Santiago Principles Self-Assessment

Ithmar Capital

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  • 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 Capital was established on 18 February 2011 by the Moroccan government and supported by the Hassan II Fund for Economic and Social Development under the name of Fonds Marocain de Développement Touristique (FMDT). Its purpose is to invest and facilitate co-investments with international sovereign wealth funds and major investment funds in the Moroccan economy. Initial focus has been on tourism and infrastructure; the mandate has been to cover all other productive sectors of the economy (energy, industry, etc.).

Ithmar is structured as a public limited company (Société Anonyme). Ithmar’s legal framework is defined within “Décret n° 2-11-52 du 18 février 2011", together with the applicable laws (loi 17-95) in the Kingdom of Morocco relative to public limited companies. The legal framework is designed specifically to establish the sound and effective operation of the fund and the achievement of its objectives.

The key features of Ithmar’s legal basis and structure, are disclosed by law on the website of the trade register of Rabat ( and the relationship between Ithmar and the state bodies is stated within the above-mentioned decree n° 2-11-52 which is disclosed to the public within the Official Bulletin of the Moroccan Government ( As such, the shareholders of the Company are as follows: Ministry of Finance representing the Moroccan Government 67% and Fonds Hassan II 33%. Fonds Hassan II is itself 100% owned by the Moroccan government.

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 pursue its objectives, in accordance with the law, namely, a chief executive officer and a board of directors with specialised committees (steering and investment committee, audit committee, remuneration committee). Ithmar has legal, finance, asset management, investment, human resources departments.

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.

“l’Etude Stratégique FMDT” is strategic paper voted by the board and reviewed annually which outlines investment policies of Ithmar and ensures consistency throughout the investment process and the management of the assets with the strategic objectives set by the shareholders.

Risk exposure and the use of financial leverage are clearly defined within the processes; specifically the relationship between the operational teams and the investment and steering committee sets clear limits and delegations. Financial derivative transactions are subject to prior board approval.

The external managers' programme is subject to a specific internal committee with defined processes to ensure transparency in the selection and adequate follow-up of their performance.

A general approach to Ithmar's investment policy is defined within its decree of creation. For confidentiality reasons “l’Etude Stratégique FMDT” is strictly restricted to shareholders.