Israel-Morocco Ties Soar in 2023 Amid Expanding Abraham Accords Cooperation

Doha – The year 2023 witnessed a remarkable deepening of Morocco-Israel relations, which emerged as the fastest growing trade relationship among Abraham Accords countries, according to a newly released report by the Abraham Accords Peace Institute (AAPI).

The AAPI’s 2023 Annual Report, published on April 1st, highlights a doubling of bilateral trade between Morocco and Israel, reaching USD $116 million and demonstrating the resilience of economic ties despite regional challenges. This growth comes as part of an overall expansion of cooperation among Abraham Accords signatories, with total trade exceeding USD $4 billion, a 16% increase compared to 2022.

“The Abraham Accords remain a crucial pillar of stability in the Middle East and a symbol of hope that countries can continue to come together to enhance the lives of their citizens,” said AAPI Founder Jared Kushner. “This report demonstrates some of the tangible results of these historic agreements. It is up to all of us to continue our efforts to ensure their full potential is realized.”

Diplomatic breakthroughs and high-level visits

Last year marked the most productive year for Morocco-Israel diplomatic relations since the signing of the Trilateral Agreement resuming ties. A series of high-level visits saw Israeli ministers engage with their Moroccan counterparts on issues ranging from water and agriculture to transportation and scientific cooperation.

Notably, in July, Israeli Prime Minister Benjamin Netanyahu informed King Mohammed VI of Israel’s decision to formally recognize Moroccan sovereignty over the Western Sahara, a move described by the King as “both just and far-sighted.” The report emphasizes the importance of countries fully implementing their recognition, as it impacts the future of normalization with Morocco and additional African nations.

Another highlight came in September when Andre Azoulay, Senior Advisor to King Mohammed VI, visited Israel and received the Presidential Medal of Distinction from President Isaac Herzog for his peace-building efforts. That same month, Israeli NGOs were among the first to provide aid to Morocco following a deadly earthquake in Marrakech.

“The Abraham Accords are currently amid their most challenging test in their three short years of existence,” said AAPI Executive Director Aryeh Lightstone. “The AAPI report demonstrates that the Accords will pass this test and will serve as the blueprint for a more peaceful and prosperous Middle East for all its peoples.”

Untapped potential in trade and innovation

The report identifies several high-potential areas for expanded economic cooperation between Morocco and Israel, including energy, water, smart agriculture, manufacturing, and tourism. With Morocco’s regional leadership in renewable energy and Israel’s technological prowess in water recycling, precision irrigation, and aquaculture, the two countries are well-positioned to jointly develop sustainability solutions benefiting the wider region.

Israel’s recognition of Moroccan sovereignty over the Western Sahara is seen as crucial for advancing normalization, given the Polisario Front’s armed conflict with Morocco over the territory and its ties to Iran and Hezbollah. The report urges Israel to fully implement its recognition in all official statements and communications.

Despite the impressive trade growth, challenges remain in realizing the full potential of Morocco-Israel economic ties. The report recommends the swift appointment of an Israeli economic attaché and the opening of a trade office in Morocco to boost business interactions. It also calls for the resumption of direct flights, the coordination of more business delegations, and the exploration of a U.S.-Morocco-Israel Qualifying Industrial Zone.

Innovation and investment emerged as particularly promising fields, with Moroccan and Israeli startups, universities, and venture capital funds forging new partnerships in sectors like biotechnology, agritech, artificial intelligence, and aerospace.

The report highlights agriculture and agritech as key areas for collaboration between Morocco and Israel. In February, Morocco’s National Agency for the Development of Aquaculture (ANDA) signed an $11 million agreement with Israeli company AgriGo to construct marine cages for fish farming near Tangiers, utilizing Israeli-developed low-energy technology.

Another notable project involves Morocco’s Mohammed VI Polytechnic University partnering with a consortium of four Israeli food-tech startups led by Halman-Aldubi Technologies to develop sustainable food solutions in Morocco’s Sahara region.

The project aims to produce high-protein fish food from municipal organic waste, insects, and algae, without the need for water, land, or energy. Additionally, Israeli drip irrigation giant Netafim opened its first manufacturing plant in Kenitra, north of Rabat, in March, expected to create 200 jobs for Moroccans and supply advanced irrigation and fertigation equipment to Moroccan farmers.

In the aerospace sector, Israel Aerospace Industries (IAI) and the International University of Rabat signed a Memorandum of Understanding in May to establish a center of excellence focused on aeronautics, AI, research, and innovation.

The agreement aims to strengthen cooperation in applied research, co-development, and incubation. This follows a partnership agreement signed earlier between UIR president Noureddine Mouaddib and IAI CTO Eytan Eshel in the presence of IAI chairman Amir Peretz and CEO Boaz Levy.

In December, reports emerged that Morocco had signed an agreement with IAI to supply a surveillance satellite to replace the Mohammed VI-A satellite launched in 2017, tasked with border and coast surveillance and managing natural disasters.

People-to-people ties and tourism

The shared Jewish heritage of Morocco and Israel continued to serve as a strong foundation for people-to-people relations in 2023. Ceremonies marking International Holocaust Remembrance Day, delegations connecting Moroccan and Israeli youth, and the celebration of Jewish life cycle events in Morocco all contributed to strengthening this bond.

While impacted by the earthquake in Marrakech and the war on Gaza, tourism still saw growth in certain areas. Approximately 3,200 Moroccan nationals visited Israel in 2023, a 10.3% increase from 2022.

However, the number of Israelis visiting Morocco decreased by 32% to 50,548, compared to 74,648 in 2022. The report emphasizes the importance of resuming direct flights and establishing a reciprocal E-Visa program to boost tourism in both directions.

Regional integration and multilateral cooperation

Beyond bilateral ties, 2023 witnessed significant strides in regional integration and multilateral cooperation among Abraham Accords countries. The UAE-Israel Comprehensive Economic Partnership Agreement entered into force, and the Negev Forum Working Groups convened to advance collaboration in various fields.

The launch of the India-Middle East-Europe (IMEC) Corridor initiative at the September 2023 G20 Summit marked a major step towards the vision of efficient overland trade connecting East and West via Israel and the Gulf. The importance of such a corridor was underscored by Iranian-backed Houthi attacks on Red Sea shipping.

Weathering challenges and looking ahead

The war on Gaza started in October 2023 posed a significant challenge to the Abraham Accords, negatively impacting regional public opinion towards Israel and slowing progress towards Israel-Saudi normalization.

However, the report notes that diplomatic and trade ties remained steady, with Accords countries affirming their commitment to the agreements and leveraging their trust with Israel to coordinate humanitarian aid to Gaza.

Looking ahead to 2024, the AAPI report offers several recommendations to maintain positive momentum. These include encouraging active commitment and investment from allies like the United States, leveraging multilateral initiatives to advance regional cooperation, overcoming barriers to efficient overland trade, expanding E-Visa and visa waiver programs, and pursuing options for expanding the circle of normalization in Africa and Southeast Asia.

As AAPI Executive Director Aryeh Lightstone stated, “I’m proud of my team at AAPI for serving as a critical platform to address meaningful real-time issues for the Abraham Accord countries as they navigate this more complicated and challenging environment.”

With the Abraham Accords entering their fourth year, the progress achieved in 2023 between Morocco and Israel, as well as among the wider group of signatory countries, offers a promising foundation for further growth and cooperation. As the report makes clear, realizing the full potential of these historic agreements will require sustained effort and commitment from all parties involved.