Spanish Firms Flock to Morocco as Manufacturing Hub Gains Appeal

Is Morocco a paradise for Spanish companies? According to the latest data compiled by the Spanish Institute of Foreign Trade and Investment (ICEX), more than 360 Spanish companies have relocated their production to Morocco. Some Spanish companies have completely relocated their production to Morocco, while others operate through subsidiaries or in partnership with Moroccan companies, Vozpópuli reported in February, citing the same data.

Approximately 10% of Spanish companies in Morocco are directly or indirectly invested in the agri-food sector. Among them is Ebro Foods (rice brands), which settled in the Larache region in 2001 through the company Mundiriz. "More and more Spanish companies are expressing their interest in investing or opening subsidiaries in this Maghreb country," a Spanish source close to the business sector in Morocco told EFE.

The textile giant Inditex has also expanded its production to Morocco. "This allows us to respond quickly and efficiently to demand and adapt to new social and environmental standards," sources within the company explained. They added: "Proximity is one of the key criteria in our supply chain, which allows us to respond quickly to the market." Inditex is expected to guarantee indirect jobs for 94,563 people in Morocco.

The rush of Spanish companies comes at a time when companies are seeking to adapt to the policies imposed by the European Union, Atalayar reports. Spain remains Morocco’s main trading partner, ahead of France and China, in both exports and imports. In 2021, Spanish exports to the kingdom reached a record level of 9.5 billion euros.