In a significant development highlighting the deepening economic relations between the UAE and Morocco, investments from the UAE into Morocco have surged to a substantial $30 billion. This revelation came from Jamal Saif Al Jarwan, Secretary-General of the UAE International Investors Council, shedding light on the UAE’s expanding global investment footprint.
The UAE’s overseas investments, both government and private, have soared to approximately $2.5 trillion as of early 2024, positioning the nation as a formidable global investor. Notably, the UAE ranks first in the Arab world, West Asia, and 15th globally for foreign investment, boasting a presence in 90 countries across six continents.
While the United States leads the pack in terms of UAE investments, with significant stakes in bonds and direct investment, Morocco has emerged as a noteworthy destination, securing a $30 billion share. This substantial investment underscores the strategic importance of Morocco to the UAE’s investment portfolio.
The scope of UAE investments in Morocco spans a diverse array of sectors, as outlined in a joint declaration signed between the two nations last December. This declaration aims to elevate economic, commercial, investment, and industrial cooperation, laying the groundwork for mutually beneficial partnerships.
Key areas of focus for UAE investments in Morocco include infrastructure projects such as high-speed rail, airport and port development, and sustainable sectors like green hydrogen production. Additionally, collaboration with Morocco’s OCP Group in the realm of food security, along with ventures in tourism, real estate, and post-earthquake reconstruction, are prominent facets of the burgeoning economic relationship.
Morocco’s strategic location at the crossroads of Africa, Europe, and the Middle East positions it as a gateway for the UAE to explore energy infrastructure partnerships with African nations. Projects such as the Africa-Atlantic gas pipeline and the Dakhla Gateway to Africa development are poised to benefit from enhanced cooperation between the two countries.
The UAE’s investments in Morocco are part of a broader global strategy, with sovereign wealth funds, government and semi-government companies, Emirati banks, and private/family businesses all playing a role. Leading the charge is the Abu Dhabi Investment Authority (ADIA), along with Mubadala, the Dubai government’s Investment Corporation, and other key funds and companies.
Al Jarwan emphasized the pivotal role of the Abu Dhabi Development Fund in expanding the business of national companies, facilitating their entry into new markets, and financing development projects globally. Notable recent deals include ADIA and Apollo’s acquisition of Univar Solutions, CDPQ’s investment in DP World, and e&’s stake acquisition in Vodafone.
The thriving investment and M&A landscape in the UAE reflect the country’s strong standing among global partners. Ranking first in MENA for both inbound and outbound M&A deals by value in 2022, the UAE’s private sector has been instrumental in driving investment growth. Over the years, outward foreign investments from the UAE have witnessed exponential growth, reflecting the country’s commitment to fostering global economic development.
Al Jarwan emphasized the comprehensive international, regional, and strategic partnerships of the UAE, emphasizing the positive impact of UAE investments on partner nations’ economies and living standards. These investments have played a crucial role in easing crises, creating jobs, and improving living standards worldwide.
The signing of the joint declaration last December marks a pivotal moment in the economic relationship between Morocco and the UAE. With a shared vision for growth and prosperity, the two nations are poised to unlock new opportunities that could have a lasting impact on the global stage.
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