Morocco will be a bright spot for investment in the MENA region over the next five years. Four sectors will be particularly attractive: export-orientated manufacturing, renewable energy, tourism and logistics services.
Opportunities in manufacturing
Integration into EU supply chains has seen the kingdom move up the value chain from a traditional focus on low-skilled textile exports to higher-tech industries learn more
Key risks for investors
Social unrest will remain a persistent risk to investment. Despite impressive economic growth, rapid industrialisation and a major reduction in levels of poverty over the past decade, unemployment and inequality remain structural problems learn more
Once a premium destination for overseas investors, Turkey’s power sector has recently been struggling with the impact of lower-than-expected growth rates, partial market liberalisation and fixed, long-term natural gas contracts. Power generation firms face further stress as the economic impact of the pandemic bites. Efforts to arrange a new debt restructuring deal have been delayed by the virus and wider economic woes, casting uncertainty over future demand. However, the sector retains some high-grade assets, however, which may attract future investor interest.
The level of disruption caused by the coronavirus pandemic has revealed how ill-prepared governments and international institutions are for anything beyond their routine activities. When normality is once again restored, the world must learn the lessons from today’s events in order to prepare for, and mitigate, the worst effects of an even bigger challenge: climate change and global warming. For the MENA region, one of the most pressing questions will be how to handle flows of people displaced by climate change.
Perhaps more than anywhere else in the world, rapid urbanisation in the MENA region will create significant investment opportunities for a variety of domestic and foreign firms. North Africa will see high-volume, low-tech developments, while capital-intensive projects such as rail and smart cities will be concentrated in higher-income nations in the Gulf. Elsewhere, a widening urban infrastructure deficit will stoke social instability.