Santiago Principles Self-Assessment

Ithmar Capital

Fund Details Fund Website Search Assessments PDF version
  • Pillar 1: Legal
  • Pillar 2: Institutional
  • Pillar 3: Investment
Principle 1

1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s).

1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.

1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.

Ithmar or “the Company” was established on 18 February 2011 to invest and facilitate co-investments with international SWFs and major investment funds in the Moroccan economy. Special focus was initially on tourism and infrastructure; the mandate was extended by its board of directors on 8 July 2015 to cover all other productive sectors of the economy (energy, industry, etc.).

The fund was originally named Fonds Marocain de Développement Touristique “FMDT”. To reflect the change to a multi-sectoral approach, the fund’s name was changed from FMDT to Ithmar Al Mawarid (“Ithmar”).

The legal framework of Ithmar is defined within the decree of its creation: “Décret n° 2-11-52 du 18 février 2011 – (P334 of the official bulletin) ” together with the applicable law in the Kingdom of Morocco related to public limited companies, namely, the “loi 17-95 relative aux sociétés anonymes”. 

The change of name and the enlargement of the mandate are reflected in the Amendment Decree: Décret n°2-19-134 du 29 Février 2019 – also attached.

The legal framework is designed specifically to establish sound and effective operations for the fund and the achievement of its objectives. 

The key features of Ithmar’s legal basis and structure, are disclosed, by law, under the website of the trade register of Rabat (see link and the relationship between Ithmar and the state bodies is stated within the abovementioned decree n° 2-11-52 which is publically disclosed in the Official newsletter of the Moroccan Government (see link As such, the shareholders of the Company are as follows:  Ministry of Finance representing the Moroccan Government 2/3 and Fonds Hassan II pour le Développement Economique et Social 1/3.

Details of the relationship of Ithmar and its shareholders/state bodies can also be found on: the governance section of Ithmar’s website (Governance – ithmar).

Principle 6

6. The governance framework for the SWF should be sound and establish a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF to pursue its objectives.

Ithmar has established a clear and sound governance framework to ensure independence in the management and to pursue its objectives, in accordance with the law, namely, a Chief Executive Officer and a board of Directors with specialized committees (Strategy & Investment Committee, Audit & Risk Committee and Remuneration & Governance Committee). The relevant functions within Ithmar are as follows: strategy, legal, finance and audit, asset management and investment, development and partnerships.

As a joint stock company, the Board members of Ithmar are appointed by its Shareholders.

The CEO is appointed by the highest authority as stated in the law relative to strategic enterprises.  

Ithmar’s management is appointed by the CEO and the Nomination and Compensation Committee, when applicable, following a competitive hiring process using public offers and headhunters.

Principle 18

18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.

18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.

18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.

18.3. A description of the investment policy of the SWF should be publicly disclosed.

The investment policy of Ithmar is consistent with its defined objectives, risk tolerance, and investment strategy, as set by its decree of creation and its governing body(ies) and is based on sound portfolio management principles. 

Ithmar acts to facilitate co-investments with international SWFs and major investment funds, especially in a view to minimize risks while creating a powerful multiplier effect. 

Ithmar does not use external investment managers. The investment department is managed by professionals who are hired on the basis of their experience, international competencies and skills. These professionals are selected for their ability to originate and execute investment opportunities. 

In some cases, the fund sets up Special Purpose Vehicles with independent management and adequate governance bodies. 

A general approach of the investment policy of Ithmar is defined within its decree of creation, its website and internal procedures.