Casablanca – The economic relationship between Morocco and Israel has witnessed remarkable growth, even in the face of regional conflicts and political tensions. In May 2024, trade between the two countries surged to $8.5 million, marking a substantial 124% increase compared to the same month in 2023. Over the first five months of 2024, bilateral trade reached $53.2 million, reflecting a 64% rise from the same period in the previous year, according to the Abraham Accords Institute.

The institute’s report also highlighted the broader regional trade dynamics, noting significant trade volumes between Israel and other Middle Eastern countries. Trade between Israel and the United Arab Emirates stood at $284.4 million in May 2024, though this represented a 4% decrease compared to May 2023. However, their cumulative trade over the first five months of the year rose by 8%, reaching $1.39 billion. Trade between Israel and Egypt soared to $66.4 million in May 2024, a 166% increase compared to May 2023, and $212.6 million for the first five months of the year, up by 59%. Trade with Jordan saw a slight 1% increase in May 2024, totaling $43.7 million, but a 17% decline in the first five months, amounting to $178.8 million. Notably, Israel’s trade with Bahrain saw an extraordinary 933% increase, reaching $53.7 million in the first five months of 2024.

Despite regional tensions, such as the Gaza war, which impacted public diplomatic relations, official visits, and tourism, the core aspects of Moroccan-Israeli relations, including bilateral trade and security cooperation, remained strong. This resilience is underscored by initiatives such as Israeli drone manufacturer Blue Bird’s establishment of a production site in Morocco, enhancing Morocco’s defense capabilities with Israeli drones and air defense systems.

The economic collaboration between Morocco and Israel has flourished since the signing of the Abraham Accords in December 2020, aimed at strengthening ties between Israel and several Arab nations. This development was further bolstered by mutual business visits and numerous trade missions, fostering a robust commercial partnership.

Innovation and investment are central to this burgeoning relationship. In February 2024, UM6P Ventures, the investment arm of Mohammed VI Polytechnic University, expressed plans to invest in Israeli companies specializing in biotechnology, agriculture, and alternative proteins. The presence of four Israeli companies at the “GITEX Africa” exhibition in Marrakech last May exemplifies this dynamic collaboration.

Significant milestones include the opening of Nivateem’s first factory in Morocco, creating job opportunities and providing advanced irrigation equipment for local farmers. Additionally, an agreement between Israel Aerospace Industries (IAI) and the International University of Rabat to establish a center of excellence in aviation and artificial intelligence highlights the focus on research and innovation. This partnership is set to enhance cooperation, with Morocco expressing interest in acquiring a surveillance satellite.

Israel’s commitment to boosting trade and investment with Morocco is further demonstrated by the appointment of an economic attaché and the opening of a trade office, facilitating interactions between business people from both countries. The progress toward signing a free trade agreement and establishing other key economic agreements will play a crucial role in developing economic relations between Rabat and Tel Aviv. Enhancing daily direct flights to several destinations is also vital in strengthening economic ties.

Morocco has made significant efforts to benefit from economic cooperation with Israel, particularly in tourism. The increased flow of Israeli tourists to the Kingdom, driven by direct flights and a simplified e-visa introduced last July, aims to support the tourism sector, stimulate trade exchanges, and boost foreign currency revenues.

The economic relationship between Morocco and Israel continues to grow, demonstrating resilience and potential despite regional challenges. The strategic initiatives and collaborations between the two nations are poised to further enhance their economic partnership in the coming years.