Mr. Mohammed BOUSSAID, Minister of Economy and Finance, participated, Tuesday, April 12th, 2016 in Rabat, at the opening session of the second meeting of sovereign wealth funds (SWF) of the member countries of the Islamic Development Bank (IDB), organized in Morocco.
In his speech, Mr. BOUSSAID stated that this meeting offers a unique framework, given the vital role of these (SWF) in the financing and support of major investment projects.
Mr. BOUSSAID also recalled that the objective of the creation of the (SWF) by rich countries with budget surpluses is to make long term investments in profitable projects and diversify the sources of wealth and development in these countries.
He added that some countries that are not regarded as belonging to the club of rich countries, also establish strategic investment funds to which significant financial resources were allocated from the general budget in order to accelerate economic development and support the achievement of sector-based policies in these countries and the preparation of an adequate framework for the creation of partnerships with other (SWFs).
Within this framework, the Minister noted that public policies are beginning to take into account the (SWFs), regarded as a key player in supporting public policies that aim to support economic and social development.
Furthermore, Mr. BOUSSAID highlighted the key strategic issue addressing the current position of the (SWF) given the challenges the business faces.
In this context, the Minister believes that these funds could play an important role through their participation as an investor at the output process of the international economic crisis and in connection with the COP 21’s commitments to development.
The Minister stated that these questions are worthy of a serious debate and open prospects for partnerships between countries and funds.
The Minister took also this opportunity to give an overview on the efforts of the Kingdom of Morocco since His Majesty King Mohammed VI -May GOD Glorify Him- came to the throne, to achieve an integrated and comprehensive economic development that are particularly expressed through the setting up of stimulating framework for investment; the development of the financial sector which is an essential tool to finance investment; and the implementation of a modern basic infrastructure that supports the business.
In this context, the Minister highlighted the efforts to improve the business climate to meet the aspirations of citizens and local and foreign economic operators, as well as to set up ambitious sector-based strategies to enable entrepreneurs to have a forward-looking vision.
On the modernization of the financial sector, Mr. BOUSSAID noted that the ongoing reform process covered the improvement of savings and their channeling in support of the efficient financing of investment. In this regard, the Minister referred to the Casablanca financial hub which develops Morocco into a regional financial center that will play a strategic role and bring stakeholders investment opportunities the African continent offers.
In relation to modern basic infrastructure for the promotion of business, the Minister pointed out to those specific to highways, ports, logistics and air transport.
He stressed that these reforms have brought a fundamental change in the structure of the Moroccan economy. He added that these trends have also highlighted the significant needs in terms of investment in the fields of infrastructure, energy, industry, agriculture and tourism.
For the Minister, these requirements present opportunities for institutional investors seeking long-term investments. He stated that Morocco plans to develop the public-private partnership and mobilize new funding sources particularly from institutional investors, and create partnerships with sovereign wealth funds and international investment funds.
The Minister further noted that it would be more beneficial for the (SWFs) to direct their assistance to strategies that take into account the specific needs of each country and the international environment as well as the major challenges facing our businesses.
Finally, the Minister called the (SWFs) to strengthen this trend and called upon international financial institutions ,namely the (IDB) support for more regional cooperation and global development