Casablanca – In a significant step toward building a sovereign defense industry, Morocco has officially announced the creation of a new company dedicated to the development and management of industrial zones tailored for defense and security-related activities. The newly established entity, named Société de Gestion des Zones Industrielles de Défense (SGZID), was formalized through a government decree published in the Official Bulletin on June 9, 2025.

Strategic partnership for national objectives

The SGZID is the result of a partnership between the Agence de Logement et d’Équipement Militaire (ALEM), Morocco’s Military Housing and Equipment Agency, and MEDZ, a subsidiary of the Caisse de Dépôt et de Gestion (CDG), which specializes in industrial and territorial development.

The government’s approval for the project was issued on May 22, 2025, under decree No. 2.25.428, providing the legal framework for the creation of the SGZID. The company is authorized for an initial period of one year from the date of the decree’s publication, within which it must become operational.

Mission and scope

The core mission of the SGZID will be to design, develop, market, and manage industrial zones that are specifically allocated for defense sector activities. These zones are intended to host both industrial and service operations linked to the manufacture of weapons, ammunition, military vehicles, surveillance systems, and other defense and security equipment.

This initiative is part of a broader national vision to enhance Morocco’s strategic autonomy in the defense sector. The industrial zones will serve as dedicated spaces for local and international companies involved in high-value defense manufacturing, potentially attracting advanced technological investments.

In line with royal directives

The creation of the SGZID is a direct outcome of the royal directives issued by King Mohammed VI during the ministerial council held on June 1, 2024. In his address, the monarch stressed the importance of developing a domestic defense industry capable of producing essential military and security equipment. This vision aims not only to reduce dependence on foreign suppliers but also to strengthen Morocco’s industrial and technological sovereignty in a sensitive and strategic domain.

In response to these directives, the government outlined a national strategy for the defense industry that includes the creation of two major industrial hubs exclusively dedicated to defense-related production. The SGZID will be the main operator in charge of implementing and managing these zones.

Institutional backing and legal framework

The establishment of the SGZID follows a strategic partnership agreement signed on November 8, 2023. This agreement brought together key institutions, including the Ministry of Economy and Finance, the Ministry of Industry and Trade, the National Defense Administration, CDG, and ALEM. The initiative is also supported by Law No. 10.20, which provides a regulatory framework for the management, production, and acquisition of defense and security equipment within the Kingdom.

The Minister of Economy and Finance, Nadia Fettah Alaoui, has been tasked with overseeing the implementation of the project. Her role includes ensuring the viability of the company’s economic model and its alignment with national development objectives.

Broader implications for Morocco’s defense sector

With this initiative, Morocco aims to join the ranks of countries investing in the development of indigenous defense manufacturing capabilities. The SGZID is expected to lay the groundwork for a modern and self-reliant defense sector that not only meets the country’s internal needs but also positions Morocco as a competitive player in regional and international defense markets.

In addition to bolstering national security, the project is anticipated to have positive economic effects, including job creation, technology transfer, and the development of supporting industries. By attracting high-tech defense investments, Morocco hopes to further stimulate industrial innovation and deepen its integration into global defense supply chains.

The launch of the Société de Gestion des Zones Industrielles de Défense marks a turning point in Morocco’s defense policy, combining economic development with national security goals. Backed by strong institutional partnerships and guided by a clear strategic vision, the SGZID is set to play a central role in shaping the country’s future in defense manufacturing.