Investment & Trading

Investment The Regional Development Opportunities Morocco's foreign trade structure and figures final version

Investment

Introduction

1-In the world of globalization and competitiveness, investment, should be national or foreign, is an essential action to face the requirements of the economic takeoff. In this context, Morocco has resolutely engaged in a policy which seeks to make foreign investment a strategic support of economic and social growth.

2- Morocco has carried out several structural reforms during the last years which resulted in the enhancement of the national democratization process, the stability of its macro-economic framework, the consolidation of the opening of its economy to the international environment and the signature of several association and free trade agreements particularly with European Union, United States, Turkey and some Arab countries.

3- Sound reasons for investing in Morocco:

a- A Strategic Geographical location and proximity to Europe;

b- A great political and institutional stability based on a continuous process of democratization;

c- An institutional support and attractive legal framework;

d- A policy of structural reforms and liberalization of the economy;

e- An educated population benefiting from a very satisfactory technical training.

Judicial and institutional framework*

Morocco has made considerable efforts to improve the investment environment. An action of modernizing the legislative and statutory laws governing the economic activity was carried out in order to consolidate the attractiveness of the Kingdom vis-à-vis national and foreign investors.

In addition to the reforms of the macro-economic framework, several reforms such as the reform of the Casablanca Stock Market in 1993, the reform of the Commercial law in 1995, the reform of the right of industrial, literary, and artistic property in 1997, the establishment of Commercial Courts, the reform of labor regulations in 2004, have allowed a modernization of the business environment in Morocco and its adherence to the standards of the developed countries.

In Morocco, the laws guarantee equality between investors without any distinction of nationality. Bilateral agreements of protection and guarantee of investments or non- double taxation were concluded with a large number of foreign countries. (“Agreements of promotion and protection of investments.”)

The following measures were taken:

- The adoption of the Investment Charter;

-The creation of an appropriate institutional investment environment, based on a better decentralized distribution of tasks and roles;

-The adoption of an attractive conventional system allowing important investors to sign investment conventions or contracts with the State in order to profit from particular advantages.

*Main sources: National Portal of Morocco: www.maroc.ma

Ministry of Communication: www.mincom.gov.ma

I-The Investment Charter

The aim of the Investment Charter is to define the State's role regarding the promotion of investments in the next ten years. It replaces the investment codes for various sectors, except for the agricultural sector. The basic thrusts of the Charter are as follows: Alleviation of the fiscal burden with a better spread of the burden, a preferential fiscal system in favour of regional development, establishment of investment incentives in both the installation and operational phases.

Investment Charter advantages

A- Incentives in the installation phase

1/ Registration fees

* Exoneration from formalities for the acquisition of land destined for an investment project;

* Application of a rate of 2.5% for acquisition formalities of land to be used for building and real estate development;

* Application of a rate of 0.5% for inputs in capital formation of companies or increases in capital.

2/ Customs dues

They apply to the import of equipment, materiel, tools, components, spare parts and accessories.

* Import dues: between 2.5% and 10% maximum ad valorem;

* Import fiscal levy (PFI) : exoneration;

3/ Value Added Tax (VAT)

Exoneration or reimbursement for equipment, materials and tools acquired locally or imported.

4/ Patent Tax

* Suppression of the variable tax;

* Exoneration during the first five years of operation for enterprises in the industrial, tourism, commercial, handicraft, real estate promotion and development.

5/ Urban Tax

Exoneration for five years after their completion or installation for new buildings and extensions, as well as machinery which is an integral part of enterprises for the production of goods and services.

B- Incentives for the operational phase

1/ National solidarity Contribution (PSN)

* Profits and income liable to the IS corporate tax are not subject to the PSN;

* Profits and income completely exonerated from the IS corporate tax pay a contribution at a rate of 25% of the normal IS tax.

2/ "IS" Corporate Tax and "IR" Income Tax

* Exoneration from IS corporate tax for exporting enterprises for five years, followed by a 50% reduction thereafter, for both product and services exports.

* A 50% reduction in the IS or IGR during the first five years of operation for handicraft enterprises and for enterprises established in areas where the level of activity requires a preferential fiscal system.

3/ Investment reserves

• Creation by enterprises of an annual investment reserve free of tax. It can be 20% of fiscal profit and up to a maximum of 30% of the projected investment in equipment, materials and tools.

4/ Sliding scale amortisation

Application of sliding scale amortisation for equipment.

5/ Real Estate Profits Tax ("TPI")

Exoneration from TPI when premises are first ceded for use as accommodation.

C- Exchange controls guarantee

They concern investments made in foreign currency by resident or non-resident foreigners and Moroccans resident abroad:

* The transfer of net profits after tax without limitation of the amount or duration.

* The transfer of the product of cessions and complete or partial liquidation including value added.

D-Additional advantages

1-Partial State financing of the cost for acquiring land, expenditure on external infrastructure linked to the project, and the cost of professional training, when the investment has a certain size, or when it results in the creation of numerous stable jobs.

This additional advantage is granted in the framework of an investment contract concluded between the State and the investor;

2-State financing for part of equipping industrial zones established in areas where the level of economic development justifies special State aid.

E- New structures for investment development and promotion

1- Creation of the ‘’Hassan II Fund’’ (page 10)

2- Creation of the ‘’Regional Investment Centers’’ (page 9)

II- Appropriate institutional support

A- The Interdepartmental Committee for Investment

The government established, under the presidency of the Prime Minister, an Interdepartmental Committee whose objectives are as follows:

-To implement any measure that could improve and promote the investment environment in Morocco;

-To resolve any issue which could block the realization of the investment projects;

-To simplify the procedures which might impede the realization of the investment projects whose amount exceeds 200 million dirham (20 million USD)

The Interdepartmental Committee of Investments mandate is mainly:

-Ruling on the problems which block the realization of any investment project;

-Approving the particular contracts referred to the Investment Charter as well as any other convention binding the State to investors;

-Following the execution of agreed investment projects;

-Following the general state of investments and carrying out any measure likely to improve the investment environment.

B- The Regional Investment Centers (RICs)

The role of the RICs includes broader missions such as making data and information related to economic issues available for economic operators and therefore helps developing the potentialities of the regions where they operate. RICs are structured on two levels:

1-Assistance counter to the creation of companies

This counter is the only interlocutor of any person who wants to set up a business. Its role is:

- To place at the disposal of investors a unique form which includes all the information (legislative or statutory) required for the creation of the company;

-To carry out the necessary steps needed to procure documents or certificates required from the relevant authorities for the company’s creation process.

2- Assistance counter to investors

Its role is to:

- To provide investors with all the useful information relating to regional investment;

- To study, if the projected investment is less than 200 million dirham (20 million USD);

- To deal with all requests for administrative authorisations;

- To prepare all the administrative acts needed to the realization of the investment projects in the following sectors: industry, agro-industry, mining, tourism, handicraft, and housing and to allow the Wali of the region (Governor) to deliver authorisations or sign the administrative deeds related to these investments;

- To study, in the case of the investment project is equal to or more than 200 million dirham (20 million USD), draft contracts or draft conventions to be concluded with the State and to transmit them to the relevant governmental authority for approval and signature by the contracting parties;

- To propose friendly solutions in case of disagreement between investors and the administrations.

C- The Hassan II Fund

Since its creation in 1999, the Hassan II Fund for Economic and Social Development is a strong support for investment. The fund contributes through the following actions:

-The preparation of new industrial sites and the rehabilitation and promotion of the existing Industrial zones;

-The promotion of the industrial investment in sectors with competitive advantages namely: automobile subcontracting (manufacturing of automobile components and mechanics of precision), electronics (particularly cable bundles), clothes industry, hosiery and leather transformation, as well as any other activity, which, on a principal basis, contributes to the safeguarding of the environment by the treatment, the recycling and the industrial valorisation of waste.

The support of Hassan II Fund to the industrial investments can be a direct financial contribution which can cover, according to the choice of the promoter, one of the following forms:

-50% of the acquisition cost of the usable field (on the basis of a maximum cost: 250 DH/ Square meter);

-30% of the cost of buildings (on the basis of a maximum cost of 1500 DH/ square meter);

-100% of the cost of the ground (on the basis of a maximum cost of 250 DH/ m2) when the support concerns only the field.

II- Attractive Conventional System

In addition to the advantages granted by the Investment Charter, Morocco has succeeded to adapt its laws and regulations in order to attract new foreign investments.

A-Forms, funding of investment projects and transfer of revenues

Foreign investment means any input in kind or financial input, meant to contribute realizing a project, in any form, and carried out by aliens, should they reside or not in Morocco and by Moroccan individuals residing abroad.

1- Forms of investments

Such investments may take the form of:

• Firm setting up ;
• Participation in the capital of a company in the making ;
• Application to increase the capital of an existing company ;
• Setting up of a branch or a liaison office;
• Acquisition of Moroccan stocks and shares;
• Payment into the current account associates in cash or in trade loans;
• Non-remunerated short term financial participation;
• Acquisition of real property or the use rights related to the said property;
• Financing of construction works by proper funds;
• Setting up or acquisition of an individual business;
• In kind participation.

2-Funding

Foreign investments can be funded through cession of currencies to Bank Al Maghrib (Central Bank) or through debiting a currency account or an account in convertible Dirham. Investment operations funded in currencies could be carried out without prior permit of the exchange office.

The following cases are considered similar to investments funded in currencies:

-The investment share funded by debiting a convertible account. This partial funding cannot be over 50 p.c., the rest is covered by the cession of currencies to Bank Al-Maghrib;

-The consolidation of shareholders current accounts, reserves incorporation, and postponement of reserves that became available, in such a way that the corresponding amounts reflect the transferable character;

-The consolidation of trade loans materialized by the regular importing of goods or equipment and which were not paid in currencies;

- The consolidation of loans under foreign technical assistance, materialized by patents, exploitation licenses, trade marks, know-how... duly conceded by foreign enterprises.

3-Transfer of investment revenue

The revenues of foreign investments can be transferred without a prior permit and without limiting neither the time nor the amount. The revenues of investment are:

- Dividends or parts in the income distributed by Moroccan companies;

-Attendance fees and percentages;

-Profits made by Moroccan branches of foreign companies;

- Rental income;

- Interest accued from loans.

The transfers are made after the payment of duties and taxes in force in Morocco (15 p.c representing Tax on share proceeds, firm’s shares and assimilated revenues).

4- Transfer of cession or liquidation proceeds of foreign investments

The cession and liquidation operations of foreign investments in Morocco are free. Banks can transfer the proceeds of the cession or liquidation of their investment as well as the payment in capital principal, of concluded loans.

The transfers deal with the nominal value of the investment and on the potential value-added. The cessions between foreign investors can directly result in a payment abroad.

5- Documents to submit to the Exchange Office for a foreign investment project

Foreign investors including Moroccan residents abroad should, within six months as of the date of the realization of the investment project, submit to the Exchange Office (the investment sub-division) directly or via their bank, fiduciary, notary, lawyer. ... a report including :

- Identity, nationality, place of residence of the investor;

- Field of activity;

- The investment amount;

-The investment form.

The report should be accompanied with the following documents:

- For investments financed in currency:

*A bank certificate;

* The status of the firm, minutes of the consecutive general assembly and a declaration of subscription or of payment;

* Minutes of the extraordinary general assembly ratifying the increase of the firm's capital, accord concluded with the partners;

* Purchase contract or other documents.

- For the investments financed by goods or equipment : importation duly imputed by the customs and indirect taxes administration and non-payment bank certificates.

- For investments financed by the consolidation of loans for foreign technical assistance, a contract duly set, showing the nature and facilities.

6- Documents to submit to the Bank for the transfer of foreign investment revenues

-For the transfer of dividends, percentage of profit, profit shares:

- Accounting balance sheets and accounts (exploitation, lesses and profit accounts) the annexed documents related to the payment for which the transfer is requested and the extra-accounting rectifications state made to obtain the fiscal result. These documents should be coupled by a visa by the taxes administration.

- The minute(s) of the ordinary general assemblies of shareholders deciding on the results of the enterprise and dividing the profits, the amount of dividends and the distribution of percentages.

- The list of foreign or Moroccan administrators indicating their name, nationality, address, number of bonds held by each of them, and if need be, the gross amount of percentage obtained by them.

- For the transfer of director's fees :

The list of foreign or Moroccan nationals residing abroad administrators with the indication of their names, nationality, address, gross and net amount granted to each of them as well as the minute setting the global amount of director's fees allowed to the governing board during the fiscal concerned.

- For the transfer of exploitation benefits of the branches of foreign firms:

The balance sheets and the accounts of the accounting results, the annexed documents related to the fiscal of which payment is requested as well as the stage of the extra-accounting rectifications to obtain the fiscal results. These documents should be certified by the Taxes Administration.

- For the transfer of the leasing revenues:

Inventory of the manager showing the amounts registered through the rents the related fees, including the taxes. The inventory should be coupled with a leasing contract or any other necessary documents and justificative of the taxes payment.

- For the transfer of payment and loans interests:

Bank certificates justifying the repatriation of the loan the corresponding book of paying back and, if need be the references of the general or particular consent of the exchange office.

7- Documents to submit to the Bank for the transfer of the product of cession or for the transfer liquidation of a foreign investment

For the transfer of the product of cession or of liquidation of a foreign investment, the investors concerned should submit to the bank any document justifying the financing of investment in currency. In addition to these documents, the concerned investors should submit the following documents:

- For the transfer of the product of the mobile of shares cession:

The accounting documents related to the fiscal year of the firm the bonds of which are ceded, the minute of the ordinary general assembly as well as copies of the certificates of the transfer of bonds ceded showing the price of the cession.

- For the transfer of the real-estate product:

Copy of the sale certificate coupled with the documents justifying the payment of taxes related to the fiscal during which the transaction was made.

- For the transfer of the liquidation product:

The balance sheet of the liquidation duly certified by the fiscal administration, the minute of the general assembly of the shareholders or a copy of the juridical decision pronouncing the dissolution of the partial or total liquidation of the investment, the report of the liquidator showing the net product to divide as well as any document justifying the payment of taxes, if need be.

B- Customs Regulations

In addition to the advantages of the Investment Charter, investors can get extra benefits granted under special customs conditions.

The special customs conditions apply to the following: bonded warehouses, temporary admission, temporary import, movements for further processing abroad, temporary export, goods in transit and drawback.

1- Bonded warehouses

This makes it possible to store goods in establishments controlled by the Customs Administration for a set period of time. There are two categories of bonded warehouses: public bonded warehouses and private bonded warehouse that may be either ordinary or special. Such warehouses are called:

-Export warehouses : when the admitted goods either require special facilities for their conservation or are meant to be presented to the public in fairs, exhibits and other related events, or else to be sold for home consumption under one of the full or partial customs exemption schemes provided by law. . A public bonded warehouse concession is granted when the warehouse meets general requirements;

- An ordinary private bonded warehouse is granted to legal/individuals the primary or secondary purpose of stet is to store goods on behalf of third parties;

- A special private bonded warehouse concession is granted to industrial or commercial business entities for their exclusive use.

The maximum time allowable to store goods in bonded warehouse is 3 years for public warehouses and 2 years for private warehouses.

2- Temporary import

Temporary import is the admission into the regulated area free of applicable customs for goods meant to be processed, undergo extra work or require additional labour. Such goods having been processed, having benefited from extra work and labour shall be either exported or stored in bond.

Those who may benefit by temporary admission conditions are individuals who hold or may hold the facilities and equipment necessary for the manufacture, extra work or labour envisaged.

All goods to be processed, or require additional work or labour may benefit from such conditions with the exception of agricultural and fishery goods on list B of "le Programme General des Importations" (General Importation Program). The initial duration is 6 months; the maximum duration is 2 years from the registration date of the "Soumission d'Admission Temporaire" (Temporary Admission Submission) statement.

Under temporary admission conditions, it is possible to transfer manufactured products at various levels of completion. The transferee shall, after further extra working, export the products thus obtained. The products may be : - either put to consumption - or re-exported - or abandoned to the Customs - or destroyed in the presence of customs officers.

Temporary Import is the admission into the regulated area, free of all applicable custom import prohibitions and restrictions of :

- Objects brought in by individuals usually residing abroad and coming to stay temporarily in Morocco;

- Exportable equipment and products in the same condition as when they were imported after having been used as scheduled.

Are admitted to benefit from Temporary Importation conditions all products and capital equipment earmarked either to be integrated into an industrial process, or to be used in manufacturing products meant chiefly for export.

The duration for equipment put in this system is limited to the time the equipment will be used. For other products, the duration does not exceed 2 years.

3- Goods exported for further processing

This provision makes it possible to export out of the regulated area, products designed to undergo extra work or processing overseas. The said products and goods are liable to customs and other taxes and duties payable depending on the kind of imported products and goods.

4- Temporary exportation

This allows the shipping abroad of equipment and products to be used overseas for a period determined according to the nature of the equipment, products and work involved. The time is limited, and should not be more than one year.

5-Goods in transit

The Administration limits the time of the transit operation, as well as, if applicable, the route to be followed by the carriers. The system allows the transportation within the regulated area, of bonded goods, from one warehouse to another office or warehouse.

6- Drawback

System applies during the export of some products made in Morocco. It allows for the reimbursement of custom duties, special tax (replaced by the fiscal levy on import) and potential internal consumption taxes. Average reimbursement rates are set by decree.

7-Prior export

Prior export allows the export of products obtained from foreign goods whose customs duties and import taxes are paid and the reimporting of the equivalent sum in raw materials and semi-products free of charge.

8- Clearing at home

This procedure enables the operator to accomplish all custom payments inside the industrial units by the relevant Office of the customs services.The system is granted to imports and exports at the request of the operator concerned:

- To operations to benefit for a privileged treatment such as export, special custom conditions, investments and operations necessary for the proper running of the enterprise such as imports of spare parts destined for machine maintenance;

- To repeated operations made by enterprises and which are constantly related to the customs services including the production enterprises for their regular supply of raw materials and semi-products, assembly lines for the import CKD or SKD and trade enterprises specialized in the import of products known to the service.

9- Special systems

*In addition to goods imported free of duty under special legislative provisions are also imported free of all customs duties:

-Goods and products destined for H.M. the King;

-Shipments destined for ambassadors, consular and diplomatic services, foreign members of official international organizations established in Morocco;

-Shipments destined for charities;

-Exceptional, non-commercial shipments.

*Motor fuel, fuel and lubricants, foods and provisions necessary for outbound sea or air travel to overseas are free of customs dues.

*Moroccan-made products, products from abroad admitted freely in the regulated area, conveyed by sea from one point to another of the regulated area, are not liable to customs duty.

10-Movement and holding of goods in Bond

- Some goods are not allowed in the maritime zone of the regulated area except for those on ships the tonnage of which is equal to or higher than 100 net register tons (list of goods as per decree in the Customs Code).

- Cattle, products liable to domestic consumption taxes, products the import/export of which is subject to restrictions are admitted to the land zone in the range of customs, only with a pass delivered by the Administration or local authorities.

11-Domestic consumer taxes

The administration is responsible for the collection of domestic consumer taxes applicable to imported goods/pieces of work either imported or produced within the regulated area, i.e. : - Lemonade, soda water, plain drinking water, mineral water, other water flavoured or unflavoured. - Beer. - Wines and spirits. - Sugar, sugar products and dried beet pulp. - Oil products. - Rubber treads bands, inner tubes and tires. - Platinum, gold or silver artefacts.

12- Litigation

Non compliance with the provisions of the Customs Code are punishable in accordance with the laws governing such breaches of regulations. The terms and conditions of overseas payment for commercial and financial operations are expressed in either Dirham or one of the foreign currencies the rates of which are quoted by "Bank Al Maghrib".

C- Exchange regulations

1-Payments by transfer to foreign countries

Such transfers are made in foreign currencies quoted by "Bank Al Maghrib" through: - a transfer to a foreign transferee, or, - credit either to a foreign currency account or foreign convertible dirham account entered into the books of a bank in favour of the foreign payee, or - international credit card in cases specified by foreign exchange regulations.

2- Payments by transfer from foreign countries

Such payments are made by :

- Repatriating currencies rated by "Bank Al Maghrib", or - debiting either a foreign currency account or foreign convertible dirham account entered into the books of a bank in favour of the foreign payee. Moreover, payments may be made by international money orders or by crediting/debiting postal transfer accounts.

3- Types and operations of bank accounts that may be opened by foreigners

-Foreign currency accounts;

-Foreign accounts in convertible Dirham;

-Convertible time deposit accounts;

-Special account.

Foreign currency accounts and convertible dirham accounts can be opened without prior approval of the "Exchange Office" in the name of foreign resident/non resident individuals or entities.

a- Foreign currency accounts

-Debit:

-Transfer overseas;

-Transfer of foreign currencies to "Bank Al Maghrib";

-Payments of checks expressed in foreign currency;

-Amounts destined for the world capital market;

- Transfers to other foreign currency accounts.

-Credit:

-Transfers from overseas;

-Cashing of checks, traveller checks, or any other means of payment expressed in foreign currency;

-Depositing of foreign bank-notes imported or obtained by arbitrage;

-Drawings of foreign currencies from "Bank Al Maghrib";

-Payments of interests from investments on the world capital market;

-Previously debited sums with a view to investing on the world capital market;

- Transfers from other foreign currency accounts.

b- Convertible Foreign Accounts in Dirham

-Debit:

- Purchase from "Bank Al Maghrib" of foreign currencies quoted by the Central Bank;

-Payments in convertible Dirham to another foreign account;

- Sums earmarked for fixed deposits.

. Credit

- Dirham proceeds transfers of foreign currency to "Bank Al Maghrib";

- Proceeds of the transfer of foreign currencies/banknotes imported or obtained by arbitrage;

-Sums having been approved for transfer;

-Sums from a convertible Dirham account;

- Amounts of interest paid.

c- Convertible Time Account

Convertible time deposit accounts are accounts for funds owned by foreign non-resident individuals or entities who are not entitled to any repatriation guarantee. Such accounts can be opened without Exchange Office approval. Available assets of the convertible time deposit accounts are used freely by the original holders. They can freely cede the assets of their accounts to foreign residents or non-residents or to Moroccan nationals living abroad.

The beneficiaries can use the assets of the said accounts for:

- The partial funding of investments in Morocco at 50 p.c of the participation of the concerned investor. The rest, 50 p.c., should be paid in foreign currencies;

- The payment of all expenses in Dirham in Morocco by foreign movie production firms;

- The acquisition of secondary residences, which should be located in a tourist development zone, and should be personally used by the beneficiary;

- The subscription by foreign legal entities to the increase in capital of their branch in Morocco at 50 p.c. of their participation. The rest should be paid in foreign currency.

- Credit Side: -Funds that are not transferable; -The interests from such funds;

- Debit Side: Free use of available assets.

The funds may be used to:

- Finance investment operations in Morocco in all economic sectors and regardless of the form of support;

-Application for Treasury Bills;

- Advances by foreign legal entities in favour of their subsidiary company in Morocco;

- Acquisition of stocks and shares quoted on the Casablanca stock exchange;

- Payment of hotel expenses and any other expense in Dirham incurred by the holder of account, his/her spouse, parents and descendants in direct line or proxies, without limitation of the amount;

- Payment of taxes due in Morocco by the holder of the account;

d- Special Accounts

Banks may open special Dirham accounts in their books in favour of non- resident individuals or entities for their temporary activities in Morocco. Special accounts can be opened without prior approval of the Exchange Office:

- Credit Side:

- Encashment in Dirham for work or services performed by the holder of the account;

- Advances of funds from overseas made by the holder.

- Debit Side:

-Dirham expenses incurred in Morocco;

- Reimbursements under advances from overseas.

4- Other benefits granted through the exchange regulations to foreign residents in Morocco

*Transfer of capital owned by Foreigners about to leave Morocco for good. The amount of the capital that may be transferred is DH 25,000 per year of stay in Morocco, without any ceiling;

*Transfer of savings on profits, salaries and professional fees.

Persons who benefit from the transfer at a rate up to 50 p.c. of the savings on profits, salaries, professional fees, and without prior permit of the Exchange Office, foreign resident individuals including foreign spouses of Moroccan nationals and belonging to one of the following socio-economic categories :

- Wage-earners of the private sector with a work contract approved by the employment Ministry;

- Wage-earners of the public sector, offices, public establishments and conceded services;

- Members of liberal professions;

-Industrialists, tradesmen, farmers and craftsmen;

- Pensioners benefiting from a pension payable in Morocco.

For wage-earners and pensioners, transfers can be monthly or at a specific date. The applicant can however accumulate the transfer of many monthly payments. For other categories, the transfer of savings after paying tax can be made at the end of each year either globally or partially.

*Allowances in currencies for foreign spouses of Moroccan nationals;

Foreign spouses of Moroccan nationals can benefit once a year from an allowance in currency valued at 5,000 Dirham.

*Social Fees Transfer;

Foreign nationals affiliated to foreign pension funds can transfer, in addition to their savings or in the absence of such transfers, contributions due to social security and pension bodies of their countries except contributions due to private bodies of their countries or to insurance companies for the coverage of disease, death or disability risks.

*Transfer of compensation due for foreign technical assistance;

In matters of technical assistance, Moroccan enterprises can freely conclude technical assistance contracts with foreign firms and transfer through banks the compensation for such operations.

*Insurance and Re-insurance.

Banks can transfer for non-residents the damage compensation without limitation of the amount, the yields and the allotted capital under the life insurance contracts.

5-The convertibility of the Dirham

Within the convertibility of the Dirham, economic operators enjoy free access to the purchase of currencies backed by Bank Al Maghrib for the payment of current operations. The transfer of outstanding sums for these operations are also free. They are made without the license of the Exchange Office. Among the current operations for which Morocco ensures convertibility are:

.Foreign trade operations including fees;

.The transfer of foreign investment;

.The savings on income of foreign individuals residing in Morocco;

. Foreign technical assistance.

D- Financial Offshore Market

1- Offshore banks

«Offshore Banks » are any legal entities or individuals, regardless of nationality, whose headquarters are based in an offshore financial location, and whose activities consist in dealing in convertible foreign currency deposits, and undertaking with these same currencies any credit, exchange and or financial activity. An offshore bank can be a subsidiary set up in an offshore financial location to represent and act for its central bank whose headquarters are outside the offshore location.

Is termed « offshore holding corporation » any legal entity or individual whose purpose is capital management and share participation in corporations whose capital is in convertible foreign currencies, on condition that these operations are undertaken in convertible foreign currencies.

Offshore banks and holding corporations benefit from a number of advantages.

2- Exchange mechanisms

Offshore banks and holding corporations are not obliged to repatriate any income or foreign revenues and have total exchange freedom with regard to their transactions with non-resident entities.

All transactions in Morocco are undertaken through foreign currency accounts or convertible Moroccan Dirham foreign accounts opened in Moroccan banks.

In order to meet their operating expenses in Morocco, banks are entitled to run an account in Moroccan Dirham.

Moreover, offshore banks and holding corporations have free access to investment activities in Morocco and to capital participation operations in local corporations.

3- Fiscal and customs mechanisms

Offshore banks and corporations benefit from the following tax exonerations:

-Registration fees, VAT, patent tax and urban tax, import duties and taxes, TPA on distributed dividends.

-Corporate tax is negotiable and all other tax for offshore companies is fixed at a nominal $5,000 per year for 15 years. For offshore banks it is either $25,000 U.S a year or 10% of profits.

4-Regulations for foreign staff

-Freedom to recruit staff required for the activity;

-Staffs are entitled to choose welfare schemes other than the Moroccan one;

-Tax exemption for imported personal belongings and application of transit import system for imported vehicles;

The infrastructure required for the setting up the Tangier Offshore market has featured to additional development infrastructure and telecommunication facilities.

With this system already in operation, applications to open business are deposited at the Crédit Lyonnais in partnership with Crédit du Maroc or through la Banque Nationale de Paris in partnership with "la Banque Marocaine pour le Commerce et l’Industrie".

E- Free Zones of Export

Created by the Act No 19-94, the "Free Zones for Export" are specific areas of the customs territory where all export activity of an industrial or commercial nature, as well as related services, can be authorized without being subjected to customs or exchange regulations and controls on foreign trade.

The agencies responsible for the development and management of the free zones are "L'Office d'Exploitation des Ports" and "L'Office d'Exploitation des Aeroports".

Apart from creating, developing and maintaining the said zones, they are also responsible for dealing with investors, helping them in the preparation of their applications for authorizations and assisting them in every way in their projects.

In Free Zones for Export, the entry and exit of merchandise are not subject to foreign trade or exchange control legislation.

F- Tax system

1- Tax system related to company’s creation

a- Capital registration fees

When forming or increasing capital, registration tax is fixed at 0.50 percent.

Capital registration is reduced to 0.25 percent for deeds of partnership or capital increase of investment banks and companies the main purpose of which is either stocks and shares management or application for other companies’ capital on joint account.

Complete exoneration for the formalities required to the acquisition of investment land.

b- Stamp duty

Corporate stocks, founder's shares and bonds issued by companies are all free from both stamp duty and formalities.

c- Notarial tax

The basis of assessment is the capital stock:

-Up to DH 5,000: 1%

-From DH 5,000 to 10,000: 0.5%

-Over DH 10,000: 0.2%

d- Taxation on imported production materials and other products

The rates of import dues vary between 2.5 pc and 10 pc for equipment, materials, spare parts and accessories. Tools: hedge cutters, hand saws, chain saws; Kitchen appliances or food industry machinery; Vehicle spare parts; Watches and children's toys; Cameras.

Among materials exempted are:

.Materials and products imported under the investment Charter; .Materials and products imported under customs economic systems; .Materials using renewable energies.

e- Import Tax Levy (PFI)

The PFI is on imported commodities. The PFI is fixed at 15%. However it is reduced to 12.5% for pharmaceuticals or raw materials used in the manufacturing of pharmaceuticals. The exoneration from PFI is granted for the following operations and products:

-Import of equipment, materials, spare parts and accessories;

-Enterprises which engage in research activities involving mineral substances;

- Materials using renewable energies;

- Fertilizers, potassium nitrate for fertilizer usage, potassium phosphate for fertilizer usage and other nitrates;

- Some antibiotic medical products.

f- VAT

VAT applies to industrial, commercial and handicraft-type business or to operations related to professional activities carried out in Morocco. It also applies to imported products except those which are exempted as:

-Equipment, materials and tools acquired locally or abroad;

-Agricultural materials and products;

-Materials and products imported within the framework of the customs economic system;

-Materials used in research and exploitation of mineral substances;*

-Materials using renewable energies.

The VAT rates are as follows:

7%: for basic products of prime necessity, credit operations, occupations such credit lawyers, etc;

14%: for enterprise business related to real estate sales and involving coffee and other products;

19%: normal rate.

g- Domestic consumer taxes

These rates apply to certain categories of commodities imported or produced locally such as lemonades, mineral water, wines, beers, oil products, etc.

h- Parafiscal Tax at Importation

This tax applies to imported commodities. Rate: 0.25% ad valorem. The following are not subject to the tax:

-imports benefiting from the customs economic systems; -imports of materials, tools and equipment goods cited in an investment program having received a conformity approval or being the subject of a convention.

2- Tax system related to company’s operation

a- Urban Property Tax

Urban Property Tax (or City Tax) is collected annually on:

Buildings or structures occupied by the owners, their ascendants or descendants;

Establishments used by the owners for their professional activities or other forms of operation;

Machines and appliances being integral parts of the establishments producing goods or services;

Land earmarked for any kind or exploitation.

Assessment:

Regarding properties used by their owners for their professional activities or other forms of operation, the rental value is calculated by applying the following percentage rates to their cost price:

-3 percent for lots; -4 percent for structures, fittings, machines and appliances. The Urban Property Tax rate is 13.5 percent of the rental value.

Exemption:

New structures, additional buildings as well as machines and appliances which are integral parts of establishments producing goods and services are exempted from the tax for a 5 year period following completion or installation.

b- Municipal Tax

Rate : 10 percent of the normal rental value of the buildings located within the urban areas ; 6 percent of the normal value of the buildings located in peripheral zones of urban communes.

c- Professional Tax (Patent)

To be paid by individuals involved in commercial or industrial activities and who are not exempted by Dahir (Decree). This tax includes the proportional tax which averages 10 percent of the rental value of industrial establishments, a variable tax which depends on the number and kind of pieces of equipment of the business entity.

d- Income Tax (IR)

Income Tax is assessed on the aggregate income of individuals. Are subject to IGR the following categories of incomes:

-Professional earnings made by individuals in commercial, industrial and handicraft type professions or any other liberal profession; -Gross proceeds received by an individual /legal entity not liable to Corporate Tax, for work or services performed overseas on behalf of an individual, or legal entity residing in Morocco.

e- Corporate Tax (I.S)

Corporate tax is based upon aggregate income and benefits of corporations and other legal entities. Are subject to the corporate tax:

- Firms regardless of forms and purposes, exclusive of general limited partnerships, including only individuals entities as well as particular partnerships, except where such corporation/partnership choose to be dutiable to corporate tax.

Are exempt from corporate tax de facto corporations including only individual entities and real property companies.

- Also liable to corporate tax are other legal entities doing business or carrying out profit making operations.

Firms liable to corporate tax (IS) are not liable to corporate income tax (IBP), investment reserve or urban property tax on rental income from premises.

The corporate tax rate is fixed at 36%. The rate is reduced to:

- 10 percent for primary products (see Official Gazette)

- 12 percent for real estate work or construction of industrial/technical facilities by foreign firms who choose to be taxed on a lump sum basis.

The amount of the tax due by corporations other than foreign ones which are taxed on a lump sum basis may not be less than a minimal contribution.

The minimum contribution is fixed at a 50 p.c.; this rate is reduced to 0.25 p.c. for selling operations of oil products, gas, butter, cooking oil, sugar, flour, water, power. However, the minimum on contribution may not be less than DH 1500.

Firms can practice digressive amortization for equipment goods. Firms which opt for the above-mentioned amortization should apply from the first year: the coefficients are applied according to the duration of the equipment amortization. They are: 1.5, 2 and 3.

f- National solidarity Levy (PSN)

For companies subject to Corporate Tax, a levy is instituted, called National Solidarity Levy (PSN). The base used to assess this levy is equal to the base chosen for the assessment of Corporate Tax (IS). National Solidarity Levy (PSN) is calculated by applying a 10 percent rate to the amount of the Corporate Tax (IS).

In case of exemption of IS to 100 p.c., the rate of PSN to be paid is 25 p.c. applicable to theoretical IS.

The Regional Development Opportunities:
Tangiers as a model of new development dynamics
Through an ambitious policy aiming to explore all potentialities that could enhance the competitiveness of the country and attract both local and foreign investors, the government of Morocco has opted for a regional approach allowing each of the sixteen regions to plan, then to accelerate its own development.
In this regard, the North of Morocco is receiving particular attention from the government. The development of this region is a priority for the country, and much effort has been put into its promotion.
The construction of the Tanger-Med port is a clear symbol of this determination. The port is designed to cope with the world’s largest ships. When it opens, in 2007, it will make Tangier a hub for world trade.
The region is also the recipient of large-scale investment in infrastructures, industry and tourism.
Today it has become one of Morocco’s most attractive regions. Private sector operators from Morocco and abroad are flooding the region in their desire to profit from this economic boom.

A- The Tanger-Med port project *

The «Tanger-Med» project is a strategic priority for the economic and social development of the Northern region of Morocco.

It is part of the economic policy orienting Morocco towards exports, based on eight clearly identified export sectors, with particular emphasis on the free trade agreement with the European Union to be implemented between 2000 and 2012.

Completion of the «Tanger-Med» project will have important economic effects in terms of jobs, creation of added value and foreign investment.

Its particular position on the Straits of Gibraltar, at the crossing of two major maritime routes, and 15km from the European Union will enable it to serve a market of hundreds of millions of consumers through the industrial and commercial free zones which will be run by well-known private operators.

It will also win part of the strong growth market of container transshipment and become the leading hub for cereal transshipment, a facility which is non-existent in the north-west African region at present.

The project will be implemented, coordinated and managed by TMSA, a private company with public prerogatives, operating under an agreement with the State and interacting with the different ministries involved.

In addition to the economic effects of the operation of the port, there will be important effects resulting from its construction, particularly through foreign investments, and others from the operation of the free zones (direct and indirect added value, direct gains, jobs and foreign investment).

In order to link the port with the free zones and the Special Economic Zone with the rest of Morocco and its principal economic centers, the Moroccan Government has agreed to construct:

• A 61 km freeway connecting the North freeway (Rabat -Tangier) with the Special Economic Zone;

• A freeway linking the commercial zone to the port;

• A two-lane expressway linking the port to Fnideq (site chosen for the development of a commercial free zone);

• A 45 km rail link connecting the Special Economic Zone to the national rail network.

This entire connection infrastructure will be financed by the Moroccan government and should be operational on the date the port comes into service.

It is also planned to build new roads in the North region in order to open it up and link it to the major centers of the Kingdom:

• Freeway linking Tangier and Asilah (35 km): already achieved;

•Upgrading of the Tangier - Tetouan road to an expressway;

• Expressway linking Tetouan and Fnideq (38 km).

The port is currently being constructed on a site 35-km east of Tangiers. When completed, it will cover an area of over 500 sq km and employ some 145,000 people. Within the facility, three duty free zones will also be built, with these including an industrial zone covering 600 ha, a commercial duty free zone of 200 ha and a logistics free zone of 90 ha.

In June 2006, Dubai's Jebel Ali Free Zone Authority International (JAFZA) had been awarded the 10-year logistics free zone management concession at the port. This was an important achievement for the company, which already has free zone management experience outside Dubai, in both Djibouti and at Malaysia's Port Klang Free Zone.

Both the port and the free zones at Tangier Med are due to open for business in September 2007.

The existing Tangiers free zone also recently demonstrated the potential value of Tanger Med. Since this zone had been established back in 1999, it had created some 22,000 jobs with the implementation of more than 200 foreign companies. Given this, the much larger Tangier-Med port facility is expected to also give a major boost to local employment.

* Main source: Tangier Mediterranean Special Agency: www.tmsa.ma
B-Tangier Free Zone (T.F.Z)
Located at the North of Morocco, at 15 KM from the South of Europe, Tangier Free Zone (TFZ) is an excellent destination for investors.
It is a protected free trade environment where companies from around the world can operate tax-free. It’s literally a massive project covering 345 hectares of land.
It incorporates a vast container port at the junction of the biggest maritime routes in the world with the capacity to handle both cargo and passenger ships; the expansion and improvement of Tangiers international airport, road and rail networks; the complete renovation of Tangier’s historic old port which will become a pleasure port for yachts and cruises liners; the development of six new world class holiday resorts with four and five star hotels, holiday villages, nature trails and cultural attraction sites including a Kasbah, restaurants and shopping centres in the coastal Ghandouri tourism area; plus of course the controlled construction of quality apartments, townhouses and villas to house the increase of both workers and tourists coming to the region.
This mammoth undertaking is estimated to create 145,000 jobs by the year 2020.
Since its launching on 1999, TFZ has created 22.000 jobs thanks to the implementation of 200 companies. Composed of two parts: industrial zone and logistic zone, Tangier Free Zone is providing investors with the advantageous following incentives:
Exchange system
-Tangier Free Zone is not subject to foreign trade or exchange control legislation
Customs System
-Commercial, industrial and services operations with foreign countries enjoy complete exoneration from all taxes relating to import, export, production and consumption;
-Simplified customs procedures

Fiscal system
-Exoneration from registration and fiscal stamp duties for all operations pertaining to capital’s set up or increase and also to the land’s acquisition;

-Exoneration from the Patent Tax for a period of 15 years;

-Exoneration from Urban Tax for a period of 15 years;

-Exoneration from Corporate Tax for a period of 5 years and application of a special rate of 8, 75% after that period;

-Exoneration from the Tax on share’s incomes and assimilated incomes for the non residents;

-Exoneration from VAT on goods.

- Tangier Offshore Financial Market
In order to attract financial institutions that could contribute to the various projects relating to development planning of the Region of Tangier, a special Tangier Offshore Financial was established in 1993. Companies operating in this market are beneficiating from many advantages granted by Morocco’s offshore financial system, as follows:
Exchange mechanisms
Offshore banks and holding corporations are not obliged to repatriate any income or foreign revenues and have total exchange freedom with regard to their transactions with non-resident entities.
All transactions in Morocco are undertaken through foreign currency accounts or convertible Moroccan Dirham foreign accounts opened in Moroccan banks.
In order to meet their operating expenses in Morocco, banks are entitled to run an account in Moroccan Dirham.
Moreover, offshore banks and holding corporations have free access to investment activities in Morocco and to capital participation operations in local corporations.
Fiscal and customs mechanisms
Offshore banks and corporations benefit from the following tax exonerations: Registration fees, VAT, patent tax and urban tax, import duties and taxes, TPA on distributed dividends.
Corporate tax is negotiable and all other tax for offshore companies is fixed at a nominal $5,000 per year for 15 years. For offshore banks it is either $25,000 U.S a year or 10% of profits.
Regulations for foreign staff
Freedom to recruit staff required for the activity; staffs are entitled to choose welfare schemes other than the Moroccan one.
Tax exemption for imported personal belongings and application of transit import system for imported vehicles.
Since its creation in 1993, many offshore financial institutions have been set up in Tangier Offshore Financial Market like:
- Banque Internationale de Tanger, which was set up by Crédit Lyonnais and Crédit du Maroc;
-Attijari Wafa Bank.
-La Financière Holding Offshore,
-Société Internationale des Participations,
-Investissement Marocain Holding Offshore,
-New Investment Holding Offshore,
-Euro Detroit International Holding Offshore,
-Hyphen Holding Offshore,
-Euromaroc Holding Offshore,
-J & J Holding Offshore,
-Investment Financement Overseas Holding Offshore,
-Energytech Offshore Holding Company,
- Estar Holding International Offshore.

D- Candidature of the City of Tangier for the 2012 Universal Exposition*

The candidature of the City of Tangier to host the 2012 Universal Exposition has been presented officially to the members of the Bureau International des Expositions (BIE) during the 140th session of their General Assembly held on December 18-19, 2006 in Paris.

The Government and State agencies are fully mobilized behind this project, and have provided all the guarantees needed for the success of the Exhibition.

The local authorities and elected representatives will also provide all the help required to prepare the application and make the organization of Expo Tangier 2012 a success.

Morocco’s major businesses are conscious of the significant economic benefits that the country may derive from the Exhibition. They are committed to Tangier’s application and are providing valuable support.

Last but not least, the people of Tangier are enthusiastic about hosting the Exhibition and are providing strong grassroots support for the application.
1-General Information on the City of Tangier
Number of inhabitants : 703 614
Altitude : 0 m

Transport infrastructures

Tangier port
More than a million passengers every year. Regular ferry services link Tangier with Algeciras, Tarifa, Barcelona (Spain), Sète, Port-Vendres (France) and Genoa (Italy)

Tanger Med port
This second port will be operational in 2007. With its transfer activities, it will make Tangier a hub of international maritime traffic.

Ibn Battouta International Airport
Situated 15 km outside the city, Ibn Battouta International Airport handles regular and charter flights from inside Morocco and a number of European cities

Connection to the national motorway network
A motorway which was opened in summer 2005 links Tangier to the other major Moroccan cities

Rail infrastructures
Railways link the city to the other major cities of Morocco

2- Advantages of the Tangier’s Candidature
Situated at the crossroads where African, Arab, Muslim, Jewish and Western cultures meet, Morocco has always been bathed in an atmosphere of tolerance, dialogue and exchanges. The sense of hospitality is fundamental to Moroccan culture.

Firmly attached to their Moroccan identity, Moroccans are also determined to advance along the road to progress and modernity. Hospitality, tolerance, openness, dialogue, exchange, development and progress: the values of the international exhibitions are also the values of Morocco. Moroccans are thus unanimous in their enthusiasm about hosting a 2012 International Exhibition which will embody and celebrate the values to which they themselves are committed.

a- A dynamic region
The hosting of the 2012 International Exhibition will represent a decisive confirmation of Tangier’s dynamic development.
Over the last few years, Tangier has embarked upon a process of profound renewal. It has begun a determined march towards progress and modernity.

Linked to the rest of Morocco by an efficient network of motorways, railways and flights, the city is attracting many investors who are setting up high-tech industries whose production is mainly for export.
The world’s big tour operators are building impressive and luxurious tourist complexes, which are transforming the city into one of the Mediterranean’s major up-market seaside resorts.
To accompany these trends, the local authorities have embarked on a restructuring programme for the city’s infrastructures:
• The city possesses an efficient and modern public transport network.
• Ring roads and car parks are being constructed to reduce congestion in the city centre.
• The city’s historical and architectural heritage is being renovated and enhanced.
• New public gardens are being created.
All the city’s neighbourhoods, even the least advantaged, are being provided with social, cultural and sport facilities to improve the quality of life of their inhabitants.
Tangier is thus about to complete its transformation into a modern city, proud of its past yet contemplating its future with confidence.
The 2012 International Exhibition will thus be an opportunity to confirm and celebrate the rebirth of this mythical city.
b-A historic city
The dominant characteristic of Tangier’s peninsula is its maritime nature. Its shores are washed by the Atlantic, the Straits of Gibraltar and the Mediterranean.

It was through its coastline that the region established relations with the rest of the world. From prehistoric times onwards, it was a destination for human migrations. It later became a key stopping place on the great trade routes, thanks to the setting up of trading posts and the development of anchorage points (Cotta, Tingis, Martil, Ksar Sghir), which were the bridgeheads for exchanges between Morocco and the rest of the world.
The North of Morocco is one of the richest areas for traces of ancient human settlements. Legends (of Ulysses, Calypso, Hercules and others), megalithic sites (the Msoura Cromlech, the Mries necropolis) and Punic remains attest to the importance of this region for ancient civilizations.
As the capital of Mauritania Tingitana, the region contained many villas scattered through the countryside, while Roman towns were built along the coast.

With the introduction of Islamic civilization, the region became the bridge which allowed Islam to gain access to Europe.
The period when Tangier was the diplomatic capital of Morocco and the time when it had the status of an international zone have also left behind an important historical and architectural heritage.
From this complex history, Tangier has inherited a long tradition of cultural openness.
c-A City of crossroads
Situated at the northernmost point of Africa, only 14 km away from the continent of Europe, Tangier forms a link between the Mediterranean and the Atlantic, between Europe and Africa.
Washed by a diversity of currents, Tangier has acquired a unique style which has always fascinated painters, writers and musicians. Many, like Matisse and Delacroix, were so inspired by this magical city that they chose to set up home here.
For their part, the inhabitants of Tangier, dwellers in a city where so many different cultures and religions exist side by side, have acquired a tradition of openness onto the world. They are curious about the Other and eager for new encounters.
The people of Tangier have welcomed with enthusiasm the prospect of hosting an International Exhibition which will bring together people from all over the world to reflect upon a world dominated by the spirit of tolerance and openness which characterizes their own city.
d-A lasting legacy
The organization of an International Exhibition in 2012 can offer Morocco a platform, a showcase, and a springboard which will help it to attain the goals and priorities it has set itself.
The experience of previous Exhibitions has demonstrated that they offer many social and economic benefits. These benefits go beyond the direct investments made in the event to include a greater visibility which stimulates tourism, job creation and exports.
There are also numerous advantages on the social level, which may include the acquisition of organizational skills, the training of young people, the strengthening of local identity and the inculcation of a collective sense of pride in the community.
The hosting of the 2012 International Exhibition forms part of Morocco’s long-term development strategies. It will speed up progress towards these ends and will represent the crowning achievement of a decade of work towards the construction of modern Morocco.
Hosting the 2012 International Exhibition will ensure that the region of Tangier continues to follow the dynamic development strategy it has embarked upon, and will confirm the economic and cultural rebirth of this mythical city.
3-The Site
The site chosen for the Exhibition is the ‘Lakeside’, a prime seaside and tourism location. The land extends over more than 100 hectares.
The presence of water on the site offers many possibilities for adorning the landscape and enhancing the urban environment. It also evokes Tangier’s links with the sea.
Overlooking the Bay of Tangier, and situated well within the city limits, not far from the city centre, the site has the advantage of being connected to three major transport links.
To the north, the Boulevard Mohammed VI runs along the Bay of Tangier and links the city centre to the main tourist accommodation areas. To the south, the site is bordered by the national road which links Tangier’s railway station to the new Tanger-Med port.
In conformity with the regulations of The International Exhibitions Bureau (BIE), Expo Tangier 2012 will cover an area limited to 25 hectares.
The site will be designed as an innovative and futuristic space, with a plan for the circulation of visitors which is convenient and efficient, ergonomic and user-friendly. At the same time, it will preserve a typically Moroccan flavour which derives from the country’s long architectural tradition.
The rich vegetation, which will be present everywhere in the numerous gardens and walkways, will reflect all the diversity of the world’s flora.
The Exposition will be organized around five ‘dimensions’ or ‘routes’. Each route will lead to one of the themed areas of the site, ending at an exhibition pavilion, and will offer a choice of various itineraries. These itineraries will in turn offer a series of activities to be pursued in the open air or in partly covered areas.
• Routes and transport systems
• Trade routes
• Human routes
• Virtual routes
• Imaginary and dream routes
Each of these angles on the theme is, like any route, composed of four parts. Each starts at a departure point, passes through various stages which represent the key moments in its historical evolution, reaches crossroads which examine the problems posed by the route, and finally leads to a destination where possible future scenarios for the theme in question are presented and explored.
4-The Theme
a- A topical theme
“Routes of the World, Cultures Connecting. For a more United World”
The theme chosen for the Tangier 2012 International Exhibition concerns each one of us. It is at the centre of the world’s current preoccupations. It raises fundamental questions, at a moment when we have never been more dependent on routes and communication pathways, both physical and virtual.

b- A unifying theme
The theme of Expo Tangier 2012 raises questions which are crucial for the world and its future. Routes, both physical and virtual, are at the heart of the strategic reflections of all the countries of the world.
Whether it is a developing, emerging or industrialized country, each nation will find plenty of material for its pavilion in the Exhibition, and each will be able to share with the rest of the world its achievements, its difficulties, its projects and its innovations.
The theme of Expo Tangier 2012 does not exclude any country, but on the contrary will invite the involvement of a wide range of international organizations and prominent associations.
All the countries of the world, together with numerous scientists, supranational organizations and international associations, will have the opportunity to make useful contributions to a stimulating reflection upon the future of the planet.
c-For a united world
Whether they function on land, sea, air or in virtual reality, routes put an end to isolation, remove distances, facilitate exchanges and bring people closer together.
Routes link up not only geographical points but also human communities. They allow people to meet and exchange views. Thus people learn to know one another better and to live together in peace and harmony.
In a city with a cosmopolitan tradition like Tangier, the Exhibition will demonstrate that the clash of civilizations is not inevitable, but that it is possible to replace confrontation by peaceful encounter, fanaticism by tolerance, and conflict by dialogue.
With its rich and long-established tradition of tolerance and openness, Morocco wishes to make this Exhibition an opportunity to progress along the path towards peace and cohabitation between cultures and religions.
d- Variations on the theme
The theme of Expo Tangier 2012 is explored through five sub-themes which present complementary ways of looking at the idea of the Routes of the World.

Transport routes

Routes and means of transport have written the world’s history. They have been the stimulus for many technological innovations, scientific discoveries and feats of engineering.

They are now also the focus of new challenges : the problems posed by the multitude of means of transport, congestion, environmental damage, the population explosion, the ever-increasing demand for energy, security problems, the management of urban areas, impact on living conditions, and still more.

The participants in Expo Tangier 2012 will be looking for a better future for the world’s land, sea, air and railway routes.

Trade routes

Trade routes have left their mark on the history of humankind. Some have now disappeared; others have taken their place, according to the changing needs for merchandise and raw materials. They have followed an endless range of itineraries depending on the nature of the goods and merchandise transported.

These routes encourage exchange and set down the conditions for it. From the silk and cotton routes, the salt and iron routes, to the routes of petrol and energy, the history of trade routes deserves to be remembered.

Human routes

Human routes are a commemoration of the movements of humankind through history. Human beings have always moved around, motivated by curiosity, the desire to know the world and explore distant countries, the urge to discover new lands and to meet other people. But they also move around in order to earn their daily bread, to fulfill their ambitions, to seek out a better life or to escape a danger. In their routes we can read the story of humankind’s adventure.

Routes also establish links between people. They make possible dialogue between men and women of different cultures, in a spirit of tolerance and respect for diversity. It is in part thanks to the world’s routes that we can aspire to a more united world, one which cultivates peace and development and which rejects all forms of segregation and fundamentalism.

Virtual routes

The Exhibition will examine the various networks of virtual highways which have been woven across the world, transforming relations between individuals, peoples and nations. Over the last few years, virtual routes have brought about extraordinary changes in the routes of information, mail services and human communications. What does the future hold for us? What new technological feats will transform people’s everyday lives and revolutionize their existence?

Imaginary routes

Here we consider imaginary and Utopist routes. We will explore people’s dreams of movement, exchanges, speed and communication. And we will also try to look into the future.

We will look back to the thirst for knowledge which is already to be found in the great mythological texts, and which continues in the quests of inventors and scientists who seek to go beyond what is known and accessible. Dream routes, imaginary routes, impossible routes, Utopist routes or fictional routes - all these have sometimes turned into realities. Followed by visionaries, poets, novelists, artists and inventors of all cultures and all countries, these routes have often made their contribution to scientific development and to the well-being of humankind. What will become of the dreams of our contemporaries?
5-The exposition:
-Title: Tangier 2102 International Exhibition, Morocco- abbreviated Tangier 2102
-Place: Tangier, Morocco
-Date and times: From June 16 to September 16, 2012. A dual Day and Night Expo is proposed, with the following opening hours: Pavilions: 10:30 am to 10:30 pm. Theme parks and shows: 9:30 am to 3 am
-Number of visitors expected: Approximately 6 millions
-Number of participants expected: Approximately 80 countries

Further information www.expo2012.ma

 

 

 

 

 

 

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