Saudi investments flowing into Morocco despite the drop in oil prices

Gradually concerns that have been raised about the impact of falling oil prices on the size of the Gulf investments in Morocco began to dissipate, after the declaration of the United Arab Emirates to do a series of investments in the Kingdom, while economic studies office "Mergermarket LTD" confirms that the Saudi financial investment in Morocco will witness important increase during the next phase.

The financial and economic consulting office said that Saudi investments will be in form of capital investment in Moroccan companies not listed on the stock exchange, the technique of this investment is to use Saudi financial funds for companies in need to finance or suffer from shortages in liquidity through the purchase of its shares.

Office denied in his study of the status of Saudi investments that the decline in oil prices has no effect on Saudi financial investments in Morocco, , despite the fact that oil is the main source of wealth in Saudi Arabia, pointing out that Morocco is still considered one of the favorite destinations for foreign investment in North Africa and the Middle East.

Office assured that the Saudi financial investment in Morocco will know the way to rise during the current year, stressing that there are many financial investments will be undertaken by Saudi financial funds in Morocco, "which is now under study or under preparation," the office said, who pointed out that the Saudi investments of Finance will matter three Arab countries, including Morocco alongside Arab Emirates and Egypt.

One of what reinforces the expectations of Economic Studies is the Mohammed bin Bader Al Dosari Declaration, Saudi Moroccan Business Council Member and the CEO of Mashreq Development aboutthe Saudi desire that their investments in Morocco reach up to 38 billion dirhams by 2016.

The new projections come in order to reduce the severity of several warnings launched from the global economic studies on the negative impact of falling oil prices on the Gulf investments in the world that Morocco was interested in these studies for being one of the countries which receive the Gulf investments during the past year.

These studies were based on the expectations of the International Monetary Fund, which said that the decline in oil prices to below 60 $ for barrel will record a deficit in the budgets of the Gulf States by 60 billion $, which is the first of its kind since 17 years.

Morocco managed to attract more than 15 per cent of the investments made by the Gulf countries towards the outside, which make Morocco bets that the size of Gulf investments will reach to 1042 billion dirham by 2024