MOURAD LAYACHIEMBASSY OF THE KINGDOM OF MOROCCO, WASHINGTON DC

MOROCCO - USAOPPORTUNITIES TO EXPLOIT

Area : 710 850 sq km and more than 3,400 km of coastlines ( Atlantic

Ocean and Mediterranean Sea )

Population : 32million inhabitants (2007).

Urban Population : 55%

Labor Force (over 15 years old) : 11 million

Currency : Dirham (1 US$ = 7.54 Dh )

Morocco in few words

A macroeconomic stability:

An accelerated growth of the economy :

4,4 % : average growth rate during the period 1998 – 2007

5,4% : average growth rate during the period 2001 - 2007

8,1% growth rate for 2006

Controlled inflation : 1.7 % (average)

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1

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1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Evolution du taux d'inflation (en %)

1,7% en moyenne

A modern State

A democratic system Constitutional monarchy Bicameral Parliament Political and trade-union freedom

Human resources in the heart of the development The national initiative of human resources development Large social programs : housing , health ,

education/formation, poverty fight.

A reinforced socio- economic framework Modern laws and codes A renovated legal system ( Commercial courts,invest

charter …) Simplified procedures

60,000 Km of roads and an expansion program of 1,500 km per year

More than 600 km of highways already in service and a fixed objective of 1,500 km to achieve by 2010

A Mediterranean Bypass of 550 km for the promotion of the Northern regions development

11 airports today in service and a program of enlargement of 5 international airports by 2010

More than 2,500 acres for the Tangier – Med Harbor which is seen as the new Mediterranean Hub

Opportunities : A structuring space

Tap Water (2004-2008) 2.36 Billion US$

Electric Energy (2004-2007) 1.9 Billion US$

Bouregreg Valley 1.8 Billion US$

Highways : 2000 km in 2009 1.8 Billion US$

Tangier – Med Harbor (2004-2007) 1.2 Billion US$

Mediterranean Bypass 427 km in 2009 0.6 Billion US$

Industrial zones 4,000 acres in 2008 0.6 Billion US$

Railways (2005-2009) 1.8 Billion US$

Airports (2004-2008) 0.35 Billion US$

Important Projects 13 Billion US$

Opportunities : A structuring space

Telecommunications:

- opening of the capital of “Maroc Telecom” ( 51% owned by Vivendi) and today rated in the Stock Exchange ( 14% of the capital)

- attribution of the second mobile licence ( to “Méditel”)

- attribution of the third phone licences

Energy : more than 60% of the production done by the private sector

Harbor’s management : Tangier – Med

Industrial zones : TFZ, SAPINO(industriel zone nouacer), etc.

Public services outsourced ( water, electricity, waste collection, etc.)

Opportunities : Opening the infrastructure to the private sector

Opportunities : Improvment of social indicators

A LARGE PROGRAM FOR HOUSING

A construction’s schedule of 100,000 residences per year

Objectives: to build 140,000 residences/year from 2007

A program for economic villas and cottages : 17,500 units by 2010

Construction of 6 new cities by 2010

Industrialization of the building process

THE “AZUR” PLAN FOR TOURISM PROMOTION

Objectives to achieve by 2010:

230,000 beds Accommodate 10 million visitors

Creation by 2010 of 6 new seaside resorts all around the country :

Lodging capacity : around 110,000 beds Surface assigned to the projects : 8,300 acres Investment of more than 5 billion US$

Opportunities : A tourism strategy for 2010

The Eastern Coast, less than 6 days far

Morocco : Gateway to Arabian – Mediterranean Countries

Morocco : a platform in the crossroads of continents

Just In Time delivery to Europe

A liberalization of the Moroccan economy by the conclusion of several free trade agreements

Duty free access to a market of more than 1 billion consumers

Strengthen the traditional market

Extend the domestic market (automotive case)

Euro Mediterranean integration / cumulation of origin ( textile case)

EU Agreement(1996) EFTA Agreement (2000)

Agadir Agreement(2004) Arab League Agreement (1998)

Turkey Agreement (2004) Romania Agreement

(on process)

Morocco : An investment and export’s platform

Regional distinctivenessUSA Agreement (2004)

Exemption of custom duties for 97 % of the current Moroccan exports

Morocco – USA FTA

Textile products

Exemption for a category of products with strong potentials (American duties going up to 40%) and offering possibilities to export

Industrial products except

textile

Morocco : An investment and export’s platform

Agro-alimentary products

Immediate access to the American market for around 81% of Moroccan agro-alimentary products :

- Caned olives - Olive’s oil

- Tomato’s powder - Caned caper

- Frozen fruits and vegetables

Seafood products and caned fish

Immediate exemption of custom Immediate exemption of custom duties for all seafood products and duties for all seafood products and caned fish, caned fish,

Morocco – USA FTA

Morocco : An investment and export’s platform

Leading U.S. exports to Morocco include Leading U.S. exports to Morocco include aircraft, soybeans, corn, and wheataircraft, soybeans, corn, and wheat. . Total U.S. merchandise exports to Morocco Total U.S. merchandise exports to Morocco reached $2.34 billion in 2007reached $2.34 billion in 2007, which, , which, compared to compared to $878 million in 2006$878 million in 2006, represents an impressive increase of 53 , represents an impressive increase of 53 percent. In 2004, U.S. merchandise exports totaled $percent. In 2004, U.S. merchandise exports totaled $524 million in 2004524 million in 2004; hence, a ; hence, a gain of 157 percent occurred over three years.gain of 157 percent occurred over three years.

The most export product from Morocco wereThe most export product from Morocco were::- Electrical machinery: – Woven apparel: – Preserved food: – Knit apparel: – Fats and oils: – Shoes: - fruits and nuts:

The most significant export sectors The most significant export sectors from US to Morocco were cerealsfrom US to Morocco were cereals (31 (31 percent);percent); aircraft aircraft (12 percent); (12 percent); and mineral fuel, oil, and other related and mineral fuel, oil, and other related productsproducts (11 percent). (11 percent).

Some U.S. states have seen tremendous growth in their exports to Morocco, Some U.S. states have seen tremendous growth in their exports to Morocco, including Wisconsin (505 percent), Ohio (411 percent), Texas (345 percent), including Wisconsin (505 percent), Ohio (411 percent), Texas (345 percent), and Virginia (319 percent).and Virginia (319 percent).

Morocco: Growth ForeseenMorocco: Growth Foreseen

Selected New American Investments in MoroccoSelected New American Investments in Morocco

Colony CapitalColony Capital,, an investment fund specialized in tourism, an investment fund specialized in tourism,is to invest up to is to invest up to $$1.1 billion1.1 billion over 10 years in the Taghazoutover 10 years in the Taghazout(Agadir) beach resort site. The project, in partnership with a(Agadir) beach resort site. The project, in partnership with aSpanish firm, will generate 9000 direct & 45,000 indirect jobSSpanish firm, will generate 9000 direct & 45,000 indirect jobS

• • Minco Minco (electronic components) is building a (electronic components) is building a $17 million$17 milliontemperature sensor production unit near the Casablancatemperature sensor production unit near the Casablancaairport, creating 250 direct and indirect jobs. Minco plans toairport, creating 250 direct and indirect jobs. Minco plans totransfer its flexible heater coils technology to the site in 2008transfer its flexible heater coils technology to the site in 2008

• • Fruit of the LoomFruit of the Loom is investing is investing $162 million$162 million in new andin new andexpanded production units. The FTA between Moroccoexpanded production units. The FTA between Moroccoand the United States was a key factor in this investmentand the United States was a key factor in this investmentdecision, which should generate 1150 jobsdecision, which should generate 1150 jobs

• • Octogone HotelsOctogone Hotels (Terre Resort & Spa) has constructed a(Terre Resort & Spa) has constructed a9 million9 million four-star hotel in Marrakech. The Terre Resortfour-star hotel in Marrakech. The Terre Resort& Spa hotel is the first in a chain of eight to be built over& Spa hotel is the first in a chain of eight to be built overthe next three yearsthe next three years

Plan Azure

Crafts

Sea products processing Textiles

Industrial outsourcing

Agro-industry

Offshoring

Emergence Program

Emergence Program/Sectors

• Target branches

• 3 branches(banking and insurance )

• 6 functional branches (customer services, accounting & finance, human resources)• 3 IT branches : application and infrastructure management, Help desk

• Target markets

1- Francophone countries:• France• Belgium• Switzerland

2- Spain

Development of the Moroccan Global Know-how

Offshoring and Information Technologies

Example : DELL in Casablanca

• CasaShore• Rabat Technopolis• TangierShore

Offshoring

(de-localization of administrative and data- processing services)

Casablanca

Rabat

Offshoring zones and IT

Agadir

Gharb

Agadir

TangierTangier

Laayoune

Dakhla

Meknes

Nouacer

Opportunities : Emergence program

In 1999, only 2 companies working in this sector

In 2005, the sector reached a turnover of 120 million US$ : 3000 jobs, some 30 companies already established and a dozen on process

- EADS - BOEING - SAFRAN

Objectives by 2015 :

- 500 million US$ of exports

- 15,000 jobs

AN EMERGENT POLE

Aeronautics

Created in 2001 Joint Venture between RAM & Boeing, and Labinal (Snecma)

Created in 2005 Joint Venture between

RAM & Alteon, a Boeing wholly owned subsidiary

Industrial Partnership

MATIS AerospaceMATIS Aerospace

Launched in 2001, MATIS is a JV between Boeing, Launched in 2001, MATIS is a JV between Boeing, Royal Air Maroc and LabinalRoyal Air Maroc and LabinalManufacture of wire bundles for the 737, 757, Manufacture of wire bundles for the 737, 757, 767, 777, 747 airplanes767, 777, 747 airplanesExpand to support aircraft engines and rail mass Expand to support aircraft engines and rail mass transit applicationstransit applicationsAwarded the majority work-statement to Awarded the majority work-statement to manufacture the 787 wiringmanufacture the 787 wiringEmployment has grown from 75 to a forecast of Employment has grown from 75 to a forecast of 500 in 2006500 in 2006

With the FTA in place, JVs will be easier With the FTA in place, JVs will be easier to establishto establish

Mediterranean Maquiladoras

Cars Electro-nics

Others( aeronautics)

Mediterranean MaquilladorasCasablanca

Rabat

Agadir

Gharb

Agadir

TangierTangier

Laayoune

Dakhla

Meknes

Nouacer

•Tangier Automotive City• Tangier Electronic City• Nouacer Aeronautic Zone

Opportunities : Emergence program

http:// www.Themoroccanembassy.comhttp:// www.Themoroccanembassy.com

http://http:// www.moroccousafta.com

A New MoroccoA New Morocco

The choice of movement and opennessThe choice of movement and openness – A new generation of political and business leaders A new generation of political and business leaders – Economic, social and political reformsEconomic, social and political reforms– Privatisation and systematic deregulationPrivatisation and systematic deregulation

A sustained growth market based on healthy balanceA sustained growth market based on healthy balance – Healthy macroeconomic (budget spending inflation control Healthy macroeconomic (budget spending inflation control

since the 1980s)since the 1980s)– 5% average growth. 5% average growth. – Modernisation in both operations and procedures as well as the Modernisation in both operations and procedures as well as the

economyeconomyStrategies to ensure sustainable growthStrategies to ensure sustainable growth– Major investment programmes (more than 12 billion $ over 5 Major investment programmes (more than 12 billion $ over 5

years) in Infrastructureyears) in Infrastructure– A long-term strategy to focus on sectors for growth and A long-term strategy to focus on sectors for growth and

exports (Azur Plan, Emergence Programme)exports (Azur Plan, Emergence Programme)– INDH ProgrammeINDH Programme