Benefits of Making Business in Western Sahara | Buy & Sell Business

1. BENEFITS OF MAKING BUSINESS IN WESTERN SAHARA WWW.MERGERSCORP.COM

2. At MergersCorp M&A International we help our clients confidentially buy and sell privately held businesses, aligning the interests of all parties for mutual success and satisfaction. It is our goal to make the process of either buying a new business or selling your current business as smooth and efficient as possible. We know how important confidentiality is to our sellers and we treat it with the utmost importance. WWW.MERGERSCORP.COM

3. BENEFITS OF MAKING BUSINESS IN WESTERN SAHARA WWW.MERGERSCORP.COM

4. Country Overview Western Sahara, Arabic Al-Ṣaḥrāʾ al-Gharbiyyah, formerly (1958–76) Spanish Sahara, territory occupying an extensive desert Atlantic-coastal area (97,344 square miles [252,120 square km]) of northwest Africa. It is composed of the geographic regions of Río de Oro (“River of Gold”), occupying the southern two-thirds of the region (between Cape Blanco and Cape Bojador), and Saguia el-Hamra, occupying the northern third. It is bounded by the Atlantic Ocean on the west and northwest, by Morocco on the north, by Algeria for a few miles in the northeast, and by Mauritania on the east and south. Pop. (2007 est.) 489,000. Western Sahara is virtually all desert and is very sparsely inhabited. The Kasbah and mosque in the town of Semara (Smara) are among the major Muslim monuments in Western Sahara. The principal city is Laayoune, the old colonial capital. There is little agriculture in the region; camels, goats, and sheep are raised, and dried fish is exported to the Canary Islands.

5. Executive Summary Western Sahara is a sparsely-populated area of mostly desert situated on the northwest coast of Africa. A former Spanish colony, it was annexed by Morocco in 1975. Since then it has been the subject of a long-running territorial dispute between Morocco and its indigenous Saharawi people, led by the Polisario Front. The Saharan Arab Democratic Republic (SADR), declared by the Polisario Front in 1976, is now recognised by many governments and is a full member of the African Union. Home to phosphate reserves and rich fishing grounds off its coast, Western Sahara is also believed to have as yet untapped offshore oil deposits.

6. Introduction – Doing business in Western Sahara Western Sahara has a small market-based economy whose main industries are fishing, phosphate mining, tourism, and pastoral nomadism. The territory's arid desert climate makes sedentary agriculture difficult, and Western Sahara imports much of its food. The Moroccan Government administers Western Sahara's economy and is a key source of employment, infrastructure development, and social spending in the territory. Oil has never been found in Western Sahara in commercially significant quantities, but Morocco and the Polisario have quarreled over who has the right to authorize and benefit from oil exploration in the territory. Western Sahara's main long-term economic challenge is the development of a more diverse set of industries capable of providing greater employment and income to the territory. However, following King MOHAMMED VI’s November 2015 visit to Western Sahara, the Government of Morocco announced a series of investments aimed at spurring economic activity in the region.

7. Conducting business in Western Sahara The development of telecommunications and economic globalization has made it possible for interested investors to form companies around the world. With proper research, financial investments, and legal backing, business ventures can safely be established in almost all of the world's, however, due to political instabilty, territorial dispute and lack of infrastructure, company formation in Western Sahara is not advisable, we usually recommend choosing one of the following options instead: Namibia, Cyprus, Morocco, Algeria, or United Kingdom. Many countries offer specific benefits, unfortunately, currently company formation procedure in Western Sahara proves itself to be quite inefficient, sometimes impossible high-risk undertaking. Unfortunately, the political and economic situation in Western Sahara currently is not the most favourable for company formation and international business development. Confides Solutions cannot provide any guarantees that any business structure in Western Sahara will be registered in time, if registered, whatsoever.

8. Taxation in Western Sahara A city tax on accommodation is levied in some places, including Marrakesh. Many accommodations include this in their quoted rates, but ask guests to pay it separately in local currency upon arrival. It is possible for visitors to claim a 20% VAT refund on some purchased goods (minimum spend of Dh2000) on departure from Marrakesh or Casablanca. Corporate Tax Laws and Regulations covering issues in Western Sahara of Tax Treaties and Residence, Transaction Taxes, Cross-border. Company registration procedure in Western Sahara local presence and office in a domicile country is a relevant matter for any country's tax authorities. other taxes, certain “military decisions” constituting resistance to foreign. In general, the Moroccan argument was that Western Sahara has always been linked. A notarial tax is imposed based on the capital stock, in the amount of 1 percent for stock up to MDh 5.000, 0.5 percent from MDh 5,000 to 10,000 and 0.2 percent for over MDh 10.000.

9. Trade Western Sahara’s trade with the United States rose to $21.47 million in 2019, according to a World City analysis of latest U.S. Census Bureau data. That’s 6049.76 percent above its total trade of 2018. U.S. exports to Western Sahara increased 8053.33 percent while U.S. imports from Western Sahara rose 201.33 percent. The U.S. surplus with Western Sahara was $20.93 million. Export and import from and to western Sahara and Africa, trade online on Export Portal. This developing e-commerce platform offers secure trade, assistance with shipping and with the whole process of export/import. It is very important to do business on an e-commerce site which has these advantages: cooperation with legal businesses, easy deals, B2B and customers worldwide. Western Sahara ranked No. 197 in total trade value in 2019 with a total of $21.47 million. Exports totaled $21.2 million and Imports totaled $268,391, a surplus of $20.93 million.

10. Banking in Western Sahara The three banks have subsidiaries - BMCI, Crédit du Maroc and Société Générale Maroc - that have opened up branches in the part of Western Sahara that is under Moroccan occupation. Chancerelle processes fish caught in occupied Western Sahara in its factory in Agadir. The structure of the domestic sector has remained steady in the past two years, with the landscape dominated by three major local banks. The state has started to remove itself from the domestic sector by surrendering part of its share capital in public banks. At end-2007 public capital still held controlling stakes in five banks and four financing companies. Meanwhile, foreign ownership in the local financial sector continues to grow, with foreign institutions controlling five banks and eight financing companies as well as holding significant stakes in four banks and three financing companies. The introduction of additional Islamic banking products is also likely in the future.

11. Our M&A Process NEGOTIATION & CLOSE POST MERGER INTEGRATION (PMI) INTEGRATION (PMI) POST MERGER TARGET APPRAISAL APPROACH DUE DILIGENCE Key Areas  Target & market analysis;  Initial assessment of synergies & value drivers;  Indicative valuation;  Go or No-Go decision;  Preparation of transaction documents (NDA – Non- disclosure Agreement/LOI- Letter of Intent);  Select Transaction team;  Appoint advisors;  Consider funding ability.  Initial approach letter;  Signing of NDA;  Prepare & share initial information requests;  Formulation of LOI (Letter of Intent) & possible negotiations;  Initial meeting and Q&A;  Circulate information on the Target to the Transaction team.  Set scope of due diligence;  Set up VDR (virtual data room);  Coordinating of due diligence, further meetings and Q&A sessions;  Consider points relevant to the Post-Merger (PMI) phase;  Revisit indicative valuation & prepare detailed valuation based on due diligence findings;  SPA negotiations with the seller;  Development of final structure (share/asset deal) and final valuation;  Approvals;  Signing of SPA & Close.  Consider the extent of integration;  Development of 100 Day PMI Plan;  Consider short & long term objectives;  Estimate requirements to capture synergies;  Determine resource needs & optimal allocation. Parties Involved  CFO;  Head of M&A;  Accountants;  Corporate finance advisors;  Consultants.  Senior management;  CEO, CFO, CTO;  Strategy director;  Head of M&A;  Head of Business Development;  Consultants.  Company general counsel;  Lawyers;  Senior management.  Company general counsel;  Lawyers;  Senior management/HR. 11 © Midaxo 2018 www.midaxo.com

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