MOROCCO

special advertising sectionthoroughly modernMOROCCOThanks 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.Reprinted from the October 27, 2008issue of Forbes magazineEconomically as well as socially, Morocco is atrendy location these days.Investors from the Middle East, Europe andthe U.S. are being attracted to the country, asare fashionable foreign tourists and expatriatehome buyers.Russian gas giant Gazprom’s real estate subsidiary,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, politicaland 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 billionlast 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 uncertaintyat a global level and riven by religiousand ethnic tension.Under the reformist rule of King MohammedVI, 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 actingto improve the social conditions of the poor.Poverty remains a problem, but average percapita income has risen to $4,100 and the unemploymentrate has been reduced to below 10%.continued on page 3

special advertising section3from page 1Spain’s Prime Minister Jose Luis RodriguezZapatero greets Morocco’s King MohamedVI during their meeting in Oujda.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 peacefulcountry in the Islamic world.“Geographically, we are in Africa,”says Othman Benjelloun, one of the country’sleading 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 alternativeto the moderate Islamic Justice andDevelopment Party in elections nextyear. El Himma aims to further implementmodern reforms and keepextremists at bay.“The challenge is not to fight againstsomething, but to work towards something.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 inReuters/Pool Newevery 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 traditionalsectors such as agriculture andtextiles.The creation of successful partnershipsbetween the public and private sectorshas been a key driver of economic diversification.“Thepublic-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 businessand investors to Morocco. ❖By Michael Knipe

special advertising section5Fathallah Berrada,Casablanca StockExchangeOthman Benjelloun,BMCE chairman andchief executiveneurs 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 companyin 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 outsideour country’s borders,” he says.“We have an action plan allowing us tobe present in three or four African countriesevery 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 intermediation,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. ❖WWW.CASABLANCA-BOURSE.COMP R O F I L ETAKING STOCKCasablanca’s bourse has adopted international standardsof management to ensure transparency and has installedthe latest electronic trading system.The Casablanca Stock Exchange is a privatecompany with equity of 17.9 millionMoroccan dirhams ($2.46 million) heldequally between 16 brokerages.To be listed, companies must have good governance,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 contributingto Morocco’s development.

special advertising section7Casablanca 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 harmony,weather and varied landscapes.“Our country is exceptional,” saysLazraq. “From Agadir to Fez, the mountains,the desert, the sea – Europeansare still coming.”Jean-Pierre Lescourret/CorbisLazraq, an architect, created Alliancesas a services provider in 1994 andquickly began specializing in hotel renovation,establishing partnerships with theAccor, Park Hyatt, Starwood and theFour Seasons hotel chains.Alliances is organized into four sectors:hotels, golf resorts, residentialdevelopment and suburban centers withtheir own commodities. “We are numberone 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 demonstratesthis.” ❖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 market.I sell 99% of Eden Island toMoroccan buyers. Foreigners wouldrather go to Marrakech, Tangier or theMediterranean coast.”Jascom is active throughout the countryand 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 housingfor the middle class. “We will beusing economies of scale and speed ofproduction to develop successful programs,”he says. “We are visualizinghow things will be in the future.”In accordance with this strategy, thecompany is building a two-tower apartmenthotel 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 architect,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 fixingour 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.” ❖

8 MOROCCO special advertising sectionGreat expectationsTwenty-six internationalcompanies are drilling for oilin Morocco, hopeful of strikingrich deposits of black gold.The number of companies prospectingfor oil in Morocco has more thandoubled in recent years, thanks tothe encouragement of the Rabat government.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 underexplored,”says Amina Benkhadra, theminister of energy, mines, water and theenvironment. “Technical costs havealways been high. But, since 2000,incentive legislation and active promotionalcampaigns have attracted 26international companies. Our purposehas been to maximize drilling, and weremain confident of a positive outcome.”Benkhadra says that recent governmentlegislation has placed Moroccoamong the most attractive countries inthe world in terms of investment potentialin the hydrocarbons sector. “At aDavid Taylor/Images.comtime 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 domesticdemands, 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 competewith 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 market,”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 countriesare experiencing significant growth inrefined products, and it is logical for us toexplore these possibilities.”Samir’s expansion plans are in line with“As a refiner of crudeoil, we are a significantplayer in the addedvaluecategory.”Jamal Ba-Amer, General Manager, Samirthe Rabat government’s aim of addingvalue to its economic output.“As a refiner of crude oil, we are a significantplayer in the added-value category,”says Ba-Amer. “With the products we areproducing, there are a number of possibilitiesfor upgrading their use and value.Another of our medium-term strategies isto investigate the possibility of entering thepetrochemical industry.” ❖

HEDGE ACCOUNTINGBC6.12 当 審 議 会 は、オープンポートフォリオ 又 は「マクロ」ヘッジ(すなわち、ポートフォリオを 合 算 したレベルでのヘッジ)を 公 開 草 案 の 一 部 としては 取 り 扱 わないことにした。当 審 議 会 は、ヘッジ 会 計 を、 総 額 又 は 純 額 のポジションを 構 成 する 項 目 グループのうち、当 該 ポジションを 構 成 する 項 目 が 特 定 の 全 体 の 項 目 グループに 含 まれているものの 文 脈でのみ 考 慮 した。BC6.305 項 から BC6.345 項 を 参 照 のこと。BC6.13 したがって、 金 利 リスクのポートフォリオ・ヘッジの 公 正 価 値 ヘッジ 会 計 については、公 開 草 案 では IAS 第 39 号 の 要 求 事 項 の 置 換 えを 提 案 しなかった。BC6.14 当 審 議 会 は、 金 融 機 関 及 び 金 融 セクター 以 外 の 企 業 から、 企 業 が 動 的 なリスク 管 理 戦 略を 使 用 する 状 況 を 扱 うことが 重 要 だというフィードバックを 受 けた。 金 融 機 関 は、 彼 らのエクスポージャーの 中 にはオープンポートフォリオの 状 況 でしかヘッジ 会 計 に 適 格 とならないかもしれないもの( 例 えば、 利 息 の 付 かない 要 求 払 預 金 )があるため、これが重 要 だとも 指 摘 した。BC6.15 当 審 議 会 は、これは 十 分 な 調 査 と 関 係 者 からのインプットを 必 要 とする 複 雑 なトピックであることに 留 意 した。したがって、 当 審 議 会 は、マクロヘッジの 会 計 処 理 を、ディスカッション・ペーパーの 公 表 を 目 的 としたアクティブ・アジェンダの 一 部 として 別 個 に審 議 することを 決 定 した。 当 審 議 会 は、これにより IFRS 第 9 号 をより 迅 速 に 完 成 させることが 可 能 となり、 新 たな「 一 般 」ヘッジ 会 計 の 要 求 事 項 を IFRS 第 9 号 の 一 部 として 利 用 可 能 にできることに 留 意 した。 当 審 議 会 は、マクロヘッジに 関 するプロジェクトの 間 は、 従 前 の IFRS における「マクロ」ヘッジ 会 計 の 現 状 がおおむね 維 持 されることとなり、 企 業 はその 間 に 現 状 より 不 利 な 状 態 にはならないことにも 留 意 した。その 他 の 包 括 利 益 を 通 じて 公 正 価 値 で 測 定 するものとして 指 定 した 持 分 投 資 に 係 るヘッジ 会 計BC6.16 IFRS 第 9 号 に 従 って、 企 業 は 当 初 認 識 時 に、 資 本 性 金 融 商 品 に 対 する 一 部 の 投 資 の 公正 価 値 の 事 後 的 変 動 をその 他 の 包 括 利 益 に 表 示 するという 取 消 不 能 の 選 択 ができる。こうした 金 融 商 品 についてその 他 の 包 括 利 益 に 認 識 した 金 額 は、 純 損 益 への 振 替 をしない。しかし、IAS 第 39 号 では、ヘッジ 関 係 を、ヘッジすべきエクスポージャーが 純 損 益 に 影響 を 与 える 可 能 性 のある 関 係 と 定 義 していた。したがって、 企 業 は、ヘッジされるエクスポージャーがその 他 の 包 括 利 益 に 影 響 を 与 えるがその 他 の 包 括 利 益 から 純 損 益 への 振替 がない 場 合 には、ヘッジ 会 計 を 適 用 できない。そのような 振 替 のみが、ヘッジされるエクスポージャーが 最 終 的 に 純 損 益 に 影 響 を 与 える 可 能 性 があることを 意 味 するものとなるからである。BC6.17 公 開 草 案 について、 当 審 議 会 は、 公 正 価 値 ヘッジの 定 義 を 修 正 して、ヘッジされるポートフォリオが 影 響 を 与 える 可 能 性 があるのが、 純 損 益 のみではなく、 純 損 益 又 はその 他の 包 括 利 益 のいずれかであると 記 述 するようにすべきかどうかを 検 討 した。しかし、 当© IFRS Foundation13

10 MOROCCO special advertising sectionNew life forl’OrientalA $30 million project is in theworks to revitalize the regionwith new road, rail and air links.After nine years of economic stagnation,l’Oriental, Morocco’seasternmost region, is beginning toreap 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 infrastructure.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 millionby 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 independenceof Morocco’s provinces in WesternSahara. But speculation is increasing thatthis 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 priorities,”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 populationof 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 countries,especially in Germany and theNetherlands, whose allegiance is moststrongly tied to l’Oriental region.“Around 70% of the Moroccans residingin Germany come originally froml’Oriental,” he says. “We aim to reinforceour 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 privateinvestors 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 agreement,should be of great interest toAmerican investors, says Mbarki. ❖

special advertising section 11COMPANYPROFILEThe prince of franchisingThis retail pioneer has a talent for spotting consumer demandand introducing it into the business cycle at the right moment.With an exclusivepackage ofinternationalbrands ranging fromperfumes, cosmetics,women’s fashions andleather goods to drycleaning, car washesand high-qualityAbdelwahedBenchrif,kitchen furniture,founder and Abdelwahed Benchrifchief executive, is one of the leadersBCF Group of the franchise industryin Morocco.As the founder and chief executiveof the BCF Group, he was one of thepioneers in his home country of theretailing concept of franchising– bringingtop-quality, world productsto the nation’sshoppers.BCF’s activities began inthe 1990s with a partnershipto 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 venturesare 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 cabinetand 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 predictsit will account for more than halfof all perfume and cosmetic sales inMorocco 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 fashion;and Curves for women’s healthclubs. He also brought in 5àSec, thelargest international chain of dry-cleaningshops; Eléphant Bleu car washes;Quick, a leader in the fast-food industryin Europe; and many other brands.Soon, BCF will be launching its ownlow-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 ambitionand 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 consumerdemand 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 reputationof dashing innovator. ◆

12 MOROCCO special advertising sectionGateway 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 economictransformation. The port’s second terminalopens 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 capacityto handle 8 million containers, 7million passengers, 700,000 trucks, 2 millionvehicles and 10 milliontons of oil a year.Together with the associatedexport-free zone, itwill give an extra boost toMorocco’s world trade.“Faced with competitionfrom foreign traders,Moroccan companies weresuffering, so it was necessaryfor 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 countryas “a tree with its branches in theWestern world and its roots in Africa.”Until recently, its export trade was confinedmostly 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 byDanish 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 stateownedPSA 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 regulatingthe 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 milliontons of goods per year.“The Port of Casablanca’s asset is itsproximity to Morocco’s main area of consumption,”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 fastdevelopingengine for port logistics and isprobably more efficient in its present circumstancesthan if it were privatized.” ❖Christophe Boisvieux/Corbis

special advertising section 13Ring of confidenceMorocco’s telecom giant hasbeefed up services to a growingcustomer base and plans tomove into emerging markets.Maroc Telecom is Morocco’s globaltelecommunications operator, andin its business activities it is thecountry’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, particularlyin 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 partneredwith 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 modernization,Morocco has adopted adynamic strategy to meet internationalstandards in the telecom sector and isnow able to attract the interest of internationalinvestors. 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 serviceswith improved confidentiality tomeet the needs of both Moroccan andforeign companies.Although less than 8% of the populationhas landlines, cell phone subscriptionsare increasing annually by 25% andnow account for 65.6% of the market.Last year, the number of Internet subscribersincreased by 31.6%.During the first half of 2008, the MarocTelecom group achieved consolidated revenuesof $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 million.At the end of June, the fixed-linecustomer base reached more than 1.3million phones. ❖Radius Images

14 MOROCCO special advertising sectionThe sky’s the limitUnder the government’s PlanEmergence, Morocco’suniversities and companiesare developing newtechnologies and goingglobal.The emergence of an aerospace sectorin Morocco is a strikingillustration of the extent to whichthe 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 ofeconomy 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 development.As a result, it owns fourinternational patents, produces a milliontablets every day and has a specialexpertise in effervescent medicines. Itmanufactures 15 products that are marketedin 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 symposiumin Geneva.Farid Bennis, the president of Laprophanand son of its founder, says the companywas the first pharmaceutical-productionconcern in the developing world to winCourtesy of Caddy Ayyad Universitythe 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

special advertising section 15for that reason it has been placed alongsidethe European zone in World HealthOrganization rankings.Much of Laprophan’s success can beattributed to the quality of its workforce,particularly its research anddevelopment staff. Education and trainingare 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 preparedfor 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 autonomy.Professor Taoufik Ouazzani Chahdi,the president of the Sidi Mohamed BenAbdellah University in Fez, says the aim“For the first time, thestate ordered universitiesto produce 10,000 qualifiedengineers by 2010.And I can tell you that theobjective has been morethan reached.”Professor Taoufik Ouazzani Chahdi,President, Sidi Mohamed Ben Abdellah Universitywas to boost competition and encouragethe 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 engineersby 2020.”This, he says, reflects the country’snew policy of education and training.“We are training for precise economicand social needs with a contract framework,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 inthe 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 institution,but it has a special status thatenables it to generate additional financialsupport from the private sector. “Fundsare provided by national and internationallyawarded research contracts and frompartnerships with private companies,”says Chahdi.His actions are in line with governmentpolicy 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 projects.Engineering programs weredeveloped, and reforms in the mathematicsdepartment 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 partnerships,technology transfers andincubators,” says Marzak.The key to Cadi Ayyad’s future success,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.” ❖Brownie Harris/CORBIS

16 MOROCCOspecial advertising sectionThe magic of MoroccoThe 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 destinationso 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 modernizingitself 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-greatgrandsonof the Prophet Muhammad.However, modern pursuits are expandingthe country’s attractions as it movestowards niche tourism in recognition oftoday’s competitive global market.In addition to creating six new madeto-orderseaside 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 skiingand 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 withVittorio Sciosia / Alamyall 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 attractingincreasing 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 investthere 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 educationand 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 economy,”states Addou. “We also aim toincrease Morocco’s GDP as a whole. Nowwe must capitalize on the past to goahead faster and more efficiently.” ❖

special advertising section 17One TV program discovers raw talent and givesa leg up to the country’s rising business stars.Rising to thechallengeAreality TV program isproving highly effectivein promoting theenterprising 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 wroughtironproducts; the country’s first schoolfor circus performers; 100 village womenprofitably running a rabbit-breedingbusiness; and the manufacturer of adulttricycles, which are ideal for rapid transportthrough Morocco’s bustling bazaarsand souks.Ant Strack/CorbisParticipants in theprogram compete fora first prize of$27,500 and receivesupport with start-uploans and specialistadvice. For example,the region’s advertisingfirm, Agence MPCom, supported onefinalist from l’Oriental.Challengers is producedand screenedby 2M TV, Morocco’sbiggest televisionchannel. It was createdin 1989 by thecountry’s largest economicconglomerate,ONA (Omnium Nord-Africain), when Morocco became thefirst African state to allow a privatelyowned TV company to transmit programs.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 thedemocratization and opening up ofMorocco,” says a 2M executive.When the company ran into financialdifficulties, its problems stirred widespreadconcern, as its survival wasregarded as essential for the future wellbeingof the country’s fledgling democracy.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 schedule,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 participantshave attracted substantialinvestment funding.The three young women who createdthe blacksmiths’ cooperative had tostruggle to win confidence in their technicalknow-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. ❖

18 MOROCCOspecial advertising sectionBrand MoroccoFrom fashion to shopping malls, airlines to financialservices, the kingdom’s entrepreneurs are masters at marketing.Morocco’s entrepreneurs are quick tospot an opportunity. Some areintroducing international trends toMorocco, while others are establishingthe Moroccan brand abroad.Salwa Akhannouch, the chief executiveof Aksal, Morocco’s leading fashionA bird’s-eye view of theplanned Morocco Mallretailer, has introduced internationalbrands such as Zaraand Massimo Dutti and theconcept of the Western-styleshopping mall to the kingdom’sconsumers.Morocco, she explains,was a country in which therewere no shopping areas similarto 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.”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 lifestyleDesigned 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)• entertainment & leisure, restaurants, private hospital , wellnesscenter, farms, irrigation museum, handicraft workshops, sportscenter & servicesCHRIFIA GOLF RESORT, an investor’s paradise, a golfer’s oasisWith 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, showcasinga city where everyone can shop.”With her partners, she is already planningto 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 country’sthree 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 equipment.“Global taste is evolving, and it isspecifically evolving towards good quality,”says Zniber.Another of Morocco’s leading entrepreneurs,Mohamed Hassan Bensalah, isthe chairman and chief executive of the

special advertising section 19Holmarcom 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 sistertook 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 drivingforces in the Moroccan economy.”Holmarcom’s key companies are allleaders in their sector. When the companydecided 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 advantageof 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 triumphedover 24other bidders, includingseven Chinesecompanies, when itsucceeded in buyingthe Moroccan Societyfor Tea and Sugar(Somathes) when thegovernment privatizedit.As part owner ofMorocco’s premierprivate carrierRegional Air Lines,MohamedHassan Bensalah,chairman andchief executive,HolmarcomGroup.Holmarcom has alsoentered into a jointventure with theUnited Arab Emiratesnational budget airline,Air Arabia, todevelop Rabat as a regional hub by connectingArab-African and Europeanflight routes. ❖

Special advertising sectionMawared Makes Its MarkMawared, the regionaldeveloperand powerhouse behind Jordan’s realestate revival,was created ed in 2000 bythe stateof Jordan withthe sup-port and continued patronage of His MajestyKing Abdullah.The com-pany wasgiventhetaskofdevelopingkeyurban siteswithin Jordan-siteswhichhad previously beendesignatedformilitary use andhadacquired a high investment entvalue due to theirlocation in prime areasofJordan’s urban centers.From itsinitialrole, Mawared quickly expanded to become a proponentof cultureand areference forurbanism andurban regeneration. ration.Thedeveloper is currently animportant pillar in Jordan’seconomy and,be-ing the country’slargestreal estatedeveloper,is also a magnet for for-eign investmentscoming into Jordan.With Jordan currently gainingmomentum, Mawared is oneof the pio-neering companieshelming itsresurgence.Mawaredis building theKingAbdullah BinAbdul AzizCity,25kilometerseastof Amman andhometosome400,000residents.Butitsflagship projectisAbdali,thenew downtown ofAmman. man.The landmark downtown stretches esacrossa40-hectare site in the heart of Amman and involves key strategic devel-opersincluding SaudiOger,Horizon Group and KIPCO, Kuwait ProjectsCompany.Overseas Expansion - MoroccooIn line with itsinternational strategy,Mawared identified Morocco asakey market for growth.According to Mr.. Abu Hamdan, there e was im-mediately a synergy between Mawared and its Moroccan counterparts.He added,“we perceived greatpromise and potentialin Morocco;thecountry ispicking upa great dealofinterestatthe moment. From thebeginning, wereceived theMoroccangovernment’sencouragementand support,and thedialogue thatwe created with Caissede Dépôtetde Gestion (CDG Development) turned outto be a very fruitful one.” one”.The Moroccopartnership illustratesMawared’sknackforcreatingsustainablecommunities andbusinesscentersthataredestinedforsuccess. AsMr.. Abu Hamdan explained,“the role of Mawared ar has cen-tered ondevelopingthekindofcommunity-leddevelopments thatfoster sustainabilityand growth”. growth.” Projectsare notdevisedwith an exitstrategy butplannedforthe long-term;Mawared prepares the groundfor developmentandthen offersmajorcomponentsto other investorsand sub-developers.International tional StrategyAccording toMr..AkramAbu-Hamdan,Chairman ofMawared, “sinceitsinception,Mawared hasfieldeddemand fromregional investorsand developerswho seek ekapartnerwithin theJordanian market orforprojects witharegional scope.Wedidnot immediatelyventure intothe widersphere because we were stillbuilding ourown capabilities inmasterplanning and marketing, aswellasourabilityto secure projectfinancing.Butas soonaswehadreachedourstageof expertise, ourwork took a regional dimension.”For itsinternational foray, Mawaredturnedto Luxembourg, astableand well established financialcapital.Mawared International al was cre-ated and incorporated as abillion dollar fund,of which three subsid-iariesemerged:a representative officeinLondon, adevelopment andmanagementsubsidiaryin DIFC Dubaito look afterinterestsin the Gulfregion and a base in Rabat to coordinate Mawared’s Moroccan projects.ThefundanchoredMawared’s credibilityand gaveit abase thatwasnot affected by erratic decision making.Product OfferingWhenMawaredcame toMorocco,itsprimeinterestlayin twoaspectssof development:mixed-use environmentswithincitycenters suchasRabat, Casablanca,and Tangiers, andtourismandentertainment tainmentdes-tinations.In this regard,Tarfaya a proved of particular interest to Mawared ared as a tour-istic hub because ofits mild and consistentclimate all year round.Af-ter Mawared foresawthe potentialin the areaand announced itsinitialinvestment, otherdevelopers werequicktofollow suitinconsideringTarfaya. Already,aconceptual masterplanhasbeenproduced andanagreement signed with Caisse de Dépôt et de Gestion (CDG Develop-ment) fortheproject. Thenucleusforthisdevelopmentencompasses300 hectaresin area with a totalinvestmentvalue of$1.3billion dollars.Building CommunitiesMawared hasalwayssoughtlong-term investmentsthrough partner-ship. The company’s background is rooted in the nationaleconomy ofitshome country,Jordan,and it strongly believes in carryingsocial respon-sibilitythroughoutits expansion.Butinsteadoftoutingitscredentialsand taking acondescending cending view towardscitizens,Mawared ared hasreliedon opening up opportunities ortunitiesforthem to grow and buildon their ownambitions.Indeed, with the advent ofthe upcoming projects in Morocco, the firstoftheirkind bya Jordanian company,both countrieshave benefited fromnew opportunities.TheMoroccanhome-grownCaissede DépôtetdeGestion (CDGDevelopment) willstarttoinvestreciprocally inJordan,paving the way for a stronger relationship betweenthe two countries andconfirming Mawared’sreputation as a catalyst for building communities.