Morocco’s diversified economy may position it as a key winner in the wake of the U.S. tariff strategy and the ongoing restructuring of global trade, said Abdallah Al Dardari, UN Assistant Secretary-General and Director of the UNDP Regional Bureau for the Arab States, during a lecture Friday at the Policy Center for the New South at Mohammed VI Polytechnic University.
Al Dardari pointed to Morocco’s ability to absorb external shocks better than many of its regional peers, highlighting recent reports of Elon Musk’s plans to build a factory in Tangier as a signal of the U.S.’s growing interest in “nearshoring” industrial capacity away from China and closer to allies like Morocco.
“The initial shock has shown that more diversified countries are better positioned to survive this trade war,” said Al Dardari, citing UNDP assessments during his lecture titled “Harnessing the Power of Digital as an Enabler for Inclusive and Sustainable Development.”
Digital Future and Economic Resilience
Al Dardari emphasized that the global economy is undergoing a profound transformation, marked by the end of globalization as we knew it, growing geopolitical instability, and the accelerating rise of artificial intelligence.
In this new reality, he argued, survival will hinge on whether countries invest in inclusive human development, productive innovation, efficient institutions, and digital infrastructure. “Digital is no longer a luxury; it is a necessity,” he added.
Morocco’s Strengths and Regional Comparisons
Despite the region’s immense resources and growing population, Al Dardari noted a worrying decline in the Arab world’s share of global GDP, falling from 9% in 1980 to under 4% today—despite record oil revenues.
He also highlighted a persistent mismatch between public spending and outcomes in education and healthcare across the region, noting that Arab countries spend roughly the same share of GDP on public services as advanced economies, but achieve much poorer results.
While many Arab countries continue to struggle with inefficiency and public-sector dominance, Al Dardari praised Morocco for outpacing its neighbors in diversification and productivity, though he stressed the need to accelerate reforms.
“If productivity across the region improves, we could see GDP rise by 2%, exports by 2.7%, and government revenues by 2% by 2030,” he said.
Morocco’s Push Toward Digitization and AI
Al Dardari hailed Morocco’s commitment to AI and digital transformation, referencing the recent launch of the Morocco Digital Sustainable Development Center (D4SD)—a joint initiative with the Ministry of Digital Transition.
The D4SD is intended to become a regional AI hub for Arab and African countries, focusing on economic forecasting, climate strategy, water resource management, and administrative modernization.
He also confirmed that the UNDP has signed a $54 million partnership with Morocco to support digital reforms and administrative efficiency, a move he described as “a strong signal of Morocco’s belief in AI, international cooperation, and the country’s new development model.”
Al Dardari concluded that Morocco has the right foundations but must now scale its progress in digital governance, productivity, and innovation to realize its full potential.
“In the face of global fragmentation, Morocco’s smart investments in diversification and AI signal its readiness to lead in a region still adapting to a rapidly changing world,” he said.
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