This year, several exchange traded funds (ETFs) that offer access to frontier markets have launched. Within some of them are interesting countries investors might not know much about, and perhaps Morocco is one of them

Over the past decade, Morocco has gained political liberalization and economic growth.

This Arab country is run by a king, but in the nineties many constitutional amendments were introduced and brought about new rights and allowed the exiled to return home, reports ETF Europa.The main challenges Morocco faces is economic stability and keeping unemployment down. Climate conditions and a dependency on other countries are the country’s weakest points. The country also has a big fight against illiteracy ahead of it: 43% of the population over the age of 10 can’t read.

However, since 2007 Moroccan authorities have developed a strategy for creating apprenticeships and agriculture schemes for the handicrafts industry. This plan will help boost the economy and can also help to implement reform.

Unemployment remains rampant in the country, though: it can be as high as 20% in urban areas. In 2007, the GDP growth slowed to 2.1% as the result of a drought that severely damaged agricultural output.

As with many frontier markets, for investors who can stomach the risks, there could be reward. While there is no ETF focused solely on Morocco, exposure to this country lies in PowerShares MENA Frontier Markets (PMNA), where Morocco makes up 10.9% of this ETF.

Tags: Africa, Emerging Markets, Frontier Markets, Morocco, PMNA

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