Morocco Establishes Company to Accelerate Localization of Defense Industries

19th June 2025

3 minutes read

Morocco Establishes Company to Accelerate Localization of Defense Industries

The Moroccan government’s decision to create the “Defense Zones Management” company marks a significant step toward building a strong national defense industry.

Morocco continues to take deliberate steps toward establishing a domestic defense industry, periodically announcing measures to support this strategic vision. Among them is the creation of the “Defense Zones Management” company, which will specialize in developing industrial areas designed to host defense sector projects, particularly as several global firms have shown interest in investing in the kingdom.

This initiative is part of an ambitious program closely overseen by King Mohammed VI himself, aimed at developing a fully integrated industrial ecosystem focused on military equipment and technologies. The goal is to meet a substantial portion of the Royal Armed Forces’ needs in weapons, ammunition, and equipment while reducing import dependency.

This move is seen as a foundational milestone in building a self-sufficient national defense industry that boosts national security, promotes economic growth, and strengthens Morocco’s status as a regional military power with industrial and defense sovereignty.

According to the Official Gazette, the creation of this company aligns with the royal directives to establish two industrial zones dedicated to defense. A strategic partnership agreement was signed on November 8, 2023, between the ministries of Economy and Finance, Industry and Trade, the National Defense Administration, and the Agency for Military Equipment and Housing. This agreement is based on the 2020 law governing defense and security equipment, weapons, and ammunition.

The 2020 law serves as the cornerstone of Morocco’s defense industry development program. It includes regulatory measures and incentives to develop, manufacture, and market military and security equipment, weapons, and ammunition.

The agreement establishing the company outlines plans to open industrial and service zones dedicated to defense, including their design, planning, development, management, and promotion.

The aim is to attract foreign direct investment from international companies specialized in defense manufacturing. Morocco is leveraging its accumulated expertise in localizing industries, particularly in the automotive sector, where it has become a regional production hub.

This project is expected to create thousands of direct and indirect jobs, especially in technical, engineering, and R&D fields. It will also facilitate technology transfer to Moroccan talent. Local SMEs will be able to integrate into defense supply chains, strengthening the national industrial fabric.

Last year, Morocco announced the launch of two specialized military industrial zones, referred to as “Defense Industrial Acceleration Zones,” as part of its efforts to create an investment-friendly environment for domestic and foreign defense sector players.

The kingdom aspires to become a regional hub for defense manufacturing in Africa, enhancing its strategic position and unlocking export opportunities. The strategy also aims to open doors for partnerships with leading countries and firms in the field.

Morocco’s international defense policy is based on diversifying its partners, with the United States as a key strategic ally. Military cooperation agreements with the US include clauses encouraging American investment in Morocco’s defense industry.

Programs are already underway for the local maintenance and upgrading of military aircraft such as the F-16 and C-130, in collaboration with US companies like Lockheed Martin. In addition, Morocco is expanding its cooperation with Turkey, especially in electronic warfare, smart systems, and drone manufacturing. Turkish defense company Baykar has announced plans to open a production and maintenance plant in Morocco.