Casablanca – Morocco continued to consolidate its role as a key automotive investment destination in the Middle East and North Africa (MENA) region in 2025, confirming a multi-year trend of growing industrial attractiveness. According to recent data published by BMI, a subsidiary of Fitch Solutions, the Kingdom ranked second in the region for the number of automotive investment projects, just behind Egypt, and ahead of several Gulf and North African markets.

Over the full year, Morocco recorded 23 automotive-related investment projects, compared with 27 in Egypt and 15 in the United Arab Emirates. This performance places the country at the center of evolving regional industrial dynamics, at a time when global automotive manufacturers and suppliers are reassessing production locations, supply chains, and market access strategies.

Strong quarterly and annual performance

BMI’s fourth-quarter 2025 Automotive Investment Overview identified 28 new projects announced or launched across the MENA region, representing a combined investment value of approximately $886.9 million. During this period alone, Morocco attracted four projects, ranking behind Egypt, which hosted eight, and the UAE, which secured six, but ahead of several other regional markets such as Iran and Algeria.

While quarterly figures illustrate short-term momentum, Morocco’s annual total of 23 projects highlights sustained investor interest over the course of the year. This consistency is particularly notable given that Morocco does not benefit from a dedicated, large-scale public incentive program comparable to Egypt’s automotive development scheme. Instead, investor confidence appears to be driven by structural advantages, industrial maturity, and long-term integration into global value chains.

Focus on components and assembly

A significant share of the investments in Morocco continues to be directed toward automotive components manufacturing. Nearly 65% of recorded projects involve the production of parts and systems, including wiring harnesses, interiors, powertrain components, and other subassemblies. The remainder of the projects focus on vehicle assembly and the production of passenger cars.

This structure reflects Morocco’s established role as an intermediate manufacturing platform within regional and international supply chains. By strengthening its local supplier base and assembly capacity, the country enhances its ability to serve multiple markets, particularly in Europe, while also supporting domestic industrial upgrading and job creation.

North Africa’s continued industrial advantage

BMI’s analysis indicates that North Africa remains the primary destination for automotive investment within the MENA region, even as competition intensifies from Gulf countries. Egypt and Morocco together account for a large share of new projects, benefiting from their industrial ecosystems, workforce capabilities, and proximity to major export markets.

In contrast, Gulf countries such as the UAE and Saudi Arabia are increasingly positioning themselves in advanced technology segments, particularly electric vehicles, autonomous driving systems, and smart mobility solutions. While these segments remain limited in Morocco, the country retains a comparative advantage in large-scale manufacturing, assembly, and export-oriented production, supported by its logistics infrastructure and trade agreements.

Geographic diversification and emerging technologies

Across the MENA region, automotive investment patterns are becoming more geographically diversified, reflecting shifts in global production strategies and growing interest in new technologies. Investors are increasingly targeting locations that offer both cost competitiveness and access to major markets, while also supporting innovation in electrification, automation, and digitalization.

For Morocco, proximity to Europe continues to be a defining advantage. The country’s integration into international logistics networks, combined with its port infrastructure and industrial zones, enables efficient access to European automotive markets and supply chains. This positioning makes Morocco an attractive production base for global manufacturers and suppliers seeking to optimize cross-border operations and reduce supply chain risks.

Rising interest from Asian investors

BMI also highlights the growing role of Asian, particularly Chinese, companies in shaping automotive investment flows across the MENA region. These firms increasingly view the region as both a gateway to European markets and an alternative production base amid evolving global trade conditions and regulatory constraints.

Morocco has emerged as a key destination for this interest, benefiting from its trade links with Europe, industrial capabilities, and stable business environment. Chinese and other Asian investors are increasingly exploring partnerships, joint ventures, and greenfield investments in components manufacturing, assembly operations, and related industrial services.

Institutional environment and investor confidence

Despite the absence of a large, centralized automotive incentive program similar to Egypt’s, Morocco continues to attract consistent investment flows. BMI attributes this performance to a combination of factors, including macroeconomic stability, regulatory predictability, infrastructure quality, and long-standing integration into global automotive value chains.

The country’s industrial policy framework, which emphasizes export-oriented manufacturing, skills development, and industrial clustering, has contributed to building a resilient automotive ecosystem. Over time, this approach has helped establish Morocco as a reliable production hub rather than a short-term investment destination driven solely by incentives.

Outlook for 2026 and beyond

Looking ahead, BMI anticipates that automotive investment momentum in Morocco will continue into 2026, despite intensifying regional competition and the rapid emergence of new technological segments elsewhere in the MENA region. The consulting firm expects Morocco to maintain a high level of industrial projects, reinforcing its role as a regional pillar of automotive production.

While Gulf markets are likely to continue expanding their presence in electric and autonomous vehicle technologies, Morocco is expected to consolidate its strengths in components manufacturing, assembly, and export-oriented production. This dual-track regional evolution suggests that Morocco will remain an essential part of the MENA automotive ecosystem, particularly for investors seeking scale, reliability, and access to European markets.

Morocco’s 2025 performance confirms its position as one of the region’s leading automotive investment destinations. With sustained investor confidence, a strong manufacturing base, and strategic geographic advantages, the country is well positioned to navigate the ongoing transformation of the global automotive industry while reinforcing its role as a central industrial hub in the MENA region.