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Marrakech – Morocco will raise its defense spending to record levels in 2026, focusing on qualitative modernization and building domestic defense capabilities as part of a calculated long-term strategy.
According to a comparative analysis published last Saturday by Spanish defense platform Defensa, Morocco and Algeria reveal dramatically different approaches to military spending in their 2026 finance bills.
“In the Maghreb region, characterized by complex geopolitical interactions, the 2026 finance bills of Morocco and Algeria offer a clear vision of two divergent defense strategies,” states the report authored by Alex Ribeiro.
Morocco’s finance bill authorizes future financial commitments for the National Defense Administration valued at MAD 157.17 billion (approximately €14.7 billion). This figure represents a significant 17.77% increase compared to the previous year.
The actual budget to be disbursed during 2026, known as “payment credits,” amounts to MAD 55.3 billion (€5.157 billion). This sum covers current operating expenses, staff salaries, equipment maintenance, and annual payments for contracts signed in previous years.
Morocco’s strategy targets two parallel objectives: completing qualitative modernization programs across different military branches and developing the local defense industrial base.
Military advancement remains the priority
The Moroccan approach also supports the creation of 5,500 new positions, slightly fewer than the 5,792 from last year. Additionally, a modest budget increase for the Royal Center for Space Remote Sensing (CRTS) points to the growing strategic importance of space intelligence, surveillance, and reconnaissance capabilities.
Algeria, meanwhile, continues its pattern of massive defense spending. Its 2026 budget project allocates payment credits of DZD 3.205 trillion Algerian (€21.153 billion) to the Ministry of National Defense, with commitment credits reaching DZD 3.305 trillion (about €22.8 billion).
“Before the end of the year, air bases will host three different models of new Russian fighters for the Algerian Air Force,” the report reveals.
Economic context shows the strategic differences
Based on the latest IMF estimates for 2025 GDP, Morocco’s actual defense spending of €5.1 billion represents approximately 3.4% of its projected GDP (€154 billion) and constitutes 7.66% of the state’s general budget (€66.6 billion).
In Algeria, however, the situation is drastically different. Real defense spending of €22.1 billion soars to nearly 8.9% of its GDP (€247 billion) and absorbs 15.1% of the state’s general budget (€146.3 billion).
“A percentage of 8.9% of GDP places Algeria in an exceptional category of countries, far exceeding the average spending of NATO countries (around 2%), above a major regional and oil power like Saudi Arabia (7.3%), and even approaching the spending levels of countries in almost permanent conflict like Israel (around 9%),” notes Ribeiro.
National priorities show fundamental differences in governance philosophy
In Algeria, the defense budget (€22.1 billion) exceeds the combined budgets for education and health sectors (around €18.5 billion), placing traditional military security at the top of the priority pyramid.
Morocco’s model reflects a different balance. The defense budget (€5.1 billion) remains considerably lower than spending allocated to education and health sectors combined (about €13.9 billion).
“The Moroccan state, despite being aware of security challenges and the need for military modernization, seeks to maintain a balance between defense requirements and human and social development priorities,” according to the analysis.
The report describes Morocco’s approach as “Smart Power,” focusing on qualitative modernization, advanced technology in partnership primarily with the United States and Israel, and building gradual industrial autonomy in collaboration with India and Turkiye.
Conversely, Algeria continues to rely on a “mass and deterrence” strategy that requires constantly maintaining and equipping an enormous military force, resulting in massive and continuous financial expenditure.
“The two paths chosen by neighboring countries will define not only the military balance in the region in the coming years, but also the trajectory of each country’s economic and social development,” concludes Defensa’s analysis.
