Spain Though Spanish investment made up only 43 of FDI in 2014 Spain remains

Spain though spanish investment made up only 43 of

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Spain Though Spanish investment made up only 4.3% of FDI in 2014, Spain remains one of Morocco’s principal economic partners, with hundreds of businesses operating there. From 2002-2012, Spanish investment accounted for 15% of FDI, and Morocco accounts for more than half of Spanish investment in Africa. The countries generally have friendly diplomatic relations, though the Spanish enclaves of Ceuta and Melilla, on the Moroccan coast, remain a source of tension; Morocco has continually called for Spain’s withdrawal. In recent years, Spanish investors have become increasing involved in the agricultural sector, which makes up around a fifth of Moroccan GDP and remains the country’s largest employer. Spanish companies involved in export, production and processing have benefitted enormously from 2008 launch of the Green Morocco Plan, a government effort to improve agricultural output through projects aimed to help farmers achieve higher yields and more sustainable growth. United States Currently Morocco’s sixth largest trading partner, the United States looks to play an increasingly important role in the country’s economic future. Since the signing of a Free Trade Agreement (FTA) in 2006, trade between the United States and Morocco has risen by 300%. And in 2014, American investors made up 12% of FDI in Morocco, only behind France, Saudi Arabia and the United Arab Emirates. Increased trade and investment between the two countries is largely tied to a long historical, strategic partnership, beginning with Morocco becoming the first country to recognise the United States in 1777. In light of its support in the American War on Terrorism, Morocco was designated a major Non-NATO Ally in 2004. 26
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Morocco Foreign Direct Investment Core Insights As one of the largest economies on the African continent and the Maghreb’s largest recipient of FDI, Morocco consistently outshines other MENA and African countries as a promising place for foreign investment. The reasons are myriad: the constitutional monarchy’s geographic location on the straights of Gibraltar, close economic and security operation with the United States and the EU, success in navigating unrest brought on by Arab Spring, well-developed infrastructure including ports, highways and airports, close economic (and linguistic) ties to West African markets, and economic reforms (such as privatisation and investment protection measures) aimed to attract foreign investment all contribute to FDI. The 52% increase in FDI projects in 2014 is a testament to the fact that King Mohammed VI and Moroccan government’s efforts continue to bear fruit. Recent projects, like the Casablanca Finance City (Africa’s second largest financial centre) and the Tanger-Med Port (soon to be Africa’s largest transitional hub when fully functional in 2016), are demonstrative of the government’s aim to bring large-scale manufacturers and major financial firms to Morocco. Due to the country’s energy dependency and the unpredictability of its enormous agricultural sector, the government launched the Green
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  • Fall '11
  • PreetAulakh
  • Morocco, Morocco Foreign Direct Investment

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