According to the World Investment Report 2026 released by the UN Conference on Trade and Development (UNCTAD), foreign direct investment (FDI) flows to Morocco reached $3.3 billion, while Algeria attracted $1.5 billion. This highlights a significant gap in investment attractiveness between the two North African neighbors.
The report, which tracks global FDI trends, indicates that Morocco continues to benefit from its diversified economy, free trade agreements, and improvements in the business climate. Key sectors include automotive, aerospace, and renewable energy. Algeria, despite its hydrocarbon wealth, has seen slower progress in attracting foreign investors due to bureaucratic hurdles and regulatory constraints.
Analysts note that Morocco's proactive approach to economic reforms and its focus on export-oriented industries have made it a preferred destination for multinational companies. In contrast, Algeria's economy remains heavily reliant on oil and gas, and its investment climate is often cited as challenging.
The figures underscore a broader trend in the region, where countries with more open and diversified economies are outperforming those with less flexible structures. The full report is available on UNCTAD's website.
