Overview of the Investment Charter

Morocco’s Investment Charter sets clear rules for creating a favorable investment environment. It supports economic growth, job creation, and regional balance. The framework covers most sectors except agriculture and certain real estate activities. Investors enjoy financial incentives, tax breaks, and streamlined

Key elements include:

• A legal framework based on Framework Law No. 03.22.
• Clear targets for private investment and job creation.
• Financial support schemes that help lower project costs.
• Measures to reduce regional disparities and promote local production.

The Charter aims to boost investor confidence by providing a predictable, transparent system. Official texts and government decrees support every provision.

Key pillars of the Investment Charter

The framework rests on three main pillars that create a robust investment ecosystem:

1. Investment support mechanisms

Morocco offers a comprehensive support system for every type of investment. Investors can benefit from several schemes designed to cover different project sizes and objectives.

Main support mechanism:

• Applies to projects with investments of at least 50 million dirhams.
• Requires the creation of at least 50 stable jobs.
• Offers grants that can cover up to 30% of the eligible investment.
• Uses performance measures such as the permanent jobs ratio to determine support.

Additional support schemes include:

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• Strategic Projects:
– Targets large-scale projects (from 2 billion dirhams and above).
– Benefits projects that impact national priorities in water, energy, food, or health.
– Encourages industrial upgrading and technological advancement.

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• International Expansion:
– Helps Moroccan companies expand their operations abroad.
– Provides advisory services, financing support, and training programs.
– Enhances the global competitiveness of local firms.

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• SME Support:
– Dedicated to very small, small, and medium-sized enterprises.
– Offers not only financial incentives but also market access and strategic guidance.
– Strengthens the backbone of the Moroccan economy.

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These mechanisms are activated by official decrees published in the Official Gazette. They ensure that every project meeting specific criteria receives proper support.

2. Improvement to Business Climate

Morocco has modernized its administrative procedures to make investing easier. The government has digitized many processes and reduced paperwork.

Key improvements include:

• Digital Platforms:
– Investors access permits, licenses, and application forms online.
– Online portals provide a one-stop shop for all necessary information.

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• Streamlined Approvals:
– Regional Investment Centers (CRIs) handle applications for projects below 250 million dirhams.
– Fewer office visits and reduced paperwork save valuable time.

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• Simplified Processes:
– The number of required documents has been significantly reduced.
– Administrative delays have been cut down, making project launches faster.

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These reforms improve transparency and efficiency. They reduce bureaucratic obstacles and lower administrative costs, ensuring a smooth investment process.

3. Unified and Territorialized Governance

A clear governance model ensures that investments benefit all regions of Morocco. The system is divided between central and regional authorities.

Features include:

• National Investment Commission (NIC):
– Chaired by the Head of Government, the NIC approves major investment agreements.
– It grants strategic status to projects that meet specific criteria.

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• Regional Investment Centers (CRIs):
– CRIs operate as one-stop shops in each region.
– They handle administrative approvals and provide tailored local support.
– They ensure that incentives reach underdeveloped areas as well.

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• Decentralized Decision-Making:
– Projects below a defined threshold are processed regionally.
– This speeds up approvals and adapts support to local conditions.
– It helps balance regional development and reduce economic disparities.

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This dual-level governance guarantees efficiency and fairness. Investors benefit from a system that is both centralized in its rules and sensitive to regional needs.

Tax Incentives and Fiscal Advantages

The Investment Charter offers a range of fiscal benefits that lower investment costs and increase profitability.

Key tax incentives:

• Reduced Corporate Tax Rates:
– Companies can benefit from reduced tax rates for a defined period.
– Exporting firms may enjoy full exemptions for up to five years or a 50% reduction thereafter.
– Special rates are available for projects in prioritized regions.

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• Income Tax Benefits:
– Investors in key sectors receive lower taxes on profits.
– Incentives are tailored to encourage investments that spur economic growth.

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• Import Duty and VAT Reductions:
– Equipment, materials, and tools necessary for projects face reduced import duties.
– Certain essential goods are exempt from import taxes.
– VAT exemptions apply on goods registered as fixed assets.

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These measures derive from official decrees and are detailed in Framework Law No. 03.22. They reduce upfront costs and enhance overall project returns.

Priority Sectors And Focus Areas

The government targets investments in sectors that promise long-term growth and job creation. These priority sectors align with national goals.

Priority sectors include:

• Industrial Projects:
– Incentives support automotive manufacturing, aerospace, electronics, and heavy industries.
– Projects in these fields benefit from favorable tax rates and financial support.

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• Digital and Technology:
– Investments in artificial intelligence, big data, and cloud computing are encouraged.
– Digital infrastructure development is a major focus to boost competitiveness.

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• Renewable Energy:
– Solar, wind, and energy storage projects receive targeted support.
– These projects contribute to energy security and environmental sustainability.

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• Tourism and Leisure:
– Projects in tourism create long-term infrastructure and generate jobs.
– Specific incentives are provided for tourism-related developments.

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• Export-Oriented Industries:
– Projects that drive export growth benefit from lower customs procedures and tax advantages.
– This helps Moroccan companies establish a global presence.

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• Local Production and Import Substitution:
– Investments that source inputs locally are encouraged.
– Minimum local integration rates (20% for agro-food and medical supplies; 40% for other sectors) boost domestic industries.

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Focusing on these sectors ensures that investments create real economic impact and strengthen Morocco’s global competitiveness.

Investor Guarantees and Legal Protection

The Investment Charter provides strong legal safeguards to protect your investment. These protections lower risk and ensure a stable environment for business.

Investor protections include:

• Unrestricted Fund Transfers:
– Investors can transfer profits without limitations.
– A robust convertibility system guarantees smooth international transactions.

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• Dispute Resolution:
– Disagreements are resolved under international arbitration rules.
– Clear appeal processes help secure your rights.

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• Intellectual Property Protection:
– Legal provisions protect your trade secrets and technology.
– This support helps maintain a competitive edge.

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• Transparent Legal Framework:
– All rules are published in the Official Gazette.
– You have full access to official texts such as Framework Law No. 03.22, decrees, and government decisions.

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These protections build investor confidence. They ensure that your investment is safe within a predictable and regulated legal system.

How to benefit from the Investment Charter

The process for accessing the benefits of the Investment Charter is straightforward. Follow these steps to ensure your project qualifies for support.

Step-by-step guide:

• Check Your Eligibility:
– Confirm that your project meets the minimum investment requirement (typically 50 million dirhams).
– Ensure your project will create at least 50 stable jobs.
– Verify that your project falls within one of the priority sectors.

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• Prepare Your Application:
– Gather all required documentation as detailed in official texts.
– Complete the application form available through the Regional Investment Center (CRI) or online portals.

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• Submit Your Investment Convention Request:
– Submit your application at your local CRI.
– Use the official online services provided by the Ministry of Investment.
– Your application is then reviewed by the appropriate governmental body.

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• Await Approval:
– Major projects are reviewed by the National Investment Commission (NIC).
– Smaller projects are processed at the regional level.
– You receive clear feedback on the status of your application.

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• Implement Your Project:
– Once approved, access financial incentives, tax breaks, and advisory services.
– Begin your project under the structured guidelines provided by the Charter.

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Following these steps ensures that you fully benefit from the available support and protections.

Official Documents and Legal Framework

The Investment Charter is anchored in a set of official documents that define its rules and benefits. These documents ensure transparency and legal certainty.

Important texts include:

• Framework Law No. 03.22:
– Establishes the overall structure of the Investment Charter.
– Sets out the objectives, eligibility criteria, and support mechanisms.
– Published in the Official Bulletin.

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• Decree No. 2-23-1:
– Provides detailed guidelines for the main support mechanism.
– Specifies the grant percentages and job creation thresholds.
– Approved by the Government Council and published officially.

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• Decisions of the Head of Government:
– Define local inclusion rates, regional classifications, and additional thresholds.
– These decisions tailor the support measures to local conditions (e.g., a 10% premium for Category A regions and a 15% premium for Category B).

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• Official Press Releases:
– Regular updates and clarifications are available on government websites.
– They provide the latest information on the activation of support systems and legal updates.

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These documents form the legal basis for the Investment Charter. They are accessible through official channels and guarantee that your investment operates under established laws.

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