Moroccan billionaire Alami Lazraq gains $78 million from ADI shares

Key Points

• Moroccan real estate magnate Alami Lazraq gained $78.63 million in 10 days as ADI shares surged 13.8% on Casablanca Bourse, boosting investor confidence.
• Lazraq’s 51.7% stake in ADI rose from $570 million to $649 million amid regional infrastructure boom and rising property demand.
• Despite recent gains, ADI shares are down 0.95% YTD due to liquidity constraints, slower earnings, and regulatory uncertainties in Morocco’s property market.

Moroccan real estate magnate Alami Lazraq, founder and chairman of Alliances Développement Immobilier (ADI), has added $78.63 million to his fortune in just ten days, as shares of his company surged on the Casablanca Bourse, underscoring renewed investor confidence in Morocco’s property market.

Lazraq, who controls 51.7 percent of ADI—equivalent to 11.4 million shares—saw the market value of his stake rise from MAD5.21 billion ($570.38 million) on May 27 to MAD5.93 billion ($649.01 million) as of June 6. This sharp rebound reflects a broader rally in Moroccan real estate equities, driven by rising demand and expectations of a regional infrastructure boom.

This is a reversal from early May when ADI came under pressure. Between May 6 and May 22, Lazraq’s stake lost MAD570.53 million ($61.78 million) in market value, falling from MAD6.39 billion ($674.79 million) to MAD5.37 billion ($551.53 million) amid concerns over sector liquidity and macroeconomic headwinds.

ADI shares rally 13.8% in ten days

ADI, based in Casablanca, is the backbone of the Alliances Group, a real estate conglomerate founded by Alami Lazraq 25 years ago. Over the years, the group has built a strong reputation in North Africa’s real estate market, expanding its portfolio and strengthening its position in the industry.

Shares of ADI, a flagship player in North Africa’s real estate sector, have surged 13.79 percent over the past ten days, climbing from MAD457 ($49.99) to MAD520 ($56.88). The rally has pushed ADI’s market capitalization beyond the $1.2 billion mark, making it one of the most closely watched stocks on the Casablanca exchange this month.

Your money and your life

Although ADI’s stock showed some recent gains, it has fallen by about 0.95 percent year-to-date, mirroring a general cautious mood among investors. Experts say that tighter liquidity, slower earnings growth, and ongoing regulatory uncertainties could pose challenges for Morocco’s real estate market in the coming months.

A $100,000 investment in ADI at the beginning of 2024 would now be worth roughly $99,050, reflecting a small paper loss. This performance lags behind the stronger returns seen in other real estate markets like the U.S. and UAE, where rate cuts and supportive policies have helped lift investor confidence.