Morocco Tightens Restrictions on Foreign Acquisition of Agricultural Land

It will now be difficult for foreigners to acquire agricultural land in Morocco. In a joint circular signed by three ministers and addressed to the walis of the regions, the directors of the CRI, the directors of the urban agencies and the regional directors of agriculture, it is indicated that the acquisition of agricultural properties located outside urban areas must be subject to a set of conditions and restrictive measures, governed by legislative texts, in particular the Dahir requiring administrative authorization for any operation of leasing or acquiring agricultural land if one of the contracting parties is a foreign national, reports the Arabic-language daily Al Akhbar.

Several dahirs (royal decrees) had been issued to strengthen land sovereignty in Morocco. There is one that defines the conditions allowing the State to recover the lands of colonization, another dahir issued on March 2, 1973 which stipulates that agricultural lands belonging to foreign natural or legal persons revert ipso facto to the State. As for that of April 23, 1975, it concerns the limitation of the acquisition of agricultural land to Moroccan natural or legal persons only, excluding, as a consequence, foreigners and companies.

Driven by the development of the pace of investments, another decree had been issued on December 29, 2004. It was a question for the government of harmonizing the legal system with the objectives of encouraging investment. This decree provides for the acquisition of agricultural land by foreign legal persons or companies wishing to invest in non-agricultural projects. "Within the framework of the dynamic that the investment sector is experiencing, law 62-19 of July 22, 2021 has enacted special provisions allowing public limited companies and limited partnerships to acquire land to carry out agricultural projects," indicates the joint circular signed by three ministers.

For the government, it appears necessary to "continue to require foreigners to hold a certificate of non-agricultural investment when they acquire agricultural land located outside urban areas, in order to ensure the balance between land sovereignty and the incentive to invest".