Editing Economy of Morocco (section)

==Services==
[[Service (economics)|Services]], including government and [[military expenditure]]s, account for about one-fourth of Morocco's [[GDP]]. Government spending accounts for fully half of the service economy, despite an ongoing effort on the part of the government to sell much of its assets to private concerns. Since the mid-1980s [[Tourism in Morocco|tourism]] and associated services have been an increasingly significant sector of the Moroccan economy and by the late 1990s had become Morocco's largest source of foreign currency.

During that time the Moroccan government committed significant resources – by way of loans and tax exemptions – to the development of the tourist industry and associated services. The government also made direct capital investments in the development of the service sector, but since the early 1990s it has begun to divest itself of these properties. Several million visitors enter Morocco yearly, most of them from [[Europe]]. Tourists also arrive from [[Algeria]], the [[United States]], and [[East Asia]], mainly [[Japan]].

===Tourism===
{{Main|Tourism in Morocco}}
[[Image:Tangier 5184a.jpg|thumb|300px|A view of Tangier Bay at sunset as seen from the [[Malabata]] suburb.]]
Morocco is a major touristic destination. [[Tourism]] is thus a major contributor to both the [[economic output]] and the [[Current account (balance of payments)|current account balance]], as well as a main job provider. In 2008 8 million tourists have visited Morocco. Tourist receipts in 2007 totalled US$7,55 billion. Morocco has developed an ambitious strategy, dubbed "Vision 2010", aimed at attracting 10 million tourists by 2010. This strategy provides for creating 160,000 beds, thus bringing the national capacity to 230,000 beds. It also aims to create some 600,000 new jobs.

[[Marrakech]] continues to be the market leader, but the case of [[Fes, Morocco|Fez]], showing a 20% increase of visitors in 2004, gives hope that better organisation can bring results in diversifying the sector as a whole. Like other regions, Fez has its Centre Regional du Tourisme (CRT), a local tourism body which coordinates the local industry and the authorities. Fez's plan involves a substantial restructuring of the old city and an upgrading of hotel capacity. Improved transport has brought the city into more direct contact with potential visitors. There are now direct flights from [[France]], where previously it was necessary to change plane in [[Casablanca]].<ref>{{cite web| url = http://www.allbusiness.com/africa/1035405-1.html| url-status = dead| archive-url = https://web.archive.org/web/20090106201259/http://www.allbusiness.com/africa/1035405-1.html| archive-date = 2009-01-06| title = MOROCCO: Economy being hammered into shape {{!}} Africa > North Africa from AllBusiness.com}}</ref>

The "[[Plan Azur]]", is a large-scale project initiated by king [[Mohammed VI of Morocco|Mohammed VI]], is meant to internationalise Morocco. The plan provides for creating six coastal resorts for holiday-home owners and tourists: five on the [[Atlantic Ocean|Atlantic coast]] and one on the [[Mediterranean Sea|Mediterranean]]. The plan also includes other large-scale development projects such as upgrading regional airports to attract budget airlines, and building new train and road links.

Thus, Morocco achieved an 11% rise in tourism in the first five months of 2008 compared with the same period last year, it said, adding that French visitors topped the list with 927,000 followed by Spaniards (587,000) and Britons (141,000).
Morocco, which is close to Europe, has a mix of culture and the exotic that makes it popular with Europeans buying holiday homes.<ref>http://www.map.ma/eng/sections/economy/development_efforts/view {{dead link|date=January 2018 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

===Information technology===
{{Main|Information technology in Morocco}}
The IT sector generated a turnover of Dh7 billion ($910,000m) in 2007, which represented an 11% increase compared to 2006. The number of Moroccan internet subscribers in 2007 amounted to 526,080, representing an increase of 31.6% compared to the previous year and a 100% increase compared to 2005. The national penetration for internet subscription remains low, even though it increased from 0.38% in 2004 to 1.72% in 2007. Yet over 90% of subscribers have a broadband ADSL connection, which is one of the highest ratios in the world. The future of the Moroccan IT sector was laid out in Maroc 2006–12. The plan aims to increase the combined value of the telecoms and IT sector from Dh24 billion ($3.1 billion) in 2004 to Dh60 billion ($7.8 billion) in 2012.

While the telecoms sector remains the big earner, with Dh33 billion ($4.3 billion), the IT and off shore industries should generate Dh21 billion ($2.7 billion) each by 2012. In addition, the number of employees should increase from 40,000 to 125,000. The government hopes that adding more local content to the internet will increase usage. There have also been efforts to add more computers to schools and universities. E-commerce is likely to take off in the next few years, especially as the use of credit cards is gaining more ground in Morocco. Although computer and internet use have made a great leap forward in the past five years, the IT market still finds itself in infancy and offers great potential for further development.

===Retail===
The retail industry represents 12.8% of Morocco's GDP and 1.2m people – 13% of the total workforce – are employed in the sector. Organised retail, however, represents only a fraction of domestic trade, as shoppers rely on the country's 1151 souks, markets and approximately 700,000 independent groceries and shops. The rapid emergence of a middle class – around 30% of the population – combined with a young and increasingly urban population and a craving for international brands, is rapidly changing the ways Moroccans spend their money. Still average purchasing power remains low overall, forcing retailers to cater to a broad section of the population and to keep prices low. Despite the challenges, the retail sector has strong growth potential. The franchising segment will continue to grow, and while strong local brands are emerging, international brand names will continue to account for the biggest percentage increase in the sector's turnover. Changing consumption habits, increasing purchasing power and the growing number of tourists should boost the development of malls and luxury shopping. However, independent stores and markets should continue to account for most domestic trade in the foreseeable future.<ref name="oxfordbusinessgroup.com"/>

===Offshoring===
In 2009 Morocco was ranked among the top thirty countries<ref name="ReferenceC">{{cite web|url=http://www.magharebia.com/cocoon/awi/xhtml1/en_GB/features/awi/features/2009/01/07/feature-03|title=Morocco among the top ten countries in offshoring sector – Magharebia|access-date=11 June 2015|archive-date=6 October 2018|archive-url=https://web.archive.org/web/20181006221246/http://www.magharebia.com/cocoon/awi/xhtml1/en_GB/features/awi/features/2009/01/07/feature-03|url-status=live}}</ref><ref>{{cite web|url=http://www.gartner.com/it/page.jsp?id=835718|archive-url=https://web.archive.org/web/20081217025354/http://www.gartner.com/it/page.jsp?id=835718|url-status=dead|archive-date=17 December 2008|title=Gartner Identifies Top 30 Countries for Offshore Services in 2008|access-date=11 June 2015}}</ref><ref>{{cite web|url=http://searchcio.techtarget.com/news/article/0,289142,sid182_gci1342158,00.html|title=Gartner picks top 30 countries for offshore IT outsourcing|work=SearchCIO|access-date=11 June 2015|archive-date=5 August 2010|archive-url=https://web.archive.org/web/20100805072329/http://searchcio.techtarget.com/news/article/0,289142,sid182_gci1342158,00.html|url-status=live}}</ref><ref>{{Cite web|url=http://www.animaweb.org/en/actu-detail.php?actu=4933|archive-url=https://web.archive.org/web/20100717162813/http://www.animaweb.org/en/actu-detail.php?actu=4933|url-status= dead|title=ANIMA News : Morocco and Egypt enter the latest Gartner's offshore IT 'Top 30'<!-- Bot generated title -->|archive-date=17 July 2010}}</ref> in the [[Offshoring|offshoring sector]]. Morocco opened its doors to offshoring in July 2006, as one component of the development initiative Plan Emergence, and has so far attracted roughly half of the French-speaking call centres that have gone offshore so far and a number of the Spanish ones.<ref>{{cite web |url=http://www.apebi.org.ma/apebi_eng.php?id_article=491&id_rubrique=37 |title=Apebi |access-date=20 December 2009 |url-status=dead |archive-url=https://web.archive.org/web/20080904175049/http://www.apebi.org.ma/apebi_eng.php?id_article=491&id_rubrique=37 |archive-date=4 September 2008}}</ref><ref name="alarab.co.uk">{{cite web |url=http://www.alarab.co.uk/Previouspages/North%20Africa%20Times/2007/11/04-11/NAT090411.pdf |title=Archived copy |access-date=20 December 2009 |url-status=dead |archive-url=https://web.archive.org/web/20110722153832/http://www.alarab.co.uk/Previouspages/North%20Africa%20Times/2007/11/04-11/NAT090411.pdf |archive-date=22 July 2011}}</ref><ref>{{cite web |url=http://www.moroccanamericantrade.com/newsite/Moroccos__offshoring_advantage.pdf |title=Archived copy |access-date=20 December 2009 |url-status=dead |archive-url=https://web.archive.org/web/20110714115025/http://www.moroccanamericantrade.com/newsite/Moroccos__offshoring_advantage.pdf |archive-date=14 July 2011}}</ref> According to experts, [[multinational corporation|multinational companies]] are attracted by Morocco's geographical and cultural proximity to [[European Union|Europe]],<ref name="ReferenceC"/><ref name="alarab.co.uk"/> in addition to its time zone. In 2007 the country had about 200 call centres, including 30 of significant size, that employ a total of over 18,000 people.<ref name="alarab.co.uk"/>

===Finance===
[[Image:Bank in marocco.jpg|thumb|The central bank of Morocco [[Bank Al-Maghrib]]]]
{{Main|Finance in Morocco}}
In 2007 the economic environment remained conducive to further growth of banking activity in Morocco following a very good year for the sector in 2006. In 2007 macroeconomic growth, excluding the [[Agriculture in Morocco|agricultural sector]], remained quite robust, providing the background for dynamic growth in banking credits. Total assets of the banking sector increased by 21.6% to MAD 654.7 billion ($85.1 billion), which is above the previous year's high annual growth rate of 18.1%. The structure of the domestic sector has remained steady in the past two years, with the landscape dominated by three major local banks. The state has started to remove itself from the domestic sector by surrendering part of its share capital in public banks. At end-2007 public capital still held controlling stakes in five banks and four financing companies. Meanwhile, foreign ownership in the local financial sector continues to grow, with foreign institutions controlling five banks and eight financing companies as well as holding significant stakes in four banks and three financing companies.

The financial system, though robust, has to take on excessive quantities of low risk-low return [[government debt]] at the expense of riskier, but more productive private sector lending. This crowding–out of private sector investment reduces the profitability and growth incentives of the financial sector.

Fitch Ratings affirmed Morocco's long-term local and foreign issuer default ratings of "BBB−" and "BBB", respectively, with a stable outlook. The [[credit rating agency]] attributed its classification in part to the "relative resilience of Morocco's economy to the global economic downturn."<ref name="ReferenceB">http://www.oxfordbusinessgroup.com/weekly01.asp?id=4644#english {{dead link|date=January 2018 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

===Insurance===
The insurance sector in Morocco is witnessing dynamic growth, driven foremost by developments in life insurance, which has superseded motor insurance in the past two years as the leading segment of the market with around one-third of total premiums. Behind life and auto insurance, accident, work-related accident, fire and transport insurance were the largest contributors. Total premiums reached Dh17.7 billion ($2.3 billion) in 2007, ranking Morocco as one of the largest insurance markets in the Arab world behind Saudi Arabia and the UAE. The insurance penetration rate is 2.87% of GDP, while the insurance density is $69 per person.

More broadly, the Moroccan insurance sector is already consolidated, with five large players controlling the market. The sector is set to be opened up to foreign competition from 2010 onward, and the consolidation of insurance companies into larger entities should strengthen the local players to better compete with eventual competition from foreign insurers. There is also the possibility that new insurance niches such as takaful (Islamic insurance) and microinsurance products will become part of the Moroccan market in the medium-term, but they are unlikely to appear in the near future.

===Media and advertising===
{{Main|Media in Morocco}}

According to the Moroccan Advertisers Group, Dh3.9 billion ($507 million) was spent in 2007, a near-fourfold increase on the Dh1.1 billion ($143 million) spent in 2000. There is still room for growth, as the market remains underdeveloped by international standards. Advertising expenditure represented just over 0.6% of [[GDP]] in 2007, compared with 1% in [[Egypt]] and 1.5% to 2% in [[European Union|EU]] countries. Morocco's 10 biggest advertising spenders account for about 35% of the total, with telecoms, consumer goods and services companies making up a large percentage of that amount.<ref name="oxfordbusinessgroup.com"/>

Television retained the lion's share of advertising expenditure, with 55% of above-the-line advertising. In a 2006 poll, GAM found that 94% of its members used outdoor advertising, although 81% companied about problems, mainly caused by quality issues and delays. The potential for expansion is huge, and while telecoms should remain the largest advertising segment, fast-growing sectors of the economy such as retail, automobile and real estate are providing advertising companies with new opportunities.<ref name="oxfordbusinessgroup.com"/>

===Communications===
{{Main|Telecommunications in Morocco}}

The telecoms sector increased in value from Dh25.6 billion ($3.3 billion) in 2006 to Dh33.3 billion ($4.2 billion) in 2007. With a workforce of some 41,000 employees, the sector contributes 7% to annual GDP and is one of the country's leading recipients of foreign direct investment (FDI). Under the development plan, the sector should employ 125,000 people by 2012 and contribute 10% of GDP. With the penetration rates of 69.4% from mobile phones and 8.95% for fixed lines, the Moroccan telecoms industry is set to continue to grow. The call centre industry – partially as a result of offshore initiatives, such as Casanearshore and Rabat Technoplis – will continue to expand. However, the worldwide call centre industry is highly competitive and education is the key to success if Morocco truly intends to become a leading international player in this industry.<ref name="oxfordbusinessgroup.com"/>

===Telephone system===
In the late 1980s and early 1990s, the government undertook a major expansion and modernization of the telecommunications system. This nearly quadrupled the number of internal telephone lines and greatly improved international communications. In 1996 the state-owned telecommunications industry was opened up to privatization by a new law that allowed private investment in the retail sector, while the state retained control of fixed assets. In 1998 the government created Maroc Telecom (Ittiṣālāt al-Maghrib), which provides telephone, cellular, and Internet service for the country. Satellite dishes are found on the roofs of houses in even the poorest neighbourhoods, suggesting that Moroccans at every social and economic level have access to the global telecommunications network. The Internet has made steady inroads in Morocco; major institutions have direct access to it, while private individuals can connect via telecommunications "boutiques", a version of the cyber cafés found in many Western countries, and through home computers.

Morocco has a good system composed of open-wire lines, cables, and [[microwave radio]] relay links. The [[internet]] is available. The principal switching centers are [[Casablanca]] and [[Rabat]]. The national network is nearly 100% digital using [[fiber-optic]] links. An improved rural service employs microwave radio relay. The international system has seven submarine cables, three satellite earth stations, two [[Intelsat]] (over the [[Atlantic Ocean]]) and one [[Arabsat]]. There is a microwave radio relay to [[Gibraltar]], [[Spain]] and the [[Western Sahara]]. [[Coaxial cable]]s and microwave radio relays exist to [[Algeria]]. Morocco is a participant in [[Medarabtel]] and a fiber-optic cable links from [[Agadir]] to Algeria and [[Tunisia]].

*Main lines in use: 3.28 million (2012) : estimation
*Mobile cellular: 47.25 million [135% of the total population] (2015) : estimation
*Internet users: 21.2 million [60.6% of the total population] (2014): estimation<ref>{{cite web|url=https://www.cia.gov/the-world-factbook/countries/morocco/|title=The World Factbook|access-date=11 June 2015|archive-date=2 December 2022|archive-url=https://web.archive.org/web/20221202191738/https://www.cia.gov/the-world-factbook/countries/morocco/|url-status=live}}</ref>

===Radio===
*[[Amplitude modulation|AM]] stations: 25;
*[[Frequency modulation|FM]] stations: 31;
*[[Shortwave radio|Shortwave]]: 11 (2007);
*Radio sets: 7.78 million (2007).

===Broadband Internet access===
Operated by [[Maroc Telecom]]. The service started as a test in November 2002 before it was launched in October 2003. The service is offered by the subsidiary [[Menara, Maroc Telecom|Menara]]. As well as Inwi (also known as Wana Co.) and Meditel that turned into Orange.

===Equity markets===
[[Privatization]] has stimulated activity on the [[Casablanca Stock Exchange]] (Bourse de Casablanca) notably through trade in shares of large former state-owned operation. Founded in 1929, it is one of the oldest stock exchanges in [[Africa]], but it came into reckoning after financial reforms in 1993,<ref name="britannica.com">{{cite encyclopedia|url=https://www.britannica.com/EBchecked/topic/392604/Morocco|title=Morocco|encyclopedia=Encyclopædia Britannica|access-date=11 June 2015|archive-date=31 July 2011|archive-url=https://web.archive.org/web/20110731173203/http://www.britannica.com/EBchecked/topic/392604/Morocco|url-status=live}}</ref> making it the third largest in Africa.<ref name=autogenerated3>http://www.oxfordbusinessgroup.com/weekly01.asp?id=4661#english {{dead link|date=January 2018 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
The stock [[market capitalisation]] of listed companies in Morocco was valued at $75,495 billion in 2007 by the [[World Bank]].<ref>{{cite web|url=http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/0,,contentMDK:20394793~menuPK:1192714~pagePK:64133150~piPK:64133175~theSitePK:239419,00.html |title=Data – Finance |access-date=11 June 2015 |url-status=dead |archive-url=https://web.archive.org/web/20061205235151/http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/0%2C%2CcontentMDK%3A20394793~menuPK%3A1192714~pagePK%3A64133150~piPK%3A64133175~theSitePK%3A239419%2C00.html |archive-date=5 December 2006}}</ref> That is an increase of 74% compared with the year 2005. Having weathered the global financial meltdown, the Casablanca Stock Exchange is stepping up to its central role of financing the Moroccan economy. Over the next few years, it seeks to double its number of listed companies and more than quadruple its number of investors.<ref name=autogenerated3 />