International Commercial – Morocco

Elkhatib Law Firm specialises in the following areas: corporate and commercial law, labour law, IP law, regulatory and compliance services, M&A, due diligence, commercial arbitration, data protection, competition law, dispute resolution and litigation. We consider that our firm is distinguished by our local expertise in all areas related to business law, as well as our ability to provide added value in this domain.

Moreover, our team possesses wide-ranging knowledge of the Moroccan business landscape and specialises in the industries that are critical to the region, including automotive, tourism, real estate, renewable energy, textile, logistics and transport. We maintain established partnerships with international firms in order to provide seamless services for foreign investors and cross-border transactions. Such services are provided in Arabic, French and English, which are essential for the foreign investors we work with. We make sure to offer client-centric services, comprising customised solutions and timely communication, and we endeavour to offer our expertise in matters of general assistance, as well as disputes and litigation – enabling our firm to have a comprehensive view of the relevant business areas and domains.

Our current workflow is as follows: initial client engagement (client consultation, gathering relevant information); legal research; drafting (based on the client’s specific needs, combined with risk assessment and safeguards by identifying potential risks and including protective provisions); preparation of documents (including internal reviews and compliance checks); client reviews and revisions (client feedback, revision and finalisation); final transmission; as well as ongoing updates on any legal changes that may impact our deliverables validity or effectiveness.

Regarding a recent case that was submitted to our firm, we assisted an international hotel group in acquiring a shareholder’s interest in a company’s share capital by conducting due diligence, as well as drafting and approving contracts.

Assisting an international hotel group for acquiring a shareholder’s interest in a company’s share capital through a due diligence and the drafting and approval of contracts; assisting an international hotel group in the restructuration and social reorganisation as part of a voluntary redundancy scheme; assisting a Moroccan group and foreign investors in the establishment of an investment vehicle in the industrial sector; as well as assisting foreign investors in the development of an energy project in southern Morocco.

Companies online registration; port expansion: development of the deep-water port of Tanger Med – the Moroccan industrial port complex – in 2007, followed by the addition of Tanger Med II in 2019, which transformed Tangier into the largest container port in the Mediterranean. This expansion has bolstered Tangier’s role as a pivotal hub in global trade.

Industrial Growth: Automotive industry, foreign investment, renewable energy, as well as major infrastructure development to host the 2030 World Cup and the 2024 Africa Cup;

Legal Reforms: Adoption of the Investment Charter, arbitration law, the law on insolvency proceedings, as well as corporate law following the introduction of a new corporate form (Simplified Joint Stock Company). This is in addition to competition law reforms, as well as a law project related to the right to go on strike.

New businesses commonly face such complications as: workforce challenges, mainly related to a lack of skilled professionals in areas spanning cybersecurity, software development and data analytics; as well as regulatory and bureaucratic barriers, as it is also common for businesses to be met with complexities in keeping up with evolving laws related to technology – such as data protection and e-commerce, in combination with licences and permits combined with bureaucratic delays. Another matter of concern revolves around cultural and organisational resistance, in the sense that traditional business practices dominate many sectors, making it difficult to adopt agile or tech-driven approaches.

Furthermore, in some instances, customer preferences for traditional methods (e.g., cash over digital payment) slow down tech adoption.

An additional area of interest pertains to ecosystem and partnership gaps, such as limited collaboration between businesses, tech startups and research institutions, as well as a lack of incentives, since government incentives are insufficient for businesses to adopt or develop new technologies. Accordingly, our firm helps companies to overcome these challenges by suggesting such remedies as: the provision of technological resources, including e-signatures; as well as suggesting public-private partnerships as a means of encouraging collaboration between the public sector, private startups and medium enterprises.

Yes, there has been an increased focus on ESG issues in Morocco, reflecting global trends and Morocco’s specific development priorities. This shift is driven by both internal and external factors, including government initiatives, private sector alignment with international standards and a growing awareness of sustainability among investors and stakeholders.

Key factors driving the ESG focus in Morocco encompass:

Environmental Focus: Renewable energy initiatives, climate commitments (such as reducing greenhouse gas emissions through Nationally Determined Contributions (NDCs) to the Paris Agreement), sustainable agriculture practices, as well as water resource management;

Social Focus: Gender equality (it should be noted that reforms in family law and increasing female participation in the workforce highlight social progress), as well as community impact – including businesses adopting Corporate Social Responsibility (CSR) policies to invest in local communities and improve social outcomes;

Governance Focus: Corporate governance reforms (e.g. Casa Finance City for governance transparency to attract international investors), in addition to anti-corruption measures and regulations.

Meanwhile, Elkhatib Law Firm helps companies to align with ESG issues by offering strategic support, compliance guidance and risk mitigation (encompassing due diligence and dispute resolution).

We ensure a well-informed advisory scope by: developing partnerships with trusted law firms in foreign jurisdictions; custom reporting (tailored reports for clients on investment opportunities, tax incentives and market-entry requirements); use of legal tech solutions and data analytics; contributing to webinars and conferences on emerging legal and investment trends; as well as establishing dedicated points of contact for clients to address their urgent questions or concerns.

Yes, the Moroccan government recently introduced several legislative updates and trends in commercial law aiming to enhance the business environment and align with international standards. Key developments include:

• Investment Charter: Incentives related to gender equality, as well as incentives linked to the ratio of jobs to be created;

• Tax Reforms: The corporate tax rate is slated to be progressively reduced to 20% by 2026. Meanwhile, the Moroccan government aims to converge VAT rates between 10% and 20%;

• Foreign Exchange Regulations: Publication by the Moroccan Foreign Exchange Office of the IGOC 2024 to simplify and provide flexibility in current and capital transactions;

• Competition Law: Granting the Competition Council extensive authority to investigate, prosecute and sanction anti-competitive practices, as well as reinforce market competition;

• Public-Private Partnerships;

• Arbitration & Dispute Resolution: Introducing network services and AI in disputes and conflict resolution.

Morocco’s business environment is constantly evolving. As a result, our firm ensures that it remains proactive in meeting international standards – while at the same time, providing optimal legal services that are consistently aligned with investors’ custom needs.