The Moroccan Retirement Fund directs its investments towards vital real estate projects in the Kingdom.
The Moroccan Retirement Fund strengthens its position as a significant institutional investor by allocating a portion of its funds to strategic real estate projects, particularly along the Rabat-Casablanca axis. These projects include essential sectors such as health, education, and justice, in addition to administrative offices.
Finance and Economy Minister Nadia Fettah revealed in a written response to a parliamentary question that these initiatives are part of a strategy to diversify the fund’s portfolio and ensure stable long-term returns.
The minister explained that the fund manages the civil and military pension systems, along with an optional supplementary system based on capitalization. It is a prominent investment player through its management of the reserves for these two systems. According to available data, the reserve balance for the civil pension system reached approximately 58.8 billion dirhams in accounting value by the end of 2024, compared to 70.12 billion dirhams in market value, representing an unrealized added value exceeding 11 billion dirhams.
The document further noted that real estate investments account for 1.15% of the total fund allocations, with a particular focus on collective real estate investment vehicles that invest in properties leased to the state, given the guarantees and stable returns they provide. This type of investment represents about 18.81% of the fund’s total investments, emphasizing the trend towards tools with guaranteed returns and financial stability.
From 2019 to 2024, the fund allocated a total of 11.12 billion dirhams for investment in the real estate sector, distributed among seven collective real estate investment vehicles managed by six companies accredited by the Moroccan Capital Market Authority. The management of these vehicles by specialized companies enhances liquidity by opening capital to other investment institutions, alongside boosting returns through debt financing.
The minister confirmed that the fund’s investments are not limited to the Rabat-Casablanca axis but encompass various regions in the Kingdom, with a special emphasis on vital projects such as university hospital centers, medical and pharmaceutical faculties, and administrative structures related to the sectors of education, health, and justice.
