Rabat – Morocco is emerging as an increasingly important destination for foreign investment in manufacturing, electric vehicles, renewable energy and logistics, as companies rethink global supply chains and seek new production locations, according to the United Nations Conference on Trade and Development (UNCTAD).
In its World Investment Report 2026, UNCTAD said Morocco recorded about $3.3 billion (MAD 30.7 billion) in foreign direct investment (FDI) inflows in 2025, with investment supported by continued diversification into manufacturing and automotive activities.
The figure came as FDI flows to North Africa fell sharply from 2024, largely because of the exceptional impact of Egypt’s Ras El-Hekma megaproject. Against that backdrop, Morocco’s investment performance was linked to a broader expansion of its industrial base.
Automotive sector remains a major attraction
UNCTAD identified Morocco among the emerging destinations benefiting from the global expansion of electric vehicle investment, alongside countries including Brazil, India, and Thailand.
The report noted that Morocco’s move into EV battery manufacturing reflects a long-term industrial strategy, rather than reliance on a single investment incentive. Over the past two decades, the country has developed an export-oriented automotive platform through industrial infrastructure, free-zone incentives, supplier development, and dedicated training institutions.
This industrial ecosystem has helped Morocco attract major battery investments. UNCTAD cited the gigafactory project in the Rabat-Sale-Kenitra region, which involves an initial investment of about $1.3 billion (MAD 12 billion), with planned expansion from 20 GWh to 100 GWh and potential total investment of around $6.5 billion (MAD 60 billion).
The country also appeared in UNCTAD’s list of Africa’s 10 largest greenfield investment projects announced in 2025. A $1.5 billion (MAD 13.9 billion) Stellantis automotive project, backed by investment from the Netherlands, ranked among the continent’s biggest new projects that year.
Renewables support Morocco’s industrial growth
UNCTAD also highlighted Morocco’s renewable energy strategy as an increasingly important advantage for attracting energy-intensive manufacturing.
The report said, “Morocco’s renewable energy targets and decarbonization commitments, combined with arrangements that give firms access to dedicated renewable electricity, have helped position the country as an attractive location for battery materials and cell manufacturing.”
At Jorf Lasfar, the CNGR-Al Mada joint venture COBCO plans to raise the share of green electricity used in its operations to 80% in 2025 and 100% by the end of 2026. Meanwhile, Gotion’s gigafactory in Kenitra is linked to a dedicated renewable energy supply arrangement involving a 500-megawatt wind project and 2,000 MWh of battery storage.
Morocco’s energy-transition potential extends beyond domestic manufacturing. UNCTAD pointed to the announced Sila Atlantik Cable as an example of the growing regional dimension of investment in renewable energy. “The project combines large-scale renewable generation with subsea transmission infrastructure linking North Africa and Europe,” the report says.
Tanger Med boosts investment
Logistics infrastructure is another major part of Morocco’s investment appeal.
UNCTAD described the Tanger Med port and zones complex as a gateway to Europe that converts Morocco’s geographical position into export-oriented foreign investment by integrating the port with surrounding special economic zones and industrial parks. “The main automotive cluster lies within 35 minutes of the terminal, reducing inland time and variability between factory gates and vessel departure,” the report notes.
The report also highlighted rail connections, noting that Tanger Med receives trains carrying vehicles from Renault and Stellantis, while cooperation with Spain’s Port of Algeciras is strengthening cross-Strait logistics.
Taken together, UNCTAD’s assessment suggests that Morocco’s advantage is increasingly about more than attracting individual foreign companies. Its industrial zones, logistics infrastructure, renewable energy capacity, and growing supplier base are helping position the country within emerging global value chains, particularly those linked to electric mobility and the energy transition.
The report nevertheless states that attracting investment alone is not enough. Developing economies need to connect foreign investment with local suppliers, skills, innovation and employment so that investment contributes to broader domestic industrial development.
