Davos: Under the High Guidance of His Majesty King Mohammed VI, Morocco is proving that social ambition and economic credibility are not mutually exclusive,” amid a global environment marked by multiple crises and the weakening of traditional economic reference points, Head of Government Aziz Akhannouch said Tuesday in Davos, Switzerland.
According to Agence Marocaine De Presse, Akhannouch stressed in an address to participants at the 56th Annual Meeting of the World Economic Forum (WEF) that “one does not build a geopolitical destiny on a fragile society.” Morocco, under the leadership of His Majesty King Mohammed VI, has been proactive in establishing a robust social shield to counter the post-Covid shock by mobilizing more than $13 billion to stabilize prices of basic goods and $1.7 billion to protect households from rising water and electricity tariffs.
This strategic approach has led to a reduction in inflation from over 6% in 2023 to below 1% in 2024 and 2025, while maintaining growth close to 5% and steadily decreasing both the fiscal deficit and public debt. Akhannouch explained that these indicators are crucial as only a strong and resilient economy can finance and sustain the government’s flagship initiative, the Royal Project of the Social State.
Under the High Royal Guidance, Morocco extended mandatory health insurance to more than 32 million citizens and launched direct social assistance benefiting nearly 4 million families. These efforts were supported by an unprecedented budgetary commitment in health and education, with funding for both sectors increasing by nearly 20%.
Highlighting a comprehensive overhaul of economic fundamentals, Akhannouch noted that Morocco exited the FATF gray list and related European listings, regaining “investment grade” status from major credit rating agencies. This accomplishment reflects strict fiscal discipline, sustained tax reform, stronger governance of public spending, and enhanced transparency.
The implementation of the Investment Charter has accelerated productive investment, with gross FDI inflows reaching a record level of more than $5 billion in 2025, despite a global contraction in capital flows, Akhannouch added. Positioned strategically, Morocco is consolidating its role as a major logistics hub, with Tanger Med ranking among the world’s leading ports and emerging as a key player in decarbonization, achieving more than 46% of installed electricity capacity from renewables by the end of 2025.
Akhannouch stressed the importance of political clarity for long-term investment, noting that “2025 will remain a pivotal year” for the Kingdom, particularly following the adoption of UN Security Council Resolution 2797, which recognizes Morocco’s Autonomy Initiative for the Southern Provinces as the basis for negotiations.
On the international stage, Akhannouch described the co-hosting of the 2030 World Cup by Morocco, Spain, and Portugal as “a symbol that is at once sporting, economic, and civilizational,” highlighting it as part of a broader transformation strategy. He emphasized the 2030 World Cup as an “accelerator of development,” with ongoing investments in infrastructure and social sectors.
In discussions with WEF Co-Chair Andr© Hoffmann, Akhannouch pointed to AFCON 2025 as illustrative of Morocco’s capability to deliver a “world-class” football event, praising the welcoming population and the event’s organization. He also highlighted the advantages of co-hosting the World Cup with Spain and Portugal, such as geographic proximity and a shared time zone.
Hoffmann commended Morocco for its stability under His Majesty the King, its continuous modernization, and its capacity to build “a functional social state,” describing the country as “fascinating” and “attractive to investors.”