Morocco and Saudi Arabia strengthen economic ties
Morocco and Saudi Arabia are two important countries in the Arab world.
Both nations stand out for their political and commercial influence in the MENA region (Middle East and North Africa) and also for their existing mutual ties.
The two kingdoms have an important political and commercial relationship and are currently working to improve existing trade and investment flows in both directions.
Morocco and Saudi Arabia are exploring ways to increase trade and investment flows at a time of great opportunity, given the international profile of both nations, which are also in the spotlight as they will host the next World Cups in 2030 and 2034, with Morocco co-hosting the 2030 tournament with Spain and Portugal. These events will lead to major investments in new infrastructure of all kinds, services, etc.
Both sides see great potential for further cooperation in trade and investment. On the one hand, due to the significant economic size of the Saudi kingdom, a true giant in the Gulf region, and on the other hand, due to the great development that Morocco is experiencing under the reign of Mohammed VI, with an important plan drawn up over the last 25 years to develop the country in all areas, including trade, finance and industry, with tools such as the New Investment Charter, which promotes all types of investment in the country through facilitating measures such as significant tax exemptions, economic injections valued at a total of around 30 billion dollars, and the facilitation and automation of procedures for entrepreneurs, investors and all types of businesses.
As for the current relationship between the two nations, Saudi Arabia has a significant trade surplus with Morocco, especially considering the large volume of hydrocarbon exports from the Saudi kingdom, which is a real powerhouse in this field. However, the Moroccan kingdom is trying to gain ground in this sector with significant deposits currently being developed, particularly natural gas, operated by major international companies such as Sound Energy and Predator Oil & Gas.
Moroccan imports from Saudi Arabia account for the bulk of trade, valued at 3 billion dollars last year, with approximately 2.48 billion dollars, mostly petroleum products, while exports from Rabat do not exceed 115 million dollars, according to recent data from the Moroccan Ministry of Industry and Trade.
The task now is to balance this trade balance and give Morocco greater weight in trade relations between the two countries. Greater expansion and diversification of trade is sought through the launch of a direct shipping line. In this regard, this dynamic includes a new shipping line operated by Hapag-Lloyd and Maersk, which aims to strengthen the connection between Moroccan ports, particularly Tangier Med, and Saudi ports, especially the port of Jeddah. The project is part of a broader effort to improve trade and investment relations between the two countries. The line is operated by the Saudi Arabian Port Authority (Mawani) and connects the Middle East with Europe via Africa. This serves as a clear example of the efforts to further strengthen trade links between the two kingdoms.
The business sectors of both nations are exploring options to improve investment in both countries and further optimise trade.
To further strengthen the link, a delegation from the Federation of Saudi Chambers of Commerce, representing the private sector, met with various Moroccan ministers in Rabat.
The launch of a shipping line and the presentation of investment opportunities in the food industry, renewable energy and tourism were among the most prominent issues raised by the Saudi side with Moroccan officials, according to Bloomberg Asharq.
Trade between the two countries reached approximately 3 billion dollars last year, an annual increase of 7.3%, according to official data. These are figures to be taken into account, but there is a desire to improve them even further in the near future.
