Morocco Ranks 85th Worldwide in Global Capitalism Index

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By: Azzat Manal

Morocco Ranks 85th Worldwide in Global Capitalism Index

Morocco ranked 85th out of 170 countries in a newly published global capitalism index developed by the Democracy and Capitalism Lab at the University of Virginia in the United States. The ranking assesses how economic systems function across several dimensions, including banking, market competition, business creation and the movement of goods and capital.

The results place Morocco in the middle of the international rankings, highlighting areas of relative strength as well as challenges in developing a more competitive business environment. The country scored 63.4 points in the banking system category, placing 74th globally, and ranked 78th for ease of starting a business. Its performance was weaker in capital flows, where it stood 101st, and market competition, where it ranked 115th.

The index uses eight sub-indicators to assess the institutional and economic conditions that support capitalism. Rather than measuring economic freedom solely by the extent of government involvement, the framework considers how effectively institutions support property rights, facilitate commercial activity and maintain competitive markets.

Switzerland topped the global ranking with 96.9 points out of 100, followed by the United States and Hong Kong. Canada, Singapore, Luxembourg, Denmark, Australia, Sweden and Norway also featured among the leading economies.

Within the Arab world, the United Arab Emirates recorded the highest position, ranking 20th globally. Qatar, Oman, Saudi Arabia, Jordan, Bahrain and Kuwait followed among the better-placed Arab economies.

Morocco ranked ahead of several North African countries in the index, although the regional results varied considerably. Egypt placed 86th with 60.9 points, just behind Morocco, while Tunisia ranked 110th with 56.1 points. Algeria came 115th, while Mauritania and Libya ranked 158th and 160th, respectively.

Scott C. Miller, a business administration professor at the University of Virginia’s Darden School of Business who oversaw the ranking, argued that capitalism should not be understood simply as an economic system in which governments play a minimal role. In his view, functioning capitalist economies also depend on public institutions, including courts that protect property rights and rules that limit favoritism and help preserve competition.

Miller noted that government intervention can undermine economic performance, but argued that effective institutions are also necessary for markets to operate properly. The distinction, he suggested, is between state involvement that supports a functioning market system and policies that distort competition or weaken institutional safeguards.

He also highlighted differences between popular perceptions of economic models and the way national systems operate in practice. Nordic countries such as Denmark are often described in public debate as socialist because of their universal healthcare systems and extensive social protections. Miller argued that these features do not necessarily place them outside the capitalist model, pointing instead to their market institutions and economic structures.

For Morocco, the index offers a framework for examining the conditions that shape business activity and investment. Its relatively stronger banking and business-formation scores contrast with its lower rankings for market competition and capital flows. These indicators point to distinct policy areas that can be assessed separately, rather than treating the overall position as a complete measure of the country’s economic performance.

The ranking does not, on its own, determine the pace of future growth or the attractiveness of an economy to every investor. However, it provides an international comparison of the institutions and market conditions that researchers associate with capitalism, while underlining the importance of competitive markets, reliable legal frameworks and effective economic governance.