Moroccan-Israeli trade blows past $53 Million in 5 months

Despite the repercussions of the war on Gaza and the boycott campaigns that have swept through several Arab countries, Morocco-Israeli mutual commercial exchanges have maintained their growth. 

In May, the value of these exchanges jumped to $8.5 million, marking a 124% record increase compared to the same month in 2023.

In the first five months of this year, the cumulative value of bilateral trade outstretched $53.2 million, a 64% growth compared to the previous year. 

Trade between Morocco and Israel has been upward, with varying growth rates between Morocco, the UAE, Jordan, Egypt, and Qatar on one side and Israel on the other, according to the latest report issued by the Abraham Accords Institute.

According to data from the Israeli Ministry of Economy and Industry’s Foreign Trade Administration, Israeli exports to Morocco witnessed a surge of 128% last year. Exports to the countries that are part of the accord also saw significant increases, particularly the UAE, whose imports from Israel saw a 5.2% increase, in a total of $650 million.

In October last year, Moroccan-Israeli mutual trade was affected by the start of “Operation Al-Aqsa Flood’’  and decreased by 61% compared to the same period the previous year.

Yet, the total mutual trade before the year’s end was $94 million, representing a 112% surge given the same period in 2022. At that time, mixed forecasts about the future development of bilateral trade in the early months of this year prevailed. 

Areas of Economic Corporation

Signing the “Abraham Accords” in December 2020, aimed at enhancing relations between Israel and many Arab countries, trade exchanges between Morocco and Israel have significantly developed.  

This came with a couple of trade and investment cooperation agreements, strengthened a year later by reciprocal visits from Israeli and Moroccan companies to envision investment opportunities. Many trade missions and official visits were organized to boost commercial cooperation.

Innovation and investment are a linchpin in Morocco-Israel cooperation. The investment fund of Mohammed VI Polytechnic University (UM6P Ventures) has intended to invest in Israeli companies in biotechnology, agriculture, and alternative proteins since February 2024, accentuated Abderrahim Azraoui, an economist in international trade.

He highlighted the presence of four Israeli companies in the “GITEX Africa” exhibition in Marrakech last May, reflecting this dynamic. “Nevatim”, an Israeli company, also opened its first factory in Morocco, bringing job opportunities and advanced irrigation equipment to the disposal of local farmers.

‘’Research and innovation rule the fields of cooperation between Morocco and Israel, pointedly, an agreement between the Israeli Aerospace Industries (IAI) and the International University of Rabat, establishing a center of excellence in aviation and artificial intelligence,’’ stated Azraoui.

This agreement highlights the salient role of technology and security in the bilateral relations between the two countries.

Appointing an Economic Attaché

Israel’s appointment of an economic attaché and opening of a trade office underscores its devotion to enhancing trade and investment, as this facilitates necessary interactions between both countries’ businesspeople.

The vision is to sign a free trade agreement and other major economic agreements, which will be crucial in developing economic mutual relations between Rabat and Tel Aviv. Fostering daily direct flights to various destinations is also vital in strengthening and improving economic ties.

Exchanges between businesspeople, tourists, and civil society actors can be mainly facilitated through direct flights. More Moroccan-Israeli trade missions would help set partnerships and investigate business opportunities in both countries, enhancing bilateral cooperation, explained Youness Lazim in a statement to Hespress.

He emphasized the importance of establishing solid foundations for economic relations to overcome the challenges of the ever-changing regional circumstances, particularly geopolitical tensions. He also highlighted the importance of tax and customs regulations in prompting and developing bilateral trade.

Lazim further stated that Morocco has sought earnestly to benefit from economic cooperation with Israel in diversified domains, particularly tourism, as of a surge in the influx of Israeli tourists to the kingdom, led by the launch of direct flights and facile electronic visas since July 2022.

Facilitating the entry procedures for Israeli tourists and businesspeople into the country enhances the tourism and investment sectors and boosts trade exchanges and foreign currency revenues, added Lazim.