Morocco’s 2026 Finance Bill: OPCC and Tax Policy Updates for Institutional Investors

Tuesday, October 21, 2025

Morocco’s 2026 Finance Bill: OPCC and Tax Policy Updates for Institutional Investors

Moroccan fiscal policy | economic reforms | investment opportunities | emerging markets

The 2026 Finance Bill introduces key measures under the OPCC framework, aimed at enhancing fiscal efficiency and incentivizing private investment. Below is a detailed analysis of the proposed fiscal and economic reforms, crafted for foreign institutional investors and investment firms seeking exposure to Morocco’s dynamic growth story.

Key Highlights of the 2026 Finance Bill

OPCC Framework: Strengthening Economic Resilience

The 2026 Finance Bill, presented under Morocco’s Ongoing Public-Private Competitiveness Commitment (OPCC), prioritizes fiscal consolidation while fostering an investor-friendly environment. Key objectives include:

•  Economic Growth Support: Targeted fiscal measures to sustain Morocco’s GDP growth trajectory, projected at 4.2% for 2026, driven by infrastructure investments and export-led sectors.

•  Private Sector Incentives: Enhanced tax relief and streamlined regulatory processes to attract foreign direct investment (FDI) into high-growth industries such as renewable energy, tourism, and manufacturing.

•  Fiscal Discipline: A focus on optimizing public expenditure while maintaining a budget deficit target below 3.5% of GDP, signaling stability for global fixed-income and equity allocators.

Tax Policy Reforms

The 2026 Finance Bill introduces several tax adjustments designed to balance revenue generation with investment attraction:

•  Corporate Tax Incentives: A phased reduction in corporate tax rates for strategic sectors, including green energy and technology, to align with Morocco’s ambition to become a regional hub for sustainable investment.

•  VAT Simplification: Streamlined VAT structures to reduce compliance costs for multinational corporations operating in Morocco, enhancing the ease of doing business.

•  SME Support: Expanded tax exemptions for small and medium enterprises (SMEs), particularly in export-oriented industries, to bolster Morocco’s integration into global supply chains.

•  Investment Tax Credits: New credits for capital expenditures in infrastructure and digital transformation, offering compelling opportunities for private equity and venture capital funds.

OPCC’s Strategic Pillars for Investors

The OPCC framework underscores Morocco’s commitment to long-term economic competitiveness, with implications for institutional portfolios:

•  Infrastructure Development: Continued investment in transport, logistics, and renewable energy projects, supported by public-private partnerships (PPPs), offering stable cash flows for infrastructure-focused funds.

•  Digital Economy: Tax incentives and grants for tech-driven initiatives, positioning Morocco as an emerging hub for fintech and digital services in Africa.

•  Sustainability Goals: Alignment with ESG criteria through tax benefits for green projects, appealing to global asset managers prioritizing sustainable investments.

Investment Implications for Foreign Institutions

The 2026 Finance Bill reinforces Morocco’s appeal as a stable and growth-oriented destination for foreign capital. Key takeaways for institutional investors include:

•  Attractive Risk-Return Profile: Tax incentives and fiscal stability enhance Morocco’s position as a low-risk entry point into African markets, with the Casablanca Stock Exchange’s recent milestone of USD 100 billion in market capitalization underscoring equity market depth.

•  Sectoral Opportunities: Renewable energy, logistics, and technology sectors are poised for growth, supported by targeted fiscal measures that reduce operational costs for foreign firms.

•  Currency and Regulatory Stability: Morocco’s managed dirham and progressive regulatory reforms provide a predictable environment for long-term investments, mitigating risks for global portfolios.

Market Context

The announcement of the 2026 Finance Bill coincides with a robust performance by the Casablanca Stock Exchange, with the MASI index gaining 2.55% on October 20, 2025, to close at 18,927.90 points, reflecting a year-to-date return of +28.12%. This bullish momentum, coupled with fiscal reforms, signals strong fundamentals for investors seeking exposure to Morocco’s equity and fixed-income markets.