Casablanca – The Casablanca Stock Exchange is seeing an unprecedented influx of foreign investments, underscoring international confidence in Morocco’s economic potential. In 2023, foreign investments in Moroccan stocks surged to a record $17.3 billion, marking a 7.9% increase from the previous year. Although foreign investors’ share in the total market capitalization slightly decreased from 27.8% to 26.9%, their commitments indicate robust interest in Morocco’s market and economic stability, according to recent data from the Moroccan Capital Market Authority (AMMC).

Sector highlights: Energy, telecom, and beverages take the lead

Foreign investors are concentrating their capital in key Moroccan industries, with the electricity sector topping the list. As of 2023, 85.8% of this sector is controlled by foreign entities, indicating a strong preference for Morocco’s infrastructure assets. Telecommunications and beverages follow closely, with foreign ownership reaching 55.5% and 52.7%, respectively. These strategic sectors not only highlight Morocco’s value in core infrastructure but also emphasize its consumer-driven potential. Notably, 92% of all foreign investments in Moroccan stocks consist of strategic, long-term holdings rather than speculative moves, reinforcing the stability of these commitments.

European and Middle Eastern investors dominate

European and Middle Eastern investors collectively account for a staggering 95% of foreign funds on the Casablanca Stock Exchange. Together, these regions contributed more than $16.5 billion to Moroccan equities in 2023, with European investment showing a slight uptick. The influx highlights Morocco’s increasing appeal as a growth hub in North Africa, drawing investors seeking to diversify their portfolios in a promising emerging market. While European investors increased their stake, capital from the Middle East dipped slightly from 51% to 48.3% of total foreign investment. Nevertheless, Middle Eastern investors remain a significant force, reflecting strong historical ties and confidence in the region’s stability.

Key players: UAE, France, and Switzerland lead institutional investment

Foreign institutional investors – particularly from the UAE, France, and Switzerland – dominate the Casablanca Stock Exchange, accounting for 98% of total foreign investments. Leading the way, UAE-based companies have invested approximately $7.6 billion, maintaining their position as the largest foreign investors, though their market share slightly decreased from 46.3% to 44.9%. France follows with $3.8 billion in investments, while Switzerland, in third place, increased its share from 6.8% to 8.9%, reaching $1.4 billion. Additionally, Italian investors have shown newfound interest, now holding $1 billion in Moroccan stocks.

Individual investors: The French take the lead

While foreign individual investments represent a modest share of total foreign funds at just under 2%, they nonetheless reached $24.7 million in 2023. Among these individual investors, the French are the most prominent, holding nearly 70% of foreign individual investments in Moroccan stocks, amounting to $17.3 million. The UAE follows with $3 million, representing 12.3% of the total, a slight decline from the previous year. Saudi Arabian investors hold third place with $2.2 million, also down slightly from 2022.

A promising outlook for Morocco’s markets

With Morocco’s rapid modernization and economic diversification, the outlook for foreign investments in the Casablanca Stock Exchange remains positive. Strategic sectors like energy and consumer goods continue to draw attention, and the government’s commitment to fostering a competitive, resilient economy is only boosting the country’s appeal. As the Casablanca Stock Exchange expands and develops, Morocco is increasingly recognized as a stable yet dynamic destination for international investors seeking both growth and stability in an emerging market.