Doha – Morocco has experienced a significant 40% drop in foreign direct investment (FDI) in 2023, receiving approximately MAD 19 billion ($1.9 billion) compared to MAD 31.4 billion ($3.14 billion) in 2022, according to Spanish news outlet Atalayar.
The decline has been attributed to global economic challenges, regional political uncertainty, and increasing competition from other emerging markets.
Despite this setback, the Moroccan government remains optimistic, emphasizing efforts to diversify investment sources and modernize the economy.
The country continues to attract investment in key sectors such as renewable energy and advanced manufacturing, with MAD 13.1 billion ($1.31 billion) in the first half of 2024, a record for that period.
Additionally, around $5 billion in investments are planned for infrastructure related to the 2030 World Cup, which is expected to boost tourism and improve sports and transport infrastructure.
However, finance and investment expert Ahmed Khadraoui cautions that these figures hide a fundamental challenge: ensuring that investments benefit the entire Moroccan population, rather than being concentrated in a few sectors or regions.
“High youth unemployment and growing inequality between urban and rural areas are worrying indicators that current economic growth may not be reaching everyone,” Khadraoui states.
Although Morocco is the third-largest investment destination in the MENA region, the impact of these investments remains uneven.
According to Khadraoui, “Rural regions and the most vulnerable populations risk being left behind, as most investments are directed towards urban areas and high-tech sectors. This concentration could exacerbate existing economic and social disparities, creating a two-speed economy.”
The government has implemented policies to improve the business climate and attract more investment, but Khadraoui argues that these measures have not been sufficient to ensure an equitable distribution of benefits.
“The real success of foreign investments in Morocco cannot be measured by figures alone. It is crucial that these investments translate into tangible benefits for all citizens,” he emphasizes.
Khadraoui believes that Morocco has the potential to overcome these challenges with a renewed focus on inclusive job creation and sustainable development.
“The challenge for Morocco is to turn these figures into real improvements in the quality of life for all its citizens. Without a clear strategy to ensure that economic growth is inclusive, the country risks creating a ‘Kingdom of empty promises’, where foreign investment boosts the statistics but leaves most of the population on the sidelines,” he warns.
Khadraoui asserts that Morocco must transform investment flows into a real engine of positive change, ensuring a more prosperous future for all its citizens.
“With a solid foundation and immense potential, the country can achieve this goal by focusing on equitable development and public policies that promote inclusive growth,” he states.
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