UAE Surpasses Germany as Top Investor in Morocco, Driving Record Foreign Flows
Rabat, Morocco – The United Arab Emirates has emerged as Morocco’s leading source of foreign investment, with net investment flows increasing by 57.8 percent to 3.1 billion Moroccan dirhams in 2024, according to a new report from Morocco’s Office of the Budget of Payments and the Overall External Status. This marks a important shift in investment patterns,surpassing conventional partners like Germany and signaling a deepening economic relationship between the two nations.
The surge in UAE investment is a key driver behind Morocco’s overall positive balance of payments, contributing to a 16.3 billion dirham surplus in net foreign investment flows for 2024 - a substantial increase from 5.6 billion dirhams the previous year. This influx of capital is poised to bolster key sectors of the Moroccan economy,especially real estate and transformational industries,and could fuel further growth and job creation.
Germany remains a significant investor, with flows to Morocco reaching 2.1 billion dirhams in 2024, up from 1.4 billion dirhams in 2023. China also continues to be a key partner, contributing 2.05 billion dirhams in investment. Though, the UAE’s rapid growth in investment has propelled it to the forefront.
The overall increase in net foreign investment is largely attributed to a quadrupling of net debt instrument flows, rising by 7.2 billion Moroccan dirhams, alongside a 14.9 percent increase in fundamental contributions. While reinvested profits saw a slight decrease, falling by 0.6 billion dirhams to 2.1 billion dirhams,the overall trend remains strongly positive.
Sectorally, real estate activities captured the largest share of net foreign investment in 2024, accounting for 45.4 percent of the total. Transformational industries followed closely behind with a 45.2 percent share.
The report also indicates a positive trend in foreign direct investment revenue, which increased by 10.2 percent to 43.8 billion dirhams, while expenditures decreased by 5.3 percent to 27.5 billion dirhams. these figures underscore Morocco’s growing attractiveness as an investment destination and its strengthening external financial position.
