in morocco

04 / 05 INVEST IN MOROCCO

The economic development of Morocco is based on appropriate strategic plans

« (…)As far as strategy is concerned, these infrastructure projects and plans have enabled us to upgrade our economy, boost productivity, enhance competitiveness, increase public investment, and create integrated, regional development hubs.

Our country now has a clear, stable framework for economic development, making it possible for our economy to withstand the adverse effects of the global financial crisis. Similarly, Morocco now enjoys an enhanced status as an attractive destination for productive investment, and as an important regional and international trade hub (…)”.

Extract from the speech of H.M. King Mohammed VI on Throne Day, 30 July 2010

Summary06 / 07 INVEST IN MOROCCO

08 / 09Morocco in figures

10 / 11Geostrategic position

12 / 13Moroccan economy in full expansion

14 / 15Social and economic reforms

Morocco

Europe

42 / 43Life in Morocco

44 / 45Sustainable development policy

46 / 47Moroccan InvestmentDevelopment Agency

28 / 29Sectional plans

40 / 41Qualified human resources

16 / 17Business-friendly environment

20 / 21World class infrastructure

GDPGDP/inhabitant

Growth of GDP in 2009Average growthRate of inflation

Average rate of inflation

730,5 billion MADs (about 63,5 billion €) 22 095 MADs (1 921 €) 4,9%5% (over the past 5 years)1,0%1,9% (over the past 10 years)

Morocco in figures

Data : Year 2009Source : High Commissioner’s Officer for Planning (HCP), Morocco

PopulationDensity

Active populationUrban population

Life expectancyOfficial language

Commonly used languages

31 million inhabitants67.59 inhabitants/ Sq. kilomete 50,6%50,9%72 years ArabicFrench, Spanish, English.

Economic growth indicators 2009

Constitutional democratic and social monarchy 16 regions

Institutional systemAdministrative distribution

1 US Dollar1 Euro

8,1 MADs11,3 MADs

Moroccan Dirham 1 MAD

710 850 square kilometersNorth Africa 14 km from EuropeMediterraneanGMT (GMT+1 in summer)RabatCasablanca, Marrakech, Tangiers, Agadir, Fez,Oujda, Laâyoune, Dakhla

AreaPositionClimate

Time zoneCapital

Principal cities

Geographical situation

Demography

Institutions

Currency

Exchange rate (average for 2009)


Tangiers

Larache

RabatCasablanca

Oujda

Laayoun

Agadir

EssaouiraMarrakech

Ouarzazate

Dakhla

Lagouira

Tetouan

Al Hoceima

Fez

Located 14 kilometers from the shores of Europe, the country is washed by two seas, the Mediterranean in the North and the Atlantic all along the West coast. This has enabled it to place itself at the crossroads of the main international trade routes linking America, Africa, Europe and the Middle East.

An obvious asset to incorporate your investment into the big international trade flows and increase the competitiveness of your company by simplifying logistics.

• Morocco: regional hub

Flying time from Casablanca airport : Madrid 1hour and 35mnParis 2hour and 45mnLondon 3hour and 30mnNew York 8hour and 15mn

Sailing time from the port of Tangiers :

Marseille (France) 36 hoursBarcelona (Spain) 24 hoursGenoa (Italy) 44 hours

Crossing time from Tangier Med port :

Algeciras or Tarifa 35 minutes by Ferry (Spain)

Geostrategic location


Opening to a market of 1,3 billion consumers.

Morocco, a founding member of the World Trade Organization, is also a member and/or associated to many multilateral and regional organizations.

Morocco

Europe

EurOPEuNITED STATES

ASIA

AFrICA

MOrOCCO

• Open to the outside world

Agreement: Morocco – Turkey

Morocco - Turkey exchanges have continued

to grow and according to 2009 figures they

have reached an annual volume of 900 million

dollars (812,5 million €) versus 260 million

dollars (234,5 million €) in 2003.

Morocco is also linked to numerous African countries through trade and economic cooperation agreements.

Agadir Agreement 2004: Morocco – Tunisia, Egypt and Jordan

The Agadir Agreement, implemented in 2007, has enabled member States to increase the volume of their trade by almost 45% .

Free Trade Agreement (FTA): Morocco – United States

The Free Trade Agreement with the united States (Moroccan’s 2th trading partner after the European union) forms part of the controlled global openness strategy of the Moroccan economy and its insertion into the world economy. Commercial exchanges between Morocco and the united States have more than doubled since the FTA was implemented in 2006.

Agreement of Association and Advanced Status : Morocco – European Union

As it accounts for almost two-thirds of the Kingdom’s foreign trade the European union is our largest economic partner. Morocco is among the top Mediterranean countries in the field of financial cooperation with the European union with a sizable commitment of 290 million € in 2009 as part of the support projects included in the National Indicative Program, PIN-Morocco, for the 2007-2010period.

«With 750 French companies, Morocco is the preferred destination for French investment in the Africa/Middle East region» Source: French Embassy, Morocco, June 2010

Since October 2008, Morocco has been linked to the EU by an advanced status.


• A diversified economy

As it has diversified, the Moroccan economy has achieved a remarkable performance in the primary (agriculture, mining), secondary (industry) and tertiary (services, tourism, offshoring) sectors.

Similarly, Moroccan exports are more and more impressive and diversified : from an average of 8,2 billion € p.a. for the 2000-2004 period, expor t s rose to 14 ,8 b i l l i on € p .a . fo r the2005 - 2009 period, i.e. an increase of 78%.

Moroccan economy in full expansion

«Morocco’s recent performance is sustained by a more diversified economy, a consolidated budgetary situation and a sound financial sector. Morocco is well positioned to pursue its development despite the difficult world situation».

IMF report, July 2008.

Source: Moroccan Foreign Exchange Office

Average export in Millions of €

2000 - 2004 2005 - 2009

8 283

14 806

Structure of GDP 2009

Source: High Commissioner’s Office for Planning (HCP)

23,3%

18,1%

58,9%

Primary acti-vities

Secondary activities

Tertiary activities

In 2009 Morocco registered the highest growth rate in North Africa: +4,9%

Economic report on Africa 2010 by the United Nations Economic Commission for Africa.

• A strong and stable 5% growth over the past 10 years

For a decade, the Moroccan economy has shown an upward trend in its growth rate, due mainly to the dynamism of some sectors: Tourism, Industry, Telecommunications, Infrastructure, Services, Agriculture,…

• Inflation controlled at less than 2%

For more than 10 years, Morocco has succeeded in reconciling economic development and control inflation. Purchasing power has thus improved by 4,6% annually.

• Consolidated budgetary equilibrium

Such economic performance has enabled Morocco to pursue the consolidation of the government budget and contain the budgetary deficit.

Source: Moroccan High Commissioner’s Office for Planning (HCP)

Rate of average growth of GDP (%)

Source: Moroccan High Commissioner’s Office for Planning (HCP)

Source: Economy and Finance Ministry

Average rate of inflation (annual slide)

Budgetary deficit (% of GDP)

-3,7%

2000-2005-0,7%

2006-2009

Morocco, a kingdom more than 12 centuries old, is at a crossroad of civilizations combining its own strong identity with openness and modernity with its rich religious and cultural heritage. It is a country governed by principles of tolerance and respect for other spiritual and cultural communities. under the impetus of His Majesty King Mohammed VI who acceded to the Throne on 31 July 1999, the Kingdom has entered a new era of reforms and activity, thus creating a political, economic and social dynamic enabling the country to evolve with determination and ambition in the new international context of the 21st century. With a population where 70% is younger than 25, Morocco is a country ready to seize the challenge of globalization and it maintains with vigor the pace of reform and change.

Social and economic reforms


Students in the amphitheatre of the Ain Sebaa University – Casablanca

• Morocco on the move

> Some important reforms from the past 10 years:

• Consolidationofdemocracywithtwoparliamentaryelectionsheldin2002&2007 in compliance with the Constitution ;

• Reformoftheelectorallawin2006,andnewlawsonpoliticalparties;•ImplementationofthenewFamilyLawin2003;• ReformofthepresscodeandcreationoftheHighCommissiononAudiovisual

Communication (HACA) ;• ImplementationofanewEducationcharter;• LaunchoftheNationalInitiativeforHumanDevelopment(INDH);• Human rights:Reorganizationof theConsultativeCouncilofHumanRights

(CCDH) and establishment of the Equity and reconciliation Board (IEr).

The Marina, Oued Bouregreg, Rabat-Salé


Business-friendly environment

• Reforms to encourage competitiveness

During the course of the past decade, Morocco has done considerable work in order to improve the business climate, making it more favorable to both national and international investors.Capacity building has led to the consolidation of the attractiveness of the country and its status as a top destination for foreign investors.

• Morocco is the second Arab country to become member of the OECD Investment Committee and signatory of the OECD declaration on international investment and multinational corporations (Nov. 2009)

Morocco, which has signed to join 41 other countries, is committed to establish an environment open to international investment and to promote responsible investment by multinational corporations.

Investment in Morocco is controlled by the blueprint law N° 18-95 dated 8 November 1995, called the Investment Charter, to encourage international investment. Any project can thus benefit from the same advantages without any discrimination among national and international investors.

Principal reforms enacted for improving the business climate:

• Simplificationofadministrativeprocedures;

• Reinforcementofthebusinesslawsystem;

• Improvementofregulationstransparency;

• Developmentandmodernizationoffinancialmarkets;

• Creation of the National Commission of BusinessEnvironment ;

• CreationoftheCentralAnti-CorruptionAuthority ;

• Reinforcement of the Moroccan Intellectual andCommercial Property Agency;

• P ro m o t i o n o f t h e c h a r t e r c o n c e r n i n g t h e

companies’ social responsibility ;

• CreationoftheMoroccanInvestmentDevelopmentAgency (AMDI).

The Tangiers Med Port

Morocco has been granted the Investment grade category from the agency Standard & Poor’s, obtained an advanced status with the EU, and joined the OECD Investment Committee.

Investment Grade Standard and Poor’s for Morocco in 2010.

• Attractive incentives

Moroccan and foreign investors could sign a contract or an investment agreement with the government.These agreements open their way to specific particularly attractive incentives.

Investment Promotion Fund - FPI

With the aim of reducing the cost of investment, the FPI grants companies, having an investment plan that satisfies certain conditions, a partial amount of the land cost and the expenses involving external infrastructure and training.

Hassan II Economic and Social Development Fund

This mechanism for promoting investment in certain industrial sectors, set up in September 2000, consists in bringing financial assistance to projects for the acquisition of the land, construction or the purchase of buildings.The amount of investment required must be greater than 5 million MAD before tax (about 450 000 €). The amount of investment in capital goods must be greater than 2,5 million MAD before tax (about 227 000 €).

Article 7.1 of the Finance law

under this law investors take advantage of the exemption from imported duties and VAT for importing capital goods, materials and tools necessary to complete their investment program. This exemption follows the signing of an investment agreement with the Government and the commitment to invest more than 200 million MAD (about 18 million €).

Fiscal and customs measures:

• Exemptionfromcompanyincometaxonexportsfor5years and a reduction of 17,5% after that ;

• Exemption from import duties applicable to capitalgoods, materials and tools necessary to complete projects and imported directly or on behalf of the company for investment projects greater than or equal to 200 million MAD (about 18 million € ) ;

• Exemptionfromvalue-addedtaxapplicabletoimportsof capital goods, materials and tools necessary to complete projects and imported directly or on behalf of the company during the first 36 months of business, for investment projects greater than or equal to 200 million MAD (about 18 million €).

The Tangiers Med Port

18 / 19 INVEST IN MOROCCO - Business-friendly environment

• Institutions to serve investors

Morocco has set up a framework of institutions in order to support investors projects. > The Moroccan Investment Development Agency - AMDI

AMDI offers a free professional public service to all investors who who could therefore use a wide international network and a range of institutional partnerships with all Moroccan administrations and private operators. > Investment Commission - CI

AMDI undertakes preparatory work for the CI as part of the Technical Preparation and Monitoring Committee for investment projects under the conventional system.

under the leadership of the Prime Minister, the commission has for a task to :• approveinvestmentagreementsandcontractsrequiringacontribution

from the Government ;• implement all measures aimed at improving the investment

environment of the country ;• ruletoclearblockagestothecompletionofinvestmentprojects.

> Regional Investment Centers - CRI

CrIs have greatly improved and facilitated the investment process. Located in 16 regions, they aim at decentralizing and simplifying procedures through providing a single local interlocutor at the regional level.

CrIs consist of:•2counters:onetoassistthecreationofcompanies;•Andtheothertoassisttheinvestors.

Morocco is the country in North Africa which has received the biggest direct foreign investment over the 2000-2009 period (18 billion dollars).

Source: UNCTAD

Casanearshore, Casablanca

• FDI: Leading country in North Africa

Over the period 1999-2009, Morocco attracted

almost uS$18 billion in FDI (cf. uNCTAD

2009).

In 2009, 5 sectors attracted more than 90% of

Morocco’s FDIs real estate, banking, tourism,

telecom and industry.

Europe - major economic partner - represented

70% of FDIs in 2009.

Since 2002, Arab countries have continued to

increase their FDIs and at the end of 2009 they

represented nearly a quarter of all FDIs.

Distribution of FDI’s per country of origin in 2009


Distribution of FDIs per industry in 2009


Technopolis, Rabat

Evolution of average net flow of incoming FDI (US$ million/year)

1990-1994 1995-1999 2000-2004 2005-2009

390725

1 384

2 125

Source UNCTAD

«I believe that what has finally struck me is that the capacity for doing business has greatly expanded in Morocco …Morocco has seen its position improve quite considerably and therefore it attracts foreign investment capital.»

Dominique Strauss Kahn, 2009 – Head of the International Monetary Fund.

Holding Companies: 2% Insurance: 2% Transport: 3%

Other Services: 5% Industry: 8%

Italy: 3% United States : 3%

Germany: 3% Great Britain: 3% Switzerland: 4%

United Arab Emirates: 3% Spain: 8%

Saudi Arabia: 2% Jordan: 3% Portugal: 7%

Kuwait: 18%

France: 37%

Trade: 2%

Real Estate: 29%

Tourism: 17%

Telecom: 15%

«Over the period 2008-2012, Morocco plans to strengthen its transport infrastructure by launching many large projects with an estimated investment volume of 120 billion DH (11 billion €).»

Karim Ghellab, Equipment and Transportation Minister.


World classinfrastructure

• 1 800 km of highways ;• 1 907 km of railway lines ;• Start of work on a 1 500 km high-speed rail line.

Sources:Ministry of Equipment and Transport ;Moroccan National Railways Board (ONCF) ;Highways of Morocco (ADM).

• Transport infrastructure: A national network linked to the international one

For more than a decade, Morocco has been investing in the development of its transports infrastructure. Today, the Kingdom possesses world class facilities, which interlink in the best and most efficient way all the regions of the country and connect with the rest of the world through its sizable and perpetually developing network of highways, roads, railways and airports.

Highway in Morocco

• Port of Tangier Med: Crossroads of the great ocean routes

In July 2007, Morocco opened the new Port of Tangier Med for business. It is a huge infrastructure project, a symbol of Morocco’s ambition to dominate at a crossroad of major intercontinental maritime exchanges.

An additional sign of this proactiveness is the recent extension of the port: new Tangiers Med II harbor.The tax-free industrial zones adjacent to the port are already occupied by substantial export-oriented manufacturing plants.

•Tangiers Med II, the second phase in the portextension, will have 73% more capacity than Tangiers Med I ;

•Capacity: more than 8 million Twenty FeetEquivalent containers;

•Installations of the world’s biggest shippingcompanies : Maersk, MSC, CMA-CGM ;

•2000hectaresofprofessionalrealestateavailablewith tax-free zones (by 2015).

Tangiers Med Port

PORT OF TANGIERS MEDITERRANEAN

EUROPE

Mohammed V International Airport (Casablanca)

Number of flights per week:•Paris:79•London:14•Frankfurt:12•Dubai:7•Toulouse:7•NewYork:6•Montréal:6

Number of passengers per year: more than 5 millions

Number of destinations: 70 different airport destinations

Source: ONDA (Moroccan Airports Authority)

22 / 23 INVEST IN MOROCCO - World class infrastructure

• Airport infrastructure: Open to the whole world

As a tourism country, traditionally open to the world, Morocco possesses a dense and high quality airport network. Thanks to its Open Sky policy, the international airports of Morocco are served by a large number of international companies and are connected to the main economic capitals and business platforms in the world.These facilities have been developed under a vast modernization and expansion program which has increased the reception capacity of Moroccan airports to 30 million passengers per year.

Tangiers Free Zone, Tangiers

«Morocco has 15 international airports»

Source: National Airports Authority (Morocco) ONDA

• Telecom and fiber optic infrastructure : Morocco, the leader in Africa

In a decade, Morocco, with its network of 7 500 km of optic fiber, is an African leader in the field of telecoms. With its telecom infrastructure at international standard, completely digital, secure and diversified, the telecommunications sector has recorded a continuous increase based on :

•Landlineandmobileoperators(GSM,3G);•OperatorssuchasVSAT;GMPCS,RadioTrunkandISP.

• Energy infrastructure

Morocco possesses 26 hydro-electric power stations and 5 thermal power plants reaching a total installed power of 5 292 MW.The transport and distribution network is as follows :

•19575KmforVeryHighVoltagelines;•66398kmforHighVoltagelines;•121022kmforLowVoltagelines.

The country possesses substantial capacity for renewable energy, especially solar and wind, extending over 3 500 km of coastal areas.

The contribution of telecoms to GDP, standing at 5% in 2004, will exceed 10% in 2012.

Estimate: ANRT (Moroccan Telecom Regulation Agency).

ST Microelectronics company, in Casablanca

Individuals

Corporate

Value

88,50%35%20%

13 million

93%40%

Date

June-2010June-2010June-2010End 2009

End 2009End 2009

Penetration (mobile) (%, per inhabitant)Penetration (landline) (%, per household)Penetration (Internet) (%, per household)Number of Internet users

Connected to InternetCorporate website

24 / 25 INVEST IN MOROCCO - World class infrastructure

• Infrastructure specifically devoted to investment

> The P2Is: “Ready for Output” industrial facilities

Morocco has developed a new concept of areas devoted to industrial and service projects: the Integrated Industrial Platforms (P2I).The P2Is, new generation specialized or general-purpose parks, sometimes with a tax-free zone status, offer investors ready-to-use buildings, either for purchase or lease.

These parks are provided with basic infrastructure and shared supporting services in order to reduce installation and running costs:

• Zone operating services: maintenance of infrastructure, security ;

•Generalservices:telecoms,catering,healthcentre,banking;

•Businessservices:businesscentre,hiringsupport;

•Advancedservicesintendedforindustry:industrialmaintenance,engineering facilities, recycling, logistical areas ;

•One-stop-shop,toinclude:

The National Agency for the Promotion of Employment and Skills (ANAPEC), local authority services, the regional Investment Centre (CrI), National Social Security Office (CNSS), income tax office ;

•Publicorprivatetrainingcenter.

The Nouasseur Aviation hub, a first-class hub intended for the aviation and space industries

• Area:80ha;• Realestateavailable: - Hub of aviation industries ; - Hub of aviation services; - Industrial hub (innovative units) ; - Training hub (International Mohammed VI Academy, IMA); - ”rEADY TO OuTPuT” and “rEADY FOr SErVICES” zone.

Jorf Lasfar Industrial Park

•Located 17 kilometers South of El Jadidaand 100 km from Casablanca, this estate is host to industrial support services and covers an area of 500 ha.

•Mainsectors: - Heavy industry in the fields of energy,

metallurgy, chemistry and para-chemistry, and industrial logistics.

TANGIErS FrEE ZONE

Located in the North of Morocco, covering an area of 500 hectares, Tangiers Free Zone (TFZ) has modern infrastructure and numerous supporting services. In addition, it enjoys an advantageous and preferential tax and customs system. This duty-free zone has gained the confidence of many multinational companies :YAZAKI, SOurIOu, DAHEr, SuMITOMO, LEAr, ANTOLIN, DION, SHCLEMMEr, EMDEP, DELPHI, and POTYTECH.

Occupied Lots Lots available

Some business operators already in Morocco

Example of P2I: Kenitra Automotive City

•Surface:345hectares;•Realestateavailable: - rental of buildings ‘ready for output’ ; - Sale or lease of non-built serviced sites ; - Sale or lease of custom-built buildings .•Trainingcentersforautomotivetrades;• One-stopshop(localauthorityservices,ANAPEC(Job promotion agency), CNSS (Social Security agency) ;•Duty-freezonestatus.

Tangiers

RabatCasablanca

Oujda

Laayoun

Agadir

Essaouira

P21 Offshoring

P21 Automotive

P21 Aviation

P21 General

Agriculture hubs

Marrakech

Dakhla

Tetouan

Fez


The Emergence plan: For the development of Morocco’s world industry paths

Discover the new Morocco, the Morocco of today, the industrial Morocco. The Moroccan government has identified six industry paths which are to become the pillars of the Kingdom’s industrial development.For each of these Morocco’s world industry paths, a specific strategic approach has been created so as to offer private national or international operators opportunities for competitive, profitable and fast-growing projects.

Sectorial plansExceptional opportunities

«Morocco is a country that has taken off; it is an emerging country now, so it is must think ahead to what is best for the future.»

Hubert VEDRINE, Former Minister of Foreign Affairs (France), 2009

Textiles and leather

Offshoring

Aerospace

Agro-business

Automobile

Electronics

28 / 29 INVEST IN MOROCCO - Sectional plans

• Aviation and space: Morocco at the leading edge

Morocco is becoming a particularly attractive place by offering itself today as a competitive destination for setting up aviation industries.

> Opportunities for investment in aviation in Morocco

•Compositematerials;•Metal-working;•Assembling;•Engineeringanddesign;•Engineandequipmentrepairs;•Maintenance;•Electricalsystemsandcables;•Transformationandmodificationofaircrafts.

They have placed their trust in Morocco

What Morocco has to offer in the field of aernonautics

• Real estate : integrated industrial platformatNouasseur (Casablanca) ;

• Training(objectiveof15000skilledtraineesby2015):

- Institute of Aeronautical Trades, - Contirbution fort raining, recruiting and

employment of up to 40 000 MAD (about 3 600 €)/ person/type of training.

• Taxandcustomsadvantages:tax-freestatusinspecific zones ;

• Contribution from theHassan II Fund : up to10% of the investment ;

• Statesubsidies:land,off-site,training.

AIRCELLE, Casablanca

• Automotive industry: Morocco a prime partner

Morocco is gradually acquiring key status as a base for the automobile industry worldwide. With the development of a strong network of equipment makers and the installation of assembly plants, vehicles assembled in Morocco are today exported to Egypt, Tunisia and the European market. > Opportunities for investment in the automotive industry in Morocco

• Plasticsengineering:Injection molding, Equipment ;•Metallurgy:Pressing/Stamping,Forging/Stamping,Shaping/ Profiling ;•Cables:Metalworking/Plastics,Stacking;•Paper/filter/glass:Molding,Pressing,Weaving;•Textiles:weaving/non-woven,Assembling/Stacking;•Plasticsengineering/textiles:Injectionmolding,Assembling/ Stacking ;•Rubber:Extrusion;•Electronics:Mecatronics.

A leading manufacturer in Morocco: Renault

• AssemblyplantonthesiteofMelloussa(adjacent to the Tangier Med port complex),

• Siteof314ha,• Investmentof1,1billion€• Goal for 2014: 400000 vehicles

assembled per year.

The investment of more than 236 million MAD (about 20 million €) by the Japanese group Yazaki for the construction of a factory manufacturing automobile wiring in the city of Kenitra, will enable more than 1 600 direct steady jobs to be created.

What Morocco has to offer to the automotive industry

• Real estate: 2 integrated industrial platforms inKenitra and Tangiers ;

• Training: - Special ized Inst itutes in automobile trades (goal: 70 000 skilled workers trained by 2015) ; - Training contribution with an amount of up to

33 000 Moroccan MAD (about 3 000)/person.• Taxandcustomsbenefits: tax-free status in specific

zones ;• ContributionfromtheHassanIIFund:upto10%of

the investment ;• Statesubsidies:land,off-site,training.

Somaca, Casablanca



30 / 31 INVEST IN MOROCCO - Sectorial plans

Morocco ranks 5th worldwide in terms of attracting Francophone offshoring activities.

Source : Mc Kinsey rating.

The largest nearshore hub in North Africa

Casanearshore is a business park intended for businesses specializing in software development, infrastructure management, banking and back office insurance, customer relations management, etc.

CASANEARSHORE

TECHNOPOLIS

•OffshoringhubandInformation &CommunicationsTechnology•Industriesandhigh-techhub•Universityhub

• Offshoring: Morocco world leader in French-speaking nearshoring

With its international standard of telecommunications infrastructure and its high quality human resources, Morocco has become in a few years a world leader in the call centre business. The country has also been able to attract the main European information technology companies.

> Key numbers

• 30000employeesintheOffshoringsector;• 70000traineesinoffshoringjobsby2015;• Projectedsectionalturnoverofmorethan20billion MAD (about 1,8 billion €) in 2015 ;• LeadingjobregioninAfricaforcallcenters;• Morethan430callcentersoperatinginMorocco;• 8billionMAD’s(about727million€) turnover in the sole customer relations management (CrM) sector.

> Opportunities for investment in Offshoring in Morocco

• InformationTechnologyOutsourcing(ITO) - Software development - Infrastructure management - Applications maintenance

• BusinessProcessOutsourcing(BPO) - Specific job type activities - Banking - Insurance

•CUSTOMERRELATIONSMANAGEMENT - General administration - Accounting and finance - Human resources - General back offices

Establishment of the National Commission for the Control of the Protection of

Personal Data.


Casanearshore opened new premises in June 2010 :

• The largest DELL Business Center in the Europe, the Middle East and the Africa region (20 000 sq.meters, more than 1 800 workers).

• The new headquarters for Cap Gemini Morocco (more than 260 workers).

Adoption of Law N° 09-08 concerning the protection of individuals regarding the treatment of personal data

.Morocco is one of the first Arab or African countries to adopt such a complete system of protection guaranteeing the circulation of personal data.

Morocco has joined the top 30 Offshoring countries.

Gartner rating of the most interesting offshore destinations.

> What Morocco has to offer in Offshoring

• World-classinfrastructureandservices

- P2I offshoring (Casanearshore, Technopolis, Fès shore,Tétouanshore…)measuringupwiththebestinternational standards ;

- First class telecom supply ; - A “ready for Output” approach with fully-equipped

offices and on-site support business services available.

• Competitivepoolofresourcesandtrainingassistance

- National training plan ; - Complete exemption from social security contributions for 24 months for the first use (maximum wage 550 €) ; - Direct training assistance during the first 3 years rising to 6 500 €.

• Frameworkincentives

- Substantial and exceptional labor tax relief: tax ratio tied to personal income tax not exceeding 20% ;

- Substantial and exceptional tax relief in company taxation with exemption from corporate income tax during the first 5 years, and 17,5% thereafter;

- reduced administrative scheme: one single office for the region, flexible Labor Code, simpler administration process, especially for SME’s

• Availablefinancing

- Commitment of member banks to create a fund specifically for industrial real estate and services development ; - Offers of financing and services to investors in the sector.

•ITProvider

•BPO

•CaptiveInsurance

•Callcenters


• Electronics: Aiming at a more and more integrated industry

In Morocco, electronics is a dynamic sector because of the quality of the infrastructure and the qualified engineers and technicians available. By 2015, there will be a trained work force of 9 000.

> Opportunities for investment in the automobile industry in Morocco

•Mecatronics;•Industrialelectronics;•In-carandin-planeelectronics.

What Morocco has to offer in the electronics industry

• Available Real estate availability : electronicssectors in the integrated industrial platforms of Kenitra, Nouasseur and Tangiers;

•Availabilityoftraining: - Specialized training centers (OFPPT: Moroccan Vocational Training Agency) ;

- Training contribution of an amount up rising to 40 000 MAD (about 3 600 €)/ person.

•Taxandcustomsadvantages:duty-freezone status in specified areas ;

•ContributionfromtheHassanIIfundofupto10% of the total investment amount;

•Statesubsidies(land,off-site,training).

ST Microelectronics, Casablanca

Tavex company, in the city of Settat


They have trusted in Morocco

• Textiles and leather : Morocco specializes in medium - and top - range goods

As a major player in the Mediterranean textiles and leather industry, Morocco possesses a vast range of SMEs of great technical quality, with a highly-skilled workforce and geographical proximity to the main markets and an important logistics standpoint.These advantages, together with the historical background of the country, enable investors in this sector to place themselves comfortably in the medium and high range.

> Opportunities for investment in the textiles and leather sector in Morocco:

•Fastfashionandready-to-wearfashionlines;;•Jeansandsportswear;•Nicheproductsin3newareas:lingerie,domestictextilesand shoes.

What Morocco has to offer in textiles and leather

•Realestateavailability:integratedindustrial platforms ;•Installationassistance:finishing-dyeing– printing rising to 20% of total investment ;•Taxandcustomsadvantages;•Statesubsidies(land,off-site,training);• Areasreservedforlogisticsanddeliveringsupplies.




• Agro-business: Modern Morocco

With its long agricultural tradition, Morocco has developed a modern, competitive and diversified agro-business sector.

> Opportunities for investment in agro-business in Morocco

•Processingoffruitandvegetables;•OliveandArganproducts;•Spices;•Aromaticandmedicinalplants;•Meatandmilkprocessing.

International Agriculture Show in Morocco-SIAM 2010

What Morocco has to offer in agro-business

•Developmentofchannelswithstrongexport potential ;•Developmentandrestructuringofdomestic consumer goods ;•Implementationoftrainingprogramssuitedto the sector ;•Creationofanetworkofagro-hubsinthe regions of Meknès, the Oriental, Souss, Gharb, Haouz and Tadla ;•Taxandcustomsadvantages;•Statesubsidies(land,off-siteinfrastructure, training).

• Green Morocco plan to modernize agriculture

The Green Morocco plan’s objective is to facilitate the development of a modern and competitive agriculture. It is based on the following principles:

•Tomakeagriculturetheprincipalgrowthdriveroverthenext 10-15 years ;•ToensuretheoveralldevelopmentofMoroccanagriculture: - Modern high value-added agriculture and concerning irrigated land and favorable bour (rainfed areas), - Basic agriculture situated in areas of mountains, oases and unfavorable bour (rainfed areas).•Toadoptaclusteringmodelfororganizingagriculture;•Toencourageprivateinvestment;•Tosafeguardnaturalresourcesforsustainableagriculture.

Meknès

International Agriculture Show in Morocco-SiAM 2010

• Renewable energy: A plan for the future

Acceleration of the economic and social development of Morocco brings an increase in demand for energy, which is to reach over 36% by 2015, and to triple by 2030. In order to tackle this increase in demand, 4 priorities have been identified: •Tosecureenergysupplies •Tooptimizeaccesstoenergysupplies •Torationalizeconsumptionofenergy •Toprotecttheenvironmentthroughdifferentformsof clean energyDifferent forms of renewable energy are the best response to these priorities. The principal issue will be to ensure their development by extracting the value from the potential from the sun and the wind and feeding into the regional and international markets. Morocco’s ambition is to reach by 2020 a 42% of available capacity supplied by clean energy.


> The recently created Energy Investment Company (SIE) is a prime investor for Morocco’s new energy strategy

The SIE is required to invest in projects aimed at increasing energy production capacity, developing renewable energy resources and improving energy efficiency.

The Moroccan solar energy plan is not only an

equipment program, but it also includes the

industrial , R&D, and training component .

Wind farm, Tangiers

Source: ONE

Development of existing power structure

2008 2020

«……Everyone must be encouraged to accept the implementation of a strategy of energy efficiency, particularly through the development of different forms of clean renewable energy…»

Extract from the speech of His Majesty King Mohammed VI on Throne Day, Tetouan -30/07/10

> Key numbers

36%: Increase in electricity consumption per inhabitant in Morocco by 2015;45GW: Potential of sun and wind energy in Morocco;42%: Share of electric power obtained from renewable forms of energy in 2020.

Nuclear Coal

Hydro-electric Wind

Sun

Oil

Natural gas

• Solar energy

> Project for producing solar energy

Morocco has launched an ambitious project

for producing solar energy that will place

the Kingdom among worldwide leaders.

The program, which has already begun its

implementation phase, plans for:

•Theproductionof2000MWfromfivesites

totaling 11 000 ha in the south of the Kingdom ;

•AninvestmentofUS$9billion;

•Theproductionof38%ofthe2008existing

power and 14% of electric power by 2020 ;

•Asavingof1milliontonsinoilfuelequivalent

and the non-emission of 3,7 million tons of

CO2.

Solar energy

Tangiers

Rabat

Casablanca

Oujda

Ouarzazate

Laayoun

Agadir

Marrakech

Dakhla

> Creation of a specialized agency supported by the Government, the Moroccan for Solar Energy (MASEN)

MASEN’s goal is to implement the Moroccan solar energy plan, i.e. 2,000 MW by 2020 through:

•Designingintegratedsolardevelopmentprojectswithinthe territory areas ;•Preparingtechnical,economicandfinancialstudiesneeded for sites qualification ;•Designing,completingandoperatingsolarenergyprojects;

•Contributingtoresearchandthemobilizationoffinance necessary to the completion and operation of solar energy project;

•Submittingproposalstothegovernmentfortheconditions for industrial integration of each solar energy project;

•Presentingtheprogramtonationalandforeigninvestors;


• Tourism: Success of a vision

Morocco is undeniably tourist destination par excellence. With its 3 500 Kilometers (about 2 000 miles) of coastline, the wealth and variety of its natural beauty, its centuries-old history, the legendary hospitality of its people and its ancient traditions, Morocco since its independence has chosen tourism as a priority towards advancing socio-economic development.

In 2001 Morocco, fully aware of its natural advantages and the wealth of its cultural heritage, set up the “Vision 2010 for tourism”.

> The goals of Vision 2010 •Receive10milliontourists;•Increasehotelcapacityto230000beds;•CreatesixnewresortsontheMediterraneanandAtlanticcoast;•Generatemorethan48billionMADinforeignexchangerevenues;•Create600000newstablejobs.

In order to reach these goals, “Vision 2010” set up 4 plans:•TheAzurePlanwhichplannedthecreationof6coastalresorts(Mogador,Lixus,Mazagan,Saidia, Taghazout and Plage Blanche) on 3 000 hectares of land and with a total investment of around 46 billion MAD (about 4 billion €) ;•TheBiladiPlandevotedtothestrategyofdevelopingdomestictourism;•TheMada’Inplanaimingatimprovingthelevelofexistingdestinations(Fez,Casablanca,Agadir…);•The“Nicheandruralplan”withthemissionofcreatingjobsandachievingaregionalbalanceintourism development.

Today, despite the difficult international situation, Morocco is holding steady, with more than 8 million tourists by end of 2009. The Mazagan and Saidia resorts are operating and most of the world’s big tour operators are present via their world-class resorts and hotels.

Enriched by the experience gained from the application of Vision 2010, Morocco will embark on the second phase of its tourist development via ‘Vision 2020’.

> Principles of Vision 2020

•To capitalize on the achievements of Vision 2010 ; •To move on to a structuring approach to the country in terms of employment and investment ; •TodevelopthecompetitivenessofMoroccan t o u r i s m b y a d o p t i n g t re n d s a n d n e w opportunities; •TostressdifferentiationinMoroccantourismby putting sustainable development at the heart of the strategy.

"I think that Mazagan is one of the most beautiful and exciting resorts we have built anywhere in the world.".

Sol Kerzner, CEO of Kerzner International

Resorts launched under the Azure plan and the Azure plan extension

Shop signs installed in Morocco

Tangier Med, Tangier

• Strategies for future

>Logistics program:

Launched in April 2010, the logistics strategy aims at reducing costs of logitics from 20% to 15% of GDP in 5 years by an overall investment of 63 billion MAD (about 5 billion €) by 2015 and 116 billion MAD (about 10 billion €) by 2030.It will also contribute to the sustainable development of the country through the reduction of pollution. In order to reach these general objectives, the program is built around five key themes: development of Multi-flux Logistics Zones, optimization of the flow of goods, incentives to encourage the emergence of integrated and efficient logistic operators, development of skills and implementation of a framework for the sector’s governance . > Rawaj Vision 2020 plan to accommodate the development of dometic distribution and internal commerce:

The rawaj Vision 2020 plan aims at a radical transformation of the distribution landscape which has resulted in the blossoming of supermarkets, the opening of shopping malls, the implementation of the largest international franchises, and the modernization of local businesses.This plan includes numerous measures to develop wholesale and medium distribution, independent businesses, chains and franchised stores.This plan includes numerous measures to develop wholesale and medium distribution, independent businesses, chains and franchised stores.

> Halieutis plan for the exploitation and the protection of the fishing potential:

The Halieutis plan is based on the following principles:•Sustainableexploitationofresourcesandpromotionof responsible fishing ;•Developmentofanefficientandqualityfishingindustryby

ensuring optimum traceability of the product throughout the value chain. ;

•Obtaining thebest value for processedproducts throughoutthe ease of access to raw material, encouragement of product innovation, penetration of the most profitable markets

(creation of three regional competitiveness hubs in Tangier, Agadir and Laâyoune-Dakhla).

> “Maroc Numeric 2013” plan to position Morocco as a regional technology hub:

The “Maroc Numeric 2013” plan intends to make information technology one of the pillars of the Moroccan economy, a vector of human development and a source of value added for the economic and public administration sectors. As an international player in information technology and host to the large international operators, Morocco also wants to increase increase the diffusion of these technologies and their general use by the ordinary citizens, companies and administrations.

Qualified humanresources


- More than 100 000 high school graduates per year ;- 370 000 is the total number of public/private higher education teaching staff ;- More than 40 000 graduates per year in public/private higher education ;- 250 000 trainees per year are to be accepted for public/private training for 2009-2012 ;- More than 120 000 graduates for the OFPPT* agency in 2009/2010*Office de la Formation Professionnelle et de la Promotion du Travail (Moroccan Vocational Training Agency)

Source: Moroccan Ministry of National Education, Higher Education, Management Training and Scientific Research)

University of Ain Sebâa, Casablanca

• Higher education of international standard

Moroccan higher education is made up of a broad spread of universities and colleges which provide quality education for diversed professions. The development program for this sector is growing with the opening of new establishments: College of Fashion, International university of rabat, International university of Casablanca, School of Government and Economy of rabat partnered with SciencesPo Paris, Al Akhawayn university, etc.

• Qualified human resources

In Morocco, human resources have all the advantages needed to become the pillars of competitive investment and value creation: good level of training, good cultural attitudes, fluency in languages and new technologies, attachment to entrepreneurial spirit, capacity to adapting to jobs change, and competitive salary costs.

• Professional training adapted to company needs

Morocco conducts a very dynamic professional training policy which enables companies to possess trained and available human resources.

•Considerableandcompetitivepoolofpotentialresourcesfor High School (Baccalureate) + and undergrad levels (2 and 4 years after the High school degree) ;•TrainingsubsidyforeverynewMoroccanemployeerisingfrom 35 to 65 K-MAD’s over the first 3 years;•NationalTrainingProgrammewiththecollaborationof universities, colleges, the private sector, ANAPEC and OFPPT ;•Supportandassistanceinhiring.

The share of GDP in scientific research

2009 0.8%2010 1%2015 1.5%

www.emarrakech.com • Research and innovation encouraged

Morocco has voluntarily committed itself to support and improve the value of scientific research and innovation via ambitious projects which increase added value.Created as part of the “Envol” (“Take-off”) plan, the MASCIr project (Moroccan Association For Scientific Innovation and research) aims at establishing the physical and technological infrastructure to create an R&D triangle in the fields of New Information andCommunication Technologies, nanotechnologies, biotechnology, environment, and materials and polymers.

rabat Technopolis, a symbol of Morocco’s commitment to research, is a ‘smart’ city devoted to microelectronics, nanotechnology and technological development.

They have trusted Morocco

Protenia, in the city of Ifrane

Higher education in its three large components (university, management training and private) includes 16 universities and 339 schools and institutes.

Source: Moroccan Ministry of National Education, Higher Education, Management Training and

Scientific Research)

Hôtel Mazagan, El Jadida

Living in Morocco


• Pleasant lifestyle

With its millennial history, its culture, its gastronomy and its legendary hospitality, Morocco has always been a country at the crossroads. Its geographical position has given its inhabitants a character combined with openness and tolerance.Morocco is one of the countries on the south shore of the Mediterranean where living conditions are very pleasant; and its mild sunny climate adds comfort to this fact. The Kingdom offers all the conveniences to afford the expatriate with an agreeable experience:

•Highqualityhealthcare,withalargenetworkofprivateclinics and specialized clinics ;• Alargenetworkofforeignschools,particularlyFrench, Spanish and American ;•Severalculturalcentersbelongingtodifferentcountries;•Shoppingcentersandmanyinternationalfranchisesandshop signs ;•Aconsiderablenumberofworld-famousculturalandmusic festivals such as the Mawazine festival, the Essaouira festival, the Marrakech International Film Festival, and the Dakhla surf festival.

• A tradition of opennessMorocco, although a Muslim country attached to its ancestral values, is nonetheless open-minded and fully tolerant, and foreigners can practice their religion in perfect liberty and security. The number of churches and synagogues is a good illustration.

«Morocco is ranked 26th out of 195 in the list of countries where it is good to live».

’ International Living’, observer of the quality of life 2009.

«Morocco, Largest North African country and 10th in the MENA area in the field of economic freedom».

Index of Economic Freedom, 2010.

Railway station, Marrakech

• Wide range of tourist destinations

With nearly 3500 kilometers of coastline, mountain ranges and the dunes of the Sahara desert, Morocco offers an extraordinary variety of natural advantages.

•Beachtourism,withfivenewgenerationresorts:Mazagan, Mogador, Lixus, Saïdia, Plages Blanches ;•Culturaltourism,withanexceptionalarchitecturalheritageand many classified uNESCO World Heritage sites ;•Mountaintourismandeco-tourism,withtwoprincipalski resorts at Oukaïmeden and Michlifen ;•21world-classgolfcoursesandtheHassanIIGolfTrophy (included in the European Tour) ;•Variouscar-treks(raids)andralliesincludingtheAichaGazelle Trophy ;•InternationalAutomobileGrandPrix(FIA-WTCC)‘Marrakech Grand Prix’.

«Morocco, golfing destination for 2010 in the Africa, the Gulf and Oceania area.»

Prize awarded by International Golf Travel Market, 2009

Hôtel Mazagan, El Jadida

• Environmental Protection at the heart of the Kingdom’s priorities

Sustainable development is an option adopted by Morocco in the same way as has been the case for the international community.

The Kingdom has created several public bodies to assist its sustainable development strategy:

•MohammedFoundationVIforEnvironmental Protection;•NationalEnvironmentObservatory;•MaritimeTransportObservatory;•EnvironmentandWaterDepartment;•MaritimeFisheriesDepartment;•Nat iona l Agency fo r the Deve lopment o f renewable Energy and Energy Efficiency (2010) ;•MoroccanSolarEnergyAgency(2010).

A Charter for Environment and Sustainable Development (CNEDD) will be adopted in 2010. It will offer a framework for the protection of Morocco’s natural wealth by means of a general approach that balances protection of the environment with economic development.

A sustainable development policy


«The sustainable development policy initiated by Morocco is part of a long term environmental strategy featuring the protection of natural resources and eco-systems, the constant monitoring of the environment by the Government in the regions, and the planning of operations towards improving the environmental framework of citizens.»

Amina Benkhadra, Minister of Energy, Mining, Water and the Environment

6 fundamental principles of the CNEDD* Charter:

•Precautions;•Preventiveaction;•“Polluter-payer”principle;•Participation;•Responsibilitywithregardtorepairingenvironmental damage ;•Integrationofenvironmentalproblemsintoall government policies.

Marrakech

* National Charter for Environment and Sustainable Development

Tangiers

" In 2010 Rabat was declared the World’s Green City. It was chosen by the “Earth Day Network” association as a premier city for the celebration of the 40th anniversary of Earth Day, from April 17 to April 25, 2010»

Moroccan Investment Development Agency

• AMDI serving investors

> Your partner for investment and business.

With its international network and a wide range of institutional partnerships with all Moroccan administrations as well as with private operators, AMDI offers a free professional public service to all investors.

AMDI is here to assist you along all the stages of your investment:

•Toinformyou;•Toofferyouassistance;•Toaccompanyyouinyourinvestmentformalities;•Tofacilitatecontactwithyourlocalanddepartmentpartners;•Toenableyoutotakeadvantageofthebestenvironmentto develop your enterprise.

Equipped with all logistics and technological facilities, a reception and information office is at your disposal at the headquarters of the Agency.

• A mission to promote and develop investments

The primary mission of AMDI is to promote investment in Morocco, especially by conducting communication activities, proposing legislative or regulatory reforms, and supporting foreign investors throughout all the stages of their investment project.


AMDI

AMDI is also committed on the field and to develop investments in the sectors of industry, trade, and new technologies.

It is also responsible for:

•Makingproposalsforagovernmentinvestmentdevelopment program ;•Carryingoutprospectingofpotentialinvestors;• Appointing representatives abroad in collaboration with theMoroccan Ministry of Foreign Affairs and Cooperation.

• A cooperative approach

AMDI plans to act with a collaborative logic and works with many institutions in order to attain its objectives :

• regional Investment Centers (CrI’s), in order to optimize and simplify the treatment of investment agreements ;•ThebodiesinchargewiththeeconomicpromotionofMorocco, such as Maroc Export, La Maison de l’Artisan (The Artisan’s House), The National Tourism Board (ONMT), the Chambers of Commerce and Industry, the Ministry of Foreign Affairs and Cooperation, and others ;•OthernationaleconomicinstitutionssuchastheAgricultural Development Agency (ADA) or the Moroccan Tourism Engineering Company (SMIT) ;•OfficeshavealreadybeenopenedinParis,MadridandMilan. Others will open in 2011, in the united Kingdom, Germany and the united States.

Spain – Madrid Agencia Marroquí de Desarrollo de InversionesOficina de representación España

Paseo de la Castellana, 141, Planta 20Edificio Cuzco IV 28046 MadridPhone: + 34 917 893 441Fax: + 34 915 707 199

France – ParisAgence Marocaine de Développementdes Investissements Bureau de représentation – France

14 Avenue d’Eylau - 75116 PArISPhone: +33 1 73 02 15 09/10 Fax: +33177 726499

Moroccan Investment Development Agenc y

Rabat -Morocco

Tel. : + 212 5 37 67 34 20/21 - Fax : +212 5 37 67 34 17/42

Invest in morocco

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