ADFD & Morocco
Total Page:16
File Type:pdf, Size:1020Kb
ADFD & Morocco Rabat Morocco ADFD & Morocco Economy Overview The Moroccan economy is the fifth largest economy in Africa. Since independence, Morocco has succeeded in achieving positive GDP growth year-on-year. Area With a GDP amounting to US$104 government has also signed free trade billion (US$3018 per capita in 2013), the agreements with the United States, 710,850 square kilometres Moroccan economy is the fifth largest European Union, Turkey, Egypt, Jordan, Population economy in Africa. Since independence, Tunisia, and countries in the West Morocco has succeeded in achieving African Economic and Monetary Union 31,961 million positive GDP growth year-on-year. (UEMOA). Economic growth rate Since 2004, the Moroccan economy’s Industrial Sector: The industrial sector 2.7 % growth rate fluctuated between 2.7% contributes about 35% to Morocco’s and 7.8%, which is a good indicator total GDP. Moroccan industries are GDP per capita amid the many economic challenges the advanced, diverse and enjoy a good country is facing. reputation. Morocco is the largest $ 3108 producer of phosphoric acid in the The economic and the geopolitical Key Sectors Contributing to the GDP world, accounting for 46% of total world conditions of its neighboring countries production. Pharmaceutical industries Industry: 35% has affected Morocco’s economic cover 90% of domestic demand and Agriculture: 17% growth. The Euro Zone’s economic also export to many African and hardships have directly impacted European countries. The rest of the Trade: 11% Moroccan exports, foreign investments, pharmaceutical domestic demand is Tourism: 18% incoming remittances from Moroccan met with imports from other countries, expats, and the tourism sector. especially France. The country is rich in natural and As for petrochemicals, the Sidi Kacem agricultural resources and has a plethora and the Mohammedia refineries are two of touristic attractions. Morocco’s of the largest refineries in Africa. favorable geographical location gives it Morocco is also one of the biggest an advantage in terms of links with textile exporters to EU countries. In European markets. addition, the country exported over 400,000 cars annually in 2011, and has Over the past two decades, the facilities for manufacturing and building Moroccan government has sought to planes and ships, its cement industry promote economic growth through a has also developed quickly due to range of infrastructure projects covering large-scale housing projects. multiple sectors. In addition, the 02 ADFD & Morocco Economy overview continued Agriculture: Agriculture is an important Tourism: Morocco’s tourism sector has sector in Morocco, employing 40% of the registered positive growth over the past country’s total workforce and few years. With over 10 million visitors contributing 17% of its GDP. The total coming to the country in 2013, the area of arable land is estimated to be sector’s contribution to national GDP 95,000 square kilometers. Some of the that year was 18.7%. Thanks to the most important agricultural products are Kingdom’s successful policies aimed at wheat, barley, corn, vegetables, lentils boosting the country’s appeal with a and beans, especially fava beans. view to making it one of the top 20 tourist destinations in the world. Citrus fruit and olive production are also important contributors to the Through implementing its ‘Vision 2020’ agricultural sector. Morocco is the program, the Moroccan government is seventh largest producer of olive oil in putting in place a range of measures the world, and it exports a significant designed to ensure that the Kingdom volume of its fruit and vegetable will become one of the top 20 touristic produce. destinations in the world by 2020. Morocco is promoting a development The Moroccan government has launched policy that focuses on competitiveness, the Green Morocco Plan, which aims to sustainability and the development of raise agricultural production, attract many tourism-related products. The large investments, increase the area of country’s stress on maintaining irrigated lands, and develop rural international standards in tourism infrastructure. infrastructure is a key element in its strategy to increase visitor numbers. Trade Sector: Domestic trade constitutes nearly 11% of the GDP and employs over 1.2 million people - which is 12.8% of the total workforce. Morocco is ranked 97 among 185 countries in the World Bank’s Business Environment Report. The country’s growth has been coupled by a 23.5% increase in direct foreign investment revenues. Annual levels of foreign direct investments are also continuously rising, but are yet to reach the US$3 billion mark that was achieved in 2001. 03 ADFD & Morocco ADFD’s Activities in Morocco Total loans and grants ADFD has enjoyed strong relations with AED 7,371 Billion the Moroccan government since the Fund started its development activities Total number of projects more than 40 years ago. Bilateral relations have been based on the 64 common aim of achieving sustainable development in all economic sectors. Sectors Transportation, Healthcare, ADFD started its activities in Morocco in 1974, with loans and grants amounting Industrial, Agriculture and to AED7.3 billion to fund 64 projects in Water infrastructure (ports and roads), social development, healthcare and housing. ADFD loans AED 1,901 Billion Number of loan projects 11 Government grants AED 5,470 Billion Number of grant projects 53 04 ADFD & Morocco ADFD’s Activities in Morocco Sector distribution of ADFD developmental projects in Jordan Number Sector of projects Value Percentage Transportation 11 2,365 32% Housing 17 1,074 15% Water 7 738.2 10% Healthcare 5 423.4 6% Education 12 360.2 5% Agriculture 3 200 3% Power 3 130 2% Tourism 2 70.4 0% Industrial 1 67.8 1% Various sectors 3 1,942 26% Total 64 7,371 100% Transportation 32% Housing 15% Water 10% 32% Heathcare 5% 26% Education 6% Agriculture 3% Power 2% 10% 1% Tourism 0% 6% Industrial Sector 1% 2% 3% 5% Various sectors 26% 15% 05 ADFD & Morocco Projects Funded through ADFD’s Loans The concessionary loans offered by ADFD to Morocco have been designed to assist the achievement of the country’s development goals. The loans have covered 11 development projects worth AED1.9 billion, and they have funded projects in infrastructure, healthcare, housing, agriculture, industry, transportation, energy and services. Below is a summary of these projects: The Abu Dhabi Fund for Development Residential Building for provided funding for a residential project the Ministry of of the Moroccan Ministry of Endowment Endowments that included three buildings consisting of 11, 14 and 20 storeys. Sector Housing Loan Value AED 40 million The Moroccan government gives the capacity of 5,200 tons, and they use Two Fine Cotton industrial sector top priority due to its locally-produced cotton. Factories significant contribution to national GDP. ADFD has provided funding to establish The project involved the provision and Sector two factories for spinning fine cotton in installation of production equipment, Industry order to help the government achieve its including upper winches, electricity development goals and advance the services, air conditioning, and industrial Loan Value country’s economy. security. It also set up a maintenance workshop, spare parts store, and other civil AED 68 million Both factories have an annual production construction facilities. The West Agricultural Plain project aimed included the building of irrigation and West Agricultural Plain to improve the well-being of residents, sewage networks, electrical wiring, Sector achieve self-sufficiency in agricultural pumping stations, and purchase of production, and increase job opportunities essential equipment. Agriculture through utilizing arable land. Loan Value This project led to a transformation from AED 40 million rain farming to irrigation in a 45,500 hectare area north of Rabat city. It 06 ADFD & Morocco Projects Funded through ADFD’s Loans continued The Moroccan government is very keen on agricultural production. It also increased Al-Haouz Agricultural developing the agricultural sector due to the production of hydroelectricity and Area its important contribution to the provided drinking water to the city of development of the country. The Marrakesh. Sector government utilized ADFD’s loan to Agriculture develop the Al-Haouz Agricultural Area The project included building two dams in and further utilize arable lands to provide addition to civil works in the irrigation Loan Value job opportunities for residents. network. It also provided mechanical, electrical and civil equipment to construct AED 97 million The project aimed to elevate people’s a power plant. lifestyle in the area through increasing To support the Moroccan government’s facilitating trade between countries of the Trans-Maghreb efforts to improve infrastructure and Greater Maghreb and the rest of Motorway Axis services in the transportation sector, the Mediterranean countries. It also had a Abu Dhabi Fund for Development positive impact on developing northern Sector contributed to funding the Trans-Maghreb regions in Morocco. Transportation Motorway Axis, which connects the city of Tangier on the Atlantic Ocean to pass The project included constructing a 132km Loan Value through many touristic attractions and highway adjacent to the sea that connects AED 217 million commercial hubs on its way to the eastern Al Hoceima and Nador cities. It also part of the country. included constructing bridges, tunnels, intersections,