Dubai vs Casablanca: An Investment Dilemma Between Two Dynamic Economic Hubs

By Mounir RGUIG, a chartered accountant and co-founder of Tax Cluster.

This article is part of a series, composed of several publications, that provides an in-depth analysis of the key aspects each metropolis offers to businesses, including economic attractiveness, taxation, quality of life, and innovation. Its aim is to guide investors in choosing the city that best aligns with their objectives

Investment at the Heart of Two Expanding Hubs

As global markets continue to evolve rapidly, choosing a strategic location for your investments becomes a crucial challenge. Dubai and Casablanca, two metropolises located at distinct geographical and cultural crossroads, have emerged as key economic hubs.

But how do these cities truly position themselves in the global business landscape, and what challenges and opportunities do they present for investors in 2025-2030?

This first article in a series provides an overview of these two destinations, focusing on their future trajectories, taxation, and emerging trends.

1. Dubai: A Model of Innovation, Diversification, and Attractive Taxation

Dubai, often cited as an example of economic success in the Gulf, is now far more than a regional business hub. With a growth rate of 3.2% [1] in the first quarter of 2024 and a GDP of 115 billion dirhams (31.3 billion dollars) [2], the emirate continues to strengthen its position on the global stage.

Contrary to the traditional perception centered around oil, this sector now accounts for only about 1% of the GDP. Dubai has successfully diversified its economy by focusing on wholesale and retail trade (22.9% of GDP), financial services (13.1%), and the transportation and logistics sector (5.6%) [3].

1.1. Taxation in Dubai: An Attractive Framework

Dubai’s tax system remains one of the most attractive elements for investors. In 2023, the emirate introduced a corporate tax rate of 9%, complemented by a 5% VAT. These rates are among the most competitive in the world, enhancing Dubai’s appeal for international businesses.

Additionally, Dubai’s free zones continue to offer significant tax exemptions, particularly for businesses operating in strategic sectors like technology and innovation.

The UAE is considering the introduction of an income tax on salaries in the coming years.

1.2. Disruptive Technologies and Digital Innovation

Dubai aims to become a global leader in disruptive technologies, particularly artificial intelligence (AI) and blockchain. The government has already launched initiatives such as the “Dubai Blockchain Strategy” and the “Artificial Intelligence Strategy,” which are expected to yield results by 2025, with increased integration of these technologies in both the public and private sectors.

The goal is to make Dubai a leading smart city where AI and blockchain optimize business operations, reduce costs, and improve transparency.

1.3. Strengthening the Green Economy

Dubai is investing heavily in renewable energy, with projects like the Mohammed bin Rashid Al Maktoum Solar Park, one of the largest in the world.

By 2025, Dubai plans to generate a significant portion of its electricity from renewable sources, as part of its strategy to reduce dependence on fossil fuels and achieve sustainability goals set out in the “UAE Energy Strategy 2050.”

1.4. Expansion of Free Zones and Infrastructure

Free Zones: Dubai will continue to expand its free zones, which are major drivers of foreign direct investment (FDI). The diversification of activities within these zones is expected to attract businesses from sectors such as space technology, renewable energy, and logistics, with initiatives like the “Dubai Free Zones Council” aimed at facilitating business integration and growth.

Infrastructure: The development of mega-projects like Expo 2020 (which was extended in 2021) has laid the groundwork for new investments in infrastructure. By 2025, Dubai is expected to see the completion of several real estate and transportation infrastructure projects, further strengthening its global connectivity.

1.5. Real Estate Sector

Real Estate Market Growth: Although Dubai’s real estate market has experienced fluctuations, it is expected to stabilize and grow by 2025, with a focus on luxury and commercial projects.

The continued rise in foreign investments, supported by legislative reforms facilitating foreign ownership, will play a key role in driving this growth.

2. Casablanca: An Expanding Industrial and Logistics Hub (2024-2030)

Casablanca, Morocco’s economic capital, is increasingly positioning itself as a gateway to African markets and a strategic base for companies seeking to expand across the continent.

With its competitive fiscal framework and industrial development initiatives, the city is attracting a growing share of foreign investments.

2.1. Casablanca Finance City: A Regional Financial Hub

Morocco’s fiscal framework, while more complex than Dubai’s, continues to undergo reforms to attract investors. Casablanca benefits from the presence of Casablanca Finance City (CFC), a dedicated zone offering significant tax advantages for Africa-focused companies. CFC-accredited businesses enjoy full tax exemptions for five years, followed by a reduced tax rate of 15%.

CFC enables Casablanca to position itself as the most dynamic financial hub in North Africa, attracting over 200 high-level companies, including some of the world’s largest financial institutions.

Moreover, Morocco’s commitment to free trade agreements with numerous countries enhances Casablanca’s appeal as a trade center. Tax reductions are also available for strategic industries, particularly those linked to technology, renewable energy, and agriculture.

2.2. Information Technology and Digital Innovation

The Morocco Digital 2025 program reflects Casablanca’s commitment to the country’s digital transformation, with the goal of becoming a leading technological hub on the African continent. Casablanca is emerging as a regional base for tech companies, particularly in the fintech, cybersecurity, and e-commerce sectors.

• Startups and Fintechs: With a rapidly growing ecosystem, Casablanca is welcoming more tech startups, supported by government initiatives such as the Digital Development Agency (ADD). Additionally, incubators and venture capital funds are financing fintech projects, addressing the rising demand for digital financial services across Africa.
• E-commerce and Cybersecurity: The rise of online commerce, combined with the digital transformation of public and private services, is driving Casablanca to develop e-commerce platforms and cybersecurity solutions. These sectors are bolstered by public-private partnerships aimed at improving technological infrastructure and digital inclusion.

Casablanca is well-positioned to serve as an African technological hub, with initiatives designed to attract companies looking to explore the rapidly expanding digital markets across the continent.

3. Renewable Energy and Sustainability

Morocco has implemented an ambitious policy to become a leader in renewable energy, aiming to produce 52% of its electricity from renewable sources by 2030. Casablanca, as an industrial hub, plays a central role in this energy transformation.

– Investment Opportunities: There are significant opportunities in energy storage technologies, energy efficiency solutions for buildings, and solar projects designed to meet the growing demand for clean energy in Casablanca’s industrial zones. Energy service companies can also benefit from initiatives to modernize the city’s energy infrastructure.

– Solar and Wind Projects: In the Casablanca region, numerous projects are underway to develop solar and wind farms, attracting international investors interested in green transition initiatives. These projects are often supported through public-private partnerships, including collaborations with international development funds.

Casablanca is emerging as a hub for companies seeking to engage in sustainable projects, leveraging Morocco’s commitment to carbon emission reductions and sustainability goals.

4. Building and Public Works

The infrastructure and Building and Public Works sector in Casablanca continues to grow rapidly. The city plays a key role in the expansion of transport infrastructure, residential housing, and shopping centers, with projects supported by upcoming major events.

– Major Events : a potential 2030 FIFA World Cup are driving investments in sports infrastructure, hotels, and housing. These projects create new opportunities for investors in the construction sector.

– Urban Modernization: Casablanca is at the center of several programs aimed at modernizing roads, ports, and railway networks. Projects such as the expansion of tramway lines and the creation of new business districts are underway, supported by government initiatives to improve mobility and access to urban infrastructure.

By combining these opportunities with upcoming major events, Casablanca is attracting substantial investments in the infrastructure sector. This bolsters its role as a transforming city, ready to accommodate new capital to support its modernization and growth.

Conclusion : A Strategically Defining Choice

Ultimately, the choice between Dubai and Casablanca hinges on the nature of the investments being considered. Dubai stands out for its technological innovation and attractive tax framework, making it ideal for companies looking to thrive in technology, finance, and modern infrastructure sectors. Casablanca, on the other hand, positions itself as a strategic gateway to African markets, offering significant opportunities in agriculture, renewable energy, and infrastructure development.

Though differing in size and historical context, both hubs are essential economic centers [MOU1] for investors seeking to maximize their presence in the MENA and African regions.

[1] Source: Digital Dubai – Dubai’s GDP reached AED 115 billion in the first quarter of 2024, representing a growth of 3.2% compared to the same period in 2023.

[2] Source: Digital Dubai – Dubai’s GDP was approximately AED 115 billion in the first quarter of 2024.

[3] Source: Digital Dubai – Key contributors to Dubai’s GDP include sectors such as wholesale and retail trade, financial services, and transportation and logistics.

[MOU1] It is more appropriate to use the term “metropolises” in this context, as previously mentioned.

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