UAE and Morocco – a new economic chapter

A New Level of Collaboration

The relationship between the UAE and Morocco, which has historically been strong, has entered an accelerated phase of economic partnership following the visit of his Majesty King Mohammed VI to the United Arab Emirates on December 4–5, 2023. During this visit, several memoranda of understanding were signed across several strategic sectors, including infrastructure, energy, food security, finance and tourism, with the aim of enhancing bilateral cooperation in trade, investment and economic development, and establishing a structured partnership for the period 2024–2029.

The year 2024 was marked by intense activity aimed at laying the institutional and commercial foundations of this new partnership. A series of high-level business forums and trade missions took place throughout the year, mobilising public and private stakeholders on both sides. Notably, in June 2024, the Dubai International Chamber organised a major “Doing Business with Morocco” forum in Casablanca, which brought together over 400 participants, provided a tailored B2B platform and greatly contributed to the momentum of Emirati investment in Morocco. This was shortly followed by the Chamber’s “New Horizons” trade mission, which concluded with over 300 bilateral meetings and the signing of several memoranda of understanding with leading Moroccan institutions, resulting in investment pledges exceeding USD 2 billion. These initiatives culminated on 27 July 2024 in the conclusion of the terms of a Comprehensive Economic Partnership Agreement (CEPA) between the two countries. This landmark agreement is expected to reduce tariffs, harmonise customs procedures and open up access to services markets, thereby providing a robust legal and regulatory framework to sustain long-term economic integration.

Building on the preparatory work of 2024, the year 2025 marked a decisive shift towards implementation and execution. In March, the Moroccan Government announced the shortlisting of five international consortia under its MAD 319 billion (≈ USD 32.7 billion) “Offre Maroc” green-hydrogen programme. Among the selected bidders, Abu Dhabi-based TAQA, in partnership with Spain’s CEPSA, stood out with an ambitious project combining 6GW of new renewable capacity and large-scale electrolysers to produce green ammonia and other e-fuels for export, positioning the UAE as a strategic partner in Morocco’s emerging hydrogen economy.

The momentum continued in April 2025 with the first session of the UAE-Morocco Business Council held in Sharjah, providing an institutional platform to guide private-sector cooperation. At the same time, Morocco’s investment development agency, AMDIE, led a high-level roadshow in Abu Dhabi during the Annual Investment Meeting (AIM 2025) with the theme “From Vision to Action,” showcasing bankable opportunities and engaging with Emirati investors around Morocco’s structural reforms.

This trajectory reached a new peak in May 2025 with the announcement of the largest private investment in Morocco’s history. TAQA Group, the Moroccan National Office of Electricity and Drinking Water, and the Mohammed VI Investment Fund unveiled a MAD 130–150 billion (≈ USD 13–15 billion) programme featuring four seawater-desalination plants, an 800 million m³ inter-basin water transfer, a 1,400km / 3,000MW HVDC “electricity freeway”, 1,200MW of new renewable capacity and a 1,500MW gas-fired expansion at Tahaddart, Morocco.

Taken together, these developments signal a profound transformation in the scale and depth of UAE-Morocco relations, with both nations now aiming to double trade and investment flows over the next seven years and consolidate one of the region’s most dynamic South–South partnerships.

Diversity in Investment

While energy and water remain paramount, their importance is evidenced by significant joint ventures between leading UAE and Moroccan companies, most notably YNNA Holding and AMEA Power, the renewables arm of Abu Dhabi-based Al Nowais Investments, who have signed a strategic agreement to co-develop a 100MW wind farm in Laâyoune, Morocco, underscoring Emirati backing for Morocco’s green-industry push. Beyond these flagship energy projects, UAE investment in Morocco is expanding into a broad range of sectors, reflecting the breadth of the bilateral partnership. Capital from the UAE and other GCC member states is now flowing into real estate, hospitality, logistics, technology and tourism.

The UAE’s role as Morocco’s largest Arab investor and second-largest global investor is underpinned by a sophisticated financial-services ecosystem. Emirati capital is channelled through a variety of vehicles, including sovereign wealth funds, private-equity platforms and development-finance institutions.

Bilateral cooperation is also fostering innovation in insurance, export credit and project finance, providing Moroccan and Emirati businesses with the tools to manage risk and access new markets. A shared commitment to robust anti-money-laundering and financial-compliance standards further enhances the integrity of cross-border transactions, supporting the long-term sustainability of investment flows.

Investment between the UAE and Morocco is by no means one-way. An increasing number of Moroccan companies are establishing branches and subsidiaries in the Emirates to tap its favourable fiscal environment and dynamic consumer base. In healthcare, Casablanca-listed Akdital has unveiled plans to open four hospitals abroad, including two facilities in the United Arab Emirates (one in Dubai and another in a second emirate), which highlights how Moroccan champions are leveraging the UAE as a springboard for regional expansion. The two-way dynamic is further illustrated by Africorp Industry’s early-2025 acquisition of a controlling stake in Dubai-based Intercoil International, bringing Emirati manufacturing expertise under Moroccan ownership and expanding the footprint of African capital in the Arabian Gulf.

Landmark UAE - Morocco Deals Converge with Morocco’s New Investment Drive

This deepening partnership is strategically aligned with Morocco’s forward-looking economic agenda, particularly its recently revised Investment Charter. This updated framework was designed to enhance Morocco’s attractiveness to foreign investors through robust support mechanisms, including public subsidies and significant tax and customs advantages. For investment projects exceeding MAD 50 million (equivalent to approximately $5.5 million), the signing of an investment agreement with the Moroccan Government can unlock full exemptions from VAT and custom duties for the implementation of investment programmes. Such incentives, alongside Morocco’s strategic location and stable political and business environment, are proving highly effective at attracting substantial foreign capital.

To convert commitments into concrete projects, Morocco has overhauled its 12 Regional Investment Centres (CRIs), transforming them into fully operational one-stop shops, which assist investors throughout the life-cycle of their operations.

Financing capacity has also been bolstered by the MAD 45 billion Mohammed VI Investment Fund, whose partnerships with multilateral lenders and global asset managers are drawing in private capital through a series of sector-specific vehicles. All these pro-investment measures unfold against, and are accelerated by, Morocco’s preparations to co-host the 2030 FIFA World Cup: a national programme that will double airport capacity to 80 million passengers, extend the high-speed rail network to Marrakech and Agadir and deliver a new 115,000-seat Grand Stade de Casablanca (Grand Stadium of Casablanca).

It is notable that amongst the other top investors in Morocco, which has positioned itself as a gateway into Africa as well as a hub for green industry growth, are Saudi Arabia, Qatar and Kuwait, in each of which Al Tamimi & Company also has established offices.

Concluding comments

The recent wave of UAE Government investments into Morocco marks a pivotal moment in the economic relationship between these two dynamic nations. Beyond the impressive financial figures, these collaborations signify a deep strategic alignment, focusing on sustainable development, economic diversification and mutual growth. By targeting vital sectors such as energy, water and infrastructure, the UAE’s investments are not only addressing Morocco's immediate developmental needs, but are also laying the groundwork for a resilient and prosperous future. For businesses and investors, particularly those from the UAE (and other Arabian Gulf regional countries), Morocco presents a landscape rich in opportunities. Al Tamimi & Company stands ready and is uniquely well positioned to facilitate this exciting new era of partnership, to support its clients by providing regionally informed legal advice and sectoral expertise necessary to navigate the opportunities and complexities of the thriving investment environment in Morocco, the UAE and other key Middle Eastern states.