Morocco Promoting Foreign Direct Investments

Addressing the 2nd session of the Business, Investment and Development Commission of the United Nations Conference on Trade and Development, he said world economies are confronted with an unbridled globalization, bringing about an array of opportunities which inadequately speeds up the evolution of world economy and hinders several developing countries from following the pace of ongoing processes.

The implementation of an efficient strategy in terms of Foreign Direct Investment requires a well-defined, coherent and coordinated development project, Hilale said.

Morocco is committed to strengthen the competitiveness of its economy, he said, stressing that the demonopolization process has led to the liberalization of several key economic sectors.

The Moroccan diplomat recalled that the Kingdom, since the entry into effect of the WTO's agreements in Marrakech in 1995, has adopted a regional strategy to promote FDIs along with a sector-based strategy centered on delocalization.

E-regulation is another means to promote investments by helping businessmen get online access to the procedures necessary to start their business, he said.

Hilale stressed Morocco's strong will to promote the business climate notably through decentralized management.

It is worth mentioning that the economic policies pursued since 2003 by King Mohammed VI have brought macroeconomic stability to the country with generally low inflation, improved financial sector performance, and steady progress in developing the services and industrial sectors.

The National Initiative for Human Development (INDH), a $2 billion initiative launched by the King in 2005, has improved social welfare through a successful rural electrification program, an overhaul of the tourism and agriculture sectors, and the gradual replacement of urban slums with decent housing.

A record agricultural harvest, strong government spending, and domestic consumption, however, combined to offset losses from weak exports and helped GDP grow by 5.1% in 2009. Despite structural adjustment programs supported by the IMF, the World Bank, and the Paris Club, the dirham is only fully convertible for selected transactions.

In 2006, Morocco entered a Free Trade Agreement (FTA) with the US, and in 2008 entered into an advanced status in its 2000 Association Agreement with the EU.