continued on page 3 M OROCCO special advertising section thoroughly modern Thanks to the social and economic reforms of its royal ruler, the kingdom has shaken off its former image and developed into a buzzing destination for wealthy tourists and business enterprises. Economically as well as socially, Morocco is a trendy location these days. Investors from the Middle East, Europe and the U.S. are being attracted to the country, as are fashionable foreign tourists and expatriate home buyers. Russian gas giant Gazprom’s real estate sub- sidiary, Intelco, is investing nearly US$1.55 billion in the construction of upmarket resort facilities in the Rif Mountains. Renault, the French carmaker, is building a $930 million manufacturing plant near Tangiers, while Marrakech has become the très chic destination for high-end travelers and European retirees. An ongoing program of economic, political and social liberalization has had a remarkable effect. The country’s economy has averaged 5.4% growth since 2001. It is forecast to be above 6% this year. Foreign direct investment exceeded $4 billion last year, 18% more than the previous year. Trade volume with the U.S. totaled $2.3 billion, almost $1 billion more than the previous year. Due to its location, history and leadership, Morocco – without significant oil or gas resources – has managed remarkable growth in a world currently suffering economic uncer- tainty at a global level and riven by religious and ethnic tension. Under the reformist rule of King Mohammed VI, who inherited the throne nine years ago, substantial progress has been achieved in democratizing the political system, easing media restrictions, expanding women’s rights, enhancing the economic infrastructure and tackling the danger of Islamic extremism by act- ing to improve the social conditions of the poor. Poverty remains a problem, but average per capita income has risen to $4,100 and the unem- ployment rate has been reduced to below 10%. Reprinted from the October 27, 2008 issue of Forbes magazine
Transcript
continued on page 3
MOROCCOspecial advertising section
thoroughly modern
Thanks to the social and economicreforms of its royal ruler, thekingdom has shaken off its formerimage and developed into abuzzing destination for wealthytourists and business enterprises.
Economically as well as socially, Morocco is atrendy location these days.Investors from the Middle East, Europe and
the U.S. are being attracted to the country, asare fashionable foreign tourists and expatriatehome buyers.Russian gas giant Gazprom’s real estate sub-
sidiary, Intelco, is investing nearly US$1.55billion in the construction of upmarket resortfacilities in the Rif Mountains.Renault, the French carmaker, is building a
$930 million manufacturing plant nearTangiers, while Marrakech has become the trèschic destination for high-end travelers andEuropean retirees.An ongoing program of economic, political
and social liberalization has had a remarkableeffect.The country’s economy has averaged 5.4%
growth since 2001. It is forecast to be above 6%this year.Foreign direct investment exceeded $4 billion
last year, 18% more than the previous year.Trade volume with the U.S. totaled $2.3 billion,almost $1 billion more than the previous year.Due to its location, history and leadership,
Morocco – without significant oil or gasresources – has managed remarkable growth ina world currently suffering economic uncer-tainty at a global level and riven by religiousand ethnic tension.Under the reformist rule of King Mohammed
VI, who inherited the throne nine years ago,substantial progress has been achieved indemocratizing the political system, easingmedia restrictions, expanding women’s rights,enhancing the economic infrastructure andtackling the danger of Islamic extremism by act-ing to improve the social conditions of the poor.Poverty remains a problem, but average per
capita income has risen to $4,100 and the unem-ployment rate has been reduced to below 10%.
Reprinted from the October 27, 2008issue of Forbes magazine
morocco-pages2-reprint:forbes 10/8/08 11:12 AM Page 1
2 MOROCCO special advertising section
For some of the privileged participantsat the Marrakech International FilmFestival last December, one of the
highlights was an opportunity to stay atthe Palmeraie Golf Palace, a luxury hotelthat symbolizes Morocco’s growingappeal to high-end travelers.
The hotel is among four in a $475 mil-lion resort complex created by theBerrada Group, one of the enterprisingprivate-sector companies responding to agovernment development program toincrease the number of visitors to thecountry to 10 million by 2010.
The group, which has a 40-year his-tory, is maintaining an active presence inall of Morocco’s main development sec-tors, says Hicham Berrada, the vicepresident and son of the companyfounder, emphasizing his determinationto continue contributing to Morocco’seconomic progress.
Last year, more than 7.4 million for-eign tourists visited Morocco, attractedby the exotic North African culturaldelights offered in ancient cities such asFez, Tangier, Casablanca and Marrakech,and the scores of sandy beaches alongits 2,000-mile Atlantic and Mediterran-ean coastline.
To capitalize on its increasing interna-tional popularity, the Rabat governmenthas devised Vision 2010, which aims todraw a broad range of visitors from bothends of the tourism market.
The strategy is underpinned by acomprehensive infrastructure-develop-ment program, a key element of whichis Plan Azur, through which six made-to-measure coastal beach resorts are beingcreated, one on the Mediterraneancoast and five on the Atlantic.
The Palmeraie Development of theBerrada Group is firmly aimed at the topend of the market. Suites at thePalmeraie Golf Palace and Spa range inprice from $600 to $1,150 per night.
Berrada says the group has severalsimilar projects under way. They includewhat he describes as the first theme park
in Africa and two hotel resorts inCasablanca: Les Jardins de l’Ocean á DarBouazza, which is a beach resort south ofthe city, and the California Golf Resort áBouskoura, near a forest north of the city.
There are other luxury residential com-plexes: a theme village, Les Jardins del’Atlas on the road to Ourika, Marrakech;Les Jardins de Malabata at Tangier, whichis built, he says, according to anAndalusian concept, and another atOuarzazate Lake City.
The Berrada Group’s innovative inter-ests range from industry to real estate.“We are creating projects that will bethe models of an economy open to theworld,” says Berrada. “It has recentlyproved easier to diversify and to inventnew formulas. We are always looking fornew projects and new concepts.
“The theme park will be completedwithin five years. Our idea is to develop aproject that is halfway between ourMoroccan culture and traditions andinternational standards. We are positivethat Marrakech is the ideal location forthis product.”
The Berrada Group has recentlyopened up to partnerships with otheroperators. “Partnership is the only wayto survive, so we are actually looking forother partnerships,” says Berrada.
He adds that although at present80% of Morocco’s tourists come fromEurope, the country’s tourism operatorsare keen to encourage more visitorsfrom the U.S. “To attract Americans, itis all about quality in the long run. Andthat is what we offer at the PalmeraieDevelopment.” �
Director: Lucas Montes de Oca; Managing Editor: Beverley Blythe; Editor: Michael Knipe;Project Managers: Florence Lilti, Wandrille Lanos, Simmone Park, Mariana Sanchez; Project Development: Charlotte Saint-
Arroman; Commercial Director: Carolina Mateo; Art Director: Lisa Pampillonia; Cover Image: Digital Vision
This special advertising feature was produced by Insight Publications, a division of Impact Media Global Ltd.53 Chandos Place, London, WC2N 4HS United Kingdom
Join the celebrity setMorocco is boosting tourism by creating six beach resorts,and one enterprising company is providing luxury hotels andspas and the first theme park in Africa.
John-Fran
cisBourke/Ph
otograp
her’s
Choice
morocco-pages2-reprint:forbes 10/8/08 11:12 AM Page 2
Lying just eight miles off the coast ofGibraltar, Morocco is closer to Europegeographically and in its attitudes thanany other country in the Arab world oron the African continent, something ithas managed without abandoning itscultural traditions. Morocco can lay claimto being the most moderate and peace-ful country in the Islamic world.
“Geographically, we are in Africa,”says Othman Benjelloun, one of the coun-try’s leading business tycoons, “but at thesame time we are more European thanany other country on the continent.”
“Morocco represents an ideal againstthose who praise a clash of civilizations,”says Andre Azoulay, the senior advisor tothe King.
While the impulse for economic andsocial modernization of Morocco hascome from the King, the politicaldynamism is promoted now by Fouad AliEl Himma, a former interior minister andboyhood friend of the monarch.
Five political parties joined forces inJuly to create a new grouping, the Partyfor Authenticity and Modernity (PAM),under El Himma’s leadership. Observersexpect it to provide a reformist alterna-
tive to the moderate Islamic Justice andDevelopment Party in elections nextyear. El Himma aims to further imple-ment modern reforms and keepextremists at bay.
“The challenge is not to fight againstsomething, but to work towards some-thing. That is Morocco’s path on the wayto reform, democracy and modernity,”says El Himma.
“The essential element for us is to finda Moroccan way of creating morewealth, ensuring it is shared equally andguaranteeing Moroccans’ well-being anddignity,” he adds.
“Morocco has undergone a time oftremendous change simultaneously in
every field,” says Salaheddine Mezouar,the country’s minister of economy andfinance. The emphasis now, he says, ison diversifying the economy by attractingautomotive and high-tech industrieswhile moving up the value chain in tradi-tional sectors such as agriculture andtextiles.
The creation of successful partnershipsbetween the public and private sectorshas been a key driver of economic diver-sification.“The public-private partnershipis working perfectly and forms one of themain pillars of the Moroccan economicmodel,” says Moulay Hafid El Alamy,president of the employers’ federation.
Another significant component of theeconomic strategy has been the signingof bilateral free-trade agreements (FTAs)with the U.S., the European Union andTurkey, as well as and a joint FTA withEgypt and Tunisia.
In its first year, the FTA with the U.S.led to a 44% increase in total tradebetween the two countries, withMoroccan exports surging by 25%. Italso helped attract more American busi-ness and investors to Morocco. �
By Michael Knipe
from page 1
3
Spain’s Prime Minister Jose Luis RodriguezZapatero greets Morocco’s King MohamedVI during their meeting in Oujda.
Reu
ters/PoolNew
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QWhat is your view of the transformation that Moroccois undergoing?
A The dynamic changes ignited by King Mohammed VIhave won the confidence of the whole business com-
munity. The government has undertaken majorinfrastructure projects successfully, especially in the north.This is symbolized by the launch of Tangier-Med.
The tourism sector is being steered towards fast andsteady growth, and the government’s social reforms are
clearly meeting the challenge of overcoming the country’ssocial disparities.
QWhat are the main challenges Upline has faced in pio-neering the development of Morocco’s financial sector?
AWe had to seize the opportunity to go along with theprogram of structural adjustments and, with foreign
investment starting to flow in, we had to position ourselvesas the foremost company providing international research.
Following the growth of the stock exchange, we havedeveloped asset management, corporate finance in the pub-lic and private sectors, capital investment and insurance and,for three years now, derivatives connected to real estate. Weare independent. The Upline Group is controlled mainly byits founders, who are still running the group’s activities.
QHow important is the American market in Upline’sactivity?
A The free-trade agreement with the U.S. has not resultedin tremendous change at the level of my company. We
have to work on a series of incentives to attract Americancompanies to Morocco, and we acknowledge that we mustmake a bigger effort to attract them. Morocco has a lot tooffer.
Morocco lies at thecrossroads of Europe andAfrica, and the liberalizationof its money markets couldhelp the country become afinancial hub.
Reforms made to Morocco’s bankingand finance sector have putMorocco on course to become an
international finance center within thenext ten years.
The standards of liberalization andtransparency achieved have alreadyestablished the country as the bench-mark for the Middle East and NorthAfrican (MENA) region, according toAbdellatif Jouahri, the governor of BankAl-Maghrib, the central bank.
“All the standard Basel II requirementswere met by 2007,” he explains. “Weare preparing the advanced requirementsfor 2010, and measures to fight terror-ism and money laundering have beenimplemented in accordance with thestructure and laws imposed by the UNSecurity Council.”
A mission from the InternationalMonetary Fund that visited Rabat in Maycommended the bank’s fiscal perform-
ance, saying the budget was close tobalanced last year, due mainly to stronggrowth in tax receipts.
The Casablanca Stock Exchange,Africa’s third-oldest and third-largestbourse, already achieves performancesthat are among the best in the region.
Fathallah Berrada, the board chairman,says one of the advantages the exchangeoffers is its location at the crossroadsbetween Europe and African markets.
“Some companies are too big to get alisting in their own country but too small
to go to Europe,” he says. “Casablancacan receive these companies. One such isMaroc Telecom, which is now quoted inParis and Casablanca. We can offer suchcompanies a double quotation. Forexample, they can be quoted inCasablanca and Mali, or in Casablancaand the Ivory Coast.”
The exchange fosters the participationof well-managed companies in sectorsthat drive the economy, such as telecoms,mining, infrastructure and agro-industries,and has been averaging an introductionof ten initial public offerings a year.
Morocco’s financial standing in theregion is also reflected in the fact thatfour of the country’s banks are amongthe top 20 companies in North Africa,with Crédit Populaire du Maroc placed atnumber one last year, having almostdoubled its capital from $862 million to$1.7 billion.
Banque Marocaine du CommerceExtérieur (BMCE), the country’s second-largest bank, is the tenth most valuablecompany in the North African region.The bank is part of a holding companythat originated as Royale Marocained’Assurance, a company created by theBenjellouns – a distinguished Moroccanfamily – and other Moroccan entrepre-
A benchmark for good banking
Hassan Ait Ali, chiefexecutive of the UplineGroup, a cornerstone ofMorocco’s finance sector,gives his views on theeconomic developmentstaking place.
J.W.Stew
art/LaughingSto
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5special advertising section
The Casablanca Stock Exchange is a privatecompany with equity of 17.9 millionMoroccan dirhams ($2.46 million) held
equally between 16 brokerages.To be listed, companies must have good gov-
ernance, a strategic plan and be transparent.The Casablanca Stock Exchange (CSE) lists 77quoted companies.
As well as being Africa’s third-largest andthird-oldest bourse, the CSE continues toachieve performances that are among the bestin the Middle East and North Africa region.
Having recorded consistent growth for severalyears, capitalization of the CSE today hasreached 600 billion dirhams ($82.54 billion). Theannual average volume reached 359.7 billiondirhams ($49.48 billion) in 2007.
A series of measures has been instigated toensure rigorous and transparent management in line with international standards,including implementation of the latest version of the Nouveau Système deCotation electronic trading platform, dubbed NSC V900.
With more than 80 years of experience, the CSE has acquired the know-how andcapital to respond to the expectations of investors, stimulating their trust and con-tributing to Morocco’s development.
Casablanca’s bourse has adopted international standardsof management to ensure transparency and has installed
the latest electronic trading system.
TAKING STOCK
WWW.CASABLANCA-BOURSE.COM
neurs in the 1940s, and was authorizedby the French colonial authorities of thetime to use the “royale” prefix.
It has gone from strength to strength,buying the Al Wataniya insurance com-pany in 1995 and Méditel (now calledFinance.com), the second GSM (GlobalSystem for Mobile) license holder inMorocco, for $1 billion four years later.
“When BMCE was privatized in 1995,its share price was 325 dirhams,” recallsOthman Benjelloun, the chairman andchief executive. “Today, it is 3,151dirhams ($430).”
BMCE is now present in five Europeancountries and 15 African countries, aswell as in China. Benjelloun aims toachieve further global expansion.
“I think it is natural to want to go out-side our country’s borders,” he says.“We have an action plan allowing us tobe present in three or four African coun-tries every year. So, within 12 years, weaim to provide financial, insurance andtelecommunications products through anetwork covering the continent.”
Morocco’s investment banks are alsoadding to the country’s financial prestige.One of the leaders in the sector, theUpline Group, achieved revenue of $9.5million last year.
Hassan Ait Ali, the chief executive,says the firm has gradually expanded itsactivities to include stock-market inter-mediation, engineering financial analysis,research and asset management, andcapital investment.
He believes that Morocco’s geographiclocation will enable the country tobecome a regional financial hub, and hiscompany is waiting for the right momentto enter the U.S. market and offeropportunities to American investors. �
Real estate development is thrivingin Morocco. Eager buyers are snap-ping up traditional villas with
gardens or courtyards, and luxuriousresidential complexes are being builtaround coastal yacht marinas, desertgolf courses and Rif Mountain skiresorts.
Such is the extent of the current con-struction rate that some observers talkof reaching saturation, but this isroundly dismissed by Moroccan realestate developers.
No more than 150,000 homes arebeing built each year, yet the countryneeds a million, says Alami Lazraq, chiefexecutive of Groupe AlliancesDéveloppement Immobilier, one of thebiggest real estate companies inMorocco.
“If you count all the luxury real estateprojects in Morocco, there are maybe15,000. This is nothing. Spain built700,000 homes last year, more than
France, Italy and Germany put together.”Mohamed Ouanaya, the president and
chairman of Compagnie GénéraleImmobilière (CGI), the leading real estatecompany in Morocco, estimates thatthere will be a deficit for another tenyears, spread across the middle, lowerand upper-class sectors. To tackle theshortage, CGI plans to escalate its pro-duction tenfold and increase its financialoperations from $67.6 million to nearly$700 million by the year 2011.
“To do this,” says Ouanaya, “we’vefloated on the stock market and intro-duced new measures and new concepts.Today, our funds go beyond 4 billiondirhams ($541.3 million), which makesus one of the ten most liquid companiesin the country.”
He says the crucial elements of CGI’sstrategy are concept, quality and loca-tion, and for that reason the company isspecializing in large projects such as themulti-million-dollar La Marina de
Real estate firms are comingto the rescue of middle-classMoroccans by creatingsuburban communities.
Middle-class Moroccans are facing atemporary housing shortage.Construction of luxury homes for
the country’s increasing upscale market,together with the necessity of providingsocial housing for the poor, is resultingin a deficit for families in between.
“Someone with 3,000 dirhams forrent ($412) will have a place to stay, butsomeone with 10,000 dirhams ($1,373)will struggle, as what’s available will betoo expensive,” says Abdellah J. Slaoui,chief executive of the Jascom propertycompany.
Rachid Khayatey, chief executive ofreal estate company KLK, shares Slaoui’sconcerns. “The middle class is the
cement of Moroccan society,” saysKhayatey. “But unfortunately, the systemencourages the production of eithersocial housing or high-standard apart-ments. The middle class has to buy socialhousing, which forces prices up. Today,the largest margins are on high-standardhousing or on social housing, which issubsidized by the state.”
To overcome this problem, says Slaoui,some “intermediate” housing projectsare under construction. “These will bethe suburbs where the middle class willsoon be able to live. This is the future ofMorocco,” he says.
Educated in the U.S., Slaoui focusedhis attention on real estate in 2000 afterselling his profitable champagne-corkproduction company.
His company, Jascom, is now active inboth the luxury and intermediate house-building sectors. It has invested $110
Investors line up for ataste of luxury livingForeign buyers are attracted by the weather, the mountains,desert and sea, and Morocco’s cultural and religious harmony.
Middle-market home shortagesparks building boom
morocco-pages2-reprint:forbes 10/8/08 11:13 AM Page 6
million in the development of EdenIsland, a residential resort on theAtlantic coast in the Bouznika regionbetween Casablanca and Rabat. Slaouisays it is comparable to St. Tropez onthe French Riviera.
Most of the buyers are Moroccan.“The real market is the national mar-ket. I sell 99% of Eden Island toMoroccan buyers. Foreigners wouldrather go to Marrakech, Tangier or theMediterranean coast.”
Jascom is active throughout the coun-try and is building a five-star hotel with32 suites, a health spa and a pool in thePalmeraie of Marrakech called Domainedes Remparts.
“We are experiencing exponentialgrowth in turnover,” says Slaoui. “Wedon’t distribute dividends but reinvest allour resources in new projects. We arecurrently in the process of raising fundswith international partners who wish toinvest with us in Morocco.”
Rachid Khayatey’s company, KLK,which is active in all real estate sectors,now intends to focus primarily on hous-ing for the middle class. “We will be
using economies of scale and speed ofproduction to develop successful pro-grams,” he says. “We are visualizinghow things will be in the future.”
In accordance with this strategy, thecompany is building a two-tower apart-ment hotel in Malabata Hills, featuringsmall apartments that will respond tothe needs of the companies based atTangier-Med, the new megaport that isrevitalizing the economy of Tangier.
KLK is a partnership between threeinvestors: an architect, an industrialistand a businessman. Khayatey, the archi-tect, says each of the company’s projectshas to have social and economic impact.“I started with 14 villas, and five yearslater we had 200. Our projects are nowworth $1 billion. We are famous for fix-ing our prices based on the margin, noton the market. I am a technician andcan give the most accurate and fair costevaluation of a project. Our industrialpartner produces it, and our commercialpartner sells it, so when we releasedevelopments, they are a tremendoussuccess. On one occasion, we sold 300apartments in one day.” �
Casablanca project, which is scheduledto be ready in 2012. “We haven’t evenstarted to market this product, andwe’ve already received more than 400requests,” says Ouanaya. “We aim to dodifficult things others cannot do.
“Last week we were in Nador [in thenortheast] with His Majesty [KingMohammed VI], and we have enteredinto a partnership with Al Omrane [aconstruction company] to develop atown there.”
Morocco’s appeal to foreigners as aresidential prospect rests firmly on itssocial stability, cultural and religious har-mony, weather and varied landscapes.“Our country is exceptional,” saysLazraq. “From Agadir to Fez, the moun-tains, the desert, the sea – Europeansare still coming.”
Lazraq, an architect, created Alliancesas a services provider in 1994 andquickly began specializing in hotel reno-vation, establishing partnerships with theAccor, Park Hyatt, Starwood and theFour Seasons hotel chains.
Alliances is organized into four sec-tors: hotels, golf resorts, residentialdevelopment and suburban centers withtheir own commodities. “We are num-ber one in the hotel business,” Lazraqsays. “We rehabilitated the Palais Jamaiin Fez in 1998, the Sofitel in Essaouiraand in Marrakech and most of the Ibishotels in Morocco.
“Last year, we delivered 575 rooms forthe Ibis Novotel hotels in Casablanca ontime, and based on this expertise, wehave been asked to build the new ClubMed in the Palmeraie in Marrakech,which is a megaproject with 1,200rooms.”
Alliances is currently building Sofitelhotels in Agadir and Casablanca; theFour Seasons, Lucien Barriere and Suiteshotels in Marrakech; and Ibis hotels inTangier and Essaouira.
“We have expertise in working withforeign groups,” says Lazraq. “The factthat the leading chains have beenworking with us for so long demon-strates this.” �
Jean-Pierre
Lescourret/C
orbis
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The number of companies prospect-ing for oil in Morocco has more thandoubled in recent years, thanks to
the encouragement of the Rabat govern-ment. And as the price of oil soars, theexpectation of discovering commerciallyviable deposits is growing.
At present, Morocco is the only NorthAfrican state not producing oil inexportable quantities. It has provenreserves of 1 million barrels of oil andnatural gas reserves of 60 billion cubicfeet. Yet it has to import 96% of itsenergy needs, at least for the time being.
“In spite of what has been done forseveral decades, our country is under-explored,” says Amina Benkhadra, theminister of energy, mines, water and theenvironment. “Technical costs havealways been high. But, since 2000,incentive legislation and active promo-tional campaigns have attracted 26international companies. Our purposehas been to maximize drilling, and weremain confident of a positive outcome.”
Benkhadra says that recent govern-ment legislation has placed Moroccoamong the most attractive countries inthe world in terms of investment poten-tial in the hydrocarbons sector. “At a
time when the state is pulling out of thissector, many opportunities are up forgrabs,” she says.
Attracting national and internationalinvestors is the task of the state-ownedOffice National des Hydrocarbures. “Wehave made the choice to open ourselvesand to foster liberalization,” saysBenkhadra. “This move has enabled usto develop know-how and technical andmanagement skills.”
Samir, a privately owned refiningcompany, refines 85% of Morocco’simported oil. To meet growing domes-tic demands, the larger of Samir’s twoplants, which is situated atMohammedia on the Atlantic coastnorth of Casablanca, is being upgradedat a cost of $1 billion. By the end ofthis year, its output capacity will havebeen boosted by a third, to 9.9 milliontons per year.
The modernization process will bringthe quality and cleanliness of the plant’sproduction processes in line withEuropean standards and enable it to com-pete with other refineries in the region.
“Our main market is Morocco becausewe are the only refining company here.So this will be our long-term target mar-ket,” says Jamal Ba-Amer, Samir’sgeneral manager. “But, having said that,beginning next year, we will be capableof accessing southern Europe and WestAfrica with our finished product.
“We are trying to penetrate Mauritania,Senegal and the Ivory Coast. These coun-tries are experiencing significant growth inrefined products, and it is logical for us toexplore these possibilities.”
Samir’s expansion plans are in line with
the Rabat government’s aim of addingvalue to its economic output.
“As a refiner of crude oil, we are a signif-icant player in the added-value category,”says Ba-Amer. “With the products we areproducing, there are a number of possibili-ties for upgrading their use and value.Another of our medium-term strategies isto investigate the possibility of entering thepetrochemical industry.” �
Twenty-six internationalcompanies are drilling for oilin Morocco, hopeful of strikingrich deposits of black gold.
Great expectations
“As a refiner of crudeoil, we are a significantplayer in the added-value category.”
Jamal Ba-Amer, General Manager, Samir
David
Taylor/Im
ages.co
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The development of renewable energysources is a key element in theMoroccan government’s strategy to
meet the country’s increasing energyconsumption.
For the past four years, the amount ofenergy used in Morocco has grown by 8%annually, and similar demand is expectedin the future. A program of expandingaccess to electrical power across the wholecountry is about to be completed, whichwill increase consumption, as will thegrowth of tourism and trade.
“Increasing demand is a result of theexpansion of our economy, and it is ourjob to support this,” says EnergyMinister Amina Benkhadra. “For the nextseven years, we will need to create 500megawatts of power from coal, gas andrenewable sources, and we welcomebids from international companies toundertake these projects.”
Theolia, a pioneer and leadingEuropean producer of electricity fromrenewable sources, which already oper-ates one 50.4MW wind farm in Morocco,recently signed a partnership agreementwith Taqa, a flagship corporation for thegovernment of Abu Dhabi, for the con-struction and operation of a 300MWwind farm near Tarfaya, a port town onthe southwestern coast of Morocco.
“We were the first company aiming toproduce wind energy to be a quotedcompany in France in 2002,” says Jean-Marie Santander, the chief executive ofTheolia. “This was just after 9/11, so itwas a difficult market. People thought Iwas an old hippie. I couldn’t raise the6.4 million euros ($9.4 million) in 14
months in France, but I went to see theDutch, Germans and Belgians and raised45 million euros ($71 million) in a year.”
Santander says Theolia’s advantagecomes from its size. “My two vice presi-dents and I generally travel together andmake quick decisions. We can developquickly, and we are currently the eleventhproducer of wind-electricity in the world.The others are giants, but we have ahuman dimension. It’s very easy forclients to get the president or the vicepresidents of Theolia in their office. Wecompete on our size, our dynamism andour competencies.”
Santander says that as a believer in trulysustainable development, he recognizesthat Theolia has social responsibilities tothe community in which it works.
“As we are succeeding with our windfarms and our solar fields, I believe thatwe should give back to the population ashare of what we have earned,” he says.“In Morocco, no money is taken from usto help the local population, so wedecided to voluntarily give money tohumanitarian operations.”
The company has created the TheoliaFoundation as a vehicle for this purpose.
Theolia has a presence in Europe, butregards emerging countries as its principalmarket because their potential for renew-able energy is higher, their needs aregrowing, and they lack nuclear energy.
“We are thinking of getting into theU.S.,” says Santander, “but before wedo so, we want to make sure that wefind a partner of similar size who willenable us to develop there.” �
special advertising section 9
Blowing in the windThe answer to Morocco’s growing demand for electricitycould lie in renewable energy produced by wind farms.
Bran
dXPictu
res
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New life forl’OrientalA $30 million project is in theworks to revitalize the regionwith new road, rail and air links.
After nine years of economic stagna-tion, l’Oriental, Morocco’seasternmost region, is beginning to
reap the benefits of the government’spolicy to transfer administrative power toregional authorities.
Together with l’Agence du Nord andl’Agence du Sud, the Rabat authoritiescreated l’Agence de l’Oriental as a meansof spreading economic developmentmore evenly throughout the country.
As a result, Oujda, the regional capitalof l’Oriental, with a population of800,000 people at the closed easternborder with Algeria, is at the center of amajor transformation of the local infra-structure.
At a cost of $30 million, the city isbeing linked to Fez by a 200-mile sectionof proposed national highway that willbe operational in two years’ time. A newairport is also being built that willincrease capacity from 200,000 to 2 mil-lion by 2010. In addition, a railroad willconnect the port of Nador to the nationalrail network, and the coastal city ofSaidia is being transformed into a luxurytourist resort.
These are momentous developmentsfor a region that had its lifeblood cut offin 1994 when Algeria closed the landborder. The ongoing dispute between thetwo neighbors centers on the Algeriangovernment’s support for the independ-ence of Morocco’s provinces in WesternSahara. But speculation is increasing that
this matter may be put aside and warmerrelations will be restored.
The speculation is driven by theshared desire of both governments tocooperate in combating terrorism, andalso by the international efforts that areunder way to create a free-trade areabetween the countries bordering theMediterranean. A reopening of the landborder would galvanize trade, businessand employment opportunities betweenthe two countries.
“We now have 11 projects planned,including four that are regarded as priori-ties,” says Mohamed Mbarki, directorgeneral of l’Oriental Promotion Agency.“These include an industrial park, thedevelopment of the port zone in Nador,the creation of an agro-industrial zone inBerkane [a large, modern town betweenOujda and the port of Nador with a pop-ulation of 80,000], and a technologicalhub around Oujda.”
The industrial complex is called MedEast to symbolize the equilibrium that isbeing created between l’Oriental andTangier, its neighbor to the west, which isalready thriving economically.
Mbarki says the development strategyis designed to concentrate on activitiesthat will utilize the region’s comparativeadvantages. One of these, he says, is aMoroccan diaspora in European coun-tries, especially in Germany and theNetherlands, whose allegiance is moststrongly tied to l’Oriental region.
“Around 70% of the Moroccans resid-ing in Germany come originally froml’Oriental,” he says. “We aim to rein-force our links with these countries, andfor that reason we participated in theorganization of a trade fair in Germanylast May.”
Mbarki emphasizes that the region isopening its economy to attract new pri-vate investors in both the tourism andindustrial sectors. Traditional sectors suchas agriculture and agro-industry are beinghighlighted. Fresh agricultural productsare being exported from Berkane, andthere are plans to raise cattle there.
To promote the region’s attractions,the agency acts as a one-stop shop forpotential investors, while its advertisingassociate, MP Com, is staging variousevents, including road shows, in Spain.
L’Oriental’s strategic location, withinreach of both Europe and the rest ofNorth Africa, together with the benefitsof the Morocco-U.S. free-trade agree-ment, should be of great interest toAmerican investors, says Mbarki. �
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brands ranging fromperfumes, cosmetics,women’s fashions andleather goods to drycleaning, car washesand high-qualitykitchen furniture,Abdelwahed Benchrifis one of the leadersof the franchise indus-try in Morocco.
As the founder and chief executiveof the BCF Group, he was one of thepioneers in his home country of theretailing concept of fran-chising – bringingtop-quality, world prod-ucts to the nation’sshoppers.
BCF’s activities began inthe 1990s with a partner-ship to acquire andexploit the crushing andgrinding of minerals inl’Oriental. It then movedinto construction and realestate, a division that thisyear realized revenues of$68.3 million. New ven-tures are currently underdevelopment, including a residentialproject in Bouskoura and commercialreal estate projects in Casablanca.
When he spotted the growth of thereal estate sector, Benchrif moved inquickly and went on to introduceCuisine Plus, the French kitchen cabi-net and bathroom range.
In 2004, he launched Marionnaudas a joint venture with MarionnaudFrance, one of Europe’s most highlyregarded perfume and cosmetic storebrands.
The venture has proved successful,with the store brand developingstrongly throughout the country, and isexpected to achieve 20 points of saleby the end of 2008. Marionnaud pre-dicts it will account for more than halfof all perfume and cosmetic sales in
Morocco in 2009, with revenues of$16.4 million.
As he detected consumer demand,Benchrif was adept at knowing howand when to introduce internationalbrands to Morocco. He launchedFranck Provost, one of the world’slargest hairdressing salon chains; choseFurla and Lancel for leather goods;Carroll for women’s ready-to-wear fash-ion; and Curves for women’s healthclubs. He also brought in 5àSec, thelargest international chain of dry-clean-ing shops; Eléphant Bleu car washes;Quick, a leader in the fast-food industryin Europe; and many other brands.
Soon, BCF will be launching its own
low-cost spring water. Part of the saleprice from each bottle will be donatedto a local charity. “I’ve been workingat BCF for 18 months, and it’s anincredible experience to feel the ambi-tion and see the projects growing sofast! It’s a real challenge,” says RitaBennani, the head of communicationsand marketing.
“I never thought I’d invent thewheel,” says Benchrif, “so I settled onbringing proven international brands toMorocco.” His talent for spotting con-sumer demand and introducing it intothe business cycle at the right momenthas enabled BCF to identify marketniches and adapt the franchise modelto Morocco’s galloping economy.
A franchise is a gamble, but it hasearned 36-year-old Benchrif the repu-tation of dashing innovator. �
special advertising section 11
The prince of franchisingThis retail pioneer has a talent for spotting consumer demandand introducing it into the business cycle at the right moment.
COMPANY
PROFILE
AbdelwahedBenchrif,founder andchief executive,BCF Group
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12 MOROCCO special advertising section
Gateway toworld tradeThe building of Africa’sbiggest seaport heralds anew era of global expansionfor the kingdom’s exports.
Tangier-Med, a vast new seaport eastof the city of Tangier, is the structuralcenterpiece of Morocco’s economic
transformation. The port’s second termi-nal opens this year, and two more arescheduled to be operational by 2015.
By then it will be Africa’s biggest portand the largest in the Mediterranean,occupying 850 acres of land with a capac-ity to handle 8 million containers, 7million passengers, 700,000 trucks, 2 mil-lion vehicles and 10 milliontons of oil a year.
Together with the asso-ciated export-free zone, itwill give an extra boost toMorocco’s world trade.
“Faced with competitionfrom foreign traders,Moroccan companies weresuffering, so it was neces-sary for our smallercompanies to adapt to theglobal market,” says Ali ElAlaoui, secretary generalof the Moroccan ExportPromotion Center.
“We are working at educating andtraining managers and executives inexporting. Our aim is to help companiesovercome their fear and to get theminvolved in international exports.”
El Alaoui is concerned that too manyAmericans think of Morocco only as acountry where there is little more thansand and camels. He describes his coun-try as “a tree with its branches in theWestern world and its roots in Africa.”
Until recently, its export trade was con-fined mostly to Europe, but theglobalization process has opened othercontinents and other horizons, especiallyAmerica and Africa, says El Alaoui.
This trend is exemplified by the freetrade agreement signed with the U.S. in2006, which resulted in a 25% surge ofMoroccan exports to the U.S. last year.
Concessions to operate the third andfourth terminals at Tangier-Med wereawarded in July. The license for terminal3 has been given to a consortium led by
Danish shipping and oil group A.P.Moller-Maersk, which includes the AkwaGroup, a Moroccan conglomerateheaded by Aziz Akhannouch, theMinister of Agriculture, which specializesin the energy, telecom and infrastructuresectors.
The license to run terminal 4 went to aconsortium led by Singapore’s state-owned PSA International, which includesthe Moroccan state maritime firm MarsaMaroc and SNI, an investment companycontrolled by the Moroccan royal family.
Marsa Maroc was originally part of theagency that operated the state-ownedport system. When this was split, withone part taking on the duties of regulat-ing the port system, the other half wasrebranded as Marsa Maroc and given theresponsibility of handling nine of thecountry’s ports, the most important ofwhich was the Port of Casablanca.
In spite of the development of Tangier-Med, Casablanca Port, one of the largestartificial ports in the world, continues tobe considered Morocco’s chief port. Itcan accommodate 35 ships at a time andhandles 38% of the nation’s port traffic,which amounts to more than 21.3 mil-lion tons of goods per year.
“The Port of Casablanca’s asset is itsproximity to Morocco’s main area of con-sumption,” says Mohammed Abdeljalil,the chief executive of the Marsa Marocboard. “Tangier’s assets come from itsdeep draft and its numerous maritimeconnections. To compete with Tangier,the Port of Casablanca has to solve theproblem of its congestion.”
Replying to speculation that MarsaMaroc may be privatized, Abdeljalil says:“The government will decide. I am stillconvinced that Marsa Maroc is a fast-developing engine for port logistics and isprobably more efficient in its present cir-cumstances than if it were privatized.” �
Christo
pheBoisvieu
x/Corbis
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Maroc Telecom is Morocco’s globaltelecommunications operator, andin its business activities it is the
country’s market leader. It has been listedon the Casablanca and Paris stockexchanges since December 2004, andmain shareholders are Vivendi and thegovernment of Morocco.
Under the direction of its chairman,Abdeslam Ahizoune, the company plansto further strengthen its position, partic-ularly in the emerging markets ofWestern and Central Africa. It alreadyhas a majority shareholding in telecomcompanies Mauritel in neighboringMauritania, Onatel in Burkina Faso andGabon Telecom in Gabon.
Maroc Telecom is 53% owned by theFrench media giant Vivendi. It has part-nered with Vivendi’s SFR in France andBelgacom in Belgium to set up a newservice provider targeting a clientele thatcontinues to have tight bonds withAfrica.
Under its program of economic mod-ernization, Morocco has adopted adynamic strategy to meet internationalstandards in the telecom sector and isnow able to attract the interest of inter-national investors. Maroc Telecom is thecountry’s only fixed-line operator andthe market leader in the dominant cellphone sector. It has been adept atdeveloping cheaper, better-quality serv-ices with improved confidentiality tomeet the needs of both Moroccan andforeign companies.
Although less than 8% of the popula-
tion has landlines, cell phone subscrip-tions are increasing annually by 25% andnow account for 65.6% of the market.Last year, the number of Internet sub-scribers increased by 31.6%.
During the first half of 2008, the MarocTelecom group achieved consolidated rev-enues of $1,95 billion, up 10%.
During the first half of the year, cellphone gross revenues in Moroccoincreased 12.9% to $1.22 billion. Thefirst half of 2008 was marked by thelaunch of 3G plus voice and Internetoffers. The cell phone customer basemaintained steady growth and reached14.2 million at the end of June.
Fixed-line and Internet activities inMorocco in the first half of 2008achieved gross revenues of $648.7 mil-lion. At the end of June, the fixed-linecustomer base reached more than 1.3million phones. �
special advertising section 13
Ring of confidenceMorocco’s telecom giant hasbeefed up services to a growingcustomer base and plans tomove into emerging markets.
Rad
iusIm
ages
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Under the government’s PlanEmergence, Morocco’suniversities and companiesare developing newtechnologies and goingglobal.
The emergence of an aerospace sec-tor in Morocco is a strikingillustration of the extent to which
the North African country’s increasinglysophisticated economy is advancing.
More than 60 companies are active inthe sector, including subsidiaries ofglobal leaders such as Boeing, andFrance’s EADS and Safran Group.
The ongoing transformation of thekingdom’s economy from its traditionalagricultural base to a technological oneis a result of a blueprint, drafted by theRabat government, dubbed PlanEmergence.
“Plan Emergence set new targets forvarious economic sectors,” saysSalaheddine Mezouar, the minister of
economy and finance. “Local companiesare now going international. We arebroadening the range of sectors that theeconomy relies upon and moving up thevalue chain.”
Leading the way in this respect isLaprophan, a pioneer in the Moroccanpharmaceutical sector.
Created in 1949, the company focusedon pursuing its own research and devel-opment. As a result, it owns fourinternational patents, produces a milliontablets every day and has a specialexpertise in effervescent medicines. Itmanufactures 15 products that are mar-keted in 14 countries, particularly in theMiddle East and Africa.
In July, Laprophan was awarded thefirst R&D Prize Trophy by the MoroccanR&D Association and was selected torepresent the country at an R&D sympo-sium in Geneva.
Farid Bennis, the president of Laprophanand son of its founder, says the companywas the first pharmaceutical-productionconcern in the developing world to win
the approval of the French agency thatregulates the safety of health products.
Laprophan intends to capitalize on thisrecognition by penetrating new markets.The company has reached a level ofdevelopment and quality control, hesays, that has enabled it to enter theinternational arena.
“We are working on partnerships withMiddle Eastern countries, and as far asEurope and the U.S. are concerned, weare focusing on the four products forwhich we have patents, with the aim ofdeveloping partnerships there.”
Morocco’s pharmaceutical sector is nowmature, he says. Its national standards areequivalent to international standards, and
The sky’s the limit
CourtesyofCad
dyAyyad
University
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for that reason it has been placed along-side the European zone in World HealthOrganization rankings.
Much of Laprophan’s success can beattributed to the quality of its work-force, particularly its research anddevelopment staff. Education and train-ing are at the very heart of PlanEmergence and the country’s strategy tomove up the value chain.
“The first free trade agreements weentered showed that many Moroccancompanies were not sufficiently pre-pared for foreign competition,” says AliEl Alaoui, director general of theMoroccan Center for Export Promotion.“Today, training is offered in order totake advantage of these agreements andof American opportunities in particular.Education is offered to give companiesmore information on how to make themost out of signed agreements and thento help them with international trade.”
One of the measures adopted by thegovernment in 2000 was to give thecountry’s universities complete auton-omy. Professor Taoufik Ouazzani Chahdi,the president of the Sidi Mohamed BenAbdellah University in Fez, says the aim
was to boost competition and encour-age the universities to compete in termsof research on a global scale.
“For the first time, the state ordereduniversities to produce 10,000 qualifiedengineers by 2010. And I can tell youthat the objective has been more thanreached. We are now working towardsthe objective of producing 30,000 engi-neers by 2020.”
This, he says, reflects the country’snew policy of education and training.“We are training for precise economicand social needs with a contract frame-work, using existing means but alsobringing additional human and financialresources to reach the objective.”
When Chahdi was appointed, theuniversity did not offer any engineeringcourses. “As we didn’t have much in
the way of financial resources, Idecided to innovate,” he says. “Wepurchased a factory that was goingbankrupt and transformed it into anengineering school.”
The University of Fez is a public institu-tion, but it has a special status thatenables it to generate additional financialsupport from the private sector. “Fundsare provided by national and internation-ally awarded research contracts and frompartnerships with private companies,”says Chahdi.
His actions are in line with govern-ment policy that universities should berun like businesses.
The strategy being adopted by theCadi Ayyad University in Marrakech isto establish itself as a technologicaland creative hub for the surroundingregion, says Mohammed Marzak, theuniversity president.
With no student fees and its statefunding decreasing, the university nowcollects 10% of its annual budget fromcommercially sponsored research proj-ects. Engineering programs weredeveloped, and reforms in the mathe-matics department added options forhigher degrees, fostered research andprepared students for further work inapplied sciences.
“One of our goals is to widen thescope of students who are eager todevelop their own ideas, through part-nerships, technology transfers andincubators,” says Marzak.
The key to Cadi Ayyad’s future suc-cess, he says, lies in increasingcooperation with foreign institutions,adding to the number of laboratoriesand spinning off new commerciallyviable companies. “We have successfullylaunched three such companies, which isa brand-new trend in Morocco.” �
“For the first time, thestate ordered universitiesto produce 10,000 quali-fied engineers by 2010.And I can tell you that theobjective has been morethan reached.”
Professor Taoufik Ouazzani Chahdi,President, Sidi Mohamed Ben Abdellah University
Brownie
Harris/C
ORBIS
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The kingdom is becoming amagnet for tourists, withattractions ranging fromgolfing and windsurfing toskydiving and adventures inthe mountains.
Having seen the number of tourists toits shores rise from 5 million to 7.4million over the past four years,
Morocco is now reaching out beyondWestern Europe, its core source of visitors,to attract travelers from Japan, China,Eastern Europe, the Arab states of thePersian Gulf, and the U.S.
“We must sell Morocco as a destina-tion so that Americans come and spenda week or ten days here, enjoying abeach holiday with an authentic culturalaspect,” says Abdelhamid Addou, thedirector-general of the national tourismoffice. “I would love to see Americanstaking their spring vacation in Agadir orMarrakech.”
The essence of Morocco’s appeal totourists is the manner in which it is mod-ernizing itself without abandoning itsancient culture and customs. The historicimperial cities of Fez and Meknes retaintheir ravishing architectural splendor. Themedina of Fez is the world’s largestinhabited Islamic medieval city, firstestablished as capital in the 9th centuryunder Sultan Idriss II, a great-great-grandson of the Prophet Muhammad.
However, modern pursuits are expand-ing the country’s attractions as it movestowards niche tourism in recognition oftoday’s competitive global market.
In addition to creating six new made-to-order seaside resorts, five on theAtlantic coast and one on theMediterranean, the country’s tourismauthorities are also promoting a broaderrange of vacation interests. These extendfrom windsurfing to the pleasures of ski-ing and exploring rural retreats in theAtlas and Rif Mountains.
The country is also enhancing itsattractiveness to golfers by increasingthe number of courses from 22 to 42and using recycled water to keep thefairways green. In the desert city ofMarrakech, the number of golf courseshas risen from four to 15. “Visitors cango skiing and rafting one hour awayfrom Marrakech, and business travelerswill find our main cities equipped with
all the necessary facilities and services,”says Addou.
Extreme sports are also offered. Theskydiving club of Beni Mellal, the capitalcity of the Tadla-Azilal region, is attract-ing increasing numbers of skydivingdevotees, says Addou. “You get to jumpa dozen times a day in the sun. And ifyou want to go windsurfing, Essaouira isthe ideal place.”
By diversifying its range of attractions,Morocco plans to increase the number ofvisitors it receives from its main market.
The next target markets on Addou’slist are Eastern Europe, China, Japan andRussia, which represent the largestgrowth market for tourism. Alongsidethese are wealthy consumers from theoil-rich Arab states of the Persian Gulf.
“These countries already have closeeconomic and political links withMorocco,” he says, “so we must invest
there to attract more of their inhabitantsto Morocco as tourists.”
A key element of the government’stourism strategy is to attract visitors atboth ends of the scale. Addou points outthat since 2003, Morocco has not onlyincreased the number of its visitors by50% but has also increased the incomeit receives from tourism.
The government plans to invest morein the industry and further develop edu-cation and training in the sector in aneffort to boost the contribution oftourism to the country’s gross domesticproduct from 7% to 12%.
“We don’t just aim to increase theshare of tourism in the Moroccan econ-omy,” states Addou. “We also aim toincrease Morocco’s GDP as a whole. Nowwe must capitalize on the past to goahead faster and more efficiently.” �
The magic of Morocco
special advertising section
VittorioSciosia/Alamy
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Areality TV program isproving highly effec-tive in promoting the
enterprising spirit of youngMoroccans and is helpingaspiring entrepreneurslaunch their businesses andmarket their products.
Challengers is a popularlocally produced series thathas featured a cooperative of womenblacksmiths hammering out wrought-iron products; the country’s first schoolfor circus performers; 100 village womenprofitably running a rabbit-breedingbusiness; and the manufacturer of adulttricycles, which are ideal for rapid trans-port through Morocco’s bustling bazaarsand souks.
Participants in theprogram compete fora first prize of$27,500 and receivesupport with start-uploans and specialistadvice. For example,the region’s advertis-ing firm, Agence MPCom, supported onefinalist from l’Oriental.
Challengers is pro-duced and screenedby 2M TV, Morocco’sbiggest televisionchannel. It was cre-ated in 1989 by thecountry’s largest eco-nomic conglomerate,ONA (Omnium Nord-
Africain), when Morocco became thefirst African state to allow a privatelyowned TV company to transmit pro-grams. In this way, 2M rode the wave ofmedia liberalization, breaking some oldtaboos and tackling controversial issues.
“Our mission was to give people theopportunity to express themselves, and2M played an important role in the
democratization and opening up ofMorocco,” says a 2M executive.
When the company ran into financialdifficulties, its problems stirred wide-spread concern, as its survival wasregarded as essential for the future well-being of the country’s fledgling democ-racy. As a result, the state took a 72%share in 2M. The company now operateson an annual budget drawn primarilyfrom its advertising revenue.
It produces 40% of the programs ittransmits and provides a 24-hour sched-ule, in Arabic and French, of news,documentaries, culture, sporting andchildren’s programs, as well as serialsand films.
Challengers continues to be one of2M’s flagship programs, and some par-ticipants have attracted substantialinvestment funding.
The three young women who createdthe blacksmiths’ cooperative had tostruggle to win confidence in their tech-nical know-how in such a traditionallymale-dominated sector. But they did sothrough the artistry of their work – andtheir products are now on display andfor sale in a Marrakech showroom. �
One TV program discovers raw talent and givesa leg up to the country’s rising business stars.
Rising to thechallenge
AntStrack/C
orbis
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Morocco’s entrepreneurs are quick tospot an opportunity. Some areintroducing international trends to
Morocco, while others are establishingthe Moroccan brand abroad.
Salwa Akhannouch, the chief executiveof Aksal, Morocco’s leading fashion
retailer, has introduced inter-national brands such as Zaraand Massimo Dutti and theconcept of the Western-styleshopping mall to the king-dom’s consumers.
Morocco, she explains,was a country in which therewere no shopping areas sim-ilar to those in the West.Akhannouch decided tochange this state of affairs.“After touring several retailfacilities abroad,” she says,“I started wondering, ‘Whynot Morocco?’”
She began by negotiating with Spanishgiant Inditex to obtain the first franchisefor Zara shops. “We have enjoyed steadygrowth, and we rank among Inditex’s topten in terms of customers,” she says.“Zara Casablanca sometimes ranks ashigh as first or third in the world.”
With numerous brands waiting to cometo Morocco, she says, there is a strongneed for new shopping areas. “That iswhy I started thinking of developing aMorocco Mall project three years ago. Webought the land a year ago and beganbuilding three months later.”
Akhannouch intends Morocco Mallto be on par with shopping malls inDubai, Singapore or California. “It willbe a city within a city and contribute toCasablanca’s new brand image, show-casing a city where everyone can shop.”
With her partners, she is already plan-ning to take their mall concept toMarrakech, Tangier and Rabat. “Wehave sold 70% of our total space, butwe remain open for any partnerships,”she says.
While others are bringing internationalfranchises to Morocco, Brahim Zniber isa successful entrepreneur aiming tointroduce Moroccan wine and olives tothe U.S.
His company, Diana Holding, is one ofthe country’s biggest family enterprisesand is nationally famous for its winedomain, Celliers de Meknes. It is alsoaiming to export the highest-qualityolives and olive oil.
“One should not forget that Moroccois a 14-century-old monarchy,” saysZniber. “We were spared the TurkishOttoman invasion and have thus keptour own identity. What we want is tocapitalize on the Moroccan identity andto have people selling our olive oil andour wine in the U.S.”
Among Moroccans, Zniber is known asthe “king” of Meknes, one of the coun-try’s three imperial cities, which is set inthe rich agricultural plains below theMiddle Atlas Mountains and is renownedfor its olives and wines.
Self-taught, he began his working lifein the vineyards. His business interestshave spread into banking, insurance andagro-industries, but wine and olivesremain his primary passions. “We arenow developing what will be Morocco’sfirst route of wines, and we are buildinga beautiful luxury hotel next to wherethe wine is produced,” he says.
Diana Holding, he adds, has focusedon and invested in the quality of itsproducts and in the quality of its equip-ment. “Global taste is evolving, and it isspecifically evolving towards good qual-ity,” says Zniber.
Another of Morocco’s leading entre-preneurs, Mohamed Hassan Bensalah, isthe chairman and chief executive of the
special advertising section
Chrifia, a legendary resortRun by Compagnie Générale Immobilière, a subsidiary of Caisse de Dépôt et de Gestion,Morocco’s largest public investor, in partnership with Sama Dubai, Chrifia Golf Resort issituated in Marrakesh, the thousand-year-old imperial city, with an investment of $635 millionover 660 acres.
The concept is based on:• authentic architecture, reminiscent of the old villages, the “ksours” (old palaces) and the Kasbah• external features inspired by the large spaces of Moroccan South: desert, the oasis, valleysand orchards
• new experiences and an authentic lifestyle
Designed by Arthur Hills & Steve Forrest, the 18 hole golf course is surrounded by:• 10 luxury hotels with a capacity of 1,800 beds• 1800 residential units: villas, apartments & riads (traditional houseswith an interior garden)
CHRIFIA GOLF RESORT, an investor’s paradise, a golfer’s oasis
Brand MoroccoFrom fashion to shopping malls, airlines to financialservices, the kingdom’s entrepreneurs are masters at marketing.
A bird’s-eye view of theplanned Morocco Mall
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Holmarcom Group, a family companywhose 35 subsidiaries range in activityfrom insurance, banking and real estateto bottled water and a low-fare airline.
Educated in France, Bensalah becamehead of the company at the age of 24,on the death of his father, while his sis-ter took charge of Oulmes MineralWater, the historic flagship of theHolmarcom group.
“Holmarcom has always put a lot ofemphasis on being diversified,” he says.“And we have been keen to invest insectors that would prove to be the driv-ing forces in the Moroccan economy.”
Holmarcom’s key companies are allleaders in their sector. When the com-pany decided to extend its product rangebeyond mineral and sparkling waters tosodas, it reached an agreement withPepsi Cola that brought Pepsi back into amarket it was the first to explore 40years earlier.
“In my family, change is regarded as avalue,” says Bensalah. “That has alwaysbeen very helpful when taking advan-tage of opportunities. Decisive momentsin Morocco’s history have proved veryprofitable to Holmarcom.”
In 1995, the company entered theagro-industry and finance sectors, and ithas positioned its varied interests aroundthese two strategic areas.
It bought shares in major banks, andits insurance company, Atlanta, hasincreased its turnover fourfold in threeyears.
Two years ago,Holmarcom tri-umphed over 24other bidders, includ-ing seven Chinesecompanies, when itsucceeded in buyingthe Moroccan Societyfor Tea and Sugar(Somathes) when thegovernment priva-tized it.
As part owner ofMorocco’s premierprivate carrierRegional Air Lines,Holmarcom has alsoentered into a jointventure with theUnited Arab Emiratesnational budget air-line, Air Arabia, to
develop Rabat as a regional hub by con-necting Arab-African and Europeanflight routes. �
Mawared Makes Its MarkMawared, the regional developer and powerhouse behind Jordan’s real estate revival, was created in 2000 by the state of Jordan with the sup-port and continued patronage of His Majesty King Abdullah. The com-pany was given the task of developing key urban sites within Jordan - sites which had previously been designated for military use and had acquired a high investment value due to their location in prime areas of Jordan’s urban centers.
From its initial role, Mawared quickly expanded to become a proponent of culture and a reference for urbanism and urban regeneration. The developer is currently an important pillar in Jordan’s economy and, be-ing the country’s largest real estate developer, is also a magnet for for-eign investments coming into Jordan.
With Jordan currently gaining momentum, Mawared is one of the pio-neering companies helming its resurgence. Mawared is building the King Abdullah Bin Abdul Aziz City, 25 kilometers east of Amman and home to some 400,000 residents. But its �agship project is Abdali, the new downtown of Amman. The landmark downtown stretches across a 40-hectare site in the heart of Amman and involves key strategic devel-opers including Saudi Oger, Horizon Group and KIPCO, Kuwait Projects Company.
International StrategyAccording to Mr.. Akram Abu-Hamdan, Chairman of Mawared, “since its inception, Mawared has �elded demand from regional investors and developers who seek a partner within the Jordanian market or for projects with a regional scope. We did not immediately venture into the wider sphere because we were still building our own capabilities in master planning and marketing, as well as our ability to secure project �nancing. But as soon as we had reached our stage of expertise, our work took a regional dimension.”
For its international foray, Mawared turned to Luxembourg, a stable and well established �nancial capital. Mawared International was cre-ated and incorporated as a billion dollar fund, of which three subsid-iaries emerged: a representative o�ce in London, a development and management subsidiary in DIFC Dubai to look after interests in the Gulf region and a base in Rabat to coordinate Mawared’s Moroccan projects. The fund anchored Mawared’s credibility and gave it a base that was not a�ected by erratic decision making.
Overseas Expansion - MoroccoIn line with its international strategy, Mawared identi�ed Morocco as a key market for growth. According to Mr.. Abu Hamdan, there was im-mediately a synergy between Mawared and its Moroccan counterparts. He added, “we perceived great promise and potential in Morocco; the country is picking up a great deal of interest at the moment. From the beginning, we received the Moroccan government’s encouragement and support, and the dialogue that we created with Caisse de Dépôt et de Gestion (CDG Development) turned out to be a very fruitful one.”
The Morocco partnership illustrates Mawared’s knack for creating sustainable communities and business centers that are destined for success. As Mr.. Abu Hamdan explained, “the role of Mawared has cen-tered on developing the kind of community-led developments that foster sustainability and growth.” Projects are not devised with an exit strategy but planned for the long-term; Mawared prepares the ground for development and then o�ers major components to other investors and sub-developers.
Product O�eringWhen Mawared came to Morocco, its prime interest lay in two aspects of development: mixed-use environments within city centers such as Rabat, Casablanca, and Tangiers, and tourism and entertainment des-tinations.
In this regard, Tarfaya proved of particular interest to Mawared as a tour-istic hub because of its mild and consistent climate all year round. Af-ter Mawared foresaw the potential in the area and announced its initial investment, other developers were quick to follow suit in considering Tarfaya. Already, a conceptual master plan has been produced and an agreement signed with Caisse de Dépôt et de Gestion (CDG Develop-ment) for the project. The nucleus for this development encompasses 300 hectares in area with a total investment value of $1.3 billion dollars.
Building CommunitiesMawared has always sought long-term investments through partner-ship. The company’s background is rooted in the national economy of its home country, Jordan, and it strongly believes in carrying social respon-sibility throughout its expansion. But instead of touting its credentials and taking a condescending view towards citizens, Mawared has relied on opening up opportunities for them to grow and build on their own ambitions.
Indeed, with the advent of the upcoming projects in Morocco, the �rst of their kind by a Jordanian company, both countries have bene�ted from new opportunities. The Moroccan home-grown Caisse de Dépôt et de Gestion (CDG Development) will start to invest reciprocally in Jordan, paving the way for a stronger relationship between the two countries and con�rming Mawared’s reputation as a catalyst for building communities.
