In a landmark agreement signaling deepening ties between North Africa and the Gulf, Morocco and the United Arab Emirates have signed a transformative $14 billion investment deal—marking the largest private investment in Morocco’s history. Focused on renewable energy, water security, and high-tech infrastructure, the megadeal reinforces Morocco’s strategic development goals and underscores the UAE’s commitment to sustainable global investments.
A Strategic Leap Toward 2030
Signed in May 2025, the agreement brings together a powerful coalition of public and private stakeholders. These include Morocco’s National Office of Electricity and Drinking Water (ONEE), the Mohammed VI Investment Fund, TAQA Morocco (a subsidiary of the Abu Dhabi-based TAQA Group), and Nareva, the energy subsidiary of Morocco’s royal holding, Al Mada.
More than just a financial deal, the partnership is anchored in shared priorities: climate action, sustainable infrastructure, and economic transformation. With a completion timeline set for 2030, the agreement is poised to reshape Morocco’s energy and water sectors, positioning the country as a regional sustainability leader.
Three Pillars of the Megadeal
The $14 billion investment focuses on three critical areas:
-
Green Electricity Transmission
A 1,400-kilometer high-voltage direct current (HVDC) transmission line—dubbed the “electricity highway”—will link solar and wind energy zones in southern Morocco, including the Western Sahara region, to Casablanca and other key northern urban centers. Capable of transmitting up to 3,000 MW of green electricity, the line is central to Morocco’s goal of sourcing 52% of its electricity from renewables by 2030. -
Seawater Desalination for Water Resilience
Four large-scale desalination plants, entirely powered by renewable energy, will be built in strategic locations:-
Tangier – 50 million cubic meters/year
-
Nador – 300 million cubic meters/year
-
Tiznit – 350 million cubic meters/year
-
Tan-Tan or Guelmim – additional capacity for arid southern regions
Collectively, the facilities will produce up to 900 million cubic meters of potable water annually—addressing Morocco’s urgent water scarcity challenges and enhancing national water security.
-
-
Job Creation and Skills Development
The project is expected to create more than 25,000 jobs during construction and over 10,000 long-term positions post-completion. Specialized training programs will also be launched to upskill Moroccan engineers, technicians, and workers in renewable energy, water treatment, and environmental sustainability—fostering local capacity and technological independence.
Strengthening Diplomatic and Economic Ties
The agreement follows months of high-level diplomatic engagement, including a private visit by King Mohammed VI to Abu Dhabi and reciprocal visits by Emirati officials. These interactions have paved the way for broader cooperation in tourism, logistics, technology, and defense.
The megadeal stands as a testament to the growing strategic alignment between Morocco and the UAE, reinforcing their shared vision for sustainable development and geopolitical collaboration.
Navigating Complex Geopolitics
While the agreement has been widely welcomed, aspects of the project—particularly those involving Western Sahara—have drawn international scrutiny. Some infrastructure will pass through disputed territories, raising concerns from global observers. Both nations, however, assert that the benefits of the project will be distributed equitably across all communities, contributing to inclusive development and regional integration.
A Mutually Transformative Deal
For Morocco, the megadeal represents a leap toward energy independence, climate resilience, and modernized infrastructure. It also enhances its standing as a green economy pioneer in Africa.
For the UAE, the agreement aligns with its Vision 2031 strategy, which emphasizes sustainable development, international investment, and diversified global partnerships.
Economic and Strategic Impact
The project’s $14 billion value is expected to generate substantial GDP growth in Morocco, catalyzing secondary industries such as manufacturing, logistics, and transport. It will also help reduce the country’s reliance on fossil fuels and water imports—making its economy more self-sufficient and attractive to foreign investors.
On a broader scale, the megadeal illustrates a growing pattern of South-South cooperation between the Gulf and Africa. As both regions adapt to climate and economic pressures, such visionary partnerships set a compelling precedent for future collaboration.