The Investment Promotion Fund (IFP) manages operations relating to the state’s taking charge of the cost of some advantage granted to the investments that meet the criteria, within the framework of contracts, and in accordance with the investment charter and its implementation decree:

• Land support: the IFP takes charge of 20% of the expenses of land acquisition necessary for the realization of the investment;
• External infrastructure: the IFP participates in the expenses of external infrastructure with up to 5% of the overall amount of the investment program;
• Training: the IFP participates in the expense of vocational training provided as part of the investment program with up to 20% of the cost of this training.

These advantages are cumulative, provided that the state'sparticipation does not exceed 5% of the total investment program. However, if the investment project is expected in a suburban or rural area or in the case of investment in spinning, weaving and textiles finishing, the participation of State may reach 10% of the total investment program.

The investment project must meet at least one of the following criteria:

• Invest an amount equal to or greater than MAD 200 million,
• Create a number of stable jobs equal to or above 250;
• Realize the project within one of these provinces or prefectures: Al Hoceima, Berkane, Boujdour, Chefchaouen, Es-Smara, Guelmim, Laayoune, Larache, Nador, Oued Ed-Dahab, Oujda-Angad, Tangier-Asilah, Fahs-Bni-Makada, Tan-Tan, Taounate, Taourirt, Tata, Taza and Tetouan;
• Ensure transfer of technology;
• Contribute to the environment protection
   

Hassan II Fund for Economic and Social Development (FHII) grants financial assistance for investment projects in some industrial sectors for:

• Building or acquiring professional buildings: the Fund can support up to 30% of the cost of professional buildings on the basis of a maximum unit cost of 2,000 MAD/m2 (excluding taxes);
• Acquiring new equipment goods: the Fund may contribute up to 15% of the purchase cost of new equipment goods (excluding import duties and taxes).

These contributions are limited to 15% of the investment amount and 30 million MAD.
 

The relevant sectors are:

• Manufacturing equipment for the car industry
• Manufacturing components for electronic assemblies and subassemblies
• Manufacturing equipment for the aviation industry
• Manufacturing activities related to nanotechnology, microelectronics and biotechnology
• Manufacturing tools and mould for the car and the aircraft industry
• Aeronautical maintenance and planes dismantling
   

The beneficiary projects are the new investment projects (creation or extension) with a total investment amount of more than 10 million MAD (excluding import duties and taxes) and under the condition that the amount of investment in equipment goods is above 5 million MAD (excluding import duties and taxes).

Specific treatment:

• The projects in the aircraft industry which the investment amount in capital goods is upper to 200 million dirhams (except import duties and tax) can be realized in one or several phases considering each of the phases as eligible project for the Fund contribution.
• The eligible investment projects in the manufacturing equipments activities for the car industry benefit from a maximal contribution of 15 % to the acquisition of the imported capital goods used in the deep-drawing activities, the plastic injection and tools and moulds manufacturing.

Businesses that commit to making an investment of an amount equal to or greater than two hundred (200) million dirhams can benefit, as part of agreements to be concluded with the government, from exemption from import duty and the value added tax applicable to goods, materials and tools needed for their project and imported directly by the companies or on their behalf.

This exemption is also granted to the parts, spare parts and accessories imported at the same time as capital goods, machinery and equipment for which they are intended. The investment must be made within thirty-six (36) months from the date of the signature of the abovementioned agreement.

Equipment goods, materials and tools needed to achieve investment projects involving an amount higher than or equal to MAD 200 million are exempt from VAT on imports within the framework of an agreement concluded with the State, in favor for the beneficiaries during a period of thirty six (36) months from the start of business. 
This exemption is also granted to parts, spare parts and accessories imported at the same time as the aforesaid equipment.