AGP Executive Report

Defense Manufacturing: EDGE signed a deal with Morocco to explore local production of small arms and aircraft engines, alongside a contract to supply and integrate precision weapons on Moroccan drones. Forafric Global also plans to acquire Moroccan defense platform AL NASR, subject to due diligence and approvals. Economic Strategy: King Mohammed VI urged new strategies for industrial development, energy, water and food security, AI and job creation, with a bigger role for private investment. Fertilizers: Morocco’s Competition Council is reviewing Koch’s proposed 50% stake in OCP’s Jorf Fertilizers Company I, which produces up to 1.2 million tonnes of phosphate fertilizers a year. Digital Industry: Morocco’s “AI Made in Morocco” plan aims to build local control over digital infrastructure and computing, with a roadmap targeting MAD 100 billion in GDP contribution by 2030. Agriculture: UAE’s Elite Agro committed about $38 million to a 400-hectare farm in Sidi Yehia for blueberries, mandarins and avocados. Morocco’s agricultural research institute also explored US cooperation on crop improvement and climate-resilient farming.

Industrial Agenda: King Mohammed VI called for new strategies spanning industrial development, energy, food security and AI, alongside more private investment and youth opportunities. Aerospace Growth: At the Marrakech Airshow, Morocco’s aerospace industry group projected exports could climb from $3 billion in 2025 to $5 billion within three years, as the country pursues higher-value engine and landing-gear assembly. Defense Manufacturing: UAE firm EDGE won a contract to integrate precision-guided weapons into Morocco’s unmanned aircraft fleet, and is also moving toward local production of small arms and propulsion systems. Advanced Manufacturing: UM6P formalized a consortium with Boeing, Airbus, Lockheed Martin, Safran and Moroccan institutions to develop an advanced-manufacturing hub near Casablanca. Energy Exploration: ONHYM and Viridien agreed to combine subsurface data and analytics to support hydrocarbon exploration and attract investment. Food and Livestock: A $33.1 million USDA grant will support Morocco’s food-safety and livestock sectors.

Energy Exploration: Viridien and state agency ONHYM will combine subsurface data and analysis to assess Morocco’s onshore and offshore basins and attract hydrocarbon investment. Defence Manufacturing: EDGE signed an agreement to explore local production of small arms and aircraft engines, and a separate deal to supply precision weapons for Moroccan combat drones. Aerospace: Marrakech Air Show agreements include three projects worth €18 million, $16.5 million and €10 million, expected to create about 940 jobs. Airbus also plans a helicopter maintenance hub serving Morocco and West Africa. Agriculture: The shortage of greenhouse plastic film has eased, but suppliers say tight raw-material supplies and higher costs remain a structural risk for growers.

Agriculture: Morocco’s greenhouse-film shortage has eased, but suppliers warn that tight raw-material availability remains a structural risk for growers. Defence Manufacturing: Moroccan Military Industry plans to start delivering locally made armoured-vehicle turrets in March 2027, with ammunition production and a counter-drone version also in development. A separate French partnership would develop and produce long-range autonomous drones in Morocco. Aerospace: Industry group GIMAS sees exports rising from $3 billion to $5 billion within three years as the sector moves into higher-value systems. Safran is investing 120 million dirhams in a Nouaceur plant for aircraft-engine oil systems, expected to create about 100 jobs. Industrial Investment: Chinese aerospace supplier Hangyu plans a production base in Tangier Tech City, with investment of up to €105 million. Digital Infrastructure: A 20-megawatt AI data centre near Casablanca has entered early design, as Morocco seeks to expand its computing capacity.

Digital Infrastructure: A 20MW AI data centre near Casablanca has entered early design, with plans for the wider platform to reach 180MW and run on renewable energy. Aerospace: Morocco’s sector is targeting $5bn in annual exports within three years, up from $3bn last year. Safran plans a 120 million-dirham Nouaceur factory for aircraft engine oil systems, while China’s Hangyu Technology plans a €105m aerospace-components base in Tangier Tech City. Defence Manufacturing: Morocco is developing two dedicated industrial zones spanning 675 hectares. India’s MKU plans to make electro-optics and armour near Casablanca, while a partnership with Harmattan AI aims to develop a locally produced autonomous strike drone. Regional Services: OCP subsidiary JESA is helping prepare Senegal’s 400km gas transmission network, extending Moroccan engineering expertise across the region.

Marrakech Airshow: Morocco signed agreements on AI, drone technology and aviation research as it looks to build domestic aerospace and defense capacity. Aerospace Supply Chain: Airbus says Moroccan-made components now feature across its global fleet, while Safran plans to assemble 300 engines a year in the country. New Manufacturing: India’s MKU plans a factory near Casablanca to make surveillance equipment and body armor for Morocco and export markets; investment and production timelines are not yet public. Agriculture: UAE-based Elite Agro Holding announced a 140 million dirham investment in a 400-hectare farm in Morocco, part of a wider regional investment package. Water Outlook: Dam reserves more than doubled year on year to 11.12 billion cubic metres, offering improved support for farms and industry, though levels vary by basin.

Aerospace: Airbus says Moroccan-made parts now feature across its fleet, while Safran plans to assemble 300 engines a year in Morocco. Marrakech Air Show deals also cover a Safran industrial facility, more locally made components for Royal Air Maroc and aerospace research. Agriculture: UAE-based Elite Agro Holding announced Dhs140 million for a 400-hectare farm in Morocco, part of Dhs660 million in projects across three countries. Digital Infrastructure: A planned 20MW data centre near Casablanca will target high-density AI computing, with Moroccan engineers and advisers involved. Water: Dam reserves more than doubled year on year to 11.12 billion cubic metres, though levels vary by basin. Defense Manufacturing: Indian firm MKU plans a Moroccan factory for electro-optics and protective equipment, building on existing supply ties with the armed forces.

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.