Foreign direct investment (FDI) in Morocco surged by 23.7% to MAD 33.3 billion(USD 3.3 billion) as of the end of October 2024, compared to MAD 26.9 billion (USD 2.6 billion) during the same period in 2023, according to data released from the Office d’Echange (OE), the foreign trade watchdog.
The net FDI flow skyrocketed 61.6% to MAD 19.5 billion (USD 1.9 billion), up from MAD 12.1 billion (USD 1.2 billion) in the previous year.
The robust growth in the flow of FDI to Morocco mirrors a global trend. In the first quarter of 2024, the FDIs around the world doubled to USD 844 billion before dropping by 36% in Q2, according to data from the Organisation for Economic Co-operation and Development (OECD).
Meanwhile, the country is resistant to the trend in developing economies. OECD data indicates that FDI flows into developing economies dropped by 19% in the first half of 2024, as FDI flows in China continued to drop due to heightened geopolitical risk and economic policy uncertainty impacting foreign investors’ confidence.
The latent effect of the COVID-19 pandemic and rising geopolitical tensions have all contributed to the sliding flow of FDIs around the world.
In Morocco, foreign investments plummeted to USD 1.7 billion in 2019 as the world grappled with the COVID-induced economic crisis. Despite the post-pandemic economic recovery, the country has yet to exceed its record of USD 3.5 billion in FDIs recorded in 2018.