FDI Flow up 43.6% in 2021 – Office des Changes Report

The net flow of Foreign Direct Investments (FDI) recorded a 43.6% increase to more than 19.4 billion dirhams at the end of December 2021 compared to a year earlier, the Office des Changes (exchange office) said in its annual report on the balance of payments and the international investment position of Morocco for the year 2021

“Direct investment operations recorded a debit balance increase of 62.2%. Thus, the net flows of foreign direct investment in the Kingdom largely exceed Moroccan direct investment abroad,” says the report.

The revenues of these investments have reached 31.9 billion dirhams (+22.7%) and their expenses have remained almost stable at 12.6 billion dirhams.

Equity securities were the main component of inflows to Morocco with a 67.5% share in 2021, to stand at 13.1 billion dirhams, according to the report.

In parallel, re-invested earnings increased by 2.1 billion dirhams, accounting for 7.6% of total net FDI flows to Morocco in 2021.

The sectors that received the most FDIs in 2021 are real estate activities (27% of total FDI in Morocco), manufacturing (17.3%), and financial and insurance activities (11.3%).

The three sectors accounted for 55.6% of the total net FDI flows in 2021 against 61.5% a year before.