03 February 2009
Morocco's large construction initiatives are continuing as planned, with both public and private projects breaking new ground. The year 2009 will see a number of improvements to major metropolitan areas and infrastructure throughout the kingdom, with a particular focus on new strategies of urbanisation.
In spite of the global economic uncertainty, mega-projects throughout Morocco are on schedule. Saïdia - the largest project of Plan Azur, the government's investment to construct six new tourist cities along the Atlantic and Mediterranean coasts - is scheduled to be inaugurated this summer, featuring 29 hotels and 30,000 beds. Similarly, the $250m Morocco Mall - slated to be the largest mall in North Africa - is on track for opening in 2010, while Saudi-based firm SIAMA will begin construction this year on an $85m polo resort and hotel in Marrakech.
"This is the perfect time for developers to be working on projects because the cost of building materials has dropped dramatically because of the economic slowdown," Ammar Abdelhadi, general manager of SIAMA, told the local press. He added that he believes his company could save up to 30% if they begin construction immediately.
The public sector has been equally aggressive, with plans for several significant construction projects over the coming 11 months. At a ceremony in Tangiers on January 7, King Mohammed VI outlined the specifics of the next phase of development of the Tanger-Med complex, a commercial and industrial port on the banks of the Straits of Gibraltar. This stage includes 3000 ha of land to be developed as an industrial park, which will complement the port's expanded operations. Indeed, recent developments have included the newly operational Terminal II, while Terminals III and IV are due to be opened by 2012.
Two days later, King Mohammed VI was present for the launch of the Dh430m ($50.74m) third phase of the Tanger Free Zone, which will eventually include 800,000 sq metres dedicated to auto parts manufacturing, 50,000 sq metres of industrial office space and 30,000 sq metres devoted to various supports such as restaurants and conference space.
Similarly, Al Omrane, the state-run construction firm, recently broke ground on the new city of "Ch'Rafate" near Tangiers, which will eventually feature mixed-income housing, an industrial zone and green space as well as schools and hospitals. The construction of Ch'rafate comes at an estimated cost of $2.9bn and is part of the kingdom's New Cities (Villes Nouvelles) programme, which envisages building up to 15 new cities in an effort to decongest Morocco's main urban centres, particularly those along the coast. Ch'rafate is being built on 1300 ha, with plans to provide 30,000 housing units for an estimated 150,000 people by the time of its completion in 2020.
Moroccan urban development is becoming a major issue, as cities fed by the kingdom's growing economy work hard to accommodate the needs of a rapidly growing population. The government recently released its National Urban Development Strategy (SNDU), which revealed that 59% of the kingdom's population live in cities while more than 1m Moroccans moved from rural to urban zones between 1994 and 2004.
In a sign of continuing progress, the government recently completed a rehabilitation of 30 towns under its new "Cities Without Slums" (Villes Sans Bidonvilles - VSB) programme, which aims to relocate some 280,000 households living in the country's more than 70 shantytowns into low cost public housing.
Infrastructure is also a priority. Morocco's highway system continues to develop rapidly, with the national network now measuring over 900km. Following the inauguration of the new Marrakech-Chichaoua highway on January 5, construction began on the $120m expansion of the Rabat-Casabanca route on January 6. The expansion aims at adding six lanes along 57.3km of existing highway. More than $5bn has been budgeted in 2008-2015 to develop the kingdom's road network.
Though the global economic slowdown is fuelling concern, some have reason for optimism. According to Mourad El Bied, CEO of El Alami Holding, the current challenges offer an opportunity for consolidation in the sector.
"During the past few years, everyone rushed to get involved in construction; they bought land, started building and today are facing serious problems," El Bied told OBG. "The sector will suffer a bit this year, but it will help filter out the non-professionals, and in the end I think this will strengthen Morocco's offer when it comes to residential and commercial construction."
Morocco's large construction initiatives are continuing as planned, with both public and private projects breaking new ground. The year 2009 will see a number of improvements to major metropolitan areas and infrastructure throughout the kingdom, with a particular focus on new strategies of urbanisation.
In spite of the global economic uncertainty, mega-projects throughout Morocco are on schedule. Saïdia - the largest project of Plan Azur, the government's investment to construct six new tourist cities along the Atlantic and Mediterranean coasts - is scheduled to be inaugurated this summer, featuring 29 hotels and 30,000 beds. Similarly, the $250m Morocco Mall - slated to be the largest mall in North Africa - is on track for opening in 2010, while Saudi-based firm SIAMA will begin construction this year on an $85m polo resort and hotel in Marrakech.
"This is the perfect time for developers to be working on projects because the cost of building materials has dropped dramatically because of the economic slowdown," Ammar Abdelhadi, general manager of SIAMA, told the local press. He added that he believes his company could save up to 30% if they begin construction immediately.
The public sector has been equally aggressive, with plans for several significant construction projects over the coming 11 months. At a ceremony in Tangiers on January 7, King Mohammed VI outlined the specifics of the next phase of development of the Tanger-Med complex, a commercial and industrial port on the banks of the Straits of Gibraltar. This stage includes 3000 ha of land to be developed as an industrial park, which will complement the port's expanded operations. Indeed, recent developments have included the newly operational Terminal II, while Terminals III and IV are due to be opened by 2012.
Two days later, King Mohammed VI was present for the launch of the Dh430m ($50.74m) third phase of the Tanger Free Zone, which will eventually include 800,000 sq metres dedicated to auto parts manufacturing, 50,000 sq metres of industrial office space and 30,000 sq metres devoted to various supports such as restaurants and conference space.
Similarly, Al Omrane, the state-run construction firm, recently broke ground on the new city of "Ch'Rafate" near Tangiers, which will eventually feature mixed-income housing, an industrial zone and green space as well as schools and hospitals. The construction of Ch'rafate comes at an estimated cost of $2.9bn and is part of the kingdom's New Cities (Villes Nouvelles) programme, which envisages building up to 15 new cities in an effort to decongest Morocco's main urban centres, particularly those along the coast. Ch'rafate is being built on 1300 ha, with plans to provide 30,000 housing units for an estimated 150,000 people by the time of its completion in 2020.
Moroccan urban development is becoming a major issue, as cities fed by the kingdom's growing economy work hard to accommodate the needs of a rapidly growing population. The government recently released its National Urban Development Strategy (SNDU), which revealed that 59% of the kingdom's population live in cities while more than 1m Moroccans moved from rural to urban zones between 1994 and 2004.
In a sign of continuing progress, the government recently completed a rehabilitation of 30 towns under its new "Cities Without Slums" (Villes Sans Bidonvilles - VSB) programme, which aims to relocate some 280,000 households living in the country's more than 70 shantytowns into low cost public housing.
Infrastructure is also a priority. Morocco's highway system continues to develop rapidly, with the national network now measuring over 900km. Following the inauguration of the new Marrakech-Chichaoua highway on January 5, construction began on the $120m expansion of the Rabat-Casabanca route on January 6. The expansion aims at adding six lanes along 57.3km of existing highway. More than $5bn has been budgeted in 2008-2015 to develop the kingdom's road network.
Though the global economic slowdown is fuelling concern, some have reason for optimism. According to Mourad El Bied, CEO of El Alami Holding, the current challenges offer an opportunity for consolidation in the sector.
"During the past few years, everyone rushed to get involved in construction; they bought land, started building and today are facing serious problems," El Bied told OBG. "The sector will suffer a bit this year, but it will help filter out the non-professionals, and in the end I think this will strengthen Morocco's offer when it comes to residential and commercial construction."
© Oxford Business Group 2009
