AGP Executive Report

Digital Infrastructure: FiveNines Group and Nexus Core Systems plan a 20MW AI data centre near Casablanca, with design and permitting work now underway. Mining: Morocco is pushing an integrated African model to process more minerals locally and capture greater value from the continent’s resources. Manufacturing: India’s MKU plans a factory in Nouasser to make body armour, helmets and electro-optics for Morocco and export markets; investment and production dates are not yet public. Construction: Morocco has launched MAD 1.52 billion in tenders for electrical and technical upgrades at Fez stadium, while SGTM won a separate MAD 2.825 billion contract for structural and finishing work. Trade: Automotive exports rose 14.5% to MAD 116 billion by August, and agri-food exports to the EU reached $2.9 billion in the first seven months. Energy and Logistics: Switzerland is considering cooperation with Morocco on renewable hydrogen, while the final phase of Agadir port’s access road has gone to tender.

Dirham Under Pressure: Bank Al-Maghrib data shows the dirham weakening as import growth outpaces exports, with the trade deficit widening and FX liquidity tightening. Agri-Food Exports Push: Morocco is promoting local products at Abu Dhabi Global Food Week, with cooperatives pitching argan oil, dates, saffron, olive oil and couscous to Gulf buyers. Tourism Connectivity: ONMT signed a three-year plan with Italy’s GNV to grow Italy–Morocco passenger flows, targeting 350,000 departures by boosting maritime promotion. Aviation & Security: Morocco’s first F-16 Block 72 completed its maiden flight, while a separate Flydubai cockpit incident highlights ongoing aviation security concerns. Industrial Tech & Data: A Moroccan-led study advances federated learning for IoT, aiming to cut bandwidth and privacy risks in smart systems. Mining Campus Hazing: Complaints of forced shaving, sleep deprivation and humiliations at Rabat’s National School of Mineral Industry renew the hazing debate. Higher Ed Access: Morocco will exempt many international students from diploma equivalence and entrance exams, with engineering/medical/doctoral admissions based on academic record review. Energy Demand Signals: Off-peak electricity tariff use is helping firms cut bills, reflecting how industrial scheduling is reshaping power consumption.

Morocco-UAE Payments Upgrade: Bank Al-Maghrib and the UAE Central Bank signed MoUs to strengthen banking supervision and Islamic finance, and to assess linking instant payment platforms and card switches—aiming to cut the cost of cross-border transfers for Moroccans in the Emirates. Defense Logistics Modernization: Oshkosh Defense received a second Royal Moroccan Armed Forces order for 50 Heavy Equipment Transporter A1 tractors and 50 MN573 heavy-duty trailers, with parts, services and training to boost armored mobility. Energy & Industry Context: A World Bank update said Middle East growth will contract 2.1% in 2026 due to the Iran war’s impact on energy supplies—raising pressure on regional trade and logistics that Morocco-linked supply chains depend on. Agri-Food Trade Platform: Africa Food Show Morocco 2026 opens in Casablanca (17-19 Nov), bringing farm-to-fridge exhibitors and B2B meetings across food, agriculture, packaging and hospitality. Women in Film: Sale’s 19th film festival spotlighted Moroccan women filmmakers, with Arabic subtitles added for the first time.

Military Mobility Modernization: Oshkosh Defense says Morocco ordered an additional 50 Heavy Equipment Transporter (HET) A1 tractors and 50 MN573 heavy-duty trailers (with parts, services and training), with the first tranche already delivered and in service—boosting the Royal Armed Forces’ ability to move tanks, artillery and recovery assets. Payments & Islamic Finance: Bank Al-Maghrib and the UAE Central Bank signed MoUs to strengthen banking supervision and Islamic finance, and to assess interlinking instant payment platforms and messaging systems for cheaper, faster cross-border transfers for Moroccans in the Emirates. Business Formation: OMPIC reports Morocco registered 60,908 new businesses in the first seven months of 2026, led by Casablanca-Settat, with commerce and construction/real estate the biggest shares. Energy & Industry Signals: Afriquia Gaz posted MAD370.2m net profit in H1 2026 (+0.5% y/y) despite lower volumes, while a separate report highlights Morocco’s growing role in phosphate-linked fertiliser geopolitics. Sustainability Pressure: Greenpeace estimates plastic pollution costs Morocco about MAD12bn a year (0.8% of GDP), pointing to major gaps in rural waste collection.

Renewables & Power: Ember says Africa is on track for a record 17 GW of solar installations in 2026, with Morocco forecast to add about 1 GW and rapid growth also flagged in Algeria, Egypt, Nigeria and the DRC. Industrial & Trade: Morocco’s medicines regulator is tightening checks on pharmaceutical advertising, warning firms not to publish or use promotional materials before required prior declarations. Defense Supply Chain: Oshkosh Defense received a follow-on order from Morocco for 50 HET A1 tractors and 50 heavy-duty trailers, supporting the Royal Moroccan Armed Forces’ mobility modernization. Logistics & Infrastructure: A Moroccan tycoon-backed $10.7m logistics hub is taking shape in Agadir, while La Voie Express Group invests MAD 100m in a new logistics platform. Finance & Payments: CBUAE and Bank Al-Maghrib signed MoUs to deepen supervision and explore payment links, including instant payments and potential card-switch connectivity. Labor Markets: A study finds Morocco’s municipal job conditions are shaped by both local factors and neighboring-area dynamics, mapping five local labor-market types. Aviation & Tourism: MEADFA’s 2026 conference in Rabat (15–17 Nov) will bring together aviation, travel retail and tech leaders, with a “Morocco’s moment” session on the country’s growing tourism and aviation market.

Pharma Compliance Push: Morocco’s medicines regulator is tightening checks on pharmaceutical advertising, warning companies not to publish or distribute promotional materials before prior declaration, including content for conferences and digital campaigns. Fertilizer Supply Chain: Morocco became China’s top ammonia destination in May, taking 27.6% of China’s exports, a key input for OCP’s phosphate fertilizer production amid global supply disruptions. Automotive Exports: Morocco’s automotive exports climbed 14.5% year-on-year to MAD 116bn by end-August 2026, with gains across manufacturing, wiring and exterior equipment. Logistics Expansion: La Voie Express Group will invest MAD 100m in a new Lqliaa logistics platform near Agadir, adding warehousing, value-added services and distribution capacity. Rail Upgrade Progress: Casablanca’s 20bn-dirham rail overhaul is advancing a year in, adding new stations, lines and trains under the 2030 rail transformation plan. Defense Tech: Rabat-based Ballistic Defense System tested an autonomous kamikaze drone in Belgium and is preparing a larger operational model for Morocco-based trials. Energy Cooperation: Switzerland approved a report to deepen technical cooperation with Morocco on renewable hydrogen and synthetic fuels, including projects in Tan-Tan. Banking Links: Bank Al-Maghrib and the UAE central bank signed MoUs to boost supervision, Islamic finance ties, and explore linking instant payments and card switches.

Banking & Payments: Bank Al-Maghrib and the UAE’s CBUAE signed two MoUs to deepen banking supervision, Islamic finance cooperation, and explore linking instant payment platforms, card switches and financial messaging for smoother cross-border transactions. Rail & Urban Mobility: Casablanca’s 20-billion-dirham rail overhaul is progressing a year after launch, adding new stations (including Mohammed V Airport and Casablanca-Sud) plus new lines, engineering works and trains under the wider 2030 rail transformation plan. Automotive Exports: Morocco’s automotive exports rose 14.5% year-on-year to MAD 116bn by end-August, with gains across manufacturing, wiring and exterior equipment. Logistics Expansion: La Voie Express Group will invest MAD 100m in a new Lqliaa logistics platform near Agadir, adding warehousing, value-added services and distribution capacity. Maritime Industry: Morocco cancelled the bidding for a private operator to run the new Casablanca shipyard, shifting the $260m project toward national control. Aviation/Defense Industry: Lockheed Martin confirmed participation in Marrakech Airshow 2026 and will hold an Industry Day to brief Moroccan suppliers on qualification and manufacturing opportunities. Trade & Investment Signals: DHL designated Morocco a priority “Geographic Tailwinds” market, citing its role in reshaping trade corridors and nearshoring.

Aviation Security: Australia’s AFP has opened an investigation into Australian links to the flydubai co-pilot accused of attacking the captain with an axe mid-flight, with reporting focusing on his past study period in Australia and questions over possible radicalisation. Rail & Infrastructure: Casablanca’s 20-billion-dirham rail overhaul is progressing a year after launch, adding new stations, lines and trains under the wider 96-billion-dirham rail transformation plan to 2030. Defense & Industrial Partnerships: Lockheed Martin confirmed it will participate in Marrakech Airshow 2026 and hold an Industry Day to brief Moroccan suppliers on qualification and manufacturing opportunities. Finance & Payments: The UAE central bank and Bank Al-Maghrib signed MoUs to deepen supervision cooperation and explore linking instant payments and messaging systems, including Islamic finance coordination. Logistics Investment: La Voie Express Group will invest MAD 100 million in a new logistics platform in Lqliaa near Agadir, targeting warehousing, value-added services and regional distribution. Trade & Industry Performance: Morocco’s automotive exports rose 14.5% year-on-year to MAD 116 billion by end-August, while aerospace exports also climbed, alongside growth in agri-food exports. Public Finance Discipline: Morocco’s Interior Ministry told local councils to curb nonessential spending ahead of 2027 budgets and elections, while pushing stronger local revenue collection. Trade Balance Pressure: Morocco’s import bill rose sharply through August, with energy and sulfur driving nearly half the increase and widening the trade deficit.

CBUAE–Bank Al-Maghrib Cooperation: Morocco’s central bank and the UAE’s CBUAE signed two MoUs in Abu Dhabi to boost banking supervision, Islamic finance coordination, and cross-border Shariah-compliant financing, plus explore linking instant payments, card switches and financial messaging systems. Logistics Push: La Voie Express Group will invest MAD 100 million to build a 25,000-sq-metre logistics platform in Lqliaa (near Agadir), adding warehousing, value-added services and regional distribution, with about 100 jobs expected. Mining & Materials Innovation: A Moroccan phosphate mine tested a heavy-haul road built from phosphate waste rock, reporting dust-emission cuts of 91% in field trials. Trade & Fertilizer Pressure: Morocco’s import bill rose sharply through August, with energy and sulfur driving nearly half the increase; sulfur is a key input for the phosphate fertilizer industry. Road Transport Relief: Morocco raised exceptional direct fuel-linked aid for road transport professionals as hydrocarbon prices climbed, with payments due next week. Rail Modernization: ONCF has been authorized to set up a joint venture with Hyundai Rotem for long-term maintenance of Morocco’s future RER trains. Water Highway Expansion: Morocco plans a second phase of its water highway to transfer nearly 800 million m³/year between basins, supporting drinking water and irrigation. Agri-Exports: Moroccan blueberry exports to Switzerland jumped 75% in 2026, reaching record volumes and strengthening Morocco’s position among top suppliers. Energy Transition Partnerships: Morocco Energy Leaders and the Clean Energy Business Council signed a cooperation deal to accelerate renewables, green hydrogen, Power-to-X, and climate-finance projects. Automotive Support Processing: Morocco is speeding up subsidy claim processing for carmakers and suppliers via technical assistance to validate expense documents and sustain investment momentum. Higher Education Access: Morocco eased rules for international students by waiving diploma equivalence and entrance exams for many cases, with targeted reviews for engineering, medical and doctoral tracks.

Local Budget Tightening: Morocco’s Interior Ministry has told local councils to curb nonessential spending ahead of 2027 elections, prioritizing existing projects and essential services while cutting operating costs and pushing councils to boost their own revenues. Corporate Performance: Casablanca-listed companies posted a 12.9% profit rise in H1 2026, with industrial firms and insurers leading growth. Trade & Customs Tech: Morocco expanded AI-based customs checks to flag potentially undervalued imports, auditing nearly MAD 650m and adjusting declared values where needed. Automotive Support Speed-Up: The state plans to speed processing of automotive subsidy claims via technical assistance to help clear large, technical expense files faster. Energy & Imports: Energy and sulfur drove about half of Morocco’s import increase through August, widening the trade deficit. Logistics & Ports: DHL designated Morocco a “Geographic Tailwinds” priority market, while a Morocco-Spain port seminar highlighted Tangier Med’s model and future cooperation. Water Infrastructure: Morocco is moving to a second phase of its “water highway,” linking river basins to transfer nearly 800m m³/year and support drinking water and irrigation. Agri-Food Exports: Moroccan agri-food exports to the EU reached €2.66bn in Jan–Jul 2026, and blueberry shipments to Switzerland rose 75% in 2026. Education Rankings: THE’s 2027 world university rankings put South Africa in the lead, with Morocco among the continent’s top performers.

Rail & Integration: AfDB and Germany’s BMZ team up to develop Africa’s rail systems, starting with a feasibility study for an African Rail Competence Centre to cut transport costs and boost cross-border interoperability. EV Batteries: Volkswagen’s PowerCo and China’s Gotion will set up three battery joint ventures in Spain, Slovakia and Morocco, with a Valencia LFP hub planned as a European production base. Customs Tech: Morocco’s customs expanded AI-based risk checks to flag potentially undervalued imports, auditing shipments worth nearly 650m dirhams and recovering close to 50m dirhams. Logistics Hub: DHL added Morocco to its “Geographic Tailwinds” priority markets, citing nearshoring, investment flows and Morocco’s Europe–Africa bridge role. Ports Cooperation: Tangier Med hosted Latin America and Caribbean port executives to study cooperation with Europe and North Africa. Energy System Pressure: Electricity demand in Morocco is rising faster than production, driving higher imports and lower exports, while renewable output under Law 13-09 grows. Power Storage Project: Ifahsa pumped hydropower storage near Chefchaouen (300MW) aims to integrate 1GW more solar and wind and unlock private investment. Industry Exports: Morocco’s automotive sector led industrial exports in the first eight months, with cars and parts up 14.5% as energy imports widened the trade deficit. Mining Safety: A Moroccan rights group calls for urgent investigation after three mine workers died in an underground accident at Jbel Aouam.

Pumped Storage for Grid Flexibility: ONEE is pushing the $500m Ifahsa pumped hydropower storage project near Chefchaouen (300MW), designed to act like a “giant rechargeable battery” to help Morocco absorb an extra 1GW of solar and wind, with World Bank support approved in July 2026. Stadium Infrastructure Boost: Morocco awarded a MAD 2.7bn contract to the CMS-GTR consortium for external works around the Grand Hassan II Stadium in Benslimane, covering roads, utilities connections, drainage, and site access. Power Crunch Signals Higher Imports: Morocco’s electricity demand surged 9.4% in Jan–Jul 2026 versus 2.5% production growth, widening the trade gap as imports rose and exports fell—renewables under Law 13-09 still grew. Fuel Supply Secured: The government says petroleum stocks cover 40–60 days and monitoring continues amid Middle East tensions, with support measures for transport to limit inflation pressure. Policy Tests for 2027 Budget: Post-election economic trade-offs are front and center—jobs, water, housing, social protection and competitiveness—while Bank Al-Maghrib holds the policy rate at 2.25%. Mining Safety Under Scrutiny: Morocco’s Human Rights Center calls for an urgent probe after three workers died in an underground accident at Jbel Aouam in Khenifra, alleging poor safety enforcement and emergency preparedness. Innovation Momentum: Morocco climbed to 54th in WIPO’s Global Innovation Index 2026, citing gains in industrial design and high-tech manufacturing. Corporate Leadership Change: Nexans Morocco named Amine Houssaim as General Manager for Northwest Africa, aiming to ensure continuity on strategic energy-transition projects.

Morocco’s Transport Fuel Support: Morocco will keep direct, exceptional support for freight and passenger transport professionals as global hydrocarbon prices rise, adjusting aid to protect supply and public transport fares. Aviation & Logistics Tech: SAL’s newbuild Orca-class vessel Patricia delivered a Liebherr rail-mounted LPS 550 crane to Casablanca’s Marsa Maroc, boosting port handling capacity and reinforcing Morocco’s logistics modernization. EV Supply Chain in Morocco: Volkswagen and Gotion High-tech plan a €3.22bn battery and materials push across Europe and North Africa, with Kenitra producing LFP cathode materials for European plants. Innovation & Investment Signals: WIPO’s Global Innovation Index 2026 highlights AI-driven VC and R&D momentum, with Morocco among economies climbing over the past decade. Air-rail Connectivity Push: Casablanca’s railway transformation moves into implementation with a MAD 20bn plan, aiming to improve seamless links between rail and airport travel. Governance Shift: Morocco appoints Fatima Ezzahra El Mansouri as the kingdom’s first woman prime minister, setting up a new government formation after Aziz Akhannouch steps aside.

Investment Climate & Trade: A new U.S. report says Morocco is pushing hard to attract foreign investors, positioning the country as an export and “gateway to Africa” hub thanks to FTAs, political stability and infrastructure. EV Battery Supply Chain: Volkswagen and Gotion plan a €3.22bn battery and materials push across Europe and North Africa, including a Kenitra, Morocco cathode project for LFP batteries. Aviation Infrastructure: The AfDB signed a €270m deal with Morocco to extend and modernize airports (PEMIA), targeting higher capacity in hubs like Marrakech, Agadir, Fez and Tangier. Energy & Transport Costs: Morocco will keep direct fuel support for freight and passenger transport as global hydrocarbon prices rise, adjusting aid to protect fares. Economy Watch: Morocco’s Q2-2026 growth slowed to 4% as non-agricultural activity weakened, while agriculture surged. Agri-Food Exports: Morocco’s agri-food sales to the EU reached €2.66bn in Jan–Jul 2026 (+1%). Leadership: Fatima Ezzahra El Mansouri was named Morocco’s first woman prime minister, tasked with forming a government.

Government Leadership: King Mohammed VI appointed Marrakesh mayor Fatima Ezzahra El Mansouri as Morocco’s first woman prime minister after PAM’s win of 97 seats in the Sept. 23 election, tasking her with forming a coalition government. Aviation & Infrastructure Finance: AfDB signed a €270m financing agreement with ONDA for the Airport Infrastructure Extension and Modernization Program, targeting capacity upgrades in hubs including Marrakech, Agadir, Fez and Tangier. Energy & Regional Connectivity: Morocco is seeking private and multilateral funding for the $25bn African Atlantic Gas Pipeline ahead of a Q4 2026 investment decision, aiming for first gas in 2031. Transport Integration: Morocco’s high-speed rail and Casablanca airport expansion plans are pushing for a seamless air-rail single-ticket experience, with operational readiness targeted for 2029. Defense & Industrial Links: Germany approved multiple export licenses for Morocco worth about €19.27m, including tracking/communication and armored-vehicle components. Innovation & Tech: WIPO’s Global Innovation Index 2026 highlights Morocco’s climb to 54th, with AI and deep-science startups driving global R&D and venture growth. Security & Mobility: A U.S. Customs update flagged counterfeit and unsafe goods seizures tied to textile and homeware imports, underscoring supply-chain compliance pressures.

Critical Minerals & Mining: Critical Mineral Resources says drilling at its Agadir Melloul project in Morocco returned high-grade silver (including 5,390 g/ton over 20 cm) alongside copper and gold, adding a new silver target as the program expands across 272 holes. Phosphate Industry: OCP reported first-half 2026 results with EBITDA margin broadly stable around 28% despite a sulfur-price surge and weaker fertilizer demand, while Managem’s first-half profit jumped nearly tenfold on higher copper and gold output. Rail & Infrastructure: ONCF moved Casablanca’s MAD 20bn railway transformation into implementation, with major stations (Casablanca-South, Mohammed V Airport, Hassan II Stadium) under construction and 260 km of new lines planned. Innovation & IP: Morocco climbed 3 spots in the 2026 Global Innovation Index to 54th, with strong performance in design and trademark filings, according to OMPIC. Governance & Industry Climate: Fatima Ezzahra El Mansouri was appointed Morocco’s first female head of government after PAM’s election win, setting the tone for the new policy direction. Health & Safety: A Moroccan study documented 848 confirmed methanol poisoning cases (110 deaths) from 1981–2024, highlighting risks from adulterated alcohol. Business & Trade: Spanish-Moroccan trade stayed resilient, with July bilateral turnover hitting €1.98bn despite Ceuta tensions.