Trade and investment growth between Morocco and the UK in 2024

Wednesday 09 April 2025 - 08:12

By: Zahouani Ilham

Trade and investment growth between Morocco and the UK in 2024

A report issued by the UK’s Department for Business and Trade on April 7, 2025, highlighted significant improvements in the trade agreement between Morocco and the United Kingdom, which took effect on January 1, 2021, under the bilateral partnership agreement. The latest data reflects an upward trajectory in trade, marked by increased commercial interaction, sectoral diversification, and a rising presence of UK companies in the Moroccan market.

Trade Exchanges: Broad Growth with Structural Imbalances

The total trade volume between the two countries reached approximately 48.2 billion Moroccan dirhams (around £3.8 billion) by the third quarter of 2024, marking a 7.7% annual increase. UK imports from Morocco rose by 15.8% to £2.4 billion (30.4 billion dirhams), while UK exports to Morocco fell by 4.1%, totaling £1.4 billion (17.8 billion dirhams), resulting in a trade deficit of £1.1 billion (13.9 billion dirhams) in Morocco's favor.

Morocco currently ranks 51st among the UK's trading partners, 60th for exports, and 43rd for imports. In 2022, the UK became Morocco's seventh-largest supplier and eighth-largest export partner, reflecting the continued strengthening of bilateral relations since the agreement’s implementation.

Sectoral Insights on Trade

The sectoral trade data highlights a clear industrial complementarity, with the UK primarily exporting refined hydrocarbons, metals (iron, copper, aluminum), and vehicles and spare parts to Morocco. Conversely, Morocco exports fresh agricultural products such as tomatoes, citrus, berries, and other agricultural goods, alongside electrical components and car parts to the UK.

Direct Investment: Increasing Flows with Gradual Progress

In 2022, Moroccan direct investments in the UK amounted to £174 million (approximately 2.2 billion dirhams), with net investment flows from Morocco reaching £17 million (215 million dirhams) in 2023, reflecting a modest increase of 2.6%. While data on direct UK investments in Morocco remains confidential, authorities report growing activities in engineering, construction, energy, and academic services.

In 2022, 595 UK companies exported goods to Morocco, while 245 companies imported from the country. Key sectors include renewable energy, precision agriculture, rail transport, pharmaceuticals, educational technology, and medical equipment. Several prominent UK companies are also involved in construction, oil exploration, industrial engineering, and vocational training in Morocco.

Legal Framework and Trade Preferences

The partnership agreement, signed in London in October 2019 and effective from January 2021, includes provisions for the gradual elimination of tariffs, streamlined customs procedures, mutual recognition of technical standards, and liberalization of services. The agreement also established a Partnership Council to oversee commitments, supported by subcommittees focusing on phytosanitary issues, regulatory standards, customs, and the environment.

Morocco enjoys preferential access to the UK market under the UK’s trade system for developing countries, ensuring favorable conditions for its agricultural and industrial products. Many Moroccan goods benefit from duty exemptions or low tariffs.

Strategically, the UK supports Morocco’s energy transition through joint projects in solar energy, green hydrogen, and water resource management, with a focus on southern Morocco. Academic cooperation is also growing, with several UK educational institutions entering agreements with Moroccan universities to offer dual degrees in fields such as engineering, international law, artificial intelligence, and sustainable finance.