Doing Business in Morocco

Business Climate, Culture Challenges and Opportunities Amine Lasfar

History
Unified by Idrisi dynasty 780974 Alaouite dynasty 1666current Independence: - France March 2, 1956 - Spain April 7, 1956

Map of Morocco

Current Socio-Demographics
Capital: Rabat Population 36,200,000 (38th) (2009) 39 provinces and 16 regions. Largest provinces: Grand Casablanca 12.1% Smallest province: Oued Ed-Dahab-Lagouira 0.3% Largest Cities: Casablanca 4 Mill Ethnic groups: Arabs - Berbers 99.1%, Jews 0.2%, others 0.7%

Current Socio-Demographics
Languages:
Arabic. French is neither official nor national, but it is widely used in official government documents, and by the business community. Amazigh languages. English

Most people live west of the Atlas Mountains, a range that insulates the country from the Sahara Desert.

Political system
Morocco is an Islamic and fully sovereign state. Morocco is a constitutional monarchy , a parliamentary government.

King: Mohammed VI Makhzen: Prime Minister Parliament Assembly of Councilors Assembly of Representatives Political parties (20 parties)

Economy Facts
GDP (2010):
- Total $103.482 billion - Per capita $3,249

HDI (2010): 0.567 (medium) (114th) Currency Moroccan dirham (MAD) 1 AUD = MAD 8.3973 1 GBP = MAD 12.79774 1 EUR = MAD 11.29924 1 NZD = MAD 6.42302 1 USD = MAD 7.91357

Economy Facts
Morocco possesses 75% of the world's phosphate reserves. It is the world's first exporter (28% of the global market) and third producer (20% of global production). (316.5 billion). Unemployment (9.6% in 2008)

Labor force by occupation; agriculture 40%, manufacturing 22%, services 35%, other 3% (2000)

Moroccan Exports
Exports:
$14.49 billion

Export goods:
Clothing and textiles, electric components, inorganic chemicals, transistors, crude minerals, fertilizers (including phosphates), petroleum products, citrus fruits, vegetables, fish

Main export partners:

Spain 22.02%, France 20.22%, India 4.91%, Italy 4% (2009)

Moroccan Imports
Imports:
$34.19 billion

Import goods:
Crude petroleum, textile fabric, telecommunications equipment, wheat, gas and electricity, transistors, plastics.

Main import partners:

France 16.95%, Spain 14.72%, China 7.1%, Italy 6.76%, Germany 6.28%, United States 5.66%, Saudi Arabia 5.11%

Moroccan Tourism
Morocco boasts important natural and historical assets and a rich and diversified cultural legacy. In Morocco, increasing priority is being given to tourism because of its positive economic and social impact.The government has targeted that Morocco will have 10 million visitors by 2012. Tourist receipts in 2007 totaled US$7,55 billion.

Tourism is the second largest foreign exchange earner in Morocco, after the phosphate industry.
Low-cost airlines offer cheap flights to Morocco.

Moroccan Culture
When Moroccans greet each other they take their time and converse about their families, friends, and other general topics. Say good-bye to each person individually when leaving. If you are invited to a Moroccan's home:
you can bring a gift such as sweet pastries.

Check to see if your spouse is included in the invitation. Conservative Moroccans may not entertain mixed-sex groups.
Expect to be served mint tea before dinner.

Moroccan Business Culture

Moroccans prefer to do business with those they know and respect. Since Moroccans judge people on appearances, dress and present yourself well. Appointments are necessary and should be made as far in advance as possible and confirmed a day or two before the meeting. Try to arrive at meetings on time and be prepared to wait. French is generally the language of business, although some companies use English. In general, Moroccans have an open-door policy, even during meetings.

Moroccan Business System

Companies are hierarchical. The highest ranking person makes decisions, but only after obtaining a group consensus.

Moroccans are looking for long-term business relationships. Decisions are made slowly. The society is extremely bureaucratic. Business attire is formal and conservative.

Business cards are given without formal ritual.

References
Kwintessential, Morocco - Language, Culture and Doing Business, http://www.kwintessential.co.uk/resources/global-etiquette/morocco-countryprofile.html

Moroccan Portal, maroc.ma Morocco entry at The World Factbook Gouvernement du Maroc Morocco web resources provided by GovPubs at the University of Colorado Boulder Libraries