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Rabat – The Moroccan-Saudi Business Council is reportedly considering the establishment of a joint fund to support medium and small-sized companies for export and investment in both countries.
Khaled Benjelloun, who heads the Council, said that the aim behind creating such a fund would be to increase intra-trade between the two countries.
A number of banks are expected to take part in the venture including Attijariwafa Bank, Banque Populaire, and Credit Agricole, and Bank of Africa from Morocco.
The Saudi Investment Bank and the Islamic Corporation for the Development of the Private Sector are also expected to participate.
Morocco and Saudi Arabia already have robust economic ties. According to the Ministry of Trade and Industry, trade exchanges between Morocco and Saudi Arabia amounted to about MAD 17 billion ($1.7 billion) in 2021, with MAD 10 billion ($1 billion) accounting for oil imports from Saudi Arabia.
Morocco aims to increase the volume of exports to Saudi Arabia from the current MAD 700 million ($70 million) to MAD 5 billion ($500 million), the Minister of Industry and Trade Riyad Mezzour previously announced.
Benjelloun believes there is significant potential to increase trade exchanges between the two countries and has called for overcoming administrative and logistical obstacles.
The two countries are constantly exploring new venues to boost cooperation.
During a recent meeting of the Moroccan-Saudi Business Council in Casablanca, members of the council singled out several Moroccan products that have the potential to increase the volume of Morocco’s exports to Saudi Arabia, including textiles, handicrafts, car parts, food products, and tech products.
Trade between the two Arab countries remains largely dominated by oil and agricultural products. However, the two countries are currently working to diversify their trade.
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