Oriental
From The Report: Morocco 2013
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After a decade of investment, Morocco’s Oriental region is ready to build a strong reputation in the Mediterranean. For years, the Oriental, as the Eastern Region is known, suffered from insufficient transport connections to the rest of the country and a lack of the infrastructure necessary for supporting the development of its family-owned businesses and strategic industries. However, an increased focus by the government on devolving some decision-making powers as well as improving both growth and social development indicators in areas outside of Casablanca and Rabat has led to a shift in policy and the influx of government support of the kingdom’s regional governments. In 2012 the Oriental attracted Dh7.9bn (€703.2m) of private investment in 256 projects with the overwhelming majority of these in the building and construction sector. The region’s fortunes will be enhanced with further integration with Morocco’s neighbours. Sustained investment in new industrial zones and the regional focus on strategic sectors should also help to foster a strengthened private sector.

This chapter contains an interview with Mohamed Mbarki, Director, Agence de l’Oriental.

Articles from this Chapter

Overview

Nothing’s quiet on the eastern front: Growing investment and national integration boost the region
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After a decade of investment, Morocco’s Oriental region is ready to build a strong reputation in the Mediterranean. Nestled between the Algerian border and the Mediterranean Sea, Morocco’s Eastern Region is strategically located along the southern European basin. After decades of underdevelopment, it has become the recipient of extensive governmental investment. Morocco’s government has often channelled funds into the central areas of the country, with urban, industrial areas in cities…

Interview

OBG talks to Mohamed Mbarki, Director, Agence de l’Oriental
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Interview: Mohamed Mbarki To what extent does the closed border with Algeria affect the development of the Oriental region? MOHAMED MBARKI: Since Moroccan independence in 1956, the border has been closed more often than it has been open. Economic experts have identified that this causes up to 2% GDP loss across the Maghreb region. However, the current rate of economic development in the area has made it less affected by the closed border, particularly in wake of the launch of the royal initiative…

Analysis

Rural potential: Niche tourism is offering investment opportunities away from the busy beach resorts
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Much of the Eastern Region’s history was founded on the variety of its attractions, which range from sandy beaches to desert oases. Now authorities are keen to create niche tourism projects that help preserve the natural environment while sustaining local communities through low-impact tourist inflow. Emulating the success of other sustainable tourism ventures created across regions of the kingdom, notably in the Atlas Mountains or the desert area of Ouarzazate, the Oriental is seeking…

Analysis

Next door neighbour: An open border could further boost economic cooperation
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An open border between Morocco and Algeria would enhance growth in the Oriental, and raise trade activity across North Africa. The closing of the Moroccan-Algerian border in 1994 represented a direct hit to the Oriental’s economic prospects, prompting a fall in trade and the prevention of movement of people between the two countries. Indeed, the impact of the event was felt at all levels of the region, with implications that extend beyond eastern Morocco and western Algeria. It has been…

Analysis

A welcome facelift: Revamped centres and development of cultural spaces in the capital
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The region’s capital city is under renovation with new roads and low-income housing being built. Located just 15 km from the country’s border with Algeria, and home to about 500,000 inhabitants, the city of Oujda has historically been a trading conduit between Morocco and its eastern neighbour, and serves as the capital of the Oriental region. The city suffered from a lack of public investment throughout the 1980s and 1990s, which has resulted in deteriorating housing and transport infrastructure.…

Analysis

Living off the land: The region aims to increase agricultural yields and expand agro-industry for export markets
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Although mining and trade have long played a crucial role, the Eastern Region has always depended heavily on its agricultural sector for economic growth. With an array of different climates and about 8.5% of the national usable agricultural land, the region has the natural setting for production of several goods. According to the Ministry of Agriculture, it produces 13% of Morocco’s fruits, has 10% of its olive trees and 10% of its vine plantations. The Eastern Region is also responsible…

Analysis

Pushing for industry: Better connected transport infrastructure eases the export process
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Given the need to create employment opportunities for its growing population and increase manufacturing output, authorities are aiming to establish new labour-intensive industries in the Eastern Region. For years, overall business conditions, including poor infrastructure, made attracting manufacturing companies a difficult mission. But with rising investment in logistics and a network of sector-dedicated industrial parks being developed across the region, a more inviting environment for…

Analysis

Digging it up: Legal reforms and added incentives should boost mining investment
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Historically, the exploitation of mineral reserves in the Eastern Region has played a big role in the economic performance of the Oriental. It has also shaped the social fabric of communities. For decades, coal mining was essential for the livelihood of whole towns, providing jobs as well energy for the region. Despite a reduction in mining’s importance to the local economy, government plans to revive the sector and pay homage to its significance to the region’s identity are set to put…

Analysis

Funding growth: A new development fund is putting small businesses on the map through equity investment
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One of the first consequences of the Royal Initiative for Development of the Oriental Region was the establishment of a fund to invest in the region’s small and medium-sized enterprises (SMEs). The Investment Fund for the Eastern Region (Fonds d’Investissement de la Région de l’Oriental, FIRO) was designed to buttress governmental investment in infrastructure. While public spending has often focused on linking transport to connect the region, the establishment of the FIRO was geared…