Top Five FDI Countries in Morocco in the First Semester of 2021

Morocco, strategically located less than a few hours from Europe, is one of the most dynamic countries in the African continent.

The Moroccan Foreign Exchange Office explains that  FDI revenue were established at $2.7 Bn at the end of October 2021 against $2.4 Bn in the same period of the previous year, thus marking an evolution of 12.6%

In value terms, this increase translates into an additional ($300 Million)

It should be noted that FDI revenue showed a greater trend for the first ten months of the year than those in expenditure. The latter were only consolidated by $84.8 million, rising from $0.9 Bn to $1 Bn dirhams in one year, an increase of 9.1%. It should be noted that foreign direct investment suffered a hard blow throughout 2020, given the pandemic context that marked this year.

There has been a double-digit drop in recent months. A situation that lasted until the end of March 2021. It was indeed only in April that FDI took off again, marking an increase of 12% year-on-year. In the first half of the year, foreign direct investments in Morocco amounted to $1.04Bn, up 5.4%. The breakdown of this flow by country highlights France as the leading investor country.

1- France

France as the leading investor country, with an additional $0.4Bn at the end of June 2021.

2- United Arab Emirates

FDI from the United Arab Emirates comes in second. An additional flow of $0.16Bn was recorded for the first six months of the year against $102Million recorded in 2020.

3- Luxembourg

The third position goes to Luxembourg with a flow of FDI of around $94.9 Million in the first half of the year, a slight improvement compared to 2020 of $89.4 Million.

4- Netherlands

FDI from the Netherlands to Morocco, for its part, went from a negative balance of $-23Million to an inflow of around $53.45Million.

5- Spain

Arriving at the fifth position in the ranking of countries of origin, Spain saw the flow of its FDI to Morocco down compared to the level reached in 2020. An additional $51.3million was recorded at the end of June against $0.15Bn in 2020.

6- Ireland

FDI for Ireland in Morocco amounted to $43.8Million

7- United Kingdom

From Great Britain it amounted to $39.9million.

8- United States

The flow of investments from the United States also amounted to $39.9million against 47.5 in 2020. 

FDI Flow by Sector

By analyzing the net flow by sector, it appears that manufacturing industries contributed $0.35Bn in FDI in the first half of 2021. Real estate activities come in second with a net flow of $0.3Bn at the end of June 2021, followed by financial and insurance activities. They saw their flow reach $0.13Bn  at the end of June against $0.3Bn a year earlier. As for FDI injected into agriculture, forestry and fishing, there is a net flow of around $79.6Million. That of electricity, gas, steam and air conditioning fell from a negative balance of $72.7 million in 2020 to a net flow of $21.9million. The flow of FDI in the construction sector amounted to $22.1 Million in the first half of the year compared to $40.7Million in 2020.

These figures were all sourced from the Moroccan Foreign Exchange Office and converted from Moroccan dirham to the US dollar, brought to you by ARKAD Plus, created to facilitate Foreign Direct Investments into Morocco.