Spain could sanction Morocco, but 17,000 of its companies depend on it

Madrid can hardly engage in an economic showdown with Rabat without penalizing its own companies.

The Moroccan government estimates that 17,000 Spanish companies work with or operate in the kingdom. More than 350 have permanent activities there, including factories and farms, according to figures from the Spanish Institute for Foreign Trade cited by Cinco Días.

Trade between the two countries reached 22.75 billion euros in 2025. Spain even sold Morocco 1.91 billion euros more in goods than it bought from it.

Proximity and labor costs have driven many Spanish groups to transfer part of their production to Morocco. An hour of work costs an average of 26.40 euros in Spain, more than five times its cost in the kingdom.

The favorite car of the Spanish comes from Morocco

The most visible symbol is the Dacia Sandero. The best-selling car in Spain is produced in Tangier and Casablanca. It has recorded 23,769 registrations since January, around 4,000 more than the Seat Ibiza manufactured in Spain.

Spanish automotive suppliers Antolín and Gestamp also own factories in Kénitra and Tangier. CIE Automotive and Ficosa supply Renault and Stellantis, while other industrial companies are still choosing Morocco to supply the European market.

On Bladi.net : Morocco Industrial Hub Attracts Global Automotive Factories

The dependence extends to textiles. Morocco is one of the ten main sourcing hubs for Inditex, Zara’s parent company. Most of its 447 supplier factories in Africa are located in the kingdom. El Corte Inglés and Tendam also have clothes manufactured there.

In agriculture, Ebro Foods operates a rice factory with a capacity of 50,000 tonnes per year. The Spanish company Agroatlas cultivates around 1,000 hectares around Agadir to supply, among others, Mercadona and Tesco.

This presence explains why a Spanish economic countermeasure after the Ceuta crisis could quickly backfire on Madrid. Yet a National Police report implicates the Moroccan forces’ conduct during the mass crossings, fueling calls for sanctions against Rabat.

On Bladi.net : 72,000 crossings into Sebta: Spanish police accuse Morocco of organizing everything

But trade restrictions could affect Spanish automakers, clothing retailers and food groups established in Morocco. With 17,000 companies involved and 22.75 billion euros in trade, Madrid now has much to lose in an economic confrontation with Rabat.