Morocco's Rising Appeal for Foreign Investment
Morocco is increasingly establishing itself as one of the most attractive markets for foreign investment in Africa, driven by a strategic focus on industrialization, energy transition, and economic stability. According to the World Investment Report 2026 by the United Nations Conference on Trade and Development (UNCTAD), the Kingdom attracted $3.33 billion in foreign direct investment (FDI) in 2025, marking a remarkable 91% increase compared to the previous year. This positions Morocco among the few countries on the continent to record significant growth in international capital flows. Concurrently, statistics from the Office of Foreign Exchange indicate a historic record of 56.1 billion dirhams in FDI revenues during the same period.
These outcomes are the result of a long-term strategy that has enabled the Kingdom to establish itself as a key industrial and logistics hub between Europe and Africa. The expansion of sectors such as automotive, aerospace, renewable energy, and electric battery manufacturing has attracted investments from major international groups. Strategic projects like the Gotion gigafactory in Kenitra and the COBCO industrial complex in Jorf Lasfar reinforce Morocco's commitment to electric mobility and the green economy, making it one of the primary African destinations for industrial and sustainable investment.
Moreover, the country's attractiveness is also a result of reforms aimed at improving the business climate. The new Investment Charter, alongside a stable legal framework, specific incentives for strategic projects, and modernization of logistics infrastructure, has bolstered the confidence of international investors. In 2025, the National Investment Commission approved 44 projects valued at over 86 billion dirhams, distributed across ten regions and with the potential to create over 20,000 jobs, reflecting the growing territorial and sectoral diversification of investments.
As reported by es.le360.ma.
Legal Framework and Economic Stability as Key Drivers
The record results achieved by Morocco in foreign direct investment are not coincidental. The growth in capital flows stems from a strategy developed over more than three decades, based on institutional stability, a business-friendly legal framework, gradual economic liberalization, and an industrial policy aimed at integrating the Kingdom into global production chains. Successive reforms have created an environment that offers investors legal security, financial facilities, and privileged access to both European and African markets.
One of the primary factors explaining Morocco's appeal is the legal security it provides to international operators. Since the 1990s, the Kingdom has undertaken a comprehensive modernization of its commercial legislation to align it with international standards and facilitate the establishment of foreign enterprises. The reform of the Commercial Code, the updating of company law, and the enactment of a new Investment Charter emphasizing non-discrimination in investment have all contributed to a more transparent and competitive environment. Particularly, Law 17-95 regarding public limited companies, subsequently amended by Law 20-05, has strengthened shareholder protection, modernized corporate governance standards, and introduced mechanisms to ease access to capital markets and the internationalization of Moroccan companies.
Additionally, Morocco has established an extensive network of international guarantees aimed at reducing the legal risks associated with foreign investments. The Kingdom is a member of the International Centre for Settlement of Investment Disputes (ICSID), an entity of the World Bank Group responsible for resolving disputes between states and foreign investors. It is also part of the Multilateral Investment Guarantee Agency (MIGA), which specializes in political risk coverage, and has ratified the 1958 New York Convention, which facilitates the international recognition and enforcement of arbitral awards.
Furthermore, Morocco has signed numerous bilateral investment protection agreements and treaties to avoid double taxation with various countries across Europe, Africa, the Americas, and Asia. Collectively, these instruments guarantee foreign investors non-discriminatory treatment and protection against risks such as nationalization or expropriation, except in cases of public utility and with appropriate compensation.
The OECD considers this legal framework to be one of the main elements explaining the growing confidence of international investors in Morocco. It also recognizes that Morocco has a modern and favorable legal framework for foreign investment, although it recommends further reforms to enhance its attractiveness. These include removing restrictions affecting certain service sectors, expediting the implementation of the new Investment Charter, strengthening public consultation mechanisms, and providing greater legal protection against expropriations in line with international standards.
In conclusion, Morocco is not only a favorable destination for foreign investment due to its incentives and legal framework but also because of its coherent economic strategy that combines macroeconomic stability, world-class infrastructure, trade openness, legal security, and an industrial policy focused on high-value-added sectors. The evolution of investment flows in recent years confirms that the Kingdom has not only succeeded in attracting more foreign capital but has also positioned itself as an industrial and logistical platform between Europe, Africa, and the Middle East. The current challenge is to transform this investment dynamism into greater technological development, increased local content in production chains, and the creation of skilled jobs, thereby solidifying sustainable long-term growth.
