M'daif's costly hotel investments challenge CDG's finances
The article discusses the financial performance of the "Madaif" portfolio, the tourism arm of the Deposit and Management Fund. Over the years, it has invested approximately 17 billion AED in the Moroccan tourism sector, yet it has only generated total revenues of around 3.8 billion AED, with recurring losses and plans for restructuring. Despite an increase in domestic tourism activity, higher tourist numbers, and rising revenues since 2024, "Madaif's" results reveal weak profitability, characterized by net losses and declining asset values. The fund's stake in the company amounts to 13.1 billion AED, with a provision for impairment valued at 4 billion AED. This situation reflects governance and efficiency challenges in managing public tourism investments. It raises serious questions about the ability of these investments to yield significant returns, especially as the Moroccan sector experiences notable growth in market performance and activity. The analysis underscores the need for greater transparency and sound governance to ensure that public funds benefit effectively from the tourism sector's activities.
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