A recent report by the US Department of State has expressed concerns over Morocco's investment screening process, specifically highlighting the absence of mechanisms to filter foreign investments in strategic sectors such as critical minerals and rare earths. The report notes that Morocco's current system does not have a specific procedure to examine foreign investments in industries considered critical. This has raised concerns in Washington, particularly given the growing importance of critical minerals in US economic policy.
The US report does not accuse Morocco of favoring or rejecting specific investors, and notes that there have been no cases where Rabat has excluded a foreign investor for national security, economic, or national policy reasons. Instead, Morocco's system relies on sectoral restrictions, limiting foreign investors to 49% of capital in certain sectors such as air and maritime transport, and maritime fishing. Additionally, the Moroccan National Office for Hydrocarbons and Mining (ONHYM) must hold at least 25% of research permits or exploitation authorizations for mining activities.
The US administration has been actively seeking to secure its supplies of critical minerals, and has launched negotiations on imports of transformed critical minerals in January 2026. This has significant implications for Morocco, as the two countries are currently discussing projects related to mining resources. In May 2026, Moroccan Minister of Energy Transition and Sustainable Development Leila Benali met with US Ambassador to Rabat Richard Duke Buchan III to discuss cooperation on mining resources, natural gas, and electrical infrastructure.
The meeting between Benali and Buchan highlighted the importance of cooperation on mining resources, with a focus on supporting major projects and enhancing Morocco's attractiveness to investors. Morocco is seeking to increase exploitation of its mining resources and attract new investment, while the US is looking to secure access to critical minerals essential to its industry. The US report emphasizes that several sectors in Morocco can receive foreign investment without thorough prior examination, given their strategic importance.
The report's findings are significant, as they come at a time when the US and Morocco are strengthening their economic ties. The two countries have a long-standing partnership, and the US is one of Morocco's largest foreign investors. However, the US report highlights the need for Morocco to strengthen its investment screening process, particularly in strategic sectors.
Morocco's investment landscape is subject to various restrictions, and foreign investors must navigate a complex regulatory environment. The country's mining sector is a key area of interest, with significant reserves of critical minerals such as cobalt, nickel, and rare earths. The US report's recommendations are likely to lead to closer scrutiny of Morocco's investment screening process, and may impact future investment flows between the two countries.
The US report's release comes as Morocco seeks to enhance its economic cooperation with the US and other international partners. The country's authorities will need to consider the report's findings and implement measures to strengthen its investment screening process, particularly in strategic sectors. This may involve introducing new regulations or procedures to ensure that foreign investments are thoroughly reviewed and aligned with national interests.
Key points
- The US Department of State report highlights Morocco's lack of specific procedures for reviewing foreign investments in strategic sectors such as critical minerals and rare earths.
- The US is seeking to secure its supplies of critical minerals, and has launched negotiations on imports of transformed critical minerals.
- Morocco is seeking to increase exploitation of its mining resources and attract new investment, while the US is looking to secure access to critical minerals essential to its industry.
