Morocco's new development model shows social progress but faces economic and employment challenges
via Le Matin5 min read
Five years after its adoption, Morocco's new development model NMD, intended to guide the country towards emergence by 2035, has seen mixed results according to an evaluation report by the Centre for Economic and Social Foresight CPES, led by its president, Ali El Rhanbouri. The report highlights significant progress in social welfare and infrastructure, but also points to persistent structural issues and a challenging international economic environment that are hindering economic growth. Key successes include a dramatic increase in medical coverage, with the number of beneficiaries of mandatory health insurance AMO reaching over 32 million people in 2025, covering approximately 88% of the population, up from 42% before the reform. Additionally, the direct social aid program, launched in December 2023, benefited nearly 4 million families around 12.5 million individuals in 2025, with a budget of 40.5 billion dirhams. Public investment remains strong, with a record programmed budget of 380 billion dirhams for 2026. The Head of Government, Aziz Akhannouch, reported the validation of 381 projects totaling 581 billion dirhams by the National Investment Commission. Foreign direct investments FDI also increased from 32 billion dirhams in 2021 to over 56 billion dirhams in 2025. The country has also made strides in green transition, with renewable energy capacity reaching 4.85 GW in 2025, maintaining Morocco's 8th position globally in the Climate Performance Index. Efforts to combat
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Must ReadChina aims to deepen its strategic partnership with Morocco, ten years after its establishment by Chinese President Xi Jinping and His Majesty King Mohammed VI in 2016. Chinese Ambassador to Morocco, Yu Jinsong, emphasized a new phase in relations, moving beyond diplomacy to encompass trade, investment, industry, and new technologies. The year 2026 also marks the 68th anniversary of diplomatic relations between the two nations. Bilateral trade has surpassed 10 billion dollars, with Chinese investment commitments in Morocco also exceeding 10 billion dollars. Morocco is seen as a strategic partner, capable of serving as a platform connecting China, Africa, Europe, and the Arab world, due to its geographical position, trade agreements, and industrial base. The Tanger Tech industrial city project is a key example of this cooperation, with over 40 companies signing contracts and an expected investment exceeding 4 billion dollars, creating more than 22,000 direct jobs. This project signifies a shift from primarily commercial cooperation to a more structured industrial relationship and is part of China's "Belt and Road" Initiative, which Morocco joined in 2017, becoming the first North African country to sign a specific cooperation document in 2022. The ambassador also advocated for the effective implementation of "zero customs duties" for Moroccan products entering the Chinese market, aiming to diversify Morocco's exports away from European markets. Future cooperation is expected t
FIFA has launched a giant countdown clock at Grand Central Terminal in New York City for the 2026 World Cup final. This initiative, in partnership with the New York station, highlights the global nature of the competition and the host region for the final. The iconic departure boards have been reprogrammed to display the kickoff time in various cities across the 48 participating countries. FIFA states that this installation symbolizes the universal reach of the event, demonstrating how a moment experienced in New York鈥揘ew Jersey will be shared simultaneously worldwide. Grand Central Terminal has been a symbol of mobility and connection for over a century, and FIFA emphasizes that the World Cup final also represents a unifying moment, watched by billions of viewers across all continents. The match will kick off at 3:00 PM GMT-4, officiated by Slovenian referee Slavko Vin膷i膰. Photos and a video of the World Cup trophy displayed at Grand Central Terminal are available to media on FIFA's Digital Hub until July 20. FIFA concludes that the 2026 World Cup final will unite all participating nations and its 211 member associations, from Madrid to Buenos Aires, Tokyo to Rabat, Toronto to Port-au-Prince, and Auckland to Mexico City.
Morocco has introduced a new system to subject digital services provided by foreign companies to Moroccan customers to Value Added Tax VAT. This mechanism, which came into effect on June 11, 2026, with the launch of the "Taxation on digital services" teleservice by the General Directorate of Taxes DGI, aims to integrate the digital economy into the Moroccan tax system. It ensures that foreign providers adhere to similar rules as Moroccan-based companies. The decree, published in the Official Bulletin of December 2025, applies to non-resident companies offering remote electronic services to non-VAT-registered individuals in Morocco. This includes platforms like Netflix, Spotify, ChatGPT, Google, Meta Facebook and Instagram, certain services from Uber and Airbnb, cloud computing, online software, paid applications, and other digital subscriptions. To determine a customer's location in Morocco, factors such as a Moroccan bank card, billing address, IP address, or phone number may be used. Affected foreign providers must register with the DGI, obtain a Moroccan tax identifier, declare quarterly turnover in Morocco, and pay the corresponding VAT electronically. They are also required to maintain records of transactions with Moroccan customers for ten years. While the new system mandates foreign providers to pay VAT, it does not compel them to increase their prices. Each company can choose to absorb the tax or pass it on, fully or partially, to customers. If the 20% VAT is fully pa