Morocco is ramping up efforts to build a robust defense industry, unveiling a detailed industrial roadmap aimed at boosting domestic capabilities and creating thousands of new jobs. Speaking before the parliamentary committee on foreign affairs, Abdellatif Loudiyi, the minister delegate in charge of national defense administration, laid out an ambitious plan already in motion. Ten defense projects have received the green light, totaling $260 million in investments and expected to generate 2,500 direct jobs. Another five initiatives are currently under review or in the final stages of development.
Among the standout ventures is the construction of an armored vehicle manufacturing facility in collaboration with India’s Tata Advanced Systems. Morocco is also moving into drone production through a partnership with Turkish defense firm Baykar, while a separate assembly line for Spy-X drones is in the pipeline via a joint venture with Israeli firm BlueBird Aero Systems. The roadmap includes plans for a dedicated maintenance hub for C-130 transport aircraft and F-16 fighter jets—developed in cooperation with Lockheed Martin, Sabena Engineering, and Moroccan industrial zone developer MedZ. Another upcoming project is set to involve Israeli defense giant Elbit Systems.
To support this growing sector, Morocco is developing two specialized industrial zones exclusively focused on defense production. Scheduled to go live by the end of 2026, these zones will offer favorable tax regimes and are designed to provide the necessary infrastructure for producing, upgrading, and exporting defense equipment. The ultimate goal: establish a self-sustaining, high-tech defense industry with global reach.
Minister Loudiyi emphasized that the legal framework surrounding this initiative has been carefully crafted to accelerate its success. It includes targeted tax breaks, industrial compensation schemes, investment incentives, and mechanisms to encourage technology transfers from international partners.
In line with this strategic shift, Morocco’s 2026 defense budget has been increased to 73 billion dirhams, a 4.8% rise from the previous year. The defense allocation now accounts for approximately 4% of the national budget. These funds will not only cover personnel and equipment upgrades but also provide crucial backing for the country’s emerging defense manufacturing ecosystem.
