Rabat, Morocco – Grand visions of economic collaboration between Morocco and the United Arab Emirates (UAE) remain unrealized nearly a year after King Mohammed VI’s landmark visit to Abu Dhabi in December 2023. Despite the signing of ambitious agreements aimed at injecting billions of dollars into key sectors like renewable energy, tourism, and industrial manufacturing, none of the projects have yet taken off, raising concerns about bureaucratic obstacles and investor confidence.
The agreements, heralded as a “renewed and consolidated partnership” between Rabat and Abu Dhabi, were seen as a pivotal step towards bolstering bilateral trade and investment ties. However, a mix of regulatory challenges, disputes over existing Emirati ventures in Morocco, and demands for clearer investment assurances have hindered their execution.
The accords, unveiled with much fanfare during King Mohammed VI’s visit, outlined several transformative projects: $1.2 billion Renewable Energy Development – Investments targeting solar and wind power projects in Morocco’s southern regions, particularly Laayoune and Dakhla, to support the country’s ambitious transition to 52% renewable energy by 2030; $500 million Tourism Development Plan – Aimed at upgrading coastal and desert tourism hubs, leveraging Morocco’s strategic location to attract high-net-worth travelers from the Gulf and beyond; $700 million Industrial Zone Near Casablanca – Proposed as a hub for automotive and aerospace manufacturing, this project would integrate Morocco’s existing export capabilities with Emirati capital and expertise.
These projects were expected to boost Morocco’s economy significantly, creating thousands of jobs and enhancing the country’s position as a gateway for investment in Africa.
Despite their promise, the agreements remain stalled due to several factors: Regulatory and Bureaucratic Bottlenecks – Emirati investors have reported difficulties obtaining permits, leading to delays in project rollouts. The process has highlighted the need for more streamlined and transparent mechanisms in Morocco’s investment ecosystem; Existing Business Disputes – Emirati firms operating in Morocco, particularly in real estate and construction, have faced hurdles including land acquisition disputes and slow regulatory approvals. Calls for Stronger Guarantees – Abu Dhabi has sought assurances on legal protections and dispute resolution mechanisms, reflecting broader concerns about the investment climate.
Moroccan authorities have been quick to address the delays. Several initiatives were launched in 2024 to improve the investment environment: Digitalisation of Permits and Processes – In April 2024, the Moroccan government introduced an online platform aimed at expediting the approval of investment projects and reducing bureaucratic red tape; New Investment Incentives – A tax reform package announced in June includes exemptions of up to 30% for foreign investors in priority sectors, such as renewable energy and tourism; Strengthened Legal Frameworks – To bolster investor confidence, Rabat has begun revising its commercial laws, particularly those governing foreign investments, to offer clearer protections.
The signing of a Comprehensive Economic Partnership Agreement (CEPA) in July 2024 between the UAE and Morocco marked a significant milestone in their trade relations. The agreement is projected to increase bilateral trade to $10 billion annually by 2030 and eliminate tariffs on 90% of traded goods. It is seen as a critical step in fostering a more conducive environment for the delayed investments.
Moreover, the UAE has expressed interest in Morocco’s emerging green hydrogen sector. Discussions are underway for a feasibility study on a $2 billion hydrogen facility in the Souss-Massa region, which could further cement the partnership’s relevance to global energy transitions.
While the delays have cast a shadow over the partnership, both Rabat and Abu Dhabi remain committed to realising their shared ambitions. Analysts note that these hurdles are not uncommon in large-scale international investments and believe the foundation for collaboration is strong.
Moroccan officials, for their part, are optimistic. “The strategic nature of our partnership with the UAE ensures that these challenges are temporary,” a senior government source said. “We are committed to resolving any outstanding issues and creating a win-win framework for both nations.”
As the two countries continue to iron out the details, the world watches to see if Morocco and the UAE can turn these agreements into a transformative reality that could reshape economic cooperation across the region.
