Morocco: Battleground for French and Spanish Firms as Economic Competition Intensifies

The resumption of relations between Spain and Morocco has undoubtedly allowed Spanish entrepreneurs to dominate the Moroccan market and outdo the French. "The two countries are consulting on several projects, particularly in the infrastructure, urban planning and transport, renewable energy, and maritime sectors," explains economist Abdeslam Touhami to Challenge, noting that "the prospect of jointly hosting the 2030 World Cup is also contributing to this." "Even before the new bilateral economic partnership, [...] Spain, since the late 1980s, has shown a real rise in power within the framework of its economic partnership with Morocco, to the point of now being able to compete with France," confirms economist Hakim El Wardi.

While Spanish exports to Morocco have risen by nearly 20% per year, surpassing those of France since 2012, Emmanuel Macron’s country remains by far Morocco’s leading economic partner in terms of foreign direct investment (FDI) with $20 billion in 2020, compared to $5.6 billion for Spain. France and Spain are also competing for several major structural projects in Morocco, particularly in the renewable energy, rail and urban transport, and water (construction and operation of seawater desalination plants) sectors. But companies from the two countries are increasingly being challenged by other Moroccan and foreign firms. This is the case of the National Motorway Company of Morocco (ADM), which has been entrusted with the construction of the new Tit Mellil-Berrechid motorway. A first in the history of the national motorway network.

Furthermore, Spanish or French companies do not hesitate to partner with Moroccan companies on large-scale projects such as the construction of the Casablanca desalination plant, which will be carried out by the consortium of the Spanish Acciona and the Moroccan Green of Africa and Afriquia Gaz. Similarly, the group formed by the French Engie and the Moroccan Nareva will build the Dakhla desalination plant. Just as the Moroccan Gaia Energy, specialized in green hydrogen production and decarbonization, in partnership with the Spanish companies Iberdrola or Abengoa, will offer decarbonization solutions, and maintains collaborations with Enagás and Arcelor in the field of hydrogen.

French and Spanish companies will also compete to win the recent call for tenders launched by the National Railway Office (ONCF) for the acquisition of 168 trains, including 18 High-Speed Trains for an amount of 16 billion dirhams. The French Alstom, which delivered the Tanger-Casablanca TGV, called Al Boraq, and the Spanish Talgo are fiercely competing on this file. The same goes for the automotive sector where the French giant Renault has breathed new life into the sector since the installation of its plant in Tangier in 2012. Peugeot, a member of Stellantis, also opened a plant in Kenitra in 2019, leading to the arrival of about twenty Spanish suppliers such as Teknia and Antolín, or Ficosa and Gestamp in the kingdom. The French and Spanish groups are also fiercely competing in renewable energies, a booming sector in Morocco.