Doha – Morocco has made history with its largest private investment to date, securing a remarkable $14 billion agreement with the United Arab Emirates. This investment marks a significant transformation in the country’s water and energy sectors and is set to redefine its infrastructure landscape for future generations.
Fresh from the official signing, this partnership ties Morocco’s government and the National Office of Electricity and Drinking Water (ONEE) with a consortium comprising notable financial players: the Mohammed VI Investment Fund, TAQA Morocco (the local branch of Abu Dhabi’s energy giant), and Nareva (the energy division of the royal conglomerate Al Mada).
With an investment sum of MAD 130 billion ($14 billion), this alliance signifies more than a straightforward business deal; it launches a comprehensive redesign of Morocco’s essential infrastructure aimed for completion by 2030.
A striking feature of this ambitious vision is a massive 1,400-kilometer high-voltage transmission line that will stretch from Western Sahara to Casablanca, supported by a modern network of seawater desalination plants.
These developments are the fruits of careful diplomatic maneuvers, occurring just five months post King Mohammed VI’s informal visit to Abu Dhabi and 18 months after his official state trip to the UAE, where the groundwork for this Moroccan-Emirati partnership was meticulously established.
Water Security: A Call for Innovation
Recognizing the critical importance of water, the consortium’s initiatives are planned with precision: a vast infrastructure linking the Sebou and Oum Rabia river basins, designed to deliver 800 million cubic meters annually to arid areas.
The first phase of transferring water from the Sebou to the Bouregreg basins commenced in August 2023, successfully redirecting approximately 350 million cubic meters to the Sidi Mohammed Ben Abdellah dam, essential for supplying the Rabat region with drinking water.
Four major desalination facilities will be established across Morocco. In Tanger, a plant with a capacity of 50 million cubic meters per year will support the growing industrial demands of this port city.
Nador’s facility, designed to handle 300 million cubic meters annually, will significantly impact water resources in the eastern region. Additionally, Tiznit is set to be home to the largest facility among the four, with a capacity of 350 million cubic meters, while either Tan-Tan or Guelmim will boast a 100-million-cubic-meter plant to supply the southern areas.
These advanced desalination plants, which will operate solely on renewable energy, are projected to produce a total of 900 million cubic meters each year.
Importantly, pricing will remain competitive, expected to stay at or below MAD 4.50 per cubic meter (excluding tax), in line with national standards set for ongoing desalination projects without requiring public funding.
The Electric Framework: A New Era of Energy Sovereignty
The consortium’s energy vision features a revolutionary high-voltage direct current (HVDC) transmission network extending 1,400 kilometers from Morocco’s southern regions to its central economic hub.
Dubbed the ‘electricity highway’, this essential infrastructure will connect Dakhla to Casablanca, featuring a capacity of 3,000 megawatts, thereby enhancing energy distribution and boosting economic and industrial development along the route.
This network will be powered by 1,200 megawatts of renewable energy, primarily sourced from Morocco’s sun-rich southern areas. The strategic goal is to utilize the natural resource wealth of the desert regions to generate clean energy and deliver it to industrial centers at competitive pricing.
Additionally, there will be significant upgrades to the Tahaddart complex. This gas-fired facility is set to quadruple its output through new combined-cycle units, increasing total production to 1,500 megawatts, thus providing vital support to a grid increasingly reliant on variable wind energy.
Human Benefits, Financial Strategy, and Timeline for Implementation
Beneath the physical infrastructure lies the potential to greatly benefit the community. This extensive project is projected to generate over 25,000 jobs during the construction and operational phases, with 10,000 permanent positions following the project’s completion.
The consortium aims to create not just infrastructure, but an entire ecosystem, fostering technology transfer and local industry growth in areas such as desalination and renewable energy. This will lead to the development of new educational and technical programs, ensuring skilled professionals for Morocco’s water and energy future.
The overall financing for this monumental initiative will be managed by the consortium, sourcing funds from both national and international financial institutions. The urgency of this project is reflected in the partners’ commitment to recruit top-tier technical expertise to ensure a systematic rollout through 2030.
As is typical with such large-scale projects, there will be regulatory challenges to navigate, especially concerning operational concentration. Each project element will be governed by specific development agreements between ONEE and the consortium, with the first agreement, regarding the expansion of Tahaddart, already in place.
Parties Involved in the Agreement
This landmark partnership leverages the synergistic strengths of its members. Nareva, a leader in Morocco’s private electricity sector, has 3,200 megawatts of installed capacity and generates over 15 terawatt-hours each year. Notably, it is Africa’s leader in wind energy, operating eleven wind farms totaling 1,810 megawatts alongside the largest thermal power plant in Safi (1,386 megawatts).
With considerable expertise in electricity transmission infrastructure exceeding 300 kilometers of high-voltage lines and advanced water engineering, Nareva is at the forefront of the Amensouss project and is constructing the world’s first renewable-powered desalination plant in Dakhla.
TAQA Morocco, trading on the Casablanca Stock Exchange since 2013, supplies 34% of Morocco’s electricity needs while comprising only 17% of installed capacity.
Focused on desalination, renewable energy, low-carbon solutions, and infrastructure, the company supports national objectives for energy transition and water security.
Its mother organization, Abu Dhabi National Energy Company PJSC (TAQA), is a diversified energy and utilities leader operating across 25 countries globally.
A Diplomatic Milestone
These agreements signify a renewed diplomatic relationship between Morocco and the UAE following a period of uncertainty. The partnership is a tangible outcome of the strategy laid out during King Mohammed VI’s meetings with Sheikh Mohamed bin Zayed Al Nahyan, aimed at enhancing collaboration in key strategic sectors.
This official exchange established a renewed alliance between the North African and Gulf states, pledging enhanced cooperation in vital sectors including energy and infrastructure.
Furthermore, the King’s subsequent private visit proved just as fruitful, facilitating the resolution of longstanding legal issues between telecom giants Maroc Telecom and Inwi, culminating in a partnership aimed at developing 5G infrastructure for international events such as the 2025 Africa Cup of Nations and the 2030 World Cup.
For the past fifteen years, Morocco has systematically committed to renewable energy, which currently meets 38% of its electricity needs, with a target of 52% by 2030. Facing ongoing water scarcity, the country has embraced desalination as a solution. This partnership with the UAE propels both transitions forward, uniting two desert nations in their pursuit of resource security and sustainable development.