Morocco and the Gulf: forging a strategic economic alliance

Tuesday 02 September 2025 - 07:50

By: Dakir Madiha

Morocco and the Gulf: forging a strategic economic alliance

In recent years, the relationship between Morocco and the Gulf states has evolved significantly, transitioning from political solidarity to a robust strategic partnership with far-reaching economic and developmental implications. This cooperation, built on mutual trust and shared interests, positions Morocco as an essential hub for Gulf investments, unlocking opportunities across trade, finance, energy, and tourism.

Gulf investments driving Morocco’s growth

Over the last decade, Gulf investments have played a pivotal role in Morocco’s development. A notable milestone came in 2013 with the Gulf Cooperation Council's (GCC) $5 billion development fund, designed to finance infrastructure, housing, and energy ventures. Contributions from the UAE, Saudi Arabia, Kuwait, and Qatar underscored the institutional depth of the partnership.

A prime example of this collaboration is Saudi Arabia’s ACWA Power, which spearheaded the Noor Ouarzazate Solar Complex, one of the world’s largest solar projects. This renewable energy venture symbolizes Morocco’s leadership in sustainability and highlights the Gulf’s role in financing transformative green technologies. Discussions around green hydrogen and advanced energy solutions are further expanding the scope of cooperation.

Tourism as a cornerstone of collaboration

Tourism has emerged as a key area of synergy. Gulf investors have channeled substantial funds into Morocco’s hospitality sector, particularly in Casablanca, Rabat, and Marrakech. Improved air connectivity, with airlines like Emirates, Saudia, and Qatar Airways, has bolstered this dynamic. In 2024, Morocco welcomed over 17.4 million tourists, generating more than MAD 104 billion in revenue.

For Gulf investors, Morocco’s cultural appeal, political stability, and strategic location make it a prime destination. Joint ventures in tourism not only enhance employment and foreign currency earnings but also solidify the sector’s role in the bilateral relationship.

Expanding trade and industrial collaboration

Trade between Morocco and the Gulf has grown, though imbalances remain. In 2024, Morocco-Saudi trade reached approximately $1.3 billion, with Saudi exports significantly outweighing Moroccan exports. While this highlights untapped potential, opportunities for Morocco to expand agricultural and phosphate exports are evident.

Future cooperation could see the establishment of joint industrial zones and agro-processing hubs, leveraging Gulf capital to strengthen Moroccan industry. This would deepen economic integration and diversify trade portfolios.

Morocco’s strategic advantage

Morocco’s geography adds unique value to the partnership. The Tanger Med Port, Africa’s largest and one of the Mediterranean’s busiest, connects to 180 ports in 70 countries. This makes Morocco an unparalleled gateway for Gulf states seeking access to African markets and Europe through Morocco’s trade agreements with the EU and the US. Morocco’s dual positioning amplifies Gulf investments’ global impact.

Institutionalizing cooperation

To maximize the partnership’s potential, institutional frameworks are essential. An annual Morocco-Gulf Economic Forum could serve as a platform for policymakers and investors to explore opportunities and address challenges. A joint investment fund, supported by Gulf sovereign wealth funds and Moroccan institutions, could channel resources into renewable energy, food security, and infrastructure projects.

Strengthening logistical connectivity through direct shipping lines and expanded air routes would further reduce trade costs and accelerate economic exchanges.

Empowering SMEs and fostering innovation

Including small and medium-sized enterprises (SMEs) is critical. Investments should extend beyond sovereign funds and large corporations to support entrepreneurs and startups in digital technology, fintech, and e-commerce. This would drive innovation, create jobs, and foster resilience in the bilateral relationship.

Youth in both regions stand to benefit from knowledge transfer and enhanced competitiveness, ensuring that economic ties translate into societal gains.

Building a human bridge

Cultural and educational exchange is equally vital. Morocco could become a training hub for Gulf professionals in renewable energy, French language proficiency, and African market expertise. Likewise, Moroccan students and professionals could gain access to opportunities in the Gulf through scholarships, university partnerships, and cultural programs.

Investing in people, alongside infrastructure, would strengthen the long-term foundations of cooperation and create an enduring human bridge between the regions.

A shared vision for the future

Economic indicators are promising. Morocco’s economy is projected to grow by 3.9% in 2025, while the GCC’s collective growth is forecasted at 4.7%. Despite Morocco’s trade deficit widening to 162 billion dirhams in 2025, foreign direct investment surged by 59% to 16.8 billion dirhams, underlining its appeal to global investors.

By combining Gulf financial resources with Morocco’s strategic location, the partnership could form a powerful economic bloc that strengthens Arab influence in global affairs.

Morocco and the Gulf states have all the elements needed to construct a strategic economic bridge: trust, resources, geographic advantage, and vision. By moving beyond scattered investments and focusing on comprehensive, institutionalized collaboration, this partnership can redefine Arab economic cooperation and create new opportunities for shared prosperity.