Defense: Morocco launches two "industrial acceleration zones" and offers tax exemptions

The announcement was made by the Delegate Minister in charge of the National Defense Administration, Abdellatif Loudiyi, during the presentation of the Defense budget. He specified that these ten projects represented a total estimated investment of 260 million dollars. He also added that five other projects were currently under study or finalization.

This initiative aims to meet the "needs of the Royal Armed Forces" by providing them with "advanced operational capabilities". The minister explained that the objective is twofold, as it also involves "dedicating a portion of production to exports".

A legal and fiscal framework to attract investors

To realize this ambition, Morocco is preparing the hosting infrastructure. Mr. Loudiyi confirmed that the development work on two "defense industrial acceleration zones", created by decree in June 2024, had begun. The objective is for them to be "ready to welcome investors" before the end of 2026, by offering them tax and customs advantages.

The government has also put in place new legal measures to encourage investment. These include the extension of the temporary exemption from corporate income tax to defense industry activities, as well as VAT exemptions for service companies in the sector.

Another key lever is the "industrial compensation" mechanism, introduced by a decree in March 2023. This tool aims to encourage foreign companies that sign defense contracts to make investments in Morocco and to carry out technology transfers. Mr. Loudiyi concluded by recalling that Morocco had signed many partnerships with leading countries to encourage this transfer and "gradually build strategic autonomy".