Ahmed Reda Chami, Morocco’s minister of industry, trade and new technologies, said here in Farnborough that a European company with 10,000 employees, ranging from clerical workers to senior directors, would save approximately $363 million per year by moving its operation to his country. He pointed out the benefits of establishing factories there, including lower labor costs and the proximity to European markets. Chami’s figures take into account labor, taxes and transportation, which is expected to be expensive because of the distance to major aerospace hubs.
Morocco imposes no corporate tax in free zones during the first five years of a company’s operations; after that, the rate is 8.75 percent, he said. Local laws guarantee total intellectual property warranty, and, Chami said, for technical training, the country is creating a specialized aeronautical institute with support from the French UIMM metal industry lobbying group. Standard & Poors upgraded Morocco to “investment” in March, he added.
