The Mohammed VI Investment Fund, Morocco’s sovereign wealth fund set up by King of Morocco Mohammed VI, is set to acquire minority stakes in local hotels as part of concerted efforts to rescue hotel chains in financial distress and boost tourism.
The move is part of a concerted effort to revitalize public investment and support the hospitality industry, which has suffered from deflation during the pandemic, significantly impacting financial performance.
The tourism industry is one of the largest sectors of the Moroccan economy and plays a critical role in generating foreign exchange, contributing approximately $9 billion to the country’s GDP last year.
The sector also creates job opportunities, particularly for young people.
The fund aims to revive activity in Morocco’s tourism sector
By reopening these hotels, the fund aims to revive activity in the industry and strengthen hotel operations, ultimately driving growth and increasing revenue.
The Mohammed VI Investment Fund, launched in 2021 by King Mohammed VI, will undoubtedly play a pivotal role in the country’s economic recovery efforts and reinforce Morocco’s position as a top tourist destination.
The state’s new initiative to aid in the promotion of tourism is a vital component of the recently approved tourism sector roadmap, which seeks to increase foreign visitors to Morocco from a target of 12.9 million this year to a proposed 17.5 million by 2026.
Given the size and importance of the companies operating in the tourism sector to the local economy, the state’s support is expected to have a significant impact.
The majority of the hotels identified to benefit from the fund’s intervention are in Marrakech, Morocco’s premier tourist destination, which boasts over 70,000 hotel beds spread across 250 hotels and guesthouses.
By rescuing these distressed hotels and injecting much-needed capital, the fund aims to revitalize the industry and drive growth in the years to come.
Morocco’s royal family is actively pursuing investments in emerging industries
In addition to investing in the hospitality industry, King of Morocco Mohammed VI and the Alaouite royal family have been actively pursuing investments in new and emerging industries.
One such venture is the pan-African venture capital fund launched in 2022 with a budget of €100 million ($109.9 million), aimed at responsibly investing in the continent’s top-performing businesses and startup scene.
Operating as a vertical accelerator, the Al Mada-led venture capital fund will target startups that have reached a certain level of maturity and will provide them with access to the capital needed to drive their growth and scale operations.
By leveraging the significant growth opportunities presented by the African market, the fund aims to attract innovative investors and increase value across the continent.