UAE promises financial support for Morocco in newly signed declaration

King Mohammed VI and Sheikh Mohammed bin Zayed Al-Nahyan, President of the State of the United Arab Emirates, signed, on Monday in Abu Dhabi, a declaration «Towards an innovative, renewed and consolidated partnership between the Kingdom of Morocco and the State of the United Arab Emirates».

The declaration, signed during the King’s visit to the UAE, is aimed at enhancing relations between the two countries and their cooperation towards broader horizons, through active economic partnerships serving the supreme nations' mutual interests, and generating progress and prosperity for the two brotherly peoples.

The two Heads of State «emphasized the ambition of the two brotherly countries to establish joint, pioneering strategic economic partnerships in regional and international markets, particularly in Africa», reads a statement by MAP.

The Moroccan Sovereign and the Emirati President have decided to forge a partnership with specific objectives. Rabat and Abu Dhabi will work to «to translate the complementarity between the two countries into qualitative solidarity and sustainable investment, with the aim of raising bilateral economic, trade, investment and industrial relations to the level of deep political and popular ties, in the service of common development and prosperity objectives».

The two States are committed to «establishing a comprehensive and balanced model of economic cooperation and investment, open to the private sector and generating benefits and development for all» and to «activating pragmatic and concrete cooperation through structuring projects that meet the interests of both parties, notably in the social, economic and infrastructure sectors, transport, drinking water, agriculture, energy, tourism, real estate, as well as in the fields of training and employment».

A declaration that supports projects in the Sahara

Both parties agreed to prioritize certain development projects in Morocco, including the identification of investment opportunities in the field of infrastructure, mainly the expansion of railways, with a particular focus on the Kenitra-Marrakech high-speed train; upgrading airports, including those in Casablanca, Marrakech, Dakhla (Dakhla Hub), and Nador; developing ports while investing in their management, especially the Nador West Med port and the Dakhla Atlantic port; exploring investment opportunities in the water, energy, and sustainable development sectors; as well as identifying opportunities for strategic cooperation in the field of food security, through exploring partnership opportunities with the Office Chérifien des Phosphates in the field of fertilizers.

The agreement signed between the two Heads of State also emphasizes the development of joint projects in the fields of tourism and real estate, particularly on the Mediterranean coast and in the regions of Dakhla and Tarfaya; examining opportunities to contribute to the reconstruction and redevelopment of regions affected by the Al Haouz earthquake; exploring the realization and financing of projects in the construction of educational, university, and health facilities, and studying financing of projects in the fields of communications and digital economy.

The Declaration also mentions the examination of cooperation and exploration of partnership prospects between the Sovereign and Investment Funds of the two countries and the Africa-Atlantic gas pipeline project; the planning and development of the integrated «Dakhla Gateway to Africa» project; the creation and management of a commercial maritime fleet. For all related projects, both parties will subsequently agree on their feasibility.

Both parties will work through competent institutions to examine the strategic projects mentioned in this Declaration. The aforementioned projects and others will be the subject of specific Memoranda of Understanding, mutually agreed upon, meeting the expectations and objectives of both parties, and defining the characteristics of the project and its financing methods, the necessary schedule for its implementation, and the commitments of all contributing parties. These memoranda will be reviewed and concluded within a period not exceeding three months from the date of this Declaration..

Morocco and the UAE will mutually agree on financing methods, in conjunction with their possible partners, if deemed necessary. Both parties agree that this investment financing will combine: capital; concessional loans; competitive commercial loans; innovative financing mechanisms; and donations.

The ambition of Rabat and Abu Dhabi to establish «an innovative, renewed and rooted partnership» is reflected in the establishment of mechanisms for monitoring commitments, cited in the Declaration. «This mechanism includes representatives from both parties who will define its composition as necessary. This mechanism meets regularly and alternately between Morocco and the United Arab Emirates, according to a format agreed between the two parties, and will submit its reports to the competent parties,» concludes the Declaration.