Morocco and Israel sustain strong economic partnership despite slower momentum

Saturday 18 October 2025 - 09:50

By: Dakir Madiha

Morocco and Israel sustain strong economic partnership despite slower momentum

Morocco’s Minister of Economy and Finance, Nadia Fettah Alaoui, affirmed that the kingdom’s economic partnership with Israel remains robust, even though its pace has moderated since the initial surge following the trilateral agreement with the United States and Israel in 2020.

During an open dialogue with the Stimson Center in Washington, held on the sidelines of the IMF and World Bank annual meetings, Fettah Alaoui emphasized that the Abraham Accords created “a strong economic relationship, particularly in tourism, technology, and innovation.” She acknowledged that progress has slowed but noted that cooperation remains deep-rooted and full of promise.

Enduring cooperation and shared expertise

The minister underlined Morocco’s intention to continue learning from Israel’s advanced sectors, particularly in water management and agricultural technology. Highlighting Israel’s experience in desalination, she described it as “a real solution” for Morocco’s ongoing drought challenges. “In Morocco, we face real water scarcity, and we must secure resources to sustain agriculture,” she stated, pointing to opportunities for mutual benefit.

Fettah Alaoui, who leads the Moroccan delegation at the IMF and World Bank meetings until October 18, also discussed Morocco’s key trade relationships. Spain and France remain the country’s top partners, with growing economic engagement from Middle Eastern nations. She further clarified that China is not among Morocco’s largest investors, noting that trade with the United States outweighs that with Beijing. Despite existing tariffs, imports from the US, including aircraft, food, and energy, continue to surpass exports, leaving minimal impact on Morocco’s economy.

Strengthening bilateral frameworks

Since re-establishing ties in December 2020, Morocco and Israel have moved quickly to formalize cooperation. A Trade and Investment Cooperation Agreement signed in February 2022 expanded collaboration across aerospace, automotive, textiles, agri-food, and pharmaceuticals. The creation of a Morocco-Israel Business Council and plans for an Israeli economic mission in Rabat further reinforced institutional links.

Air connectivity followed suit, with Royal Air Maroc launching direct flights in March 2022 and signing a codeshare agreement with Israel’s El Al. Bilateral trade grew steadily, from $42 million in 2021 to $55.7 million in 2022, while Morocco’s imports from Israel reached $177 million in 2023. According to AAPI data, trade volume between January and September 2024 rose to roughly $82 million, showing continued resilience.

In 2025, Israel appointed its first economic attaché to Morocco to sustain this upward trend and explore emerging sectors of mutual interest.

Agriculture and water management at the forefront

Cooperation between the two countries has flourished in agriculture and water sustainability. In 2022, Morocco’s IAV Hassan II and Israel’s Volcani Center began joint research on precision agriculture, desert adaptation, and green farming. The same year, the National Office of Electricity and Drinking Water (ONEE) and Israel’s Mekorot signed a memorandum of understanding covering desalination, sanitation, and digital water systems.

A year later, both nations adopted the Marrakech Declaration to strengthen collaboration in agriculture and water management, promoting projects in aquaponics, drip irrigation, and climate-resilient crops. This led to the creation of an aquaponics technology center in Morocco.

Israeli agritech leader Netafim (Orbia) also established its first North African manufacturing plant in Kenitra, expanding the region’s access to precision irrigation technologies. Other private sector collaborations include SupPlant’s partnership with Morocco’s Rahatech to provide sensor-based irrigation for small farmers and Mehadrin’s investment in avocado farming across Morocco.

These ventures underscore the growing alignment between innovation, sustainability, and food security within the Morocco-Israel partnership. By blending advanced technology with local expertise, both countries are shaping a model for sustainable growth across Africa and the Mediterranean, maintaining a strong foundation for future cooperation despite the slowdown in momentum.