Morocco champion of the MENA region

Morocco champion of the MENA region
Morocco champion of the MENA region

In the Middle East and North Africa region, Morocco shines for its attractiveness for the automotive industry, according to the latest risk and reward index from BMI-Fitch Solutions. With a score of 57.6 out of 100, Morocco is ahead of other markets in the region.

The Moroccan market is the most attractive for the automotive industry in the Middle East and North Africa (MENA) region. The latest Risk and Reward Index for automotive production (RRI), compiled by the research firm “BMI”, affiliated with Fitch Solutions, supports this finding. This RRI index measures the attractiveness of a country based on an analysis of risks and opportunities (zero represents the lowest risk and 100 the highest risk).

Thus, by taking into account factors specific to the automobile industry and broader economic, political and operational elements, this index makes it possible to assess the extent to which it is attractive for investors to start or continue the production of cars in different countries.

Morocco more attractive than Egypt and Iran

According to the RRI assessment grid for automobile production, the MENA region obtains an average score of 60.6 out of 100. Its score is higher than that of sub-Saharan Africa (65.0), but lower than the global average (50.0), due to the Red Sea crisis and the Middle East conflict, which increase risks across the region.

Among MENA countries, Morocco stands out with a score of 57.6/100 thanks to its strategic position, existing industrial capacity, political stability and limited entry barriers for new investors. This makes Morocco a more attractive market for automobile investment than Egypt (63.0), Algeria (63.2) or Iran (58.4).

“Morocco remains a very attractive market for investors, despite the high risk in the region. This is explained by the country’s geographical location and its access to the American and European markets. Additionally, the continued development of Morocco’s electric vehicle industry will further enhance the market’s attractiveness for long-term investors. Morocco thus occupies first place according to our automobile production index for the MENA region.indicate the experts at BMI-Fitch Solutions.

According to them, the Moroccan automobile industry is largely dependent on European markets, a factor which makes it vulnerable. However, commercial diversification efforts should help mitigate this risk in the long term.

In terms of ranking according to risk categories, Morocco (53.6) also tops the MENA region countries according to the political risk index, far ahead of Egypt (60.7), Algeria ( 69.6) and Iran (87.5), and better than the average for the MENA region (67.9 out of 100), impacted by the conflict in the Middle East.

According to BMI-Fitch Solutions, this conflict and the resulting business risk also increases economic risk in the MENA region, resulting in an average score of 79.7/100 for the “Short-Term Economic Risk Index » and 83/100 for the “long-term economic risk index”.

The BMI-Fitch Solutions study also reveals that the MENA region holds quite significant growth potential for automakers, provided the region’s political and economic environment improves. Virtually all major markets in the region offer growth opportunities, with Morocco taking the lead when it comes to risk/reward.

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