Morocco, Saudi Arabia deepen investment ties across strategic sectors

Morocco and Saudi Arabia have signed an agreement to encourage and protect mutual investments, aiming to safeguard investors’ rights and boost cross-border capital flows as the two nations strengthen economic cooperation.

The deal was signed in Rabat by Moroccan Minister of Economy and Finance Nadia Fettah Alaoui and Saudi Investment Minister Khalid Al-Falih who is on an official visit to the North African nation at the head of a high-level government delegation.

In a post on its official X account, the Saudi Ministry of Investment said both ministers signed “an agreement to encourage and protect mutual investments between the two Kingdoms, to strengthen the economic partnership between them, safeguard investors’ rights, and support the flow of investments in various sectors.”

Under the agreement, the two countries committed to creating a stable and transparent environment for investors. It guarantees fair and equitable treatment, freedom to transfer funds, and protection against expropriation without fair compensation. The pact also enables investors to seek international arbitration in the event of disputes

The two sides also discussed ways to enhance financial partnerships, economic policies, stimulate growth, and strategies for financing major developmental projects.

The deal also aims to promote sustainable economic growth and address challenges faced by investors, thereby strengthening bilateral economic cooperation and deepening the strategic partnership between the two countries.

The Saudi Investment Minister held separate talks with other Moroccan officials, including Minister of Investment Karim Zidane and Minister of Industry and Trade Ryad Mezzour, as well as with a group of business and financial leaders.

The meetings discussed the strategic vision for sustainable development, the evaluation of public policies and the improvement of the business environment and explored ways to enhance economic cooperation between the two countries. Strengthening industrial and commercial cooperation, developing manufacturing industries, and attracting new investments, were also at the focus of talks.

This partnership aims to strengthen cooperation while creating employment opportunities for young workers in both countries.

Morocco and Saudi Arabia are thus cementing their economic partnership through targeted investments in renewable energy, industrial development, and infrastructure, marking a significant shift in bilateral cooperation between the North African kingdom and the Gulf powerhouse.

During talks with Moroccan officials, the Saudi Investment Minister praised Morocco’s business environment and institutional stability, reported l’Economiste daily.

The Saudi minister emphasized that Moroccan markets represent strategic importance for Saudi companies seeking regional expansion opportunities. His remarks underscore a broader Saudi strategy to diversify investment portfolios beyond traditional oil-dependent sectors, with Morocco emerging as a preferred destination for capital deployment estimated at several billion dollars.

Energy transition stands at the forefront of this collaboration, with Morocco’s exceptional solar and wind resources attracting significant Saudi interest in renewable energy projects and green hydrogen production. Morocco’s geographical advantages and established renewable infrastructure make it an ideal platform for Saudi Arabia’s energy diversification ambitions, aligning with both nations’ sustainable development goals, the daily commented.

Industrial cooperation forms the second pillar of engagement, encompassing automotive manufacturing, mining operations, and phosphate processing. The just concluded investment protection agreements have established legal frameworks securing supply chains and joint ventures in these strategic sectors, providing confidence for long-term Saudi commitments.

Tourism and infrastructure development complete the strategic framework, supported by Morocco’s ongoing reforms and Saudi Arabia’s Vision 2030 sustainability objectives.

Trade figures reflect growing economic integration, with bilateral commerce reaching 26.4 billion dirhams in 2024, up from 24.6 billion the previous year. Moroccan exports to Saudi Arabia totaled 1.15 billion dirhams, while imports stood at 24.8 billion, indicating substantial room for rebalancing through increased Moroccan industrial output.