Expanding to Morocco? Everything you should know before making the big move
- Last updated: April 23, 2025
Have you heard a lot about Morocco’s potential, but have yet to dive into the specifics of business expansion in the region? In this blog post, we have compiled tips, market information, statistics, main labour regulations, local business practices as well as other insights tailored to companies like yours – all to make expansion in Morocco easier.
1. Why Morocco?
Strategic Location
Location, location, location – goes the business motto. And Morocco meets these requirements exactly: situated at the crossroads of Europe, Africa, and the Middle East, Morocco offers juicy opportunities for nearshore businesses. It is also just 14 km from Spain and enjoys excellent port, road, and air infrastructure—making it a reliable logistics hub, making business even easier and potentially more lucrative.
Economic Growth: Stable GDP growth & diversified economy
The Moroccan economy is diversified, showing consistent GDP growth, as follows:
- 10-year CAGR: 2.8%
- 5-year CAGR: 1.8%
- 3-year CAGR: 2.4%
- Projected 2025 Growth: 3.6%
The economy is driven by sectors like manufacturing, services, agriculture, and tourism. To establish itself as a hub and intermediary for trade across Africa, Morocco has boosted investments in its port, transportation, and industrial infrastructure. A new port, as well as a free trade zone close to Tangier are among the most prominent examples of industrial development plans and infrastructure upgrades in the country.
Business-Friendly Regulations
Morocco ranks among the top African countries for ease of doing business, with tax incentives, free trade zones, and bilateral investment agreements that make it attractive for foreign investors. In the 2020 edition of the World Bank’s “Doing Business” report, Morocco was ranked 53rd out of 190 economies.
2. Key Industries & Opportunities
Here are some of the best-established industries in Morocco. Since these sectors are already well-developed and thriving in Morocco, it can be easier for a new entrant to the market to build on the already-existing infrastructure, allowing them to become profitable faster:
Automotive & Aerospace
Morocco is one of Africa’s top car producers, and has welcomed renowned international automotive companies like Renault, and Peugeot who have established operations in the country.
The country is also pursuing growth in the electric vehicle (EV) sector, with significant investments in EV battery production together with a goal to produce 100,000 EVs by 2025.
In step with the expansion of the automotive industry, Morocco’s aerospace sector has also experienced rapid growth, with exports of up to $2 billion in 2023, with growth of over 15% annually in the past 5 years. The country now houses over 140 aerospace firms, some of which are key suppliers to Airbus and Boeing.
Renewable Energy
With projects like the Ouarzazate Solar Power Station – which is the world’s largest concentrated solar power (CSP) plant – Morocco is leading Africa in green energy innovation. The country is also setting a goal to increase the share of renewable energy sources to 52% by 2030 – which is why new actors with innovative solutions will be welcomed in the business landscape.
3. Legal & Compliance Overview
Being an ex-French colony, Morocco’s legal system is mainly based on the French civil law, although it does adopt certain elements of Muslim and Jewish traditions. As such, laws are clearly codified, and employment laws feature strict worker protections, particularly where termination and contracts are concerned. Other legal requirements include the need for employment contracts to be in Arabic and meet certain conditions, such as a standard 44-hour workweek and comparatively generous leave entitlements.
As far as payroll and taxation are concerned, progressive income tax rates apply and there are several mandatory social security contributions for both employers and employees to make. These contributions vary and can even change as laws are updated. As an employer in Morocco, you will need to keep up with this changing legislation. This often proves to be too much to do, once you account for all the other labour and resource-intensive processes that are required during expansion. An Employer of Record (EOR) in Morocco will take over all these administrative tasks so you can focus on developing your core business instead.
4. Onboarding Locals vs. Expats
Morocco boasts a young, educated and often bilingual workforce, especially in cities like Casablanca, Rabat, and Marrakech. However, competition for top-tier talent is growing, especially in in-demand sectors like IT. To hire expats, you will need to navigate work permits and residence requirements, which can change if the law is updated.
When onboarding local employees and even more widely when doing business, understanding Morocco’s business etiquette is crucial. Punctuality, relationship-building, and respectful communication go a long way. Additionally, Fridays are viewed as holy days, and Ramadan can affect business hours.
5. How an EOR can help
Expanding into a new country is usually a lengthy and complex operation but working with an Employer of Record in Morocco can help you avoid all these obstacles. For instance, EORs allow you to quickly enter the market, since there is no need to set up a local entity. Once you are operating, EORs like Africa HR Solutions help you attain bulletproof compliance, reducing the risks of fines, employee misclassification and more. With their clear understanding of Moroccan law, a trusted EOR will help you uphold worker rights in Morocco.
Ready to Expand to Morocco?
Our Employer of Record (EOR) solutions in Morocco will help you streamline your operations and avoid unnecessary legal headaches. Our team takes over employee onboarding, payroll, legislative compliance, as well as employee benefits administration for you, while you focus your resources and attention where it is most needed: on your core business.
To find out more about how we can help you, chat with one of our experts.