Casablanca – In a milestone shift for Moroccan foreign direct investment (FDI), the United Arab Emirates (UAE) emerged as the top foreign investor in 2024, accounting for 18.9% of net FDI inflows—a dramatic $320 million, up 57.8% from the previous year.

This marks a notable rebalancing of Morocco’s investor landscape, traditionally dominated by France, which held the top FDI spot in 2023. Last year’s surge in UAE investment propelled the Emirates ahead of longstanding partners like Germany ($216 million) and China ($211 million).

A rapid rebound: Morocco’s FDI soars by over 50%

Overall, Morocco witnessed a remarkable 52.5% surge in total net FDI inflows in 2024—adding about $577 million, raising the total to $1.68 billion. Total FDI revenue rose to $4.52 billion, while expenditures fell to $2.83 billion.

Drivers of the FDI upswing

Two key factors propelled this investment rebound:

  1. Debt instruments surged from $196 million to $742 million, signaling renewed investor confidence.
  2. Equity investments grew by 14.9%, adding further momentum.

In contrast, reinvested earnings edged back slightly to $216 million, a modest decline within an otherwise positive trend.

Sector spotlight: Real estate and manufacturing dominate

The sectoral breakdown of FDI reveals a near-even division between two heavyweights. Real estate captured 45.4% of net FDI, followed closely by manufacturing industries with 45.2%. Together, these two sectors attracted nearly $1.53 billion—over 90% of total foreign capital flows—highlighting their central role in Morocco’s growth strategy.

Outflows drop sharply: Moroccan investments abroad slow

While inbound FDI surged, Moroccan investments abroad contracted by 44.6%, falling from $1.28 billion in 2023 to $711 million in 2024. This rapid decline contributed to a shift in the net balance of investment operations—from a positive $185 million in 2023 to a net outflow of $969 million in 2024.

Strategic context: UAE-Morocco deepening economic Ties

The UAE’s ascent to the top FDI source in 2024 underscores deepening economic ties with Morocco. In recent years, the UAE has committed approximately $3.1 billion in investments across Moroccan infrastructure, green energy, real estate, and post-earthquake reconstruction projects.

Bilateral cooperation is expanding: a joint taskforce aims to double trade and investment by 2030, and legal frameworks such as CEPA have been finalized to facilitate deeper economic engagement.

Global and regional outlook

Morocco is emerging strongly in the global FDI landscape. UNCTAD reports that the country saw a 55% jump to $1.64 billion in FDI in 2024, with total FDI stock rising to $6.34 billion. Casablanca Finance City (CFC) is enhancing Morocco’s regional appeal: with 240 international firms and 7,000 jobs created, the CFC reinforces the country’s role as a gateway into Africa.

However, analysts caution that broader reforms are needed to address infrastructural and governance challenges that may limit long-term growth.