Foreign direct investment in Morocco has undergone a significant change in the past year, with American investments have surpassed French investments in terms of net flows.
This shift highlights the substantial impact of the strategic partnership between Rabat and Washington, particularly evident in former President Trump’s recognition of Morocco’s sovereignty over its desert in 2020.
According to data from the Office des Exchange, US investments have increased from 436 million dirhams in 2020 to 7.4 billion dirhams in the latest data, while French investments were at 3.2 billion dirhams. However, France remains the largest holder of foreign capital in Morocco, with about 31 percent of the total.
Financial analyst Tayeb Aaeis told MoroccoLatestNews AR that this change is unprecedented and attributes it to a shift in Morocco’s economic strategy.
He explains that American interest focuses on quality investments, particularly in strategic sectors like metallurgy, water projects, technology, and renewable energy, including hydrogen projects in Sahara regions.
This shift is not limited to economics but has broader implications. It signifies a move towards a more pragmatic American economic model, away from the traditional French approach. It is also a reflection of Morocco’s growing visibility on the American radar, fueled by Trump’s recognition of Moroccan sovereignty.
Aais emphasizes the importance of modernizing Morocco’s legal and institutional framework to attract and facilitate foreign direct investment. Adapting to this evolving landscape will be crucial to maximizing the benefits of this transformation.