ADFD Supports Economic Development in Morocco

Abu Dhabi Fund for Development (ADFD) has played an active role in supporting sustainable development in the Kingdom of Morocco since 1976. Over the past 40 years, the fund has implemented several successful development projects in Morocco, accelerating economic development throughout the country.

Related to key economic sectors, the projects have helped Morocco achieve social and economic development in areas such as transportation, water and agriculture, healthcare, housing, education and electricity.

In 2013, the UAE offered AED 4.6 billion (US$ 1.25billion) to Morocco, within the framework of the Gulf Development Fund, in line with the GCC countries’ US$5 billion grant programme to finance development projects in Morocco over a five-year period. The UAE grant, managed by ADFD, focused on sectors vital to the economic and social development of Morocco.

With this, the total value of the concessionary loans and government grants administered by ADFD in Morocco reached AED 7.3 billion allocated towards the funding and managing of a total of 64 development projects.

Mohammed Saif Al Suwaidi, Director General of ADFD, said, "The development assistance provided by the UAE to the Kingdom of Morocco through ADFD is a reflection of close ties and long-standing cordial relations between the two countries. The diverse portfolio of projects undertaken by ADFD in Morocco articulates our pledge to support the brotherly and friendly countries in successfully overcoming their most pressing economic and development challenges. As part of our ongoing commitment to promoting sustainable economic and social development in Morocco, we support key economic sectors that strengthen the Moroccan national economy and ease the economic burden of its people."

In line with its belief that a sound modern infrastructure is an important first step to building a strong and well-developed economy, ADFD has allocated a total of AED2 billion in concessionary loans and grants towards the development of 11 projects in the vital transportation sector.

Of this amount, AED 367.3 million was provided in loans to finance the construction of a high-speed rail network linking the cities of Tangier and Kenitra in Morocco. The project aims to build a highly competitive railway network in terms of safety and connectivity to meet the anticipated growth in the merchandise and passenger movement. The project will also cater to the needs of the upcoming Tangier Port, another important infrastructure undertaking funded by ADFD in Morocco. Expected to cut the travel time between the two cities from five hours to around 2.5 hours, the high speed train will accelerate the pace of economic growth through doubling the container traffic as well as increasing passenger movement from three million to 10 million per annum.

ADFD is also focused on developing Morocco’s maritime infrastructure through improving the role of seaports in propelling economic growth and boosting investment. In 2002, the Fund extended AED1 billion including AED734.6 million in concessionary loans and AED367.3 billion in grants (managed by the Fund) towards the development of Tangier Port.

The project includes the construction of a 35km deep water port east of Tangier on the Mediterranean Sea. It will create a special economic zone and provide thousands of new job opportunities for the Moroccan youth.

Housing is another important sector supported by ADFD in Morocco as part of its priority to achieve social stability and development in Morocco. The Fund has leveraged the UAE’s contribution within the GCC’s development grant program for Morocco, supporting the housing sector through the allocation of AED830 million. The grant has been used to support the housing sector in several major cities of Morocco, offering a strong boost to the Moroccan government's efforts to raise the standard of living in the country.

This project has provided housing assistance for hundreds of thousands of families from the low-income category in several Moroccan cities, including 108,000 housing units in Marrakech, 42,800 housing units in Casablanca, 91,000 housing units in Pullman in Fez, 41,800 housing units in the east, 58,800 housing units in Tangier and Tetouan and 56,300 housing units in Meknes.

With these projects, the total value of loans and grants allocated by the Fund towards supporting the housing sector in Morocco over the past decades exceeded AED1 billion allocated towards funding 17 projects.