LECONOMIE ET LINDUSTRIE DU MAROC

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MOROCCO - USA OPPORTUNITIES TO EXPLOIT
Jamal Eddine EL JAMALI Director of the Industrial
Production Ministry of Industry, Trade and Up
Grading the Economy
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Morocco in few words

• Area 710 850 sq km and more than 3,400 km of
  coastlines ( Atlantic Ocean and Mediterranean Sea
  )
• Population 29.4 million inhabitants (2004).
• Urban Population 55
• Labor Force (over 15 years old) 11 million
• Currency Dirham (1 US 9.20 Dh )

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Macro economic indicators

• Foreign Direct Investments around 6 of the
  GDP, in 2005
• GDP growth rate 5.2 over the last 3 years
  (2002-2004)
• Controlled inflation ( average 2001-2005 1,57)
• Lightning of the Exterior Dept 26,1 of GDP in
  2004, against 58,9 in 1996

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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 )
• Simplified procedures

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Opportunities A structuring space

• 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

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Opportunities A structuring space
Important Projects 13 Billion US

• Tap Water (2004-2008) 2.36
  Billion US
• Electric Energy (2004-2007) 1.9 Billion US
• Bouregreg Valley
  1.8 Billion US
  
• Highways 900 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

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Opportunities Opening the infrastructure to the
private sector

• 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 second and third phone
  licences
• Energy more than 60 of the production done by
  the private sector
• Harbors management Tangier Med
• Industrial zones TFZ, SAPINO, etc.
• Public services outsourced ( water, electricity,
  waste collection, etc.)

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Opportunities Improvment of social indicators

• A LARGE PROGRAM FOR HOUSING
• A constructions 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

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Opportunities Improvment of social indicators

• Widening the use of electricity in rural areas
  reaching the 100 coverage by 2010
• Widening the supply of tap water reaching
  90 by 2007
• Establishment of the Obligatory Sickness
  Insurance ( AMO) since de 2005 ( increase of
  medicines purchases)

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Opportunities A tourism strategy for 2010

• 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

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Morocco a platform in the crossroads of
continents
The Eastern Coast, less than 6 days far
Just In Time delivery to Europe
Morocco Gateway to Arabian Mediterranean
Countries
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Morocco An investment and exports platform
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
EU Agreement(1996) EFTA Agreement (2000)
Strengthen the traditional market
Agadir Agreement(2004) Arab League Agreement
(1998)
Extend the domestic market (automotive case)
Turkey Agreement (2004) Romania Agreement (on
process)
Euro Mediterranean integration / cumulation of
origin ( textile case)
USA Agreement (2005)
Regional distinctiveness
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Morocco An investment and exports platform
Morocco USA FTA
Immediate exemption of custom duties for 99.7
of the current Moroccan exports
Industrial products except textile
Immediate exemption for a category of
products with strong potentials (American duties
going up to 40) and offering possibilities to
export of 1.2 billion US by the first year
Textile products
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Morocco An investment and exports platform
Morocco USA FTA
Immediate access to the American market for
around 81 of Moroccan agro-alimentary products
- Caned olives - Olives
oil - Tomatos powder - Caned
caper - Frozen fruits and vegetables
Agro-alimentary products

• Immediate exemption of custom duties for all
  seafood products and caned fish, except only one
  product non-smoked caned sardines, with skin
  and bones (9 years dismantling )

Seafood products and caned fish
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Opportunities An industrial and voluntarist
strategy

• THE EMERGENCE PROGRAM
• A shared vision for the industrial sector by
  2010, based upon
• Promotion of new trades and growth performances
  
• Competitive modernization of the existing
  industrial capacities
• Objectives by 2015
• A continued growth of the GDP of more than 1,6
  over the next 10 years
• Creation of around 440,000 new direct and
  indirect jobs
• A drop of 50 of the trade deficit

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Offshoring and Information Technologies
Development of the Moroccan Global Know-how

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

• Target branches

• 1- Francophone countries
• France
• Belgium
• Switzerland
• 2- Spain

• Target markets

Example DELL in Casablanca
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Opportunities Emergence program
Tangier
Tangier
Gharb
Rabat
Offshoring (de-localization of administrative
and data- processing services)
Offshoring zones and IT
Nouacer
Casablanca
Meknes

CasaShore

Rabat Technopolis
Agadir
Agadir

TangierShore
Laayoune
Dakhla
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Automotive equipments
FRANCE
PORTUGAL
3 days
SPAIN
2 days
2 jours
Palencia (Nissan Renault)
3 days
Vigo (PSA)
2 days
Pampelune (VW)
Vitoria (Daimler)
Mangualde (PSA)
Valladolid (Fiat Nissan-Renault)
Barcelona (Nissan-Renault)
Saragosse (GM)
Azambuja (GM Isuzu)
Martorell (VW)
Setubal (Ford VW)
1 day
Valence (Ford)
Villaverde (PSA)
Linares (Suzuki)
Tangier (Morocco)
Gibraltar
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On-board electronics
Sales in the 15 countries of Europe (in billion
US)
Annual Growth
Growth of the on-board electronics share in
automotive industry, aeronautics and military
defense 60 of on-board electronics sales goes to
the automotive sector
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Aeronautics
AN EMERGENT POLE

• 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

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Opportunities Emergence program
Tangier
Tangier
Gharb
Rabat
Nouacer
Casablanca
Mediterranean Maquiladoras
Mediterranean Maquilladoras
Meknes

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

Agadir
Agadir
Electro -nics
Others ( aeronautics)
Cars
Laayoune
Dakhla
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Agro alimentary industry
Caned fruits and vegetables

• Creasy substances Olive oil and Argan oil
• - objectives for next 10 years increase by 3
  the current volume of production and exports
• Fruits and vegetables
• - Truck farming (sachet, frozen, cooked
  dishes,etc.)
• - Condiments (marketing of cans )
• - Herbals/spices (sachet)
• - Small fruits (offers diversification)
• - Fresh orange juice (pure premium)
• Development all over the kingdom

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Manufactured seafood products

• Better valorization of pelagic
• Development of high added value products (
  cooked marinades and dishes )
• Better valorization of the top-of-range products
  (packed fresh)
• Increase of frozen production
• Emergence of neutraceutics

• Manufacturing the imported fish

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Opportunities Emergence program
Tangier
Tangier
Gharb
Rabat
Nouacer
Casablanca
Meknes
Fishing Transformation Hub
Seafood products transformation
Agadir
Agadir
Agadir


Laâyoune

Dakhla

Laayoune
Dakhla
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A harmonious and integrated development
Emergence a strategy targeting exporting
sectors ( 7 sectors)
Azur Plan the tourism pillar 10 million
tourists
Human resources development and citizen proximity
(INDH)
Reinforcement of infrastructure / liberalization
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Morocco a platform in the crossroads of
continents
Free access to American, European, And
Arabian-Mediterranean markets
Irreversible liberalization and moving
modernization
A competitive investment and exportation
platform for a global market
Strong engagement within the framework of the
free trade agreements. Disciplined open
market