Morocco’s 2026 Finance Bill Anchored Around Four Strategic Priorities: Investment, Territorial Development, Social Inclusion, and Governance Reform

CasaNext FinCorp | Economic Policy Brief – October 2025

Rabat, October 19 2025 – Morocco has unveiled the strategic contours of its 2026 Finance Bill, following a ministerial council held at the Royal Palace in Rabat. The draft law articulates a comprehensive fiscal and development framework aligned with the national vision for inclusive and resilient growth, in continuity with the structural reforms launched under the “Rising Morocco” program.

The 2026 Finance Bill comes against a global backdrop of economic uncertainty, with subdued international growth, yet Morocco’s domestic outlook remains notably robust. The national economy is projected to expand by 4.8% in 2025, driven by domestic demand, non-agricultural sector momentum, and stable price conditions — with inflation contained at 1.1% as of August 2025 and a fiscal deficit capped at 3.5% of GDP.

Four Strategic Pillars of the 2026 Finance Bill

1. Consolidation and Investment Stimulus

The bill seeks to stimulate private investment, both domestic and foreign, by fast-tracking the Investment Charter, promoting Morocco’s green hydrogen proposition, and improving the overall business climate. It also aims to expand public-private partnerships (PPPs) and diversify financing channels to reduce reliance on traditional budgetary sources.

Special emphasis is given to MSMEs, through a new mechanism offering technical assistance and targeted financial support, thereby enhancing job creation and territorial equity. In parallel, programs will support youth and women’s labor market integration, mitigate drought impacts in rural areas, and sustain livestock and agricultural resilience initiatives.

2. Territorial Development and Regional Cohesion

The second priority revolves around advanced regionalization and balanced territorial growth, designed to align local development plans with national strategies. A focus on healthcare, education, and youth employment underpins these measures.

The combined budget envelope for health and education reaches MAD 140 billion, providing for the creation of over 27,000 financial positions.

• In health, the plan includes commissioning new university hospitals in Agadir and Laâyoune, completing the Ibn Sina University Hospital in Rabat, and upgrading 90 healthcare facilities nationwide.

• In education, reforms accelerate the national roadmap for educational transformation, expanding early childhood education, improving schooling support, and enhancing pedagogical quality.

Efforts also target territorial qualification—particularly in mountainous and oasis regions—and the expansion of the National Program for Emerging Rural Centers to strengthen regional resilience.

3. Consolidation of the Social State

The third pillar advances the universalization of social protection. Key initiatives include:

• Direct social support for 4 million households,

• Child allowances increased by MAD 50 – 100 per child for the first three,

• New support schemes for orphaned and neglected children,

• Pension system expansion,

• Unemployment coverage generalization, and

• Continued direct support for primary housing acquisition.

These measures reinforce Morocco’s trajectory toward a comprehensive social safety net anchored in equity and inclusion.

4. Governance, Reform, and Fiscal Balances

The final axis focuses on governance reform and fiscal discipline. Planned amendments to the Organic Finance Law aim to institutionalize results-based management and enhance transparency in public policy execution.

Structural reforms will continue across public institutions and state-owned enterprises, with a focus on portfolio optimization, investment efficiency, and performance-based accountability. Additionally, judicial modernization and the improvement of the business climate remain integral to reinforcing investor confidence and ensuring balanced territorial distribution of public investments.

What It Means for Investors

• Fiscal Prudence with Growth Momentum: The 2026 Finance Bill sustains fiscal discipline (3.5% deficit target) while fostering real growth near 5%, confirming macroeconomic stability.

• Accelerated Investment Framework: Implementation of the Investment Charter, expansion of PPPs, and MSME financing reforms provide an enabling environment for foreign direct investment and institutional participation.

• Green and Sustainable Finance Opportunities: The strategic positioning of green hydrogen and renewable energy infrastructure offers significant entry points for ESG-aligned investors.

• Human Capital and Services Expansion: MAD 140 billion allocation to health and education translates into long-term productivity gains and domestic demand growth.

• Governance and Transparency: The overhaul of fiscal and public-sector governance frameworks enhances predictability, policy continuity, and regulatory clarity — key for long-term capital inflows.

CasaNext View:

Morocco’s 2026 fiscal strategy confirms a pro-investment orientation underpinned by sound macroeconomic management and institutional reform continuity. For global investors, the combination of structural resilience, social inclusion, and green growth positioning reinforces the country’s status as one of Africa’s most stable and reform-driven investment destinations.