Why Gulf investors are choosing Morocco in 2026: sectors, incentives and risks

How much do Gulf countries invest in Morocco?

The United Arab Emirates is the largest Gulf investor in Morocco. According to the Office des Changes, the UAE was the first source of net foreign direct investment flows into Morocco in 2024, with 3.1 billion dirhams (about US$310 million), or 18.9% of the total and 57.8% more than in 2023. The UAE also holds the second-largest stock of FDI in Morocco, after France.

Rankings depend on the measure. On gross receipts, France ranked first in 2024, and net FDI jumped to about MAD 28 billion in 2025 largely on French investment. Emirati net flows kept rising: MAD 3.6 billion in the first nine months of 2025 alone. Saudi Arabia is represented by about 250 companies in Morocco, according to the CGEM business federation.

What did the 2023 UAE–Morocco partnership agree?

The UAE–Morocco partnership declaration was signed in Abu Dhabi on 4 December 2023 by King Mohammed VI and President Mohamed bin Zayed. It came with about twelve memoranda of understanding on high-speed rail, airports, the ports of Nador West Med and Dakhla Atlantique, the Nigeria–Morocco gas pipeline, energy and water. No overall investment figure was officially announced.

The largest follow-up is in water and power. In May 2025 a consortium of TAQA Morocco, the Moroccan group Nareva and the Mohammed VI Investment Fund signed three MoUs with the government and ONEE, reported at US$13 to 14 billion by 2030. They cover 900 million m³ a year of desalination, a north–south water transfer, a high-voltage transmission line and 1,200 MW of renewables. These are agreements, not yet closed financings.

The two countries also finalised the terms of a Comprehensive Economic Partnership Agreement (CEPA) in July 2024. Its signature and entry into force should be checked before relying on its tariff terms.

Which sectors attract Gulf investors in Morocco?

Gulf investors in Morocco concentrate on five sectors: renewable energy and green hydrogen, desalination and water, tourism and real estate, agriculture and food security, and logistics toward Africa. Energy leads by size. Saudi Arabia's ACWA Power, which built the Noor Ouarzazate solar complex, won the Noor Midelt II and III solar projects in August 2025, with 800 MWp of capacity and battery storage.

Green hydrogen is the newest. Under the Offre Maroc launched in March 2024, Morocco selected five investor groups for six projects in March 2025 and signed preliminary land reservation agreements in February 2026, with up to 30,000 hectares per project. Our investment strategy work helps investors choose between these sectors.

What legal protections do Gulf investors have in Morocco?

Gulf investors in Morocco are protected by bilateral investment treaties with each Gulf state and by double taxation treaties. Morocco's investment treaties with the UAE, Qatar, Kuwait and Bahrain have been in force since 2001–2002, and a new Saudi–Moroccan investment agreement signed in October 2025 provides fair treatment, free transfer of funds and international arbitration.

Under the Moroccan foreign-exchange rules, an investment financed in foreign currency can repatriate its dividends and sale proceeds freely, without prior authorisation. Treaty rates reduce the 11.25% domestic withholding tax on dividends in 2026. Our company setup guide explains the structure and tax rates.

What incentives does Morocco offer Gulf investors?

Morocco's 2022 Investment Charter offers grants of up to 30% of an eligible investment to Gulf and other foreign investors on the same terms as Moroccan ones. The main scheme applies to projects of at least 50 million dirhams with 50 stable jobs, or more than 150 jobs. Strategic projects of 2 billion dirhams or more, typical of Gulf investments, are negotiated with the state.

The Mohammed VI Investment Fund, created by Law 76-20, is a possible co-investor. It holds 15% of the TAQA–Nareva water and power consortium. For large Gulf projects, a Moroccan public co-investor can ease land, permits and long-term contracts with state buyers.

Can Gulf investors use Islamic finance in Morocco?

Yes. Morocco licensed participative banks, its term for Islamic banks, in 2017, issued its first sovereign sukuk in October 2018 (a five-year, one-billion-dirham ijara issue, oversubscribed 3.6 times) and authorised takaful insurers from 2022. Participative finance remains small, at about 2% of banking assets, so large projects still mix it with conventional financing.

For a Gulf investor, the practical gain is the ability to finance property, equipment and working capital in Morocco with Sharia-compliant products from Moroccan participative banks, alongside the conventional financing large projects still need.

What are the risks of investing in Morocco from the Gulf?

The main risks of investing in Morocco are water stress, the slow pace of large projects from MoU to financial close, and regional politics. The macroeconomic risk is lower than before: S&P raised Morocco to investment grade (BBB-) on 26 September 2025, and Moody's moved its Ba1 rating to a positive outlook in March 2026.

• Water: after several years of drought, dams were 74% full in June 2026, but stress remains structural and some basins are far lower.
• Execution: many headline Gulf deals are MoUs. Land, permits and power contracts take time; budget for it.
• Western Sahara: UN Security Council Resolution 2797 of October 2025 calls for negotiations on the basis of Morocco's autonomy proposal. Projects in the territory, such as Dakhla, still carry reputational questions for some partners, and the UN mission's mandate comes up for renewal at the end of October 2026.
• Currency: the dirham is pegged to a basket of 60% euro and 40% dollar, with a ±5% band. A further step of liberalisation is expected, so hedge dirham revenue against dollar-linked Gulf funding.
• Regional shocks: the 2026 war involving Iran closed Gulf airspace for weeks and suspended some routes to Morocco until March 2026.

Our risk assessment and due diligence work checks these points for a specific project, partner and site before commitment.

Why use Morocco as a gateway to Africa?

Morocco is a gateway to Africa for Gulf investors because Moroccan banks, telecom operators and Royal Air Maroc already operate across West Africa. A Gulf group can base its African team in Casablanca, under Casablanca Finance City status, and reach Côte d'Ivoire, Senegal and the Sahel through Moroccan partners. The Atlantic Initiative of November 2023 adds a plan to give Sahel states sea access through Moroccan ports.

Gulf flights make the hub practical: Emirates, Qatar Airways and Saudia serve Casablanca, and flynas opened Rabat–Jeddah in July 2026. Our guide on using Morocco as a hub for West Africa covers the next step, and our Gulf and MENA investors page describes how we work with investors from the region.