Guidance

Overseas business risk: Morocco

Updated 6 September 2023

1. Political

Morocco is a politically stable country. It is a constitutional monarchy, led by King Mohamed VI, who came to the throne in 1999. There are 2 legislative bodies, the Lower House, which is directly elected, and the Upper House, elected through a college of electors. The most recent general elections took place in September 2021. They resulted in the formation of a three-party coalition, led by the National Rally of Independents (RNI), whose leader, businessman and former Agriculture Minister, Aziz Akhannouch, is now Head of Government. The other coalition members are the Istiqlal party and the Party of Authenticity and Modernity (PAM). Like RNI, both Istiqlal and PAM are seen as supportive of the Monarchy. After two terms in government, the moderate Islamist Justice and Development Party (PJD) lost comprehensively in 2021, re-joining the opposition.

In 2011, when the ‘Arab Spring’ reverberated across much of the region, Morocco experienced some protests. However, these were relatively small-scale compared to other affected countries. They culminated in the King’s adoption of a more progressive constitution and the election of a new government the same year.

The EU granted Morocco European Neighbourhood Policy (ENP) Advanced Status in 2008, reflecting the ambition to strengthen EU-Morocco cooperation, and further support economic and political reforms. Morocco also enjoys close relations with the Gulf States and Sub-Saharan Africa. Morocco officially re-joined the African Union in January 2017, and has applied to join the Economic Community of West Africa States (ECOWAS). Morocco has sought to strengthen its relations across Africa, holding frequent exchanges of official visits and economic partnerships. This is done through its Presidency of COP22 in 2016 and, on an ongoing basis, through the engagement in Africa of Moroccan state-owned enterprises such as OCP Group (phosphate/fertilisers) and MASEN (renewable energy).

However, Morocco’s border with neighbouring Algeria has been closed since 1994 (see section 5 below: Western Sahara). Tensions in the relationship continue, for example in late 2021 Algeria closed the Mahgreb-Spain gas pipeline, which passes through Morocco, following the expiry of a 25-year contract. This had a significant and immediate impact on Morocco’s energy mix, as Algerian gas represented 10% of Morocco’s electricity supply. Morocco is increasingly securing gas supplies from others, including domestic sources.

2. UK-Morocco Trade and Investment

The UK-Morocco Association Agreement underpins our trading relationship. The Agreement, which entered into effect on 1 January 2021, focusses heavily on goods trade but also has high-level provisions in other areas including services trade.

UK-Morocco bilateral trade in goods and services was worth £3.1 billion in 2022, with total UK exports to Morocco accounting for £1.3 billion, and imports from Morocco to the UK reaching £1.8 billion.

As Morocco looks to diversify its international partnerships, the Ministry for Industry and Trade has shared its ambition for the UK to become a top five trading partner for Morocco – a recognition that the UK is an increasingly important export market for the country.

UK presence in Morocco is steadily growing with significant opportunity for UK businesses across sectors, including in healthcare, education and agriculture. Morocco continues to undertake an ambitious and wide-ranging programme of domestic reforms, which will bring investment and export opportunities in large infrastructure projects in rail, water, energy and more.

A Double Taxation Agreement (PDF, 130 KB) exists between Morocco and the UK.

3. Economic

Morocco continues to pursue economic reforms to enhance productivity and strengthen resilience to external shocks. These include the New Development Model (2021 to 2035), the Mohammed VI Investment Fund and the Social Protection Programme. In addition, the New Investment Charter launched in 2023 aims to attract $55 billion and create 500,000 jobs by 2026. GDP growth averaged 0.8% in 2022, and is expected to increase to 3.1% in 2023. Agriculture, phosphate exports, tourism and remittances are the main contributors to GDP. In 2021, Morocco had a GDP of $142.9 billion and a GDP per capita around $3,795.

Morocco continues to position itself as a major gateway into Africa, as well as Africa’s bridge into Europe. It also continues to build regional links through the TangerMed Port and Casablanca Finance City. Foreign Direct Investment into Morocco reached $2.1 billion in 2021 across a wide range of sectors including automotive, aerospace, manufacturing and tourism.

AMDIE, the Moroccan Agency for Investment and Export Development, is responsible for the promotion of investment and exports, and works with the 12 Regional Investment Centres (CRIs) throughout the investment cycle. The CRIs are responsible for assessing investment applications and more information on this is available on the AMDIE website. AMDIE’s recent ‘Morocco Now’ campaign represents the latest push for further investment into Morocco. This includes a national commission that will review and approve investments of $25 million or more.

Morocco ranked 53rd in the World Bank’s 2020 “Doing Business” Index, an increase of 7 places on 2019.

4. Human rights

Morocco has acceded to the seven major UN Conventions on human rights, with some reservations on religious grounds. It has also ratified over 50 International Labour Organisation (ILO) conventions on labour rights, including the convention on Freedom of Association.

The two decades of the current King’s rule have seen a strong focus on human rights, particularly social and economic rights. This includes access to greater political representation, and unilateral divorce in cases of abuse. Activists have commended reforms on good governance and freedoms, while calling for further action to implement the human rights guarantees provided under the revised 2011 Constitution. Recurring concerns relate to freedom of expression, particularly for dissenting voices in the media, civil society, and Western Sahara. Improving access and quality of education and addressing gender-equality are areas of ongoing focus for the Moroccan government. This includes increasing the participation of women in the workforce, as expressed in Morocco’s UN Universal Period Review submission in August 2022. Morocco’s National Council for Human Rights (CNDH) closely follows the country’s human rights progress and issues recommendations. The UK and Morocco held their first informal human rights dialogue in November 2022, at Morocco’s suggestion.

5. Western Sahara

HMG does not provide legal advice to private companies and individuals in relation to their commercial activities. It is therefore for companies to take their own decisions on whether to do business in Western Sahara, as elsewhere.

HMG regards the status of Western Sahara as undetermined and supports the UN-led efforts to achieve a lasting and mutually acceptable political solution that provides for the self-determination of the people of Western Sahara.

Western Sahara remains on the UN list of non-self-governing territories. The conduct of economic activities by Morocco in Western Sahara is not illegal, but as de facto administering power, in order to comply with international law, Morocco must ensure that economic activities under its administration are conducted to the benefit and in the interests of the people of Western Sahara. Such economic activities include the exploitation of natural resources.

We have a general and universal commitment to promoting responsible corporate behaviour by UK companies operating, or considering operating, overseas. This includes respect for the human rights of the people involved in or affected by their operations. The UK government is fully committed to implementing the UN Guiding Principles and refers you to the government webpage on business and human rights and, in particular, Part II of the UN Guiding Principles on Business and Human Rights which address the “corporate responsibility to respect human rights’.

6. Bribery and corruption

In 2022, Morocco ranked 94th out of 180 countries (87th in 2021) in Transparency International’s Corruption Perception Index (CPI). Corruption remains a major challenge in Morocco and the government has taken a series of measures to address this. These include the establishment of a new anti-corruption commission, (know as the ICPC) and the creation of an Ethics Committee, aimed at eliminating corruption and fraud within firms.

More generally, to improve the business climate and create a more attractive environment for investors, Morocco is seeking to introduce greater transparency. Measures include: adopting an ‘access to information’ law; reforming government tender processes with a law requiring open bidding; and creating a specialised unit working on money laundering.

Visit the Business Anti-Corruption portal page for further information about handling corruption in Morocco and measures you can put in place to protect your company. Read more information provided on our Bribery and corruption page.

7. Terrorism threat

There is a high threat of terrorist attack globally affecting UK interests and British nationals. You should remain vigilant at all times.

There is an increased threat linked to the number of Moroccans sympathetic or belonging to Daesh (formerly ISIL) and other extremist groups. Authorities regularly disrupt terrorist cells across the country. Businesses with Western interests and areas where foreign nationals are known to gather may be at higher risk of attack. You should be vigilant in these areas and follow any specific advice of the local security authorities.

There have been no recent instances of kidnapping of foreign nationals in Morocco, although they cannot be ruled out. There is a heightened risk of kidnap in border and remote desert areas of North Africa. Terrorist groups have kidnapped foreigners in the region for financial gain and for political leverage. Those engaged in tourism or business sectors are viewed as legitimate targets. The long-standing policy of the British government is not to make substantive concessions to hostage takers. The British government considers that paying ransoms and releasing prisoners increases the risk of further hostage taking. The Terrorism Act (2000) also makes payments to terrorists illegal.

Please read further information provided on our Terrorism threat page.

8. Protective Security Advice

Violent crime is not a major problem in Morocco, but there are occasional incidents. The most common crimes are petty crimes such as pickpocketing and theft from unoccupied vehicles. You should take the following precautions:

• avoid quiet areas after dark and do not carry large amounts of money or valuables around with you
• be vigilant when using ATMs
• drive carefully with vehicle doors locked, windows closed and avoid stopping at the side of the road

Further information is provided on our protective security advice section of the FCDO Travel Advice for Morocco.

9. Intellectual Property

While Moroccan laws are generally adequate, enforcement is sometimes lacking. Morocco has a relatively complete regulatory and legislative system for the protection of intellectual property. It is a member of the World Intellectual Property Organisation (WIPO) and is a party to several international conventions and agreements: Berne Copyright Convention for the Protection of Artistic and Literary Works; Paris Convention for Industrial Property; Brussels Satellite Convention; and Madrid, Nice, Hague Agreements for the Protection of Intellectual Property.

Counterfeiting of clothing, luggage and other consumer goods, as well as the illegal copying of computer software and artistic works, such as DVDs and CDs, frequently occur. The Moroccan government is already taking tough measures to combat the black market in response to calls from major players to crack down on smuggling and imitation products.

To help the enforcement of intellectual property rights, an Anti-Counterfeiting Trade Agreement (ACTA) was signed in October 2011 by eight countries. These include Morocco, Canada, Japan, South Korea, and the US. At an initial stage, it is essential for foreign companies to protect their trademarks in Morocco by applying for trademark protection with the Moroccan Office for Industrial and Commercial Property in Casablanca (Office Marocain de la Propriété Industrielle et Commerciale – OMPIC). Full details on how to proceed can be found in English on OMPIC’S website. The Moroccan Copyright Office in Rabat (Bureau Marocain Du Droit d’Auteur – BMDA), supervises copyright and related rights for literary and artistic works.

Read more information provided on protecting on our Intellectual Property page.

10. Organised crime

Morocco’s ratification of a number of international and regional agreements and conventions shows the country’s commitment to fight organised crime (drug trafficking, terrorism, illegal migration). On the fight against cyber-criminality, the Moroccan government has also taken measures to upgrade the relevant services. Drug trafficking (cannabis, cocaine) provides a profitable and thriving business between Morocco and southern Spain. However, organised crime presents no direct threat to UK businesses in Morocco.

Problems do occasionally arise with the export of textile goods: where items stolen from factories have previously turned up in local markets. The police do take action to confiscate the items when the thefts are reported, but their resale value is limited.

Read more information on our Organised crime page.

11. Contact

Contact the Department for Business and Trade (DBT) team in Morocco for more information and advice on opportunities for doing business in Morocco.