Doing Business in Morocco: 18+ Pros and Cons (You Must Know)

The Realm of Morocco provides many opportunities for international investors and businesspeople. A famous place for visitors, Morocco is home to stunning scenery, sunny temperatures, and beautiful historic buildings and heritage.

The powerful tourism industry and thriving economy in Morocco are gaining a growing number of business companies in Morocco. Listed are some of the major pros and cons of doing business in Morocco.

Benefits of Doing Business in MoroccoThe Drawbacks of Doing Business in Morocco
Workers costs are relatively lowhighly collectivistic country
Relief from bank fundsConnections are Vital
The workforce is highly skilled and talentedPurely Islamic
Freedom from legal doingsDirect Confrontations
A large number of foreign investorsRigid Traditions

Advantages of Doing Business in Morocco

  • Proactive International Market

Over the last several decades, Morocco has worked very hard with the aid of international bodies such as the World Bank and the IMF to improve its economy. Now accessible to the global market, the country is the largest trading nation for France and Spain.

Morocco’s GDP has steadily risen by nearly 4.5 percent annually since 2000, which is a bigger win than most European nations. Communications systems and other IT infrastructures are growing rapidly and the network consists of nearly 100 percent fiber optics connexions in major cities, giving Morocco a modern and creative edge.

  • Great Location for Transnational Merchandise

Morocco shares similarities with Algeria, the northern The Atlantic Ocean, and Western Sahara. The north coast of Morocco is on The Mediterranean Sea, a short distance from Spain and France which makes it easier to enter Europe.

With about 1,835 kilometers of coastline (CIA Factbook) Morocco is a great spot for transnational merchandise ships. Morocco has 24 ports that handle the country’s external trade for 98 percent.

  • Skilled and Talented Labour Force

King Mohammed VI and his government have made education one of their goals and, since 2005, have implemented policies to modernize and increase the standard of education. There are many high-ranking universities in Morocco that have formed main partnerships with Canada and European schools.

These developments in the field of education generate new opportunities for international investors, as they now have a more professional workforce on which they can rely on when setting up business operations or exporting to Morocco.

  • Peace and Stability from the Government Sector

Morocco has been going through a prolonged period of peace and prosperity since the nation gained its independence from France in 1954.

Since then subsequent regimes have concentrated on improving Morocco’s and its citizens’ economy and welfare. This prosperity is encouraging for foreign investors, as there is less chance of a military takeover, unrest, or political turmoil jeopardizing their investments.

  • The Workforce is Available at Lower Rates

One of the main benefits Morocco has as a destination for investment is financial: wages are relatively low. The industry and trade sectors’ minimum hourly wage is 12.85 dirhams per hour ($1.52 USD) for a 44-hour working week which makes it a minimum wage of $266 USD per month.

The average salary in the service sector is about $590 USD per month. Corporations also have to make fees to social security, which are higher than in Tunisia and Egypt.

To give you an idea, about 22 percent of social security contributions are withheld annually against a tax burden of 23 percent for a monthly salary of $590 USD. Employers are expected to enter the National Social Security Fund (NSSF) within 30 days of recruiting their first employee and report to each of their employers the monthly salary they pay and the number of days employed.

Employees also benefit under some circumstances from mandatory health insurance (AMO) and the health-care package (RAMED).

  • Foreign Direct Investment

Morocco is the North African representative in FDI. Morocco has benefited from historical links and close proximity to Western Europe, a pragmatic FDI policy, and having more qualified workers available relative to other developed markets.

Investing in the fast-growing African continent is being increasingly seen as an attractive path for US and European investors. This is due to its secure market climate and facilities of support combined with strong air connexions to many other African countries.

Disadvantages of Doing Business in Morocco

  • Challenging Nation

Morocco is known for being a highly collectivistic nation. That is something that can pose a challenge while doing business in Morocco.

A typical Moroccan family, which includes children, parents, grandparents, aunts, uncles, and cousins, is very large. The father appears to work the hardest to support the whole family and each family member has his own unique duty to help the well-being of the family.

  • Business Dealings on the Basis of Relationships

It is vital to anyone who does business in Morocco that is directly linked to Moroccan collectivist attitudes, relationships, and connexions.

Suppliers and prospective customers are more willing to approve contracts with people they already know, and maybe a shortcut to success if they are introduced by agents or third parties.

As a result, doing business in Morocco can be more time-consuming and frustrating for people who come from an approach that encourages efficiency over relations.

  • Islamic Religion is Practiced Fully

Islam is practiced by the vast number of Moroccans and affects every aspect of Moroccan life. Foreigners doing business in Morocco should be aware of the time allotted to praying or other religious ceremonies like Ramadan when economic growth and company slow down in the nation.

Islam often impacts relationships between people so female entrepreneurs must be aware of proper behavior and attire while doing business in Morocco.

  • Criticisms

In Arabic countries, the definition of the face is truly important and Morocco is no exception. Damaging the reputation or honor of your counterparty and causing it to lose face would seriously damage your business opportunities in Morocco. It is important to avoid harsh criticism, constructive reviews, or direct conflict at all costs.

Intercultural training programs such as Doing Business in Morocco or actually living in Morocco can help you and your company avoid fake passes in society and solve the main business challenges in Morocco.

Customized cross-cultural approaches and methods provided in cross-cultural training will allow for greater successful contact and connections while doing business in Morocco.

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