Report underscores Morocco as gateway for Gulf investments into Africa

A recent report by the German Konrad Adenauer Foundation underscores Morocco’s role as a gateway for Gulf investments into Africa, deepening its strategic and economic ties with Gulf countries.

It highlighted how bilateral investment between Morocco and the UAE grew from 525 million to MAD 1.55 billion between 2018 and 2021, with plans to double by 2030.

The report acknowledged that Morocco became a middle power with notable influence in the MENA region particularly in its relations with the Gulf countries, leveraging its strategic location, monarchical stability, and diplomatic agility.

Its neutrality in disputes like the 2017 Qatar crisis, when it avoided taking sides to preserve economic and diplomatic ties, enhance its credibility as a security partner, added the same source.

The report stressed that Morocco’s foreign policy in the Middle East, especially with the Gulf Cooperation Council (GCC) countries, is driven by strategic interests, and economic imperatives.

The Gulf’s strategic importance to Morocco, the same source continues, “lies in its economic weight and geopolitical influence.”

The Gulf Cooperation Council countries, namely Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain, and Oman, are major oil and gas producers, controlling about 20% of global oil that moves through the vital Strait of Hormuz.

For Morocco, which depends on imported energy, the report mentioned that Gulf investment and aid have played a key role in boosting economic diversification and infrastructure development.

UAE-Morocco strong ties:

The report stated that the UAE has become one of Morocco’s most important partners, driving major investment in real estate, tourism, infrastructure, and renewable energy.

By 2024, Emirati foreign direct investment in Morocco had climbed to around $30 billion, up from only $14 billion in 2021.

King Mohammed VI’s visit to Abu Dhabi in December 2023 also marked a key moment, resulting in a joint declaration to strengthen the partnership and several new cooperation agreements.

The report emphasized that recent geopolitical developments, including the 2020 Abraham Accords, have fostered closer ties between Morocco and the UAE.

The UAE’s shift since 2021 from military interventions toward diplomacy and soft power aligns with Morocco’s preference for stability and economic partnerships, underscored the same source.

It highlighted that “the deepening of UAE-Morocco relations is evident through diplomatic and economic milestones, including the opening of a consulate in Laayoune in 2020,” followed by UAE investments via “sovereign wealth funds such as the Abu Dhabi Investment Authority and Mubadala, which integrate Morocco into the UAE’s economic diversification strategy.”

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