Casablanca – Morocco has solidified its position as the most attractive market for the automotive industry within the Middle East and North Africa (MENA) region, according to the latest Risk and Reward Index (RRI) by BMI-Fitch Solutions. With a score of 57.6 out of 100, Morocco outperforms its regional peers, underscoring its growing prominence in the sector.

The Risk and Reward Index, developed by research firm BMI in affiliation with Fitch Solutions, evaluates countries based on a comprehensive analysis of risks and opportunities, with scores ranging from zero (lowest risk) to 100 (highest risk). The RRI for automotive production considers various industry-specific factors as well as broader economic, political, and operational elements, providing a holistic view of a country’s investment attractiveness.

Morocco’s strategic geographical location offers privileged access to American and European markets, significantly boosting its appeal. Coupled with its established industrial capacity and minimal entry barriers for new investors, these strengths enable Morocco to surpass other MENA countries such as Egypt (63.0), Algeria (63.2), and Iran (58.4) in terms of automotive investment opportunities.

Experts at BMI-Fitch Solutions highlight that despite the high-risk environment in the MENA region, Morocco remains an attractive market due to its favorable conditions and the ongoing development of its electric vehicle industry. This rapidly expanding sector is expected to further enhance Morocco’s appeal to long-term investors.

However, the Moroccan automotive industry remains heavily dependent on European markets, making it vulnerable to economic fluctuations in that region. To mitigate these long-term risks, Morocco is actively working on diversifying its trade.

In terms of risk categories, Morocco excels with a political risk score of 53.6, significantly better than the MENA regional average of 67.9. It outperforms Egypt (60.7), Algeria (69.6), and Iran (87.5), benefiting from greater political stability, which reinforces its leading position.

The BMI-Fitch Solutions study reveals that the MENA region holds considerable growth potential for car manufacturers, provided that the political and economic environment improves. Morocco, in particular, stands out due to its favorable risk/reward ratio.

Morocco has emerged as the leading market for automotive investment in the MENA region. Its strategic geographical position, political stability, and proactive efforts to develop the electric vehicle industry underscore its appeal to investors, securing its status as a top destination for automotive investment in the region.