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Construction in Morocco - Key Trends and Opportunities to 2023

Published By :

GlobalData

Published Date : Aug 2019

Category :

Construction

No. of Pages : 50 Pages

Construction in Morocco - Key Trends and Opportunities to 2023

Summary

Moroccos construction industry registered minimal growth in 2018, with output growing at 0.6% in real terms; this was preceded by annual growth rates of 1.6% in 2016 and 0.7% in 2017. This slow growth can be attributed to the governments efforts to reduce the fiscal deficit, reduced investments in commercial and industrial construction projects due to delayed payments and delays in the signing contracts between investors and the government. Overall, the industry posted minimal growth during the review period (2014-2018), registering a compound annual growth rate (CAGR) of 0.91% in real terms.

The industry is expected to recover in 2019, with the industrys output expected to expand by 2.5% in real terms that year. In a bid to reduce social disparities in rural areas, the government increased its expenditure in the 2019 budget by 8.8%, going from MAD6.8 billion (US$744.9 million) in 2018 to MAD7.4 billion (US$803.8 million) in 2019, in order to improve accessibility, electrification, the drinking water system and the supply of education and healthcare facilities. In April 2019, a memorandum of understanding was signed between the Moroccan government, China Communications Construction Company Limited International (CCCC) and China Road and Bridge Corporation (CRBC) to develop the industrial city Mohammed VI Tangier Tech near the northern city of Tangier. The government aims to attract MAD92.4 billion (US$10 billion) in investment to new high-tech city over the next ten years. The focus on the development of renewable energy infrastructure is also expected to drive industry growth. The government aims to generate 42% of the countrys total energy requirements from renewable sources by 2020.

The industrys output value in real terms is expected to rise at a CAGR of 3.46% over the forecast period (2019-2023).

GlobalDatas Construction in Morocco - Key Trends and Opportunities to 2023 report provides detailed market analysis, information and insights into the Moroccan construction industry, including:
- The Moroccan construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Moroccan construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Key Highlights

- GlobalData expects the infrastructure construction market to record a forecast-period CAGR of 6.40% in nominal terms, driven by public and private sector investments in public transport infrastructure. In the 2019 budget, the government allocated MAD13.9 billion (US$1.5 billion) for major infrastructure projects. The government plans to invest MAD5.6 billion (US$610.7 million) to enlarge the existing tramway line in Rabat, the countrys capital, by 29km by 2022.

- Energy and utilities construction markets growth over the forecast-period will be supported by the governments plan to increase the share of renewable energy in terms of the total energy mix. The government aims to generate 42% of the countrys total energy requirement through renewable sources by 2020 and 52% by 2030. In the first half of 2019, a consortium consisting of EDF Renewables - a French renewable energy group - Abu Dhabi Future Energy Company (Masdar) and Moroccos Green Energy of Africa won a contract worth MAD7.4 billion (US$797 million) to construct a hybrid solar project near Midelt.

- GlobalData expects the residential construction market to account for 31.3% of the industrys total value in 2023, driven by government efforts to balance housing demand and supply through the construction of housing units, ongoing urbanization, population growth and positive developments in regional economic conditions. According to the Ministry of Housing and Urban Development, the government plans to construct 800,000 social housing units across the country by 2021.

- Institutional construction markets growth over the forecast-period will be driven by investments in educational and healthcare building construction projects. In the 2019 finance bill, the government increased its spending on the education sector by 8.6%, going from MAD62.6 billion (US$6.8 billion) in the 2018 bill to MAD68 billion (US$7.4 billion) in the 2019 bill. Moreover, the government increased its 2019 finance bill allocation for the healthcare sector by 10.9%, going from MAD14.7 billion (US$1.6 billion) in the 2018 bill to MAD16.3 billion (US$1.8 billion) in the 2019 bill.

- The total construction project pipeline in Morocco - as tracked by GlobalData, and including all mega projects with a value above US$25 million - stands at MAD602.1 billion (US$65.7 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage projects, with 56.3% of the pipeline value being in projects in the pre-execution and execution stages as of August 2019.

Scope

This report provides a comprehensive analysis of the construction industry in Morocco. It provides -
- Historical (2014-2018) and forecast (2019-2023) valuations of the construction industry in Morocco, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants

Reasons to buy

- Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using GlobalData's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
1 Executive Summary
2 Construction Outlook: At-a-glance
3 Latest News and Indicators
4 Key Drivers and Risks
4.1. Economic Performance
4.2. Political Environment
4.3. Demographics
4.4. Risk Profile
5 Construction Outlook
5.1. All Construction
5.1.1. Outlook
5.1.2. Project analytics
5.2. Commercial Construction
5.2.1. Outlook
5.2.2. Project analytics
5.3. Industrial Construction
5.3.1. Outlook
5.3.2. Project analytics
5.4. Infrastructure Construction
5.4.1. Outlook
5.4.2. Project analytics
5.5. Energy and Utilities Construction
5.5.1. Outlook
5.5.2. Project analytics
5.6. Institutional Construction
5.6.1. Outlook
5.6.2. Project analytics
5.7. Residential Construction
5.7.1. Outlook
5.7.2. Project analytics
6 Key Industry Participants
6.1. Contractors
6.2. Consultants
7 Appendix
7.1. What is this Report About?
7.2. Definitions
8 About GlobalData
8.1. GlobalData at a Glance
8.2. GlobalData Construction
8.3. Disclaimer
8.4. Contact Us

List of Tables
Table 1: Construction Outlook
Table 2: Morocco, Key Economic Indicators
Table 3: Morocco, Construction Output Value (nominal, MAD Million)
Table 4: Morocco, Construction Output Value (nominal, US$ Million)
Table 5: Morocco, Top Commercial Construction Projects by Value
Table 6: Morocco, Top Industrial Construction Projects by Value
Table 7: Morocco, Top Infrastructure Construction Projects by Value
Table 8: Morocco, Top Energy and Utilities Construction Projects by Value
Table 9: Morocco, Top Institutional Construction Projects by Value
Table 10: Morocco, Top Residential and Mixed-Use Construction Projects by Value
Table 11: Morocco, Key Contractors
Table 12: Morocco, Key Consultants
Table 13: GlobalData Construction Market Definitions
Table 14: Construction Risk Index Ratings and Scores

List of Figures
Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix
Figure 2: Morocco, Construction Projects Pipeline by Sector (MAD Billion)
Figure 3: Morocco, Risk Profile
Figure 4: Morocco, Risk Comparison
Figure 5: Morocco, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate)
Figure 6: Morocco, Construction Output Value, Growth Matrix
Figure 7: Morocco, Construction Output Value, by Sector (MAD Million), 2014-2023
Figure 8: Morocco, Construction Projects Pipeline, Projected Annual Spending by Stage (MAD Million), 2018-2023
Figure 9: Morocco, Construction Projects Pipeline, Value by Stage (MAD Million)
Figure 10: Morocco, Commercial Construction Output by Project Type (MAD Million), 2014-2023
Figure 11: Morocco, Commercial Construction Projects Pipeline, Value by Stage (MAD Million)
Figure 12: Morocco, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (MAD Million), 2018-2023
Figure 13: Morocco, Industrial Construction Output by Project Type (MAD Million), 2014-2023
Figure 14: Morocco, Industrial Construction Projects Pipeline, Value by Stage (MAD Million)
Figure 15: Morocco, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (MAD Million), 2018-2023
Figure 16: Morocco, Infrastructure Construction Output by Project Type (MAD Million), 2014-2023
Figure 17: Morocco, Infrastructure Construction Projects Pipeline, Value by Stage (MAD Million)
Figure 18: Morocco, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (MAD Million), 2018-2023
Figure 19: Morocco, Energy and Utilities Construction Output by Project Type (MAD Million), 2014-2023
Figure 20: Morocco, Energy and Utilities Construction Projects Pipeline, Value by Stage (MAD Million)
Figure 21: Morocco, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (MAD Million), 2018-2023
Figure 22: Morocco, Institutional Construction Output by Project Type (MAD Million), 2014-2023
Figure 23: Morocco, Institutional Construction Projects Pipeline, Value by Stage (MAD Million)
Figure 24: Morocco, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (MAD Million), 2018-2023
Figure 25: Morocco, Residential Construction Output by Project Type (MAD Million), 2014-2023
Figure 26: Morocco, Residential Construction Projects Pipeline, Value by Stage (MAD Million)
Figure 27: Morocco, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (MAD Million), 2018-2023
Figure 28: Morocco, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 29: Morocco, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)
Figure 30: Morocco, Headquarters of Key Consultants (% of Total Project Pipeline)
Figure 31: Morocco, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)

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