Morocco at a glance

Capital: Rabat
Population: 34,343,220
Government Type: Constitutional Monarchy 

GDP: $125 billion
Imports: $28.5 billion f.o.b.
Exports: $12.75 billion f.o.b.

Moroccans are predominantly Sunni Muslims of Arab, Berber, or mixed Arab-Berber ancestry. There is also a Jewish community of approximately 5,000, and a largely expatriate Christian population of 5,000, who enjoy religious freedom and full civil rights. Morocco is also home to a 300-500-person Baha’i community. which in recent years has been able to worship free from government interference.

Arabic is Morocco’s official language, but French is widely taught and serves as the primary language of commerce and government. Moroccan colloquial Arabic is a combination of Arabic, Berber, and French dialects. Along with Arabic, about 10 million Moroccans, predominantly in rural areas, also speak one of the three Moroccan Berber dialects (Tarifit, Tashelhit, and Tamazight). Spanish is also used in the northern part of the country. English is rapidly becoming the foreign language of choice among educated youth and is offered in all public schools from the fourth year on.

Most people live west of the Atlas Mountains, a range that insulates the country from the Sahara Desert. Casablanca is the center of commerce and industry and the leading port; Rabat is the seat of government; Tangier is the gateway to Spain and also a major port; “Arab” Fes is the cultural and religious center; and “Berber” Marrakech is a major tourist center.

Education in Morocco is free and compulsory through primary school (age 15). Nevertheless, many children — particularly girls in rural areas — do not attend school. The country’s literacy rate reveals sharp gaps in education, both in terms of gender and location; while country-wide literacy rates are estimated at 39% among women and 64% among men, the female literacy rate in rural areas is only 10%.

Morocco is divided into 16 administrative regions (further broken into provinces and prefectures); the regions are administered by Walis (governors) appointed by the king. The Moroccan constitution provides for a monarchy with a parliament and an independent judiciary. Ultimate authority rests with the king.

In November 2002, King Mohammed VI formed a government, appointing then-Interior Minister Driss Jettou as Prime Minister. Cabinet-level positions were drawn from most major parties in the coalition. Following the elections, King Mohammed VI highlighted several goals toward which the new government should work: expanded employment opportunities, economic development, meaningful education, and increased housing availability. To meet the King’s objectives, the Jettou government embarked on a series of initiatives and reforms, which Jettou laid out in his early days as prime minister. Jettou emphasized that modernization and revitalization of the country’s infrastructure (roads, trains, communications, water, etc.) and national economy (support for Moroccan businesses, preparations for competition, modernization of modes of production, etc.) were necessary to further development progress in Morocco.

Parliamentary elections were held in September 2007. Abbas El Fassi was designated to form a new government.

U.S. - Moroccan Relations

Morocco was the first country to seek diplomatic relations with the Government of the United States in 1777, and it remains one of the nation’s oldest and closest allies in the region. Formal U.S. relations with Morocco date from 1787, when the two nations negotiated a Treaty of Peace and Friendship. Renegotiated in 1836, the treaty is still in force, constituting the longest unbroken treaty relationship in U.S. history.

U.S.-Moroccan relations have remained strong through cooperation and sustained high-level dialogue. As a stable, democratizing, and liberalizing Arab Muslim nation, Morocco is important for U.S. interests in the Middle East. Accordingly, U.S. policy toward Morocco seeks sustained and strong engagement, and identifies priorities for reform, conflict resolution, counterterrorism cooperation, and public outreach

The U.S. Agency for International Development (USAID) and its predecessor agencies have managed an assistance program in Morocco since 1953, for a cumulative amount exceeding $2 billion. The Peace Corps has been active in Morocco for more than 40 years, with the first group of 53 volunteers arriving in the country in 1963. Since that time, nearly 4,000 volunteers have served in Morocco, and they have served in a variety of fields, including lab technology, urban development, commercial development, education, rural water supply, small business development, beekeeping, and English training.

In January 2006, a bilateral free trade agreement (FTA) between the United States and Morocco went into effect. The U.S.-Morocco FTA eliminated tariffs on 95% of bilateral trade in consumer and industrial products, with all remaining tariffs to be eliminated within 9 years. The FTA provides new trade and investment opportunities for both countries and encourages economic reforms and liberalization already underway.

Foreign Relations

Morocco is a moderate Arab state that maintains close relations with Europe and the United States. It is a member of the UN and belongs to the Arab League, the Arab Maghreb Union (UMA), the Organization of the Islamic Conference (OIC), and the Non-Aligned Movement. King Mohammed VI is the chairman of the OIC’s Al-Quds Jerusalem Committee. Although not a member of the African Union (formerly the Organization of African Unity — OAU), Morocco remains involved in African diplomacy. It contributes consistently to UN peacekeeping efforts on the continent.

Morocco was the first Arab state to condemn Iraq’s invasion of Kuwait in 1990, and it sent troops to help defend Saudi Arabia. Morocco maintains close relations with Saudi Arabia and the Persian Gulf states, which have provided the country with substantial amounts of financial assistance. Morocco has supported efforts to stabilize Iraq following the downfall of Saddam Hussein. Morocco was also among the first Arab and Islamic states to denounce the September 11, 2001, terrorist attacks in the United States and declare solidarity with the American people in the war against terror. Morocco has seen its own terrorism at home as well.

The major issue in Morocco’s foreign relations is its claim to Western Sahara. As a result of Algeria’s continued support for the Polisario Front in the dispute over Western Sahara, relations between Morocco and Algeria have remained strained over the past several decades, although they have full diplomatic relations and there is periodic high-level contact between the two countries.

For more than 30 years, Morocco and the independence-seeking Popular Front of the Liberation of Saguia al Hamra and Rio de Oro (Polisario Front) have vied for control of Western Sahara, a former Spanish territory. Morocco’s claim to sovereignty in the territory is based largely on a historical argument of traditional loyalty of the Sahrawi tribal leaders to the Moroccan sultan as spiritual leader and ruler. The Polisario claims to represent the aspirations of the Western Saharan inhabitants for independence. Algeria claims none of the territory for itself but maintains that Sahrawis should determine the territory’s future status.

Economy

Macroeconomic stability, coupled with low inflation and relatively slow economic growth, has characterized the Moroccan economy over the past several years. The government continues to pursue reform, liberalization, and modernization aimed at stimulating growth and creating jobs. Employment, however, remains overly dependent on the agriculture sector, which is extremely vulnerable to inconsistent rainfall. Morocco’s primary economic challenge is to accelerate growth in order to reduce high levels of unemployment and underemployment. While overall unemployment stands at 7.7%, this figure masks significantly higher urban unemployment, as high as 33% among urban youths.

Through a foreign exchange rate anchor and well-managed monetary policy, Morocco has held inflation rates to industrial-country levels over the past decade. Despite criticism among exporters that the dirham has become badly overvalued, the country maintains a current account surplus, and foreign exchange reserves are strong. The combination of strong foreign exchange reserves and active external debt management gives Morocco ample capacity to service its debt.

Economic growth has been hampered by an over-reliance on the agriculture sector. Agriculture production is extremely susceptible to rainfall levels and ranges from 15% to 20% of GDP. Given that almost 40% of Morocco’s population depends directly on agriculture, droughts have a severe negative effect on the economy.

The current government is continuing a series of structural reforms begun in recent years. The most promising reforms have been in the labor market and financial sectors, and privatization has accelerated the sale of Global System for Mobile Communications (GSM) licenses in recent years. Morocco also has liberalized rules for oil and gas exploration and has granted concessions for many public services in major cities. The tender process in Morocco is becoming increasingly transparent. Many believe, however, that the process of economic reform must be accelerated in order to reduce urban unemployment.

Best Export Opportunities

The U.S.-Morocco Free Trade Agreement (FTA) entered its fourth year this month, and the cuts in customs duties for many U.S. products have become significant. Morocco offers U.S. exporters opportunities in many market sectors, including airport ground equipment, auto supplies, and food processing equipment. Other sectors that show growth in Morocco are water treatment and  power generation.  Opportunities  for exporters in the safety and security sector will also be found in the new Tanger-Med Port located on the Straits of Gibraltar. Further information can be found in the Best Export Opportunities section of the Official Export Guide’s Morocco Country Profile.

Foreign Investment

Foreign investment is encouraged by the Moroccan government. Free trade agreements with the United States, the European Union, the North African states, Jordan, and Turkey, as well as reform of the financial sector, have contributed to the record investment flows Morocco has secured in recent years. For more detailed information on investing , please consult the Official Export Guide’s Investment section for Morocco.

Transportation

Morocco is making the development of its communication and transportation networks a top priority. Morocco’s infrastructure for the distribution of goods and services is good and will continue to improve as the government nears completion on several projects. Morocco’s road network is among the best in Africa. Most parts of the country are readily accessible by well-surfaced roads. Most agricultural and manufactured goods move by road.

Mohammed V Airport is the largest airport in Morocco. It offers 50 flights per day to the United States, Europe, the Middle East and Africa. The railway network handles passenger service and the freight service of phosphates, fertilizers, chemical products and other minerals. The port of Casablanca, the second largest in Africa, handles 40% of all goods imported and/or exported. Morocco’s shipping costs are high in comparison to its Mediterranean competitors. There is frequent ferry service to and from Spain, France, and Italy for tourists. The FTA with the United States should encourage Moroccan companies to ship directly to the United States, an activity that will certainly increase with the completion of the Tanger-Med port that is run by the Moroccan Government’s Tanger Mediterranean Special Agency.

Map of Morocco