Employing in
Morocco

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Expanding into
Morocco

Global expansion is a step to make for any business, regardless of what you wish to achieve. The opportunities that can come with an expansion can be both incredibly exciting as well as intimidating and confusing, especially when you consider all the registration procedures that need to be done and the documentation required.

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The Kingdom of Morocco is a tempting target for international companies with an eye on global expansion. Apart from the potential of a young, dynamic and expanding economy, Morocco has an intriguing hint of the exotic with its cities including romantic names such as Marrakesh, Tangier and Casablanca.

Twenty years on from the privatisation and investment programme that began in 1993, Morocco has taken huge strides away from its traditional strengths of agriculture, fisheries and textiles. Foreign Direct Investment (FDI) is attracted to sectors that offer greater added value, such as telecommunications; infrastructure, transportation and logistics; energy; business and financial services.

Each new markets bring new challenges, and these can be worked through more efficiently and cost-effectively with the support of a Professional Employer Organisation (PEO) such as Bradford Jacobs, especially through our Employer of Record (EOR) framework.

This can be best utilised when businesses are just beginning their expansion process and require more information before committing to incorporating an entity and fully establishing themselves in that market.

Country EOR Guide - Bradford Jacobs

Download our Guide to Morocco

Learn all about expanding into Morocco and see what we can do to make your expansion easier.

Download our Guide to Morocco

Learn all about expanding into Morocco and see what we can do to make your expansion easier.

Country EOR Guide - Bradford Jacobs

Hiring Staff
in Morocco

Hiring Staff
in Morocco

The Main Sectors of the Moroccan Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

Morocco’s services sector generally accounts for around 50% of Gross Domestic Product (GDP) and has grown in step with the vigorous liberalising of the economy, introducing new business models and implementing digital processes. The sector includes retail and wholesale distribution; transportation and logistics; legal and business services; education and healthcare; telecommunications; real estate.

Post-pandemic, Morocco’s vital tourism industry bounced back in 2022. The Financial Studies and Forecasts Department (DEPF) stated that foreign currency revenues in 2022 increased by 161% to US$9.2 billion (€8.44 billion), compared with a 5.9% decline between 2020 and 2021. The DEPF also revealed that Morocco had more than 19 million overnight stays in 2022, a 75% increase over pre-pandemic levels, with the Ministry of Tourism stating there were 10.9 million overseas tourists from January to November that year.

The upward trend continued into 2023, with a 17% increase in tourists in the first two months of the year compared to the same period in 2022. Building on this, the government launched the 2023-2026 Tourism Road Map with US$592 million (€543 million) invested to attract 17.5 million tourists and create 200,000 new jobs by 2026.

A sector previously based on textiles and food production is blossoming into higher value, higher tech options including pharmaceuticals, aeronautics, renewable energy and automotive operations, with Renault among the companies operating in Morocco. Component suppliers are the major employers in the sector and 200 such companies are in place. Morocco is also part of the electric vehicle scene, although demand in Morocco is low due to lack of charging sites.

Local company Maribat is building the first EV battery plant near Casablanca, drawing on Morocco’s cobalt reserves outside Marrakesh, while Tesla is establishing charging stations. Semi-conductor producer STMicroelectronics operates an EV microchip plant outside Marrakesh. This expansion in manufacturing is attracting Foreign Direct Investment (FDI) and drawing in foreign enterprises to partner Moroccan companies. Low labour costs and a strategic location across the Mediterranean Sea from European markets, places Morocco in a prime position.

The port of Tangier Med is larger than any on the Spanish coast facing Morocco and improved road and rail infrastructure in the region has improved the options for manufacturers, importers and exporters.

The sector averages a 12-13% contribution to GDP and employs close to a third of the workforce. Highly-developed and capitalised farms produce fruit and market vegetables aimed primarily at the export market. Produce from areas irrigated by dam systems features dairy products, sugar, seeds plus fruit and vegetables for domestic consumption.  Grains, pulses and olives feature in the slightly rainier northwest, while less favourable conditions in the south and east support non-intensive sheep production and grains.

The National Mining Sector Development Strategy, launched in 2013 and running until 2025, was initiated to revitalise the industry. The Ministry of Energy, Mines and the Environment is responsible for electricity, renewable energy, hydrocarbons, nuclear energy, fuels, mines and geological exploration.  Morocco holds 75% of global phosphate reserves and is one of the world’s largest exporters.

Other mineral resources include copper, iron, manganese, gold, lead, silver and zinc and the Development Strategy aims to diversify mining operations and attract domestic and foreign investment into these less-developed areas of mining activity. The sector contributes around 20% to export revenues and employs in the region of 40,000 workers.

Morocco’s Central Bank is the Bank Al-Maghrib, which by law oversees all banking institutions and the stability of the banking system. Responsibilities include licensing, verifying competence of managers, enacting management and accounting regulations, monitoring solvency and liquidity ratios. The Central Bank also carries out ad-hoc on-site inspections of financial institutions.

In March 2023 the World Bank approved a fund of US$450 million (€413 million) to improve the banking system’s financial inclusion, digital entrepreneurship and the digital infrastructure for businesses and individuals. Four Moroccan banks ranked in the Forbes’ 2023 Top 50 Banks list for the Middle East and North African (MENA) region – Attijariwafa Bank, Banque Centrale Populaire, Bank of Africa and CIH Bank.

The Main Sectors of the Moroccan Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

Morocco’s services sector generally accounts for around 50% of Gross Domestic Product (GDP) and has grown in step with the vigorous liberalising of the economy, introducing new business models and implementing digital processes. The sector includes retail and wholesale distribution; transportation and logistics; legal and business services; education and healthcare; telecommunications; real estate.

Post-pandemic, Morocco’s vital tourism industry bounced back in 2022. The Financial Studies and Forecasts Department (DEPF) stated that foreign currency revenues in 2022 increased by 161% to US$9.2 billion (€8.44 billion), compared with a 5.9% decline between 2020 and 2021. The DEPF also revealed that Morocco had more than 19 million overnight stays in 2022, a 75% increase over pre-pandemic levels, with the Ministry of Tourism stating there were 10.9 million overseas tourists from January to November that year.

The upward trend continued into 2023, with a 17% increase in tourists in the first two months of the year compared to the same period in 2022. Building on this, the government launched the 2023-2026 Tourism Road Map with US$592 million (€543 million) invested to attract 17.5 million tourists and create 200,000 new jobs by 2026.

A sector previously based on textiles and food production is blossoming into higher value, higher tech options including pharmaceuticals, aeronautics, renewable energy and automotive operations, with Renault among the companies operating in Morocco. Component suppliers are the major employers in the sector and 200 such companies are in place. Morocco is also part of the electric vehicle scene, although demand in Morocco is low due to lack of charging sites.

Local company Maribat is building the first EV battery plant near Casablanca, drawing on Morocco’s cobalt reserves outside Marrakesh, while Tesla is establishing charging stations. Semi-conductor producer STMicroelectronics operates an EV microchip plant outside Marrakesh. This expansion in manufacturing is attracting Foreign Direct Investment (FDI) and drawing in foreign enterprises to partner Moroccan companies. Low labour costs and a strategic location across the Mediterranean Sea from European markets, places Morocco in a prime position.

The port of Tangier Med is larger than any on the Spanish coast facing Morocco and improved road and rail infrastructure in the region has improved the options for manufacturers, importers and exporters.

The sector averages a 12-13% contribution to GDP and employs close to a third of the workforce. Highly-developed and capitalised farms produce fruit and market vegetables aimed primarily at the export market. Produce from areas irrigated by dam systems features dairy products, sugar, seeds plus fruit and vegetables for domestic consumption.  Grains, pulses and olives feature in the slightly rainier northwest, while less favourable conditions in the south and east support non-intensive sheep production and grains.

The National Mining Sector Development Strategy, launched in 2013 and running until 2025, was initiated to revitalise the industry. The Ministry of Energy, Mines and the Environment is responsible for electricity, renewable energy, hydrocarbons, nuclear energy, fuels, mines and geological exploration.  Morocco holds 75% of global phosphate reserves and is one of the world’s largest exporters.

Other mineral resources include copper, iron, manganese, gold, lead, silver and zinc and the Development Strategy aims to diversify mining operations and attract domestic and foreign investment into these less-developed areas of mining activity. The sector contributes around 20% to export revenues and employs in the region of 40,000 workers.

Morocco’s Central Bank is the Bank Al-Maghrib, which by law oversees all banking institutions and the stability of the banking system. Responsibilities include licensing, verifying competence of managers, enacting management and accounting regulations, monitoring solvency and liquidity ratios. The Central Bank also carries out ad-hoc on-site inspections of financial institutions.

In March 2023 the World Bank approved a fund of US$450 million (€413 million) to improve the banking system’s financial inclusion, digital entrepreneurship and the digital infrastructure for businesses and individuals. Four Moroccan banks ranked in the Forbes’ 2023 Top 50 Banks list for the Middle East and North African (MENA) region – Attijariwafa Bank, Banque Centrale Populaire, Bank of Africa and CIH Bank.

Commercial Laws in
Morocco

The General Tax Administration:  Part of the Ministry of Economy and Finance and responsible for setting and collecting state taxes and oversees the collection of some local taxes.

The Ministry of Labour and Social Affairs: Develops and implements government policy as an active intermediary in the employment market in such areas as labour disputes, expanding employment opportunities, unemployment.

The Ministry of Labour and Professional Insertion:  In charge of developing and implementing government policy in the areas of labour, employment protection and social welfare.

The Ministry of Economic Inclusion, Small Businesses, Employment and Skills: Responsible for government policy on employment, vocational training and self-entrepreneurship.

Trade Unions:  The Moroccan Workers Union was formed in 1955 and is the oldest organisation in the country.

General requirements

Contracts must be in writing for fixed-term contracts and foreign employees, using the standard template supplied by the Ministry of Labour. Open-ended contracts need not be in writing, nor do Moroccan employees need a written contract but they must at least be given ‘job card’ providing basic details of the agreement. Regulations governing contracts are set out in the Labour Code and the Code of Obligations and Contracts.

Commercial Laws in
Morocco

The General Tax Administration:  Part of the Ministry of Economy and Finance and responsible for setting and collecting state taxes and oversees the collection of some local taxes.

The Ministry of Labour and Social Affairs: Develops and implements government policy as an active intermediary in the employment market in such areas as labour disputes, expanding employment opportunities, unemployment.

The Ministry of Labour and Professional Insertion:  In charge of developing and implementing government policy in the areas of labour, employment protection and social welfare.

The Ministry of Economic Inclusion, Small Businesses, Employment and Skills: Responsible for government policy on employment, vocational training and self-entrepreneurship.

Trade Unions:  The Moroccan Workers Union was formed in 1955 and is the oldest organisation in the country.

General requirements

Contracts must be in writing for fixed-term contracts and foreign employees, using the standard template supplied by the Ministry of Labour. Open-ended contracts need not be in writing, nor do Moroccan employees need a written contract but they must at least be given ‘job card’ providing basic details of the agreement. Regulations governing contracts are set out in the Labour Code and the Code of Obligations and Contracts.

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