Free Trade Zones & Incentives

Morocco's Free Trade Zones & Industrial Acceleration Zones

Morocco operates an extensive network of free trade zones and industrial acceleration zones (formerly industrial free trade zones) designed to attract foreign investment, boost exports, create employment, and drive industrial development. These zones offer exceptional tax and customs incentives, modern infrastructure, strategic locations, and streamlined administrative procedures. Major zones include Tangier Free Zone, Atlantic Free Zone in Kenitra, Midparc and Nouaceur Aeropole in Casablanca, and emerging zones across the country. Morocco boasts 12 industrial acceleration zones, positioning itself as a premier manufacturing and export platform serving European, African, and global markets.

Tangier Free Zone (TFZ)

Inaugurated in 1999, Tangier Free Zone is Morocco's flagship industrial zone and one of Africa's most competitive. Spread over 400 hectares at the gateway to Europe (14 km from Spain via Strait of Gibraltar), TFZ hosts over 300 companies from 60 countries. The zone serves automotive, aerospace, textile, electronics, logistics, and business services sectors. In 2023, Tangier Med Free Zone topped the list of the most competitive industrial zones in Africa according to Financial Times rankings. TFZ benefits from proximity to Tanger Med port (largest in Africa and Mediterranean), direct highway and rail connections, skilled workforce availability, and comprehensive support services. Companies established include automotive suppliers, electronics manufacturers, textile exporters, logistics providers, and business process outsourcing centers.

Atlantic Free Zone (AFZ) - Kenitra

Atlantic Free Zone in Kenitra is one of the first integrated platforms emerging from Morocco's National Pact for Industrial Emergence and one of Africa's largest platforms dedicated to exporting companies. Spread over 350 hectares (recently expanded by 9 hectares due to high demand), AFZ specializes in automotive and electronics sectors. Major tenants include Stellantis Morocco (Peugeot-Citroen plant producing over 200,000 vehicles annually), Renault Morocco ecosystem suppliers, American automotive supplier Adient, Chinese wheel manufacturer Citic Dicastal, and numerous tier-1 and tier-2 automotive suppliers. AFZ provides direct rail connection to Tanger Med port, proximity to Rabat and Casablanca markets, modern utilities and infrastructure, customs facilitation, and integrated supplier ecosystem. The zone plays a critical role in Morocco's automotive export success.

Midparc & Nouaceur Aeropole - Casablanca

Midparc and Nouaceur Aeropole are specialized aerospace and aviation industrial zones near Mohammed V International Airport in Casablanca. These zones host aerospace manufacturers producing aircraft components, engines, wiring harnesses, and interiors for Boeing, Airbus, Safran, Bombardier, and other global aerospace companies. Facilities include precision machining workshops, composite materials fabrication, assembly lines, testing laboratories, and R&D centers. The zones benefit from airport proximity for rapid parts shipment, skilled aerospace workforce, international certifications (AS9100, NADCAP), and clustering effects with suppliers and service providers.

Tax Incentives

Free trade zones offer exceptional tax benefits making them highly attractive for exporters and manufacturers: Corporate Income Tax (CIT): 0% corporate income tax during the first five years of operation, followed by a reduced rate of 8.75% starting from the sixth year for the following 20 years (total preferential treatment for 25 years). After 25 years, standard CIT rates apply. Value Added Tax (VAT): Exemption from VAT on equipment purchases, raw materials imports, and services within the zone. Exports are zero-rated for VAT. Dividend and Profit Repatriation: Exemption of taxes on dividends and partnership shares distributed to shareholders. Foreign investors can repatriate profits tax-free. License and Urban Taxes: Exemption from license taxes and urban taxes for 15 years. Registration and Stamp Duties: All registration taxes and stamp duties are exempt for transactions within the zone. Customs Duties: No import duties on production equipment, raw materials, intermediate goods, and components used for manufacturing within the zone or for export.

Customs Benefits

Free zones operate under favorable customs regimes including duty-free import of equipment and materials used in production, simplified customs procedures and documentation, bonded warehouse status allowing goods to be stored without customs duties, and streamlined export procedures enabling rapid shipment. Goods manufactured in free zones and exported outside Morocco are not subject to customs duties. Sales from free zones to domestic Moroccan market are treated as imports and subject to applicable duties and VAT, though some exemptions may apply depending on agreements.

Infrastructure & Services

Industrial zones provide world-class infrastructure including ready-to-use factory buildings and warehouses, reliable electricity supply with backup generators, water and wastewater treatment facilities, high-speed internet and telecommunications, paved roads and internal transport networks, security services and access control, customs offices and inspection facilities, and common areas for offices, cafeterias, and services. Zone management companies (such as MedZ, a subsidiary of Caisse de Dépôt et de Gestion) handle administration, maintenance, and tenant support, allowing companies to focus on operations.

Sector Specialization

Different zones specialize in specific industries: Automotive: Tangier Free Zone, Atlantic Free Zone Kenitra (Renault, Stellantis ecosystems, suppliers, components) Aerospace: Midparc, Nouaceur Aeropole (aircraft parts, engines, systems) Textiles & Apparel: Tangier Free Zone, other regional zones (garment manufacturing, accessories) Electronics: Atlantic Free Zone, Tangier Free Zone (consumer electronics, automotive electronics) Logistics: Tangier Free Zone, zones near ports and airports (warehousing, distribution, freight forwarding) Business Services: Tangier Free Zone (call centers, BPO, IT services, shared services centers) This specialization creates clustering effects, supplier networks, knowledge sharing, and economies of scale.

Employment & Workforce

Free zones are major employment generators, creating hundreds of thousands of direct and indirect jobs. Zones employ workers in manufacturing (assembly line workers, machine operators, quality control), logistics (warehouse staff, drivers, dispatchers), administration (managers, accountants, HR, procurement), and technical roles (engineers, technicians, maintenance). Zone operators and government collaborate with training institutes to develop skilled workforce through apprenticeship programs, technical certifications, on-the-job training, and continuous skills upgrading. Competitive wages, social security coverage, and safe working conditions make zone employment attractive.

Application Process

Companies interested in establishing operations in free zones follow this process: 1. Initial Contact: Contact zone management (MedZ or zone operator) and Morocco's investment promotion agency (AMDIE) to express interest and request information. 2. Project Presentation: Submit project description including activity, investment size, employment, production capacity, and export plans. 3. Evaluation: Zone operator evaluates project fit, space availability, and strategic alignment with zone objectives. 4. Approval: National Committee for Free Trade Zones reviews and approves qualifying projects. 5. License: Company obtains free zone operating license authorizing activities under preferential regime. 6. Facility Selection: Company selects existing building or develops custom facility on allocated land. 7. Company Formation: Register legal entity in Morocco (SARL, SA, branch) through Regional Investment Center (CRI). 8. Operations Launch: Complete construction/fit-out, hire staff, import equipment, and commence production/operations. Timeline typically ranges from 3-6 months for existing facilities to 12-18 months for custom builds.

Nador West Med - Future Megaproject

Morocco is developing Nador West Med, a massive integrated port and industrial zone project on the Mediterranean coast. The project includes a deep-water commercial port rivaling Tanger Med, industrial and logistics zones covering thousands of hectares, energy infrastructure and utilities, and transport connections (highways, rail). Nador West Med aims to serve eastern Morocco, Algeria trade corridor, Mediterranean shipping routes, and attract automotive, logistics, energy, and manufacturing investments. The project represents billions in investment and will create tens of thousands of jobs when operational.

Regional Industrial Parks

Beyond major free zones, Morocco operates regional industrial parks in cities including Marrakech, Fes, Oujda, Agadir, Meknes, and others. These parks offer lower costs than flagship zones, access to local markets and workforce, tax incentives (though typically less generous than free zones), and government support for regional development. Regional parks serve local industries (agribusiness, crafts, textiles, construction materials), small and medium enterprises, and domestic market-oriented companies.

Comparison with Other Countries

Morocco's free zones compete regionally with zones in Tunisia (attractive automotive and electronics), Egypt (Suez Canal zones, textiles, manufacturing), Turkey (extensive zone network, diverse industries), and Eastern Europe (Poland, Romania, Czech Republic). Morocco's competitive advantages include proximity to Europe (shipping time/cost), free trade agreements (EU, US, others), political stability and business-friendly environment, skilled multilingual workforce (French, Arabic, English), and modern infrastructure (ports, rail, highways). Companies evaluate zones based on total cost, market access, supply chain efficiency, workforce quality, and risk factors.

Success Metrics

Morocco's free zones have achieved impressive results: billions in foreign direct investment attracted, hundreds of thousands of jobs created, tens of billions in annual exports generated, hundreds of international companies established, technology transfer and skills development, and economic development in host regions. These zones have been instrumental in Morocco's industrial transformation from basic assembly to sophisticated manufacturing and export success in automotive, aerospace, and other sectors.

Future Development

Morocco continues expanding and upgrading free zone network through new zones in strategic locations, capacity expansion of existing zones, infrastructure modernization (digital, energy efficiency), sector diversification (green hydrogen, EVs, renewable energy), and enhanced services (training, innovation support, logistics). Free zones remain central to Morocco's industrial strategy, export competitiveness, and economic development goals for 2030 and beyond.