Morocco is a state located in the north-west of North Africa with a population of nearly 33 million inhabitants. Morocco has for a political regime a constitutional monarchy of which the sovereign is King Mohammed VI. The Moroccan legal system is based on civil law. While some sections of Moroccan law, notably family law, are Muslim in inspiration, business law is radically free of them.
Morocco has a strategic geographical position, which is located on the Mediterranean border, at the junction between Africa and Europe. Thanks to the various free trade agreements signed with several geographical zones (Arab countries in 1998, European Union in 2000, Mediterranean Arab countries in 2004 and USA in 2004), Morocco offers all its trading partners and investors access to a market of more than 1 billion consumers in 55 countries that account for about 60% of global GDP.
Political and economic stability, voluntarism of reforms (administrative, customs, banking, etc.), cost competitiveness, targeted and legible sector strategies, massive investments in robust infrastructures, favorable business climate, strong and stable economic fundamentals: Factors that allow Morocco to offer a value proposition relevant to its trading partners and investors and which have made it possible to raise Morocco to one of the most attractive countries in terms of FDI on the African continent. It is the third largest African country to attract the most investment in 2014, behind South Africa and Egypt.
Morocco wishes to take advantage of its privileged geographical location and its relations with its European, American, Middle Eastern and Mediterranean trading partners to position itself as an economic and financial hub for the African continent. This is evidenced by the recent implementation of the Casablanca Finance City Authority (CFCA), a financial platform that aims to attract foreign investors and provide them with an infrastructure and advantageous conditions enabling them to optimize the profitability of their investments in Projects in North Africa, West and Central Africa.
The rules described in this guide may be modified in their application or interpretation. This memorandum has been prepared by Baddou Fassi-Fihri & Rabillardforpotential investors who have interests in Morocco. It is intented to provide an overview of certain legal issuesthat should be considered when doing business in Morocco.
This memorandum does not constitute legal advice nor it claim to provide for every legal issues. It only stresses key legal issues that the firm believe it is relevant to a potential foreign investor in Morocco.
The rules set forth is this guide may be subject to amendments in application and interpretation.