UAE Becomes Morocco’s Largest Foreign Investor in 2024 with MAD 3.1 Billion Inflows

Marrakech, The Gulf Observer: The United Arab Emirates (UAE) has become Morocco’s leading foreign investor in 2024, with foreign direct investment (FDI) flows amounting to MAD 3.1 billion ($310 million), according to the latest report released by Morocco’s Office des Changes.

The UAE’s share accounted for 18.9% of Morocco’s total net FDI, reflecting a 57.8% increase from 2023, when Emirati investments totaled MAD 1.9 billion ($190 million). This surge has placed the Gulf country ahead of traditional investors such as Germany and China.

Germany ranked second with MAD 2.1 billion ($210 million) in FDI, compared to MAD 1.4 billion ($140 million) the previous year. China followed closely in third with MAD 2.05 billion ($205 million).

Overall, Morocco’s net FDI inflows reached MAD 16.3 billion ($1.63 billion) in 2024, a 52.5% increase year-on-year. This performance was supported by a 10.2% rise in FDI receipts to MAD 43.8 billion ($4.38 billion) and a 5.3% decline in expenses to MAD 27.5 billion ($2.75 billion). The improvement was largely driven by a fourfold recovery in debt instruments to MAD 7.2 billion ($720 million) and a 14.9% increase in equity securities to MAD 7 billion ($700 million), though reinvested earnings dipped slightly to MAD 2.1 billion ($210 million).

By sector, real estate activities captured 45.4% of total FDI inflows, narrowly surpassing manufacturing industries at 45.2%. Together, these two sectors absorbed over 90% of Morocco’s foreign investment in 2024.

The growing presence of Emirati capital in Morocco builds on a landmark MAD 130 billion ($14 billion) megadeal signed in May 2025 between the two countries. The agreement, the largest private investment in Morocco’s history, aims to enhance water security and energy infrastructure through a consortium involving the Mohammed VI Investment Fund, TAQA Morocco, and Nareva.

Key projects under this partnership include a 1,400-kilometer high-voltage transmission line linking Western Sahara to Casablanca and the construction of four seawater desalination plants with a combined annual production capacity of 900 million cubic meters.

Observers note that this surge reflects deepening diplomatic ties, particularly following King Mohammed VI’s official visit to Abu Dhabi in December 2023 and a private visit in early 2025, which reinforced what both sides have described as a “renewed partnership” targeting strategic cooperation.

Meanwhile, Morocco’s direct investments abroad (IDME) declined sharply, falling from MAD 12.4 billion ($1.24 billion) in 2023 to MAD 6.9 billion ($690 million) in 2024 – a 44.6% decrease. This contraction, alongside growing inward flows, shifted Morocco’s investment operations balance from a surplus of MAD 1.8 billion ($180 million) in 2023 to a deficit of MAD 9.4 billion ($940 million) in 2024.

Analysts suggest that the evolving investment landscape underscores Morocco’s strategy to diversify economic partnerships beyond its traditional European investors, with an increasing focus on Gulf and Asian countries to advance ambitious development priorities in renewable energy and water security.