Emirati investment projects in Morocco on the rise
Morocco is becoming an important investment destination for the United Arab Emirates. According to data revealed by Jamal Saif Al Jarwan, secretary general of the Emirates Council of International Investors, Rabat has already managed to attract a total of 30 billion dollars as the two nations expand their economic ties.
Al Jarwan noted that Emirati investments abroad, both government and private, reached around 2.5 trillion dollars by early 2024, cementing the Arab country as a leading global investor.
While the US holds the largest share of Emirati investments, with 65 billion dollars in bonds and 50 billion dollars in direct investment, followed by Egypt with 65 billion dollars, the UK and India with 40 billion dollars each in direct investment, Morocco has achieved a significant position with its 30 billion dollar share.
The UAE's investments in Morocco cover a wide range of sectors and are based on a joint declaration signed last December that addresses plans to enhance economic, trade, investment and industrial cooperation. Entitled 'Towards an Innovative, Renewed and Rooted Partnership', the two countries open a new chapter in the bilateral economic relationship, building on their strengths and shared vision for growth and prosperity.
Key areas of investment include infrastructure projects such as high-speed railways, airport and port development, as well as sustainable sectors such as green hydrogen production, food security cooperation with Morocco's OCP Group, tourism, real estate and post-earthquake reconstruction.
Morocco's strategic location also positions it as a gateway for the UAE to explore energy infrastructure partnerships with African nations. In this regard, as Morocco World News asserts, projects such as the Africa-Atlantic gas pipeline and the development of the Dakhla Gateway to Africa will benefit from increased cooperation between the two countries.
Emirati investments in Morocco are part of a broader overall strategy divided between sovereign wealth funds (72%), government and semi-government companies (18%), Emirati banks (2.5%) and private/family companies (7.5%). The Abu Dhabi Investment Authority (ADIA) plays the leading role here along with Mubadala, the Dubai Government Investment Corporation and other key funds and companies.
Al Jarwan underlined the pioneering role of the Abu Dhabi Development Fund in expanding the business of domestic companies, enabling their entry into new markets and financing development projects that have benefited many countries globally.
Major global deals over the past year include ADIA and Apollo's 8.2 billion dollar acquisition of Univar Solutions, CDPQ's 5 billion dollar investment in Dubai's DP World and e&'s acquisition of a 9.8% stake in Vodafone for 4.4 billion dollars.
The thriving investment landscape in the UAE reflects the strong confidence placed in the country by global partners. On this point, it is worth recalling that the Gulf nation ranked first within the MENA (Middle East and North Africa) region in terms of inbound and outbound M&A deals in 2022, with the private sector leading the way.
Since 1991, the UAE's outbound foreign investments have increased from 1.9 billion dollars in the 1990s to 240 billion dollars by the end of 2022.
"The UAE has comprehensive international, regional and strategic partnerships and strong ties with many sisterly and friendly countries," said Al Jarwan, who stressed that "Emirati investments, currently present in 90 countries around the world, help to support the country's positive image, either directly or indirectly."
Al Jarwan referred to the developmental nature of most Emirati investments abroad, aimed at boosting the economies of partner countries, improving living conditions and enhancing Abu Dhabi's global reputation. These investments have created jobs for young people and improved the living standards of millions of people around the world.
