Morocco accelerates the localization of defense industries in line with a balanced royal vision
Morocco has granted ten new licenses for defense industrial projects with total investments amounting to 260 million dollars.
Morocco is steadily consolidating its position as a regional supporter of defense industries, relying on a clear strategic vision set by King Mohammed VI. This vision is based on building national autonomy in military equipment, strengthening the readiness of the Royal Armed Forces, and developing a local industrial ecosystem capable of production and export.
In this context, a recent parliamentary report based on data from the Ministry of Defense revealed the issuance of ten new licenses for defense industrial projects, representing a total investment of 260 million dollars.
These projects, covering various defense-related activities, mark a new stage in the policy of opening up to military industries launched by the kingdom several years ago. The goal is to reduce external dependence and build advanced national capabilities in manufacturing, equipment, and logistical support. The report also indicates that five additional projects are under review or in their final stages, in line with the needs of the Royal Armed Forces, which have been continuously modernized since the start of major reforms in the military sector.
These developments coincide with an unprecedented increase in the defense budget within the 2026 draft finance law, which reached 15.7 billion dollars—an increase of more than 18 percent compared to 2025. According to the financial document approved by the House of Representatives, this increase is primarily allocated to the acquisition, maintenance, and renewal of weapon systems and to the development of domestic defense industries. This aligns with the royal directives emphasizing the need to provide the armed forces with advanced equipment that enhances their operational and combat capabilities.
This momentum is part of a broader process that has been strengthened since last June, when the kingdom announced the creation of two industrial zones specialized in defense industries dedicated to security equipment, military vehicles, and weapon systems. According to the parliamentary report, all legal and administrative measures have been taken to begin preparing these industrial zones, which are expected to be ready to welcome investors before the end of 2026. These zones represent a structural step toward the localization of military industry, as they will help attract major international companies, promote technology transfer, and enhance local production chains.
To create a favorable environment for investors, Morocco has enacted several legal and regulatory reforms in recent years, including expanding the scope of temporary corporate tax exemptions to include defense industry activities. This also includes the amendment of the public procurement decree in March 2023, intended to encourage companies contracting with the Defense Administration to localize part of their investments in Morocco.
This dynamic reflects Morocco’s determination to establish a modern and integrated defense industrial base capable of supporting the Royal Armed Forces and contributing to national and regional security. It also aligns with the royal vision emphasizing the development of a strategic defense system based on gradual local manufacturing, advanced international partnerships, and continuous modernization of the army’s land, naval, and air capabilities.
By launching dozens of new projects, developing specialized military industrial zones, and increasing the defense budget, Morocco is consolidating its position as a rising actor in defense industries at the African and Mediterranean levels, continuing to strengthen the readiness of its armed forces within a comprehensive modernization process led for years by King Mohammed VI.
