Macroeconomic Support as a Key Driver
According to analysts at M.S.IN, macroeconomic conditions will remain the primary support for growth in 2026. With inflation projected to hover around 1%, Bank Al-Maghrib is expected to have sufficient leeway to maintain its accommodative monetary policy throughout the year.
This environment of sustained interest rate easing is likely to favor equity investments over bonds, simultaneously lowering the cost of capital for publicly traded companies.
Positive Earnings Momentum
The year 2026 is anticipated to benefit from a favorable base effect following the significant profit growth observed in 2025. A return to normalized earnings dynamics for Maroc Telecom, along with robust performance in the banking and construction sectors, provides a solid foundation for overall market profit growth.
Sectoral Recoveries and Key Events
This improvement in fundamentals aligns with a broader recovery across several key sectors, including construction, tourism, transport, events, telecommunications, and IT services, particularly driven by the hosting of major sporting events.
The construction sector is poised to be one of the primary beneficiaries of the upcoming economic cycle. In addition to infrastructure projects linked to these events, the sector is heavily engaged in the reconstruction program for areas affected by the Al Haouz earthquake, which has a budget of 120 billion dirhams spread over five years.
Furthermore, the ongoing recovery in the real estate sector, supported by a housing aid program set for 2024-2028, is expected to sustain positive momentum into 2026.
Agricultural Sector as a Catalyst
The agricultural sector may also serve as a catalyst for growth. Rainfall recorded in November and December raises hopes for a successful agricultural campaign, potentially ending several consecutive years of drought.
Such an improvement would positively impact consumption, investment, and ultimately the earnings of many listed companies.
Financial and Institutional Factors Enhancing Market Attractiveness
Several financial and institutional factors are bolstering the attractiveness of the Moroccan market. The potential return of Morocco to the MSCI Emerging Markets index in 2026, driven by improved liquidity, could serve as a significant catalyst for foreign investment flows.
Additionally, the country's return to 'Investment Grade' status—unique in Africa—should help lower external financing costs and provide the Treasury with greater diversification of funding sources, yielding positive indirect effects across the market.
Energy Transition and Technological Integration
Major energy transition projects represent another structural growth driver. Investments in renewable energy, green hydrogen, seawater desalination, and related infrastructure are expected to benefit several listed companies, particularly in electricity, construction, and engineering.
Simultaneously, the gradual integration of artificial intelligence is enhancing the outlook for IT and technology service companies, driven by productivity gains and sustained demand for technological solutions.
Political Climate and Market Dynamics
As the 2026 legislative elections approach, the political climate may also bolster investor confidence, especially as institutional stability remains a crucial factor for market performance.
Moreover, the ongoing financial operations—such as IPOs, capital increases, and increased reliance on markets to complement bank financing—are expected to continue expanding the market and rekindling interest among retail investors in the Casablanca Stock Exchange.
Navigating Market Volatility
While the market remains susceptible to occasional volatility and exhibits high valuation levels compared to some comparable markets, the profitability of several listed companies remains attractive.
For 2026, selectivity will be more crucial than ever: prioritizing companies with strong visibility, reasonable valuations, expected profit improvements compared to 2025, and solid fundamentals will be key to capturing the growth potential of the Moroccan equity market.