Morocco and Saudi Arabia Strengthen Their Trade Partnership with Direct Maritime Line Project
Morocco and the Kingdom of Saudi Arabia are moving swiftly to implement a direct maritime line connecting the ports of both countries. This strategic step aims to facilitate the flow of goods, reduce shipping times, and diversify trade exchanges, especially given the trade balance currently favors Riyadh.
The idea of a maritime line, proposed years ago, has become a priority on the joint economic agenda, featuring prominently during the recent visit of a delegation from the Saudi Chambers of Commerce to Rabat, receiving support from several Moroccan government officials.
Khaled Benjelloun, Chairman of the Moroccan-Saudi Business Council, emphasizes that the launch of the maritime line will reduce the shipping duration between the ports of Tangier and Jeddah from four weeks to just five to seven days. This is crucial, particularly for Morocco’s fresh agricultural exports. The project is also expected to lower logistical costs and enhance bilateral trade volumes to around $5 billion.
Current figures indicate that trade between the two countries amounts to approximately $3 billion, of which about $2.5 billion are Moroccan imports from Saudi Arabia, primarily in petroleum products, while Moroccan exports barely reach 1.15 billion dirhams, highlighting a significant trade deficit in favor of Riyadh.
The project is still in the technical and logistical study phases, overseen by a joint working team from both sides. Business leaders acknowledge that the project may not be profitable initially, but it represents a strategic investment for a future marked by increasing trade exchanges.
Apart from reducing supply lead times, economic cooperation faces other challenges related to customs procedures, standardization, and mutual recognition of certifications, as well as the need for additional support for small and medium-sized enterprises, especially those seeking to expand their activities in African and Asian markets through partnership with Saudi Arabia.
Moroccan officials believe there are significant opportunities to enhance Moroccan exports to the Saudi market, particularly in the automotive, food, clothing, and electrical equipment sectors, which have been experiencing steady growth in Morocco in recent years.
In terms of investments, estimates suggest that Saudi investments in Morocco amount to around $6 billion, concentrated mainly in the renewable energy, tourism, and healthcare sectors. Notable among these is ACWA Power, which manages the largest solar power project in the Kingdom, reflecting the deepening economic cooperation between the two countries.
