Morocco Establishes Defense Industry Zones Through New Joint Venture
According to decree N° 2.25.428 published in the Official Bulletin on June 9, the new entity – dubbed the 'Defense Industrial Zones Management Company' – will be established as a joint venture between the Military Housing and Equipment Agency (ALEM) and MEDZ, a subsidiary of the Caisse de Dépôt et de Gestion (CDG) group.
The new company will be capitalized at MAD 300,000 ($30,000), with ownership split equally between ALEM and MEDZ. Its primary mission will be to design, develop, market, and manage industrial zones specifically dedicated to defense industry activities.
This initiative implements royal directives aimed at creating two specialized industrial zones for defense manufacturing, in accordance with Law 10.20 governing defense and security equipment, weapons, and ammunition.
The project follows a strategic partnership agreement signed on November 8, 2023, between the Ministry of Economy and Finance, the Ministry of Industry and Commerce, the National Defense Administration, CDG, and ALEM.
The authorization, decided on May 22, was signed by the head of government and countersigned by Minister of Economy and Finance Nadia Fettah Alaoui. It grants a one-year period for the company's establishment from the date of publication in the Official Bulletin.
The industrial zones will host manufacturing activities and services related to the production of weapons, ammunition, and defense and security equipment.
This development represents a major step in Morocco's strategy to build sovereign capabilities in military technology and attract international investors to strengthen the country's defense production capacity.
ALEM, which has been operating since 1994 when it replaced the Military Housing and Equipment Fund, specializes in constructing housing for military personnel and developing infrastructure.
Meanwhile, MEDZ positions itself as Morocco's leading institutional investor dedicated to the development and management of industrial parks.
This is not the CDG subsidiary's first involvement in defense industry projects. MEDZ previously participated in a planned ultra-modern maintenance center for military aircraft and helicopters in Benslimane, in partnership with Belgian company Blueberry and American manufacturer Lockheed Martin, though this project has yet to materialize.
The creation of these specialized zones comes as Morocco has already begun attracting defense industry investments, including a recently announced project from Indian conglomerate Tata.
The project was also approved following the agreement of the National Agency for Strategic Management of State Participations, headed by Abdellatif Zaghnoun, along with the boards of directors of both MEDZ and ALEM. Tags: DefenseMoroccan MilitaryMoroccan Royal Armed Forces
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Morocco World
24 minutes ago
- Morocco World
Morocco's Private Equity Sector Showed Strong Growth by End of 2024
Rabat — Private equity-backed companies in Morocco achieved impressive growth in 2024, with average revenue jumping 20.5%, according to a new report from the Moroccan Association of Capital Investors (AMIC) and audit firm Fidaroc Grant Thornton. The sixth annual impact study reveals the strong performance of more than 320 companies that have received private equity funding since 2000. The firms have attracted a total of MAD 15.7 billion ($ 1.74 billion) in cumulative investments through the end of 2024. Beyond revenue growth, these companies expanded their workforce by 15% compared to 2023, creating thousands of new jobs across Morocco's economy. Technology and healthcare lead growth The report indicated that the information and communication technology (ICT) sector posted exceptional results, with revenue soaring 79% in 2024. The dramatic growth reflects Morocco's growing reputation as a hub for innovation and startups, while demonstrating investor confidence in the country's tech potential. Meanwhile, healthcare companies also performed strongly, recording 59% revenue growth. The sector benefits from ongoing structural reforms and the expansion of social coverage across Morocco, which has created sustained demand for health services. The services sector, while growing at a more modest 9%, remains crucial for job creation. Employment in services companies rose 30%, reinforcing the sector's role as a cornerstone of the North African country's economy. Strong financial performance The financial health of private equity-backed companies shows marked improvement. Companies multiplied their EBITDA (earnings before interest, taxes, depreciation, and amortization) by 2.5 times between when funds entered and exited investments. This demonstrates the significant value creation that occurs during the investment period. Growing tax contributions Private equity investments also generate substantial benefits for Morocco's public finances. Nearly 200 small and medium enterprises that shared their tax data contributed an additional MAD 3 billion ($ 332.98 million) in cumulative tax revenues over an average holding period of six years. In 2024 alone, taxes and fees collected from private equity-backed companies increased by almost MAD 250 million ($ 27.74 billion) compared to the previous year. Measuring real impact The joint report from AMIC and Fidaroc Grant Thornton draws on data from 23 management companies, providing concrete evidence of private equity's lasting contribution to transforming and growing Morocco's business landscape. It stresses how private equity serves as more than just a source of capital, but also acts as a catalyst for sustainable business development, job creation, and economic growth across multiple sectors of Morocco's economy.
Morocco World
3 hours ago
- Morocco World
ONDA Launches Automated Baggage Center at Casablanca's Mohammed V Airport
Marrakech – Morocco's Office National des Aéroports (ONDA) has inaugurated a new automated baggage handling center at Casablanca's Mohammed V Airport. The 'Fast Baggage Center by ONDA' is housed in a completely redesigned 15,200 m² logistics hangar aimed at managing increasing transit flows. The center represents an important technological advancement in the airport's infrastructure. It can now process up to 6,000 bags per hour, with an average handling time of just five minutes. 'This is a major qualitative leap in operational efficiency,' ONDA stated in a Tuesday communiqué. At the core of the system are two interconnected automated sorters that separately manage short and long-haul transit baggage. The center is equipped with latest-generation scanners and explosive detection systems that comply with international standards. The facility features centralized sorting, intelligent indexing stations, oversized baggage control, and an integrated monitoring system. This setup ensures secure transit while reducing energy consumption by 15%. The technological advancement will directly support Royal Air Maroc's expansion, particularly by facilitating large-scale transfer operations to and from Africa. ONDA considers this development part of a broader transformation aimed at positioning Casablanca as a global transit hub capable of handling growing traffic with 'rigor, fluidity, and reliability.' Vision 2030 The centralized configuration is expected to reduce congestion in the airport's traditional baggage circuit, improving waiting times for all arriving passengers. While the Fast Baggage Center is now fully operational, ONDA specified that 'a few weeks of adjustment will be necessary to optimize its operation and fully measure its impact on passengers.' 'With this major development a few months before AFCON 2025,' ONDA said, 'we are demonstrating our ability to anticipate needs, invest where logistical performance is crucial, and carry the national ambition through every stage of the passenger journey.' The baggage center initiative is part of ONDA's broader 'Airports 2030' strategy. This comprehensive plan includes the construction of a new terminal at Mohammed V Airport, currently in its initial phase. The terminal project represents a MAD 15 billion ($1.5 billion) investment and will increase the airport's capacity by 20 million passengers annually. Once completed in 2029, the airport will accommodate up to 35 million travelers yearly, positioning it among Africa's largest and most strategically located airports. The new H-shaped terminal will feature direct access to the Kenitra-Marrakech high-speed rail line, offering travelers quick connections to major Moroccan cities. The design incorporates passenger comfort with three main levels, green spaces, commercial zones, a large duty-free area, VIP lounges, and a hotel. These developments align with Morocco's preparations for co-hosting the 2030 FIFA World Cup and reflect the North African country's vision to establish itself as a major aviation hub connecting Europe, Africa, and the Americas. Read also: Morocco Removes Security Scanners at Mohammed V Airport to Cut Wait Times
Morocco World
7 hours ago
- Morocco World
Glovo Blames Technical Glitch for Divided Map, Renews Commitment to Morocco's Territorial Integrity
Rabat – Glovo Morocco released a statement today, attributing the recent display of a divided Moroccan map on its courier applications to a technical glitch. Emphasizing that its operation spans throughout the entire country, Glovo said that it is working in full respect of Morocco's territorial integrity. 'A technical issue, identified by our teams, occurred on the courier applications following a recent external update, which temporarily caused the incorrect display of the map of the Kingdom of Morocco,' the statement said. The company further stated that it intervened to fix the issue upon detection, noting that the issue was 'immediately addressed,' adding that the Moroccan map is now correctly displayed on the application. Pledging openness and respect for dialogue policy with the courier community, Glovo Morocco said it held several discussion sessions with hundreds of couriers in Casablanca, presenting proposals aimed at improving the couriers' experience. 'Additional complementary measures are currently being rolled out,' the company pledged, noting that this is aimed at enhancing day-to-day work in direct response to customers' feedback. It also pledged efforts to strengthen exchange platforms with couriers to better take into account the diversity of their feedback, conveying commitment to co-developing sustainable solutions with relevant stakeholders. While the company reaffirms its position on the country's territorial integrity, Glovo's statement did not include an apology for customers. The statement followed protests launched by Glovo riders, who took to the streets of Casablanca earlier this week to protest deteriorating conditions and to denounce the distorted, incomplete depiction of Morocco's Sahara region on the company's app. Protesters condemned Glovo for displaying a map that excludes Morocco's southern provinces, labeling the region as merely 'Western Sahara'. Protesters also conveyed their anger over what they report to be unfair treatment of the couriers – specifically bringing to alarm that they are responsible for all expenses — including motorcycles, fuel, insurance, and equipment, with earnings they argue barely cover basic living costs. Sovereignty at the center Both domestically and on the international stage, Morocco consistently and clearly emphasizes that its sovereignty over the Sahara is non-negotiable, serving as the primary lens through which it views its relationship with partners and nations. The Moroccan government has been reiterating this position in diplomatic engagements, economic partnership, as well as foreign policy decisions. Ambiguous stances from several countries regarding Morocco's territorial integrity have been met with firm responses from Morocco's government, which has not hesitated to take bold steps when its sovereignty over its southern provinces was questioned. In 2021, Rabat froze ties with Germany in response to Berlin's unclear stance and a rift that lasted for months until Germany eventually endorsed Morocco's Autonomy Plan as a good basis for resolving the conflict. Similarly, tensions with Spain reached a historic low in April 2021, when Morocco recalled its ambassador after the Spanish government allowed Polisario leader Brahim Ghali to enter the country for medical treatment. What followed was a period of one of the most dramatic diplomatic crises in their history – tensions which only began to ease when Madrid aligned with Morocco's position in 2022, endorsing the autonomy plan as the most serious and credible political solution to end the dispute. In 2024, France also brought an end to years of diplomatic chill by officially recognizing Morocco's sovereignty over its southern provinces. Now, Rabat and Paris ties are hitting their stride, with robust cooperation on various levels. Tags: glovoGlovo in Morocco
