The Kingdom of Morocco's investment climate showcases a dynamic mix of opportunity and challenge, with tourism surging (+13% year-on-year in classified hotels), defense modernization accelerating via a potential $4B F-35 deal, and green infrastructure advancing with the South-Central Electric Highway. Yet regional security concerns in Dakhla and a 3% fisheries revenue decline highlight the need for selective sector strategies.

Manufacturing & Industry

The Kingdom of Morocco's industrial sector is undergoing dual transformation through aerospace and defense modernization. A landmark potential $4B F-35 fighter jet acquisition from Lockheed Martin (Hespress English) positions the country as a regional security leader while creating high-value manufacturing partnerships. This aligns with Morocco's existing automotive and aerospace ecosystems in Casablanca and Tangier. Meanwhile, the Fès-Meknès region's successful investment week for diaspora communities (L’Economiste) demonstrates growing regional manufacturing opportunities under the new Investment Charter. However, the MASI index's 3.83% mining sector decline signals volatility in extractive industries requiring careful risk assessment.

Infrastructure & Energy

Morocco continues its renewable energy leadership with Novec securing environmental impact studies for the Electric South-Central Highway (Le Matin Finance), a critical green infrastructure project linking solar and wind resources to urban centers. This follows the Kingdom's 52% renewable energy target by 2030. However, controlled explosions of war remnants in Dakhla (Hespress English) temporarily elevate risk perceptions for infrastructure projects in southern regions, though proactive clearance operations mitigate long-term concerns.

Tourism & Real Estate

The hospitality sector leads Morocco's post-pandemic recovery with a 13% surge in classified hotel stays (H1 2025), including standout performances in Tangier (+24%) and Casablanca (+18%) (Industrie du Maroc). This has propelled leisure/hotel stocks to 5.93% gains on the MASI (L’Economiste), reflecting investor confidence. The dirham's 1.3% appreciation against USD (L’Economiste) further supports inbound tourism spending power while marginally increasing Eurozone visitor costs.

Agriculture & Mining

Agricultural stocks surged 6.04% on the MASI (L’Economiste) despite mixed sector performance - fisheries revenue declined 3% year-on-year to 6.14B MAD (Industrie du Maroc), signaling need for modernization investments. The dichotomy between crop and seafood performance suggests structural opportunities in agri-tech and processing infrastructure to add value along the supply chain.

Market Outlook

The Kingdom of Morocco presents differentiated sector trajectories for Q3-Q4 2025. Tourism's strong rebound supports ancillary investments in F&B, retail, and transport infrastructure - particularly in the Tangier-Casablanca corridor. The F-35 deal could catalyze a defense industrial cluster, following the success of automotive FDI attraction. Infrastructure remains the most stable bet, with renewable energy projects offering 8-12% IRRs and PPP frameworks. Agriculture requires selective positioning - while crop exports benefit from dirham stability, fisheries need technological intervention. Mining's underperformance may create M&A opportunities amid global commodity shifts.

Strategic Insights

Morocco's investment landscape demands sector-specific strategies: tourism and renewables offer lower-risk entry points, while defense and agri-tech present higher-reward transformations. The Fès-Meknès diaspora investment model (L’Economiste) demonstrates how regional incentives can optimize capital deployment. Smart.by LLC's transactional advisory services are particularly valuable for navigating the Kingdom's evolving PPP frameworks in infrastructure and grant mechanisms for agricultural modernization. With end-to-end investment cycle support, investors can mitigate risks from currency fluctuations to security clearance timelines while maximizing Morocco's strategic positioning as an Atlantic-African gateway.