The construction sector in full recovery after the crises

The construction sector in full recovery after the crises
The construction sector in full recovery after the crises

After years of recession and a series of crises, Morocco’s construction sector finally seems to be experiencing a promising revival that is likely to last for several years. This recovery is largely attributed to the momentum provided by the new Investment Pact, as well as active preparations to host several major sporting events, including the 2030 World Cup, which the kingdom will co-host with Spain and Portugal. This positive outlook is reflecting positively on the construction industry.

This was confirmed by the daily “ Al-Sharq“, quoting Mohamed Mahboub, president of the National Federation of Building and Public Works (FNBTP). He stressed that “The construction sector in Morocco is experiencing a notable renaissance, illustrated in particular by a significant increase in cement sales, considered a key indicator of this recovery in a sector contributing around 6% of the gross domestic product (GDP).”.

According to the same source, “The dynamism observed in investment projects thanks to the new Investment Pact has a directly positive impact on the construction sector.” The launch of several major infrastructure projects, particularly in the residential sector, should have a lasting beneficial effect on the economy of the sector as a whole.

The recovery comes after a difficult period for construction companies, with several projects suspended due to the fallout from COVID-19 and tensions stemming from the war between Russia and Ukraine that began in 2022. Rising prices for construction materials and difficulties in obtaining bank financing have also had a negative impact, affecting around 1.2 million workers in the sector and leading to the bankruptcy of several companies.

During the first quarter of this year, the volume of government projects in infrastructure increased by 42% compared to the previous year, reaching a value of 64 billion dirhams. These projects cover various sectors such as water, ports, roads and government buildings. In parallel, cement sales reached 5.5 million tons at the end of May, recording an increase of 7.31% on an annual basis.

According to official data from the Ministry of National Land Planning, Urban Planning, Housing and Urban Policy, only five companies operate in the cement production sector in Morocco. Their sales volume increased slightly by 0.19% compared to the previous year, reaching 12.4 million tons last year, after a decrease of 11% the previous year.

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