Morocco: Investment Climate Shows Improvement in World Bank Report

by | Jan 4, 2026 | Economic, Morocco, Political, Security

Summary:

On 29 December 2025, the World Bank Group published its Business Ready 2025 report, highlighting Morocco’s improved business environment. The Kingdom ranked second in Africa and the Arab world, scoring 63.44 points out of 100, up from 62.41 in the first edition, and above the global average of 60.11 points. 

The report evaluates how effectively global economies support private sector activity across ten major themes, grouped into three pillars: regulatory framework, quality of public services, and operational efficiency. Morocco recorded notable gains in the regulatory framework (70.06 points) and quality of public services (64.55 points), performing strongly in utility services, international trade, business entry, business location, and financial services. 

However, Morocco’s operational efficiency score declined to 55.7 points. The decline in Morocco’s operational efficiency score is largely due to methodological factors, notably the expansion of the report to 101 countries (many of them wealthier) and the reuse of 2023 Enterprise Survey data, rather than a deterioration in actual performance. In practice, this indicates that while laws and public services have improved on paper, businesses still face operational challenges, which can limit the impact of private investment on growth.

Outlook: 

While Morocco’s headline rankings indicate an improved business climate and enhanced legal certainty for investors, the average Moroccan has yet to see meaningful benefits. This tension is increasingly visible in recent protests led by Gen Z across Moroccan cities, reflecting frustration over limited employment opportunities, rising living costs, and the slow translation of investments into tangible socioeconomic improvements. 

Going forward, the government faces the challenge of maintaining its international reputation for business readiness while addressing domestic discontent. Improvements in regulatory and public service pillars need to be complemented by operational efficiency and policies that deliver visible benefits to citizens, particularly youth, to sustain both economic momentum and social stability. 


 

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