Casablanca – Morocco will need to mobilize nearly $38 billion in non-energy infrastructure investments by 2035 to sustain rapid urban growth and consolidate its position as a strategic logistics and industrial hub, according to a new report by Allianz Research.
The study, titled “3.5% Until 2035: Closing the Global Infrastructure Gap,” positions Morocco’s needs within a global wave of infrastructure spending aimed at responding to megatrends such as demographic shifts, supply chain disruptions, and digitalization driven by artificial intelligence.
Roads, ports, and digital networks take priority
The report breaks down Morocco’s projected investment requirements across several sectors deemed essential to the country’s development:
- $19.3 billion for roads, the single largest component of future spending.
- $8.2 billion for ports to reinforce Morocco’s role in international trade.
- $6.3 billion for telecommunications and digitalization, regarded as key drivers of economic transformation.
- $3 billion for railways.
- $1.1 billion for wastewater and sanitation.
- $100 million for aviation.
With more than 60% of Moroccans now living in urban areas, the report stresses that expanding and modernizing infrastructure is not optional but a prerequisite to strengthen the economy’s capacity and competitiveness.
A global context of intensifying needs
Allianz Research situates Morocco’s needs within a wider global context of rising infrastructure demand. Worldwide, non-energy infrastructure investments are projected to reach $11.5 trillion over the next decade, with nearly two-thirds concentrated in emerging markets. By 2035, when energy-related projects are included, the global figure could climb as high as $26 trillion to $30 trillion.
Emerging economies alone will need to invest more than $7.59 trillion in non-energy infrastructure by 2035, while advanced economies will require around $3.79 trillion. Within that total, the United States is expected to spend $1 trillion, France $155 billion, Germany $134 billion, and Spain $120 billion.
Demographic change and accelerating urbanization are seen as the primary forces behind rising demand in developing markets, while aging infrastructure is driving investment needs in richer countries. At the same time, geopolitical tensions and pandemic-related disruptions have revealed the fragility of supply chains, pushing many advanced economies—especially in Europe—to embrace reshoring and “friendshoring” strategies for key industries. This shift has amplified global demand for local manufacturing sites and the associated logistics infrastructure, including warehouses, ports, and rail connections.
Morocco’s double commitment: Infrastructure and green energy
Beyond basic infrastructure, Allianz highlights Morocco’s parallel ambition in renewable energy and green hydrogen. Like Saudi Arabia, the UAE, and Egypt, Morocco is accelerating large-scale projects in solar, wind, and hydrogen with the aim of becoming a major supplier of clean fuels to Europe and Asia.
The report notes that solid infrastructure foundations are essential for this energy transition, from transport networks and port facilities to digital systems that underpin new industrial ecosystems.
The expanding role of private capital
The study underlines the rising importance of private capital in funding infrastructure projects. Once considered a secondary source, private investment has become a pillar of global infrastructure financing. The value of unlisted infrastructure assets under management has soared from less than $25 billion in 2005 to over $1.5 trillion in 2024.
Investors are increasingly drawn to energy and digital transition platforms—such as power grids, storage systems, data centers, and fiber-optic networks—due to their stable and inflation-linked returns, typically ranging between 6% and 10%.
This dynamic, Allianz argues, creates an important opportunity for Morocco to attract both foreign and domestic capital into its infrastructure program, provided regulatory and financial frameworks are aligned to investor expectations.
Structural obstacles and the way forward
Despite the scale of global capital available, Allianz warns that mobilizing funds is not enough. The next phase of infrastructure investment will hinge on execution and policy alignment. Structural obstacles such as permitting delays, congested networks, fragmented regulations, and limited institutional capacity in emerging markets continue to slow progress.
To overcome these barriers, the report recommends:
- Simplifying and digitizing approval processes.
- Strengthening project preparation and technical assistance.
- Building the capacity of local authorities and public enterprises.
- Expanding the use of blended finance and risk-mitigation tools to attract investment into higher-risk regions.
Export pressures add to the challenge
Adding to the urgency, a separate Allianz Trade analysis warns that Morocco’s export gains are expected to shrink from $5 billion in 2024 to just $2.8 billion in 2025, due to indirect impacts from U.S.-led trade wars that weigh heavily on Europe, Morocco’s main trading partner. In this uncertain environment, Allianz Trade suggests Morocco must leverage its resilience, logistics strengths, and geographic advantages to secure its role as a regional hub.
A critical decade ahead
Taken together, Allianz’s findings point to a critical decade ahead for Morocco. The country faces not only the challenge of mobilizing $38 billion for its roads, ports, digital systems, and sanitation, but also the broader task of positioning itself in the global transition toward cleaner energy and more resilient supply chains.
If Morocco succeeds in attracting the necessary capital and accelerating project delivery, the report suggests it could emerge as a key logistics and energy hub linking Africa, Europe, and the Middle East. But if structural and financial bottlenecks persist, the risk is that the country’s infrastructure gap will widen, undermining its growth potential at a time of heightened global competition.
