Talk to JETRO FirstOVERVIEW OF MOROCCO

2018, November
Japan External Trade Organization (JETRO)
Daisuke Mizuno
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CONTENTS
Keywords to understand Morocco◆ Morocco basic information◆ Four points to understand Morocco

Strategic positioning of Morocco◆ Language / cultural affinity◆ Regional hub

Economic scale and growth rate of Morocco◆ Morocco: Steady economic management◆ The impact of the agricultural sector

Japanese companies entering Morocco◆ around 50 companies already present◆ Morocco largest foreign employer

Morocco security, business environment◆ Safety information◆ Terrorist related information◆ Business environment evaluation◆ Foreign capital inflow trend

Investment environment in Morocco◆ Comparison of countries (wages, site fee, rent)◆ Comparison of countries (public utilities,
transportation costs)◆ Comparison of countries (corporate tax, income
tax, various taxes)

Morocco's trade trend◆ Major trading partners◆ Major trade items

Moroccan trade relations◆ FTA exceeding 50 countries, future
expansion◆ Effect of FTA (export)◆ Effect of FTA (Import)
Business challenges in Morocco◆ Bilateral agreement (investment, tax)
◆ Language wall
◆ Expatriate daily life infrastructure

Business environment in Morocco◆ Major export free zone in Morocco◆ Tanger Free Zone (TFZ)◆ Casablanca Finance City (CFC)◆ Kenitra Free Zone (AFZ)◆ Casablanca Free Zone (MIDPARC)

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Key points to better understand Morocco① Constitutionalmonarchy

Population

GDP
GDP growth rate

34,85 Million Person （2017）446 000 Km2 (about 1.2 times the size of Japan)(Around 710 000 Km2 with the Sahara)
103,6 Billion USD (2016 nominal value)
4.5% (2015) 1.1% (2016) 4.2% (2017)

GDP per capita

3,173 dollar (2017 nominal value)

Surface

Language
Japanese residents
Exchange rate

official language: Arabic, BerberEveryday/Business Language: French
372 people (as of October 2016)
1 US Dollar (USD) = 9.81 Dirham (MAD)(2016 average rate)① Civil affairs and society Stability② Strong security system③ long-term thinking for Policies andbusinesses④ Political democratization after the ArabSpring② Balanced
Diplomacy and AfricaOriented① Omnidirectional diplomacy② Share same religion and businesslanguages as West Africa③ King's religious authority④ Return to the AU (From Jan 2017)③ Successful ofindustrial promotion
and infrastructuredevelopment① Export industry: automotive, aircraft etc.
② Development of power plants (renewable,
LNG, etc.) using PPP④ Modernization ofagricultural sector① Necessity of stabilization of agriculture
sector
② Investment in the fishery industry(aquaculture industry, coastal fishery etc.)

Source: Morocco Higher Planning Commission, Morocco central bank, IMF,
Japanese Ministry of Foreign Affairs

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Economic scale and growth rate of Morocco (1)~ Steady economic management ~Morocco’s turbulence of economic growth is influenced by the agriculture and fishery industry (①), which isoriginally a growth potential of 4% (②)
7.6

180.0
160.0
140.0

8.0

②

①
6.0

3.3

3.0

60.0

52.1

59.6

62.3

68.6

79.0

92.5

92.9

4
3.1

2.7

40.0

4.2

3.8

80.0

20.0

4.6

4.5

4.2

3.5

100.0

6.0

5.2

4.8

120.0

7.0

5.9

106.8 110.1 101.2
93.2 101.4 98.3

1.2

109.8

121.0

129

4.1

4.5

4.4

137.7 147.1

157.1

4.5
167.8

5.0
4.0
3.0
2.0

103.6

1.0

0.0

0.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

名目GDP（10億米ドル）
Nominal GDP

実質GDP成長率
Real GDP(US $ 1 billion)

Items
Nominal GDP(US $ 1 billion)
Real GDP growth rate

2003

2004

2005

2006

2007

2008

2009

52.1
6.0

59.6
4.8

62.3
3.3

68.6
7.6

79.0
3.5

92.5
5.9

92.9
4.2

2010

2011

93.2 101.4
3.8
5.2

2012

growth rate

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

98.3 106.8 110.1 101.2 103.6 109.8 121.0 129.0 137.8 147.1 157.2 167.9
3.0
4.5
2.7
4.6
1.2
4.2
3.1
4.0
4.2
4.5
4.6
4.6

Source: IMF, World Economic Outlook Database, 2018

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Economic scale and growth rate in Morocco (2) - The impact of agriculture sector （③） GDP Growth and agricultural production (Morocco)
7.0
6.0
5.0
4.0
3.0
2.0

1.0
-

30.0
25.0
17.8
5.2
20.0
11.6
15.0
3.8
10.0
18.6
3.5
5.0
4.5
-2.3
4.2
3.0
4.5
6.7
1.1
-5.0
-11.3
2.7
Real GDP-10.0
実質GDP成長率-7.8
growth rate
-15.0
1.2
Agricultural production-20.0
農業生産成長率（実質値）-20.0
growth rate (real value)-25.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
5.9

23.9

 Morocco GDP growth rate and agricultural growth rate
are linked （ ③ ） The share of Morocco primary industry (including
fishery) as a percentage of GDP has been higher thanin neighboring countries (④), and the impact on the
country's economy is said to be high.

（④） Industrial composition of 3 Maghreb countries (relative to GDP)Year 2006
120.0

Year 2016
16.0

15.1

14.0

100.0
10.2

31.8

80.0

57.0
60.0
40.0

8.0

10.0

6.0

60.5

20.0

29.2

7.7

10.0

Algeria
アルジェリアMorocco
モロッコ

Tunisia
チュニジア

16.0
13.3
51.1

0.0

13.6
56.8

14.0
64.2

80.0

10.0

60.0
40.0

36.1

4.0
2.0

15.1

100.0

12.0

8.0

27.9

0.0

60.8

120.0

29.5

20.0
0.0

26.0

12.0
10.0

Tertiary industry
3次産業

8.0

Secondary Industry
2次産業

6.0

Primary industry
1次産業

4.0

Agriculture ratio
農業比率

2.0
12.7

13.6

Algeria
アルジェリアMoroccoモロッコ

9.8
Tunisia
チュニジア

Source: UNCTAD statistics (Maghreb 3 domestic industry composition), World Bank statistics (Morocco economic growth · agricultural growth)

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0.04

Morocco security and business environment, influx of foreign capital -comparisonwithAlgeriaand Tunisia Morocco has lower risk of terrorism than Japan （⑤）
Safety information of Maghreb countries

Maghrebcountires

FY 2017
Global terrorism index/GTI<Rank by Country>

FY 2017
World peace index/GPI<Rank by Country>

Morocco0.077<123/134>2.004<75/163>

Overall land：Level１

Algeria3.97<49/134>2.201<109/163>○ Algiers, Oran prefecture: Level 1○ Near the border and the southern desert region etc.: Level 3/Level 4○ Other areas : Level 2

Tunisia

4.619<41/134>

1.977<69/163>○ A part of the southern desert zone including the border zone ofAlgeria and Libya and Kaslyn province: Level 3○ Other areas: Level 2

5.964<23/134>5.102<35/134>5.429<32/134>5.543<31/134>
3.595<58/134>1.839<51/163>
1.786<41/163>
2.232<114/163>
2.242<116/163>
1.408<10/163>

FranceEurope
USA

UK
USA
China

Asian
coountries

Japan

⑤
Remarks

Source:MOFA of Japan
Overseas Safety Information－－－○ Xinjian Uighur autonomous region, Tibet autonomous region: Level 1－※For detail, refer to “MOFA Overseas Safety Homepage”
The degree of risk is valuated from 0
The degree of peace is evaluated in(low) to 10 (high); The higher the“Level 1”: Please be careful enough5 grades, and the number isterrorist risk, the higher the numerical“Level 2”: Stop traveling nonessential and nonurgent
smaller for peaceful countries.
value is.
“Level 3”: Recommendation to Stop traveling“Level 4”: Evacuation recommendation

Institute for Economics and Peace (IEP), Ministry of Foreign Affairs of Japan

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Morocco's Trade Trend (1)~ Major Trade Partners ~

⑥
⑥
⑦
⑧

⑧

 Spain and France are Morocco's biggest trading partners. Lately, trades with Spain have been further
strengthened with the development of domestic manufacturing industries like automotive（⑦）
 As domestic consumption markets expand, imports of Chinese products are increasing（ ⑧ ） Within the Islamic market area, Trade with Turkey has developed steadily thanks to FTA （ ⑨ ）Copyright©2018 JETRO All right reserved. 禁無断転載

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Morocco's Trade Trend (2)~ Major Trade Items ~⑨⑩⑪ Exports of automobile related items (finished cars / automobile parts) grew to be the country's
largest export items beyond phosphorus products (ore, acid, fertilizer)（⑨）
 Agriculture and fishery products are leading Morocco export items（⑩）
 The decline in crude oil prices contributes to a decrease in total imports Prices (decrease of thecommercial deficit). However, the Moroccan importations still depends on fossil resources（⑪）
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Morocco's Strategic Positioning (1) ~ Language, cultural affinity ~ Half of the African countries belong to the "French-speaking world" or "Islamic market" (A), theKing of Morocco has religious authority in West African countries and actively promotes African
diplomacy (culture, religion, business) (B) Since January 2017, Morocco returned to the AU (African Union) as a member.
A

Muslims area
French-speaking area.

B

Moroccancompaniesin Africa

Created by JETRO based on materials such as AMDI’s

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Morocco's Strategic Positioning (2) ~ Regional Hub ~Kenya
AirwaysＣａｉｒｏ

EgyptAirＣａｓａｂｌａｎｃａ
ＮａｉｒｏｂｉRoyal Air
Maroc

Created based on flight information ofairlines companies.

South African
Airways
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Ｊｏｈａｎｎｅｓｂｕｒｇ

9Morocco's Strategic Positioning (3) ~ Morocco as the Regional Hub ~ Royal Morocco Airways cover 31 city in 29 countries out of 54 African countries with direct flights
 Among these, the Moroccan’s doesn’t need an entry visa for 14 countries out of 29 countries. (Only 3 countries
for Japanese)Royal Morocco Aviation Regular Direct Flight to Africa Status
As of November 2016
Acquisition of immigration visa
Destination Country (29Countries)

Destination City
(31 Cities)

Number of Flights

MoroccanNo VISA required in
14/29 countries

Japanese
No VISA required in
03/29 countries

Destination country(29 countries)

Destination city
(31 cities)

Number of flights

Algeria

Algiers

7 flights per week (daily)

Unnecessary

Necessary

Mauritania

Nouakchott

6 flights per week (Mon ·Wed · Thur · Fri · Sat · Sun)

AngolaLuandaTwo flights per week (Sun · Thur)

Necessary

Necessary

Niger

Niamey5 flights per week (Mon ·Thur · Fri · Sat · Sun)

Benin

Cotonou

4 Weekly (Mon · Wed · Fri · Sat)

Necessary

Necessary

Nigeria

Lagos

Burkina Faso

ouagadougou

5 weekly (Mon · Wed · Fri · Sat ·Sun)

Necessary

Necessary

GuineaConakry

Yaounde4 Weekly (Mon · Wed · Sat)

Necessary

Necessary

Democratic Republic of
the congo

Kinshasa

Douala7 flights per week (daily)

Necessary

Necessary

CameroonBrazzaville
Republic of Congo
Pointe noire

4 Weekly (Mon · Wed · Fri· Sat)

SenegalDakar

20 flights per week (Mon 3 ·Tue 3 · Wed 3 · Thur 3 · Fri
3 · Sat 3 · Sun 2)

Necessary

Sierra Leone

Freetown

Four flights per week (Mon· Thur · Sat · Sun)

Necessary

Necessary

Chad

Ndjamena

Unnecessary

Necessary

Togo

Rome

Unnecessary

Necessary

Tunisia

Tunis

Necessary

Necessary

Liberia

Manravia

Unnecessary

Necessary

Canary Islands

Tenerife

Necessary

Necessary※Central african Republic

Bangui

Necessary

Unnecessary

Cape VerdePraia

3 flights per week (Tue, Fri, Sun)

Unnecessary

Necessary

Equatorial Guinea

Malabo3 flights per week (Tue, Thur,Sat)

Necessary

Necessary

Côte d'ivoire

AbidjanUnnecessary

Egypt

Cairo

Gabon

LibrevilleGambiaBanjul

Ghana

Accra

Guinea-Bissau

BissauKenya

Nairobi

Mali

BamacoTen flights per week (Mon 1 Tue
1 Wedn 1 Thur 2 Fri 1 Sat 2 Sun
2)Four flights per week (Mon · Thur
· Sat · Sun)
Four flights per week (Tue, Thur,
Sat, Sun)
Four flights per week (Wed · Fri ·Sat · Sun)Six flights per week (Tue, Wed,
Thur, Fri, Sat and Sun)
Four flights per week (Tue, Thur,
Sat, Sun)
3 flights per week (Wed, Fri,Sun)
8 flights per week (Mon 1 · Tue 1· Wed 1 · Thur 1 · Fri 1 · Sat 1 ·Sun 2)

5 weekly (Mon · Wed · Sat ·Sun)
7 flights per week (Mon 2 ·Tue 1 · Wed 1 · Fri 2 · Sat1)
3 flights per week (Wed,
Fri, Sun)
4 Weekly (Mon · Wed · Fri· Sat)

3 flights per week (Tue, Fri,Sun)
3 flights per week (Wed,
Fri, Sun)
14 flights per week (Mon 2 ·Tue 2 · Wed 2 · Thur 2 · Fri
2 · Sat 2 · Sun 2)
Five weekly (Mon · Wed ·Sat · Sun)
3 flights per week (Thur,
Sat, Sun)
3 flights per week (Tue, Fri,Sun)

※ No entry visa is required for tourist stay (1 month to 3 months)

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Japanese companies entering Morocco (1) - Around 60 Japanese Company  Since Morocco has excellent and inexpensive labor, Japanese manufacturing industry evaluates asa destination.

【Kenitra】
SEWS, Yazaki, Fujikura,
AGC, GESTAMP(Mitsui),FICOSA(Panasonic)【Tangier】
Denso, Sumitomo Wiring Systems,
Yazaki, Fujikura, Furukawa Electric,
Kansai Paint, JTEKTTANGERKENITRARABATCASABLANCA

Ain Sebaa【Ain · Seba】
YKK【Marrakech】
NASA Corporation【Agadir】
Maruha Nichiro,
Takasago
Industry,
Tottori Resource
Recycling【Rabat】
Embassy, JICA, Nippon
Koei, JETROMARRAKECHAGADIR【Casablanca and surroundings】
Mitsui & Co., Marubeni, Mitsubishi
Corporation, ITOCHU Corporation, Sumitomo
Corporation,
Sojitz, Amano, HIS, FujiFilm, Dentsu Drive, JT,
Yamaha, Disco, Sumitomo Wiring, Mitsui HighTech, Bridgestone, Mitsuba, CFAO(Toyota
tsusho), Nippon Express, Taichi holdings(Caution)• Only those confirmed by public information such as the Internet
are displayed• Including agencies of Japanese companies• The above includes business activities that do not involve
investment in Morocco or deployment of expatriate staff

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Japanese companies entering Morocco (2) - Contributing to local job creation in Morocco  In Morocco, it is well known that Sumitomo Wiring Systems is the largest foreign-owned employer
in the country.
Kansai Paint Maghreb
DENSO
YKK

MITSUBA

Fujikura
Sumitomo Wiring Systems

MITSUI&Co.

YAZAKI

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Investment environment in Morocco (1) - Comparison with each country (wage, land acquisition, industrial park rent, office rent) ~Morocco(Casablanca)

Thailande(Bangkok)

Spain(Barcelona)

Romania(Bucharest)

Turkey(Istanbul)

Egypt (Cairo)

Manufacturing worker(General worker)(Monthly)

263 ~ 880

344

1389 ~ 2726

547 ~ 768

420 ~ 4332

213 ~ 2356

Manufacturing, Engineer(Mid-level engineer)(Monthly)

871 ~ 2085

651

2828 ~ 4198

1030 ~ 1694

971 ~ 4993

317 ~ 4586

Manufacturing, middle
managers (manager
section class)(Monthly)

957~

1384

2675 ~ 7963

2025 ~ 2796

2855 ~ 10716

694 ~ 3652

Statutory minimum wage
(Monthly)

253

166

742

318

553 (Gross)437 (Net)

157

Nominal wage growthrate

2012: 3.2%
2013: 2.0%
2014: 2.4%

2012: 11.82%
2013: 8.82%
2014: 10.18%

2013: 0.2%
2014: 0.3%
2015: 0.6%

2013: 4.8%
2014: 7.6%
2015: 9.8%

2013: 7.3%
2014: 11.3%
2015: 7.9%

2012/13: 16.4%
2013/14: 24.9%
2014/15: 13.2%

Industrial park
Land purchase price(Per 1m²)

51 ~ 169

130

775

51

(Gebze industrialpark) 380 ~ 450(Tuzla industrialpark) 480 ~ 580(Public corporation development complex)
18 ~ 49(Private development park) 55 ~ 365

Industrial park
Land rent(Per 1m²)

0.62 ~ 0.72

6.37 ~ 6.92

4.34

4.35

(Gebze industrialpark) 0.8 ~ 1.2(Tuzla industrialpark) 1.2 ~ 1.5(Polaris industrial park) 4.19
(Suez Economic and Trade Cooperative Area)
1.96 ~ 2.23
(FTZ) 0.23 ~ 0.46
(Private real estate company) 1.31 ~ 15

Office rent (Monthly)(Per 1m²)

9.44 ~ 26

17 ~ 24

12 ~ 24

19 ~ 2028 ~ 38
18 ~ 24(Garden city area) 5.24 ~ 6.28
(Nasser city area) 3.01 ~ 7.59
(Heliopolis area) 5.24 ~ 6.15
(Dokki area) 3.93 ~ 6.02
(Mohandissin area) 4.45 ~ 5.24
(New cairo area) 22 ~ 40
(6 october area) 20 ~ 205

Item (Unit: US dollar, %)
wage

Land
Price,
Officerent,
etc.

Source: JETRO survey (2015 - 2016)

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Investment environment in Morocco (2) - Comparison with each country (public utilities, transportation costs) ~Item
UtilitychargesCommercial electricity
charge (per 1 kWh)

Morocco(Casablanca)

Thailande(Bangkok)

Spain(Barcelona)

Romania(Bucarest)

Turkey (Istanbul)

Egypt (Cairo)

Monthly basic
charge: ---Fee per 1 Kwh:
0.16 ~ 0.19

Monthly basic
charge: 8.64
per 1 Kwh:
(peak time): 0.14
(Off peak time):
0,07Monthly basic
charge: 4.41
per 1 Kwh: 0.12

Monthly basic
charge: ---Fee per 1 Kwh:
0.09

Monthly basic
charge: ---Fee per 1 Kwh:
Monthly fixed fee:
0.086
Metered rate.
0.087

Monthly basic charge: High voltage:
3.40* electricity amount of
maximum consumption of month oflast year
Medium voltage:
4.97 * Maximum power
consumption of previous year
Low voltage: ---Fee per 1kWh:High voltage:
Voltage for heavy industry) 0.05 ~0.07 (0.05)
For others: 0.03 ~ 0.05 ( 0.04)
Medium voltage:
0.05 ~ 0.07 (0.05)
Low voltage 0.03 ~ 0.08

Land
Price,
Officerent,
etc.

Commercial water
service charge

Monthly basic
charge: 1.75
Fee per 1m3:
0.93

Monthly basic
charge: 2.49
Rent fee per 1
m3: 0.26 ~ 0.44

Monthly basic
charge: n.a
Fee per m3:
1.85~

Monthly basic
charge: --Fee per m3:
0.23

Monthly basic
charge: --Fee per m3: 3.27
(For industrial use)

Monthly basic charge: ---Fee per m3: 0.3 ~ 0.37 (Forindustrial use)

Commercial gas price(Per unit)

Monthly basic
charge: --Fee per 1m3:
0.69

Monthly basic
charge: --Fee per 1kg: 0.66

Monthly basic
charge: 4.08
Fee per 1m3:
0.03

Monthly basic
charge: ---Fee per 1m3:
0.51 ~ 0.53

Monthly basic
charge: ---Fee per 1m3: 0.27
~ 0.32Monthly basic charge: ---Fee per 1m3:: 0.11 ~ 0.30

40 ft container transport(Export to japan)

1840

1114

1647

1817

1285

1350

40 ft container transport(Export to China)

1871

3020

1797

2270

2600

611

40 ft container transport(Import to japan)

4185

1047

2697

1807

3305

865

Source: JETRO survey (2015 - 2016)

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Investment environment in Morocco (3) - Comparison with each country (corporate tax, personal
income tax, remittance tax) ～Item (Unit: US dollar, %)Morocco(Casablanca)

Thailande(Bangkok)

Spain(Barcelona)

Romania (Bucarest)

Turkey (Istanbul)

Egypt (Cairo)TaxsystemIncome tax(Surface tax rate)

30%

20%

25%

16%

20%

Oil and gas
40.55%(Other thanthat) 22.50%

Personal income tax(Highest tax rate)

38%

35%

45%

16%

35%

30%

VAT - Value Added
Tax (Standard tax rate)

20%

7%

21%

20%

18%

10%

Interest remittance tojapan tax rate
(Highest tax rate)

10%

15%

10%

10%

Remittance from financial
deference: 10%
Others: 15%

20%

Dividend remittance tojapan tax rate
(Highest tax rate)

15%

10%

15%

10%

Capital ratio > 25%: 10%
Capital ratio < 25%: 15%

Exemption

Taxation on royalty
remittance to Japan tax
rate(Highest tax rate)

10%

15%

10%

Industrial usage fee: 15%
Cultural usage fee: 10%

10%

15%

Source: JETRO survey (2015 - 2016)

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15

Moroccan business environment (1) ~ Free zone (tax incentive preferential zone) ~Key Benefits (certification requirements: 7 to 80% sales
overseas ※ excluding financial free zone)

Subsidy system

 5-year corporate tax exemption, then 20 years reduction (corporatetax 30% → 8.75%)
 Income tax exemption for 5 years, 80% reduction for 20 years
thereafter Business tax exemption for 15 years
 Exemption of import duties, VAT exemption, corporate registration
registration expenses etc, Simplification of customs procedures Vocational training aid, etc.

 Subsidies of up to 15% of the investment amount (up to 30 million DH) are invested
in projects with a total investment of 10 million DH or more (including capital
investment 50%) for strategic industries such as automobiles, With subsidization rate: Land acquisition · Up to 10% of factory construction cost,
100% of land / factory rent, up to 20% of capital investment

Logistics, automotive &parts, fibres, etc.

Tangier Free zone
(TFZ)

Automotive &parts

Kénitra Free zone
(AFZ)

Aircraft parts electronic
machines

Casablanca Free zone
(Midparc)

Financialservices

Casablanca Finance City
(CFC)

Agriculture &fishery
processing
Agriculture& fisheryprocessing「Hassan II Fondation 」「Investment Industry Development Fund (Former Investment PromotionFund) 」
1) For ecosystem construction projects agreed with the Moroccan Government.In caseof:
「Locomotive Project」 is investment over 50 million DH (Before tax) or at least 200
permanent jobs creation, 「Contractor Project」 is at least 200 million DH (Before tax),「Project for engineering and R&D centers 」 is investment amount over 20 million DH(Before tax),or 50 permanent jobs creation. Based on the above conditions, Theadvantages are:up to 30% of the total investment amount (before tax), up to 10% of the additional
export turnover, up to maximum of 2% of the domestic purchase price, up to
maximum of 2% of the additional annual turnover(2) Invest an amount of at least 100 million DH or create at least 250 stable jobs
External infrastructure:5% of the overall investment program amount and can reach
10% when it involves investment in the spinning, weaving or textile embellishment
sectorReal estate support: up to 20% of land acquisition cost, infrastructure development
5% to 20% of Professional training expenses

Laayoune Free zoneDakhla Free zone

There are few countries where free zones are maintained in the African continent,
making them suitable for manufacturing, and the merit of the business environment
in Morocco stands out.
In developing Japanese market for Africa, it can be a gateway in terms of
manufacturing.
16

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Business environment in Morocco (2) - Tangier Free Zone (TFZ) 

Founded in 2000, TFZ is Morocco largest free zone. Adjacent to the European Continent at 14 Km of the Gibraltar Strait.
Freight trucks go round-trip by ferry transport between the straits, and virtually land with the European market.
The Tangier Mediterranean Special Agency (TMSA) has jurisdiction over the entire region, and Tanger Port Authority and Free
Zone Development Bureau are located under TMSA.



750 companies in the Tangier Free Zone moved in and have export sales of EUR 5.5 billion (as of 2017).



Since TMSA is a 100% government-owned public institution and has a legal personality (SA), it is also possible to establish a joint
venture with a foreign company (eg, establishing CIRES Telecom, a joint venture with the Paris Airport Authority of France and IT for
port facilities Expand service). TMSA has secured 3000 ha of development land in the Tangier region, of which 1,200 ha have beendeveloped.



In June 2017, JTEKT announced the establishment of an electric power steering plant in Tanger Automotive City.

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Morocco Business Environment (3) - Kenitra Free Zone (AFZ)  Founded in 2012. MEDZ Morocco Government financial institution CDG subsidiary MEDZ and Spain's industrial
estate development company EDONIA Corporation.
350 ha. Since the maintenance of the adjacent Kenitra Port is in the planning stage, it connects to Tanger,
Casablanca Port and Casablanca Airport by expressway and railway.
In 2018, a high-speed railway (LGV) between Tanger and Kenitra (200 km) will be opened.
 Peugeot Citroën Group (France) is constructing a Kenitra factory at AFZ. Scheduled to begin production of lowpriced cars for the Middle East Africa market by 2019. Initially planned to expand to 90,000, then to 200,000. In
addition, the plant produces engine parts.

 March 2017 AGC Asahi Glass began construction of automobile glass production factory in AFZ
Planned site of PSA factorywith INDUVER as a local partner.

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Morocco Business Environment (4) – Casablanca Industrial zone (Midparc) –Strategic location & optimal networking

Development programm

MidParc is lLocated in the urban commune Nouaceur,
30 km away from Casablanca, the park is spread overa 125 ha area and offers excellent networking by:

Midparc offers a development programm that will house : Airways (close to Mohamed V airport which serving more than 70
destinations throughout the world),
 Ports (Casablanca and Tangier Med)
 Railways and roads.

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Intelligent buildings ready for use: 1 200m², 2 400m² and 4 800m².
Other related services (living center, shops, a restaurant and hotel) : 5 Ha.
Production units: 68 Ha.
Logistics: 4 Ha.
Relay workshops: 3,6 Ha.
Green spaces: 10 Ha.

Competitive human resources The workforce is 6 to 8 times cheaper compared to Europe
 Each year, about 2000 persons get training in aeronautics, spaces, and electronics.
 Companies which start business in the park may benefit from a public training fund that
ranges from 2000 to 6000 euros per employee.

Advantages related to the free zone

Target Industries

In addition to the free repatriation of profits and capital , the exemption from VAT andcustoms duties, the incorporated firms in the Park will be exempt from the “IS” tax for 5
years and get a reduced rate of 8.75% during the following 20 years.

Temporary offices and business centers
Whether it be for an initial temporary period prior to the main buildings being set-up, or for
additional office requirements, Midparc can provide office space and meeting rooms callingon a flexible, practical system.

Start-up workshops
Midparc offers small temporary workshops for industrialists for the period following their decision
to move in and until their own personal buildings are available. These workshops are just rented fora few months to enable companies to receive, adjust and test machines, train teams, etc.

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Midparc platform targets the following industries: Aeronautics industry.
 Related activities: spatial, defence, security,etc.
 Other future industries: medical, onboard
Electronics, etc.
 Industrial logistics.
 Other services to support industry:
maintenance, consultancy firms, businesscentres, etc.

Source: MEDZ, Midparc

19Morocco Business Environment (5) - Casablanca · Finance · City (CFC) 

Founded in 2010, Free zone for financial services granted various CFO status by giving CFC status to financial institutions (banks,
insurance etc.), law firms, auditing firms, temporary staffing, regional headquarters of multinational companies, holding
companies, etc.



In April 2017, Marubeni acquired the CFC status for the first time in a Japanese company. Several other Japanese companies are
considering use.



It is expected that the use of CFC by foreign companies will increase with the development of French-speaking African economies
such as West African countries.
CFC Holders (Example)

AIG, BNP PARIBAS, SOCIETE GENERALE, PWC, Roland Berger, Bank of
China, Coface, MoneyGram, MasterCard, Ford, DECATHLON, HUAWEI,ACCOR , AFRICA 50 , Shell
Key Benefits(Conditions for certification: This is the above target industries, not to sell)· Professional services are exempted from corporation tax for 5 years, thenreduced for 20 years (Corporate tax 30% → 8.75%), the regional headquarters
has 10% reduction tax from the first year
· Personal income tax can be set to 20% uniformly for the first 5 years, thennormal tax rate, or standard progressive taxation (Max 38%) from the first year

Casablanca Finance City （CFC）· No restriction on employment of foreigners, shortening procedures for
permission to work · stay (Within 2 weeks)

Completed projection drawing· No foreign currency regulation (Opening of foreign currency account OK)

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Morocco's trade relations (1) - concluded a free trade agreement with 51 countries, signing with
African countries ~Morocco - Canada FTA(Under negotiation)

Morocco - EU
Association Agreement(Effective in 2000)
EU 28 countries

Morocco - European Free Trade
Cooperation (Effective in 1999)
Switzerland, Norway, Iceland,
Liechtenstein (4 countries)

Morocco - Turkey
FTA(effective 2006)

Agadir Agreement(Effective in 2007)
Tunisia, Egypt, Jordan(3 countries)

Morocco - US FTA(effective 2006)

Morocco - West African Economicand Monetary Union (UEMOA) FTA(Already agreed)
Benin, Burkina Faso, Cote d'Ivoire,
Guinea-Bissau, Mari, Niger,
Senegal, Togo (8 countries)

Morocco - Central African Economic andMonetary Community (CEMAC) FTA(Under Negotiation)
Cameroon, Central Africa, Congo,
Gabon, Equatorial Guinea, Chad (6countries)

Large Arab Free Trade Area Agreement(Effective in 1998)
UAE, Algeria, Yemen, Iraq, Egypt,
Oman, Qatar, Kuwait, Saudi Arabia,
Syria, Sudan, Tunisia, Bahrain,
Palestine, Libya, Lebanon, Jordan(17 countries)

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Business issues in Morocco
Currently, "tax treaty" and "investment agreement" have not concluded between Morocco and Japan(* Since the Japan-Ala Economic Forum, has the discussion progressed to conclude an investment
agreement?)
Therefore it is necessary to bypass other countries for entry into Morocco to avoid double taxation(Dubai, UK, France etc.)

Because of the Moroccan tax law, there is no concept of a representative office, expatriate dispatchingalso cost high(10% of office expenses is deemed as deemed profit, corporate tax imposition, exceptional personal incometax) Although Morocco is a French speaking country, English is acceptable on the practical level, and there arealso English speaker staff.
However, depending on the type of industry, French language is the center of practice.
In addition, the preference of the domestic consumer market seems to be close to Europe (Latin series?).
Local Japanese society is underdeveloped, there are difficulties in the lives of expatriate families(education, medical care)
French or Arabic is desired in daily life.

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Thank you for your attention.
JETRO Rabat Office
ジェトロ・ラバト事務所(Note)※ All rights reserved.
※ JETRO made every effort to ensure the accuracy of the posted information, but please be sure to verify the accuracy of the information
before using them. JETRO shall not be responsible for any inconvenience caused by the use of information provided to you through thismaterial.
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