Saudi Arabia and Morocco Map Out a Roadmap to Enhance Trade and Investment

SadaNews - Morocco and Saudi Arabia are seeking to increase trade exchanges and enhance the flow of investments by taking advantage of available opportunities, especially as both countries prepare to host the World Cups in 2030 and 2034, respectively.

Saudi Arabia achieves a significant trade surplus with Morocco, given the size of its petroleum product exports, and both parties are working to balance trade by pushing for increased and diversified trade, including studying the launch of a direct maritime line.

A delegation from the Saudi Chambers of Commerce, representing the private sector, held meetings with four Moroccan ministers on Tuesday in the capital, Rabat. The launch of the maritime line and presenting investment opportunities in the food industry, renewable energy, and tourism were among the main topics raised by the Saudi side to Moroccan officials, according to discussions attended by "Asharq".

Trade Exchange between Morocco and Saudi Arabia

Trade exchange between the two countries reached approximately 26.4 billion Moroccan dirhams (about 3 billion USD) last year, an annual increase of 7.3%. Moroccan imports from Saudi Arabia accounted for the majority, at about 24.8 billion dirhams, mostly petroleum products, while exports from Rabat did not exceed 1.15 billion dirhams, according to recent data from the Moroccan Ministry of Industry and Trade.

Hassan Muejib Al-Huweizi, President of the Saudi Chambers of Commerce, indicated that the meetings with the Moroccan ministers resulted in an agreement on the necessity of activating the maritime line between the two countries and forming a team to work on that next week. He added: "We have support from both the Saudi and Moroccan governments."

Al-Huweizi considered in a statement to "Asharq" that "the maritime line will enable the private sector to play its role in enhancing trade exchange between the two countries, as they are both strong economies capable of opening partnerships in other markets."

In addition to the maritime line, both sides emphasized the need to expedite the implementation of the idea of establishing a joint fund to support medium and small companies for export and investment in both countries with the participation of local and regional banks.

According to official figures, Saudi investments in Morocco are estimated at around 6 billion USD, mostly concentrated in the renewable energy sector, alongside tourism, healthcare, and textiles. "ACWA Power" is the largest Saudi company investing in Morocco and operates the largest solar energy project in the country.

World Cup in Morocco and Saudi Arabia.. Great Opportunities

Morocco offers significant investment opportunities for Saudi businessmen, especially in the industry, trade, and infrastructure sectors, according to Ryad Mezzour, Minister of Industry and Trade, in an interview with "Asharq". He added that the country is engaged in numerous large projects in preparation for hosting continental and global events, foremost being the 2030 World Cup, which represents an important opportunity for Saudi investment.

The Saudi delegation showed great interest in the food industry sector as the Kingdom aims to achieve food security. Opportunities for increasing Saudi investments in agriculture, seawater desalination, and renewable energy production were also discussed. The Saudi Chamber of Commerce requested tariff exemptions to increase date exports to Morocco due to high demand for them, which is currently imported from other countries.

Morocco exports to Saudi Arabia passenger cars, cosmetics, sugar, citruses, and vegetables, while it imports petroleum products, plastics, sulfur, dates, and paper. The launch of the maritime line could increase trade flow between the two countries, reaching the target of 5 billion USD, as stated by Moroccan Minister of Industry and Trade Ryad Mezzour in a previous interview with "Asharq".

Walid Al-Raihan, Secretary-General of the Saudi Chambers of Commerce, believes that "the trade numbers between the two countries do not meet aspirations and do not exploit the existing potentials in both countries". He noted in a conversation with "Asharq" that Saudi Arabia's hosting of "Expo 2030" and the World Cup in 2034, as well as the preceding World Cup in Morocco in 2030, opens significant investment opportunities in various sectors between the two countries.

To benefit from the rush of projects under Saudi "Vision 2030", the first Moroccan companies have begun to enter the Saudi market, led by "Akdital", which intends to open a hospital in Riyadh. Additionally, "TGCC", the largest construction company in Morocco, has opened a branch aimed at developing projects with the "Naif Al-Rajhi Investment Group".