Located at the apex of North-west Africa and across the 14 km Strait of Gibraltar from Spain, the Kingdom of Morocco is the Regional and International hub, having benefitted from its advantageous geographic location at the crossroads between Europe and Africa, it has served as a very important Business hub between Europe, Africa, and the Middle East.
Morocco has not only deepened its economic and security ties with the EU but also with the Gulf states and China.
According to the Oxford Business Group 2018 report on Morocco, it is North Africa’s most politically and economically stable country. Being a Business hub for the EU and most African countries, it could be internationally competitive in sectors such as Textile production, Automotive, electronics, aeronautic, agro-industrial processing, and offshoring services. The report stated Morocco as an attractive manufacturing center.
Morocco has been able to establish a solid network of international trade agreements, encompassing free trade deals with Canada, the US, and Turkey, as well as being a part of the European Free Trade Association. Trade between the EU and Morocco reached €53.3 billion in 2022. The EU's imports from Morocco amounted to €21.7 billion and were led by transport equipment (€5.1 billion, 23.5%), machinery and appliances (€4.6 billion, 21.2%), and textiles (€3.1 billion, 14.3%).
One thing that has always been to Morocco’s benefit is its nearness to Europe, and the other is the comparatively lower wage costs and the natural skill and cleverness of its employees, the majority of whom are women.
Morocco is considered a developing country by international standards. The country is forecast to see some sustained economic progress over the short to medium term with a 5.7% compound annual growth rate by 2020 and beyond, according to Euro Monitor. This growth is largely stimulated by domestic demand, and Morocco is on track to see continued improvements in its economic performance due to a combination of government policy measures to enhance the business climate, focused expansion of the middle class, and improvements in competitiveness.
The kingdom’s increased economic interconnectedness with its trade partners has also led to a bulking up of investments into its port and logistics infrastructures, particularly the establishment of free trade zones and the Tangier-Med port, which has further boosted Morocco’s competitiveness across Africa.
Morocco’s status as a trade hub is bolstered by its trade agreements with the Persian Gulf, Mediterranean, and African nations, the United States of America, and the European Union. Morocco currently has duty-free access to a market of 55 countries representing more than one billion consumers and 60 percent of world GDP.