Moroccan Property Investment - the year 2006 has proven to be a prosperous one for the kingdom, with real GDP growing some 8.1%, compared to 2005's 2.4%. Good rains produced growth in the agricultural sector, which remains key to the Moroccan economy, though competition from Egypt and Turkey is increasing in that sector.

Construction continued to show strong growth based on infrastructure upgrades, foreign investment and tourism developments, while the stock exchange registered healthy growth over 2005, particularly in the real estate sector. Increasing consumer demand is also driving growth in construction-related industries. Tourism, transport and telecoms all registered strong growth in 2006 as well. Growing consumer demand in the domestic market has been helping to boost the economy, due in part to higher rural productivity and a tightening job market. Confidence in the local market has also grown, with a substantial increase in consumer credit. Both foreign and local investment continued to rise in certain sectors and unemployment fell as more jobs were created in the service, construction and industry sectors. Exports rose to Turkey and the US, as Morocco has free trade agreements with the two countries.

The government also took measures to decrease the numbers of civil service employees in 2006, introducing voluntary retirement and making fiscal reforms, including the new Finance Law, thus improving efficiency while also investing heavily in infrastructure and other projects. Tax collection also improved.

Growth is expected to continue under the Vision 2012 programme, as agriculture becomes less important and other sectors, industry in particular, are expected to become stronger. Energy and mining activities are likely to bounce back in 2007, though overall growth should slow somewhat.

Key facts

• The national development strategy, named the ‘Plan Azur’, is designed to increase tourism numbers in Morocco from 2 million to 10 million by the year 2010.

• Six ‘Kings Resorts’, backed by the government

• Multi-billion dollar foreign investment and significant advances in the national infrastructure.

• Capital appreciation has seen price rises of around 1.5% to 2% per month (such as Le Jardin de Fleur).
  ‘Open Skies’ policy means there is no restriction on the number of airlines permitted to negotiate landing rights to Morocco, meaning increased services and competitive air fares.