VZCZCXYZ0000
RR RUEHWEB

DE RUEHCL #0175/01 2451642
ZNR UUUUU ZZH
R 021642Z SEP 09
FM AMCONSUL CASABLANCA
TO RUEHC/SECSTATE WASHDC 8504
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUCNMGH/MAGHREB COLLECTIVE
RUEHFR/AMEMBASSY PARIS 0721
RUEHMD/AMEMBASSY MADRID 3885

UNCLAS CASABLANCA 000175 
 
SIPDIS 
SENSITIVE 
 
STATE FOR NEA/MAG 
COMMERCE FOR NATHANIEL MASON 
 
E.O. 12958: N/A 
TAGS: ECON PGOV SOCI MO
SUBJECT: THIS RAMADAN, THINGS ARE DIFFERENT 
 
REF: A) RABAT 171 
B) CASABLANCA 144 
 
 
¶1.  (SBU) Summary: Conversations with Morocco's business community 
and civil society reveal that this year's global economic crisis and 
the country's rising food prices are having a sobering effect on 
celebrating the holiest month of the Islamic year, Ramadan. 
Governmental efforts to manage the impact of global economic events 
on Morocco (reftels) have done little to assuage economic fears 
among the lower and middle echelons of Moroccan society.  Placing 
further strain on household budgets is the fact that this year's 
Ramadan coincides with the beginning of the school year.  Even the 
country's largest businesses are scaling down the number of 
representational Iftars (the nightly breaking of fast during 
Ramadan).  This confluence of factors has led some to the conclusion 
that this Ramadan is possibly the most challenging in years. End 
Summary. 
 
 
--------------------- 
Iftars On the Decline 
--------------------- 
 
 
¶2.  (SBU) The global economic crisis has affected Morocco on many 
levels, including the way in which local businesses celebrate the 
holiest month of the Islamic year.  Even the country's most 
prominent corporations are scaling back on the number of 
representational Iftars during this year's Ramadan, an austerity 
measure in response to the global slump.  According to Fatiha 
Tilioui, Director of Sales for the Hyatt Hotel in Casablanca, 
corporate Iftar bookings have declined 20 percent compared to 2008. 
Similarly, Hicham Alaoui, director of the Risk Management Office for 
BMCE, one of the country's largest banks, said his company is 
hosting smaller and more selective Iftars this year.  Alaoui added 
that this seems to be in line with the realities faced by other 
actors in the banking community. 
 
 
¶3.  (SBU) As the country's largest corporations scale down on their 
Iftars, small local businesses such as Mohamed Aglaz's pastry shop, 
which have traditionally thrived during Ramadan, are also feeling 
the pinch.  Aglaz said close to 40 percent of his sales are made 
during this time, but that 2009 sales have been exceptionally slow. 
As a result, he has scaled down his staff and personally cut down on 
the Iftars shared with his extended family.  A well informed source 
in Morocco's Business Federation told Econoff, "This Ramadan, things 
are different." 
 
 
------------------ 
Rising Food Prices 
------------------ 
 
 
¶4.  (SBU) In addition to the impact of the global economic crisis on 
Moroccan businesses, the increase in food costs has taken its toll 
on individual households.  Rising food prices have created financial 
anxiety among the lower and middle echelons of Moroccan society. 
Adil Bennani works at a French bank in Casablanca.  His pay used to 
be more than adequate to support his family during Ramadan.  But 
rising food prices have changed all that, he said.  Unable to 
finance the expenses that come with celebrating the holy month, Adil 
was left with no choice but to take out a USD 500 loan.  "Rising 
prices are hitting families especially hard this year", said Adil. 
Raisins, prunes, and dried apricots used extensively during Ramadan 
rose to USD 6 per kilo from about 4.  Moreover, chicken jumped to 
USD 5 per kilo from about 3.50 due to a recent heat wave which 
resulted in the death of a substantial number of poultry in Morocco. 
 
 
 
¶5.  (SBU) Adil's story has become the rule rather than the 
exception.  In many households throughout Casablanca, families are 
bracing themselves for what some describe as the country's "most 
challenging Ramadan in years."  Karim Abderrazak, general manager of 
ACIMA, one of Casablanca's largest supermarket chains, said that 
this year's Ramadan sales will likely be 15 percent below 2008 
figures.  According to Abderrazak, people cannot afford the 
delicacies that come with celebrating the holy month in this 
challenging time.  He explained that customers are especially 
burdened financially, as this year Ramadan coincides with the start 
of a new school year, which traditionally entails additional 
expenses. 
 
¶6.  (SBU) COMMENT: Despite Moroccan government efforts to manage the 
global economic downturn and rising food prices during Ramadan, 
discontent and nervousness continue to affect the country's lower 
and middle echelons of society.  This year's Ramadan has left many 
Moroccans feeling powerless in the face of the economic forces that 
shape their lives. 
 
ORDONEZ