Saudi Arabia and Morocco are forging deeper economic ties after agreeing a multi-billion dollar cooperation pact in some key industrial areas.
It is one of its largest such transcontinental deals of its kind between Arab and African countries, and the ambition is broad.
The pair have shaken hands on collaborative work in areas such as phosphates, renewable energy, and electric cars and their batteries.
Proponents said shared expertise and increased bilateral trade between the two kingdoms would help power technological advances to the benefit of both, diversifying investments and sources of income.
Other Arab countries—such as the United Arab Emirates and Egypt—could join at a later stage, sources told Al Majalla.
Long-term strategies
The agreement is designed to power economic growth and social advancement in-line with Saudi Arabia’s Vision 2030 policies and Morocco’s plan to double its industrial exports via its New Development Model.
Last month, the Saudi Council of Ministers—chaired by King Salman bin Abdulaziz Al Saud—approved a memorandum of understanding between the Saudi Ministry of Industry and Mineral Resources and the Moroccan Ministry of Energy Transition and Sustainable Development.
It was struck on the sidelines of the International Mining Conference, hosted by Riyadh, during which 79 countries and 13 international organisations discussed the production of strategic minerals from the Atlantic Ocean to Central Asia.
Days later, Rabat hosted the 28th General Assembly of the Arab Organisation for Industrial Development and Mining in early June, letting ministers discuss ways to integrate their minerals industries.
Ministerial visits add focus
Saudi trade minister Bandar Alkhorayef said the Kingdom was “betting on industry to diversify the economy by formulating strategies targeting 12 sectors”, including those related to sustainability, security, and natural resources.
He visited industrial centres in Tangier and Casablanca that help power Morocco’s automobile and phosphates sectors. The Saudi-Moroccan cooperation will incorporate phosphate fertilisers, as well as the medical, military, technological, and energy sectors.
The General Confederation of Moroccan Enterprises cited “numerous opportunities for cooperation... in innovative and strategic projects”.
The two countries need a permanent maritime link to connect the ports of Jeddah and Tangier to integrate their industrial projects and stimulate trade, a long-standing demand of the Saudi Moroccan Business Council.
Both sides agreed to “conduct in-depth studies” to identify joint industrial projects that could benefit from the technology, scientific research, or expertise.
Driving vehicle production
Cooperation in the automotive industry is a focus of ambition. Saudi Arabia wants to be one of the world’s top manufacturers and exporters of electric cars by 2030, producing 500,000 electric vehicles (EVs) annually by the end of the decade.
It already has its first EV brand: Ceer. This was unveiled by Saudi Crown Prince Mohammed bin Salman in November 2022. A manufacturing facility in Jeddah’s King Abdullah Economic City (KAEC) is under construction.
Once built, it will be the largest auto industrial facility in the Middle East, at over one million square metres.
