Rabat — Morocco is ramping up its defense manufacturing capabilities with ten new industrial projects approved since launching two dedicated defense industry acceleration zones, the country’s defense minister announced this week.
Abdellatif Loudiyi, the Minister Delegate to the Head of Government in charge of National Defense Administration, has revealed that these projects represent a total investment of $260 million and will create more than 2,500 direct jobs.
The minister made the announcement while presenting the National Defense Administration’s draft budget for 2026 to the Committee of Foreign Affairs, National Defense, Islamic Affairs, and Moroccans Living Abroad, in the House of Representatives.
“These authorized projects, along with five other projects currently under study or in the final stages of completion, aim to meet the needs of the Royal Armed Forces and enable them to possess advanced operational capabilities,” Loudiyi said.
The minister stressed that the government has adopted a comprehensive approach that balances the armed forces’ needs with plans to dedicate part of the production for export.
Legal framework drives growth
Since Morocco passed Law 10.20 concerning defense and security equipment, weapons, and ammunition, authorities have activated various oversight and control mechanisms outlined in the legislation.
The government has also proposed several additional legal measures to stimulate and support investment in this strategically important sector, aligned with the country’s new Investment Charter.
Key incentives include temporary corporate tax exemptions extended to cover defense industry activities, expanded value-added tax exemptions for licensed manufacturing service companies in the sector, and an industrial compensation mechanism introduced through the public procurement decree.
This mechanism encourages companies that sign contracts with the National Defense Administration to make significant investments in Morocco and transfer technology, ultimately strengthening and developing the defense industry.
Infrastructure taking shape
Authorities have taken all necessary steps to begin developing the two defense industry acceleration zones, following the provisions of the decree establishing them. The zones will be ready to welcome investors before the end of 2026.
These zones will provide suitable spaces with access to all tax and customs advantages, as well as various services and simplified procedures that this type of industrial zone offers.
International partnerships fuel ambitions
In recent years, Morocco has signed numerous partnerships, memoranda of understanding, and investment agreements with several international players in the defense sector.
These collaborations aim to encourage technology transfer, exchange expertise and experiences, and enable Morocco to gradually build strategic independence in defense manufacturing.
The development marks a significant shift for Morocco as it works to reduce dependence on foreign suppliers while positioning itself as an emerging player in the global defense industry.