Foreign direct investment dropped to17.4 billion Moroccan dirham in the first nine months of 2009, reports Carolyn Cohn for Reuters.

"For 2010, we believe FDI will come back to the same level as 2008, at around $4 billion," Morocco's Economy and Finance Minister Salaheddine Mezouar told Reuters through an interpreter on the sidelines of a Morocco investment forum.

Morocco saw record FDI of around $4.5 billion in 2008.

The government expects the economy to grow 3.5 percent next year, compared to 5.3 percent this year when a record grain harvest boosted farm incomes and domestic consumption, and 5.6 percent in 2008.

Mezouar said the lower growth forecast for 2010 was due to lower expectations in the agricultural sector.

"In the non-agricultural sector, our forecast is for a 4.4 increase," he said.
Mezouar said Morocco planned to issue a Eurobond next year.

"That is something envisaged for 2010 -- we are preparing the groundwork. Conditions are improving in emerging markets," he said.

Morocco's treasury director, Zouhair Chorfi, said the bond would likely be denominated in euros.
"We will examine the conditions, we will probably issue in euros," he told Reuters, speaking through an interpreter at the same interview.

Chorfi said the size and maturity of the bond had not yet been decided.

"All the major banks are always getting in touch with us to see if we want to issue a bond," Chorfi said.
Banking specialists in the Eurobond market have said Morocco and other rated North African sovereigns could be in a strong position to launch Eurobonds next year.

Morocco has an investment grade rating of BBB- from ratings agency Fitch, but sub-investment grade ratings from Moody's and Standard & Poor's.