Why Morocco is accelerating its push for private investment

King Mohammed VI has called for an acceleration of economic reforms to transform Morocco into a rising industrial power, targeting a major increase in private-sector involvement. Speaking at the opening of the new legislative session on 9 October 2026, the King urged the private sector to take a lead role in job creation and innovation (Moroccoworldnews).

This shift is critical for you because it marks a transition from state-led growth to a model where private capital is expected to represent two-thirds of all investment by 2035. For businesses and investors, this means new incentives and a focus on high-growth sectors like aerospace, green energy, and digital technology.

Why is the King calling for faster reforms

The Moroccan economy is currently in a position of strength, with real GDP growth reaching 4.9% in 2025, the best performance in ten years (World Bank). However, the King noted that rapidly shifting global geo-economic conditions require a more agile approach to maintain this momentum (Moroccoworldnews).

To keep growth stable, the government is focusing on several strategic priorities:

• Strategic reserves: Securing supplies of water, energy, and food, including a plan for eight million quintals of locally produced soft wheat (Moroccoworldnews).
• Youth employment: Addressing a youth unemployment rate that stood at 37.2% in 2025 by expanding education and skills training (Documents1.worldbank).
• Digital transformation: Implementing the "AI Made in Morocco" roadmap, which seeks to generate MAD 100 billion in economic value by 2030 (Moroccoworldnews).

What does this mean for the aerospace sector

Aerospace has become a standout performer in Morocco's industrial strategy. The country reached $3 billion in annual aerospace exports in 2025, hitting its 2030 target five years early (Moroccoworldnews). Now, officials have set a new goal to reach $5 billion in annual exports by 2028 (Moroccoworldnews).

This growth is moving beyond simple parts manufacturing. Morocco is preparing to assemble aircraft engines and landing gear locally to capture more value (Moroccoworldnews). Major global players are already committing capital: French group Safran is investing €320 million in a new landing gear facility and an Airbus engine assembly line, expected to be operational between 2027 and 2029 (Moroccoworldnews).

How can private investors participate

The 2023 Investment Charter remains the primary tool for those looking at the region. It aims to attract 550 billion Moroccan Dirhams (MAD) in private investment by 2026 (Moroccoworldnews). The International Finance Corporation has noted that Morocco's policy ambition could mobilize private investment equivalent to roughly 4% of GDP (Ifc).

Investors are watching several high-potential areas:

• Renewable energy: Specifically decentralized solar power and green hydrogen.
• Manufacturing: Transitioning to low-carbon textiles and high-value aerospace components.
• Infrastructure: Large-scale projects like the Casablanca seawater desalination plant, which is 81% complete and due for commissioning in February 2027 (Moroccoworldnews).

What to watch next

The immediate focus for the government will be maintaining fiscal discipline while funding these ambitious projects. The budget deficit is expected to narrow from 3.7% of GDP in 2026 to 3.2% in 2027 (World Bank). If Morocco can successfully transition its workforce into these high-tech sectors, it will likely solidify its role as a regional hub for European and African trade.

Keep an eye on the Marrakech Airshow in 2026, which will serve as a barometer for new foreign direct investment in the drone and engine assembly sectors. You should also watch for updates on the national strategic wheat reserve, which will be a key indicator of the country's resilience against global commodity price swings (Moroccoworldnews).

The bottom line

Morocco is moving aggressively to replace public spending with private investment as its primary engine of growth. The push to reach $5 billion in aerospace exports and the launch of the "AI Made in Morocco" roadmap show a clear intent to move up the global value chain.

This article is for information only and is not financial advice.