After the tripartite agreement: Morocco, a future regional investment "Hub"?

It is a visit that is symbolic of a new major diplomatic step for the Moroccan Kingdom, but not only, as it has substantial economic aspects for North Africa as a whole. Indeed, the arrival Tuesday evening in Rabat of a high-level delegation led by the Special Advisor to the U.S. President, Jared Kushner, accompanied by Meir Ben-Shabbat, Israel's National Security Advisor, paves the way for Morocco to take its development and attractiveness to the next level.

The Sahara now "open” for US business

The trip of the high-level delegation follows what is considered a "turning point" in the Western Sahara issue, following the announcement by the United States on December 10 of the recognition of Moroccan sovereignty over this territory, which is the subject of a dispute with the guerrilla movement Polisario Front - supported by neighboring Algeria - for nearly forty years. Right after the recognition, America notified the UN Security Council of its decision and the official Moroccan maps were all modified by the U.S. administration to include the Sahara as an integral part of the North African Kingdom.

A low-intensity conflict, bogged down by numerous unsuccessful mediation attempts under the aegis of the UN, the Sahara issue was the subject of a "broad autonomy" proposal by Rabat in 2007, described as "serious and credible" on numerous occasions by the UN body. The Polisario Front rejected this initiative, asking that independence remains an option on the table.

Beyond that, Washington has backed up its words with deeds by announcing the upcoming opening of a U.S. consulate in the Sahara town of Dakhla, meaning that all international investments are no longer exposed to any possible sanctions.

In addition, during the visit to Rabat, where the high-level delegation was received by King Mohammed VI at the Royal Palace, a

U.S. commitment to invest nearly US$3 billion over four years in private projects was signed between the CEO of the U.S. International Development Finance Corporation (DFC) and Executive Chairman of Prosper Africa, Adam Boehler, and Mohamed Benchaaboune, Morocco's Finance Minister. Under the terms of the agreement, the U.S. financial arm is to make Morocco its "Hub" for North Africa.

Reactivation of diplomatic relations with Israel, Morocco committed to the "two-state solution"

In parallel, the visit of the high-level delegation saw the signing of a tripartite agreement between Morocco, the United States and Israel, thus reactivating diplomatic relations between Rabat and Tel Aviv, interrupted since 2002. It should be emphasized in this regard that Morocco is a country apart in the Arab world, since no less than 700,000 Moroccan Jews live in Israel and the Moroccan Kingdom recognizes in its constitution its Jewish roots. The Moroccan Jewish community still living in Morocco benefits from the recognition of its specificities through its own rabbinical courts as well as freedom of worship.

While the agreement signed between the parties reactivates diplomatic and cooperation mechanisms, including the opening of direct air routes between the two countries, Rabat stressed its commitment to the "two-state solution", with a special place given to Jerusalem, whose preservation body, the institution "Al Quds", is headed by the sovereign Mohammed VI. Under the terms of this agreement, Moroccan Jews residing in Israel will be able to return to their homeland to make pilgrimages, tourism, or invest in a number of promising sectors.

A stable country, both in the institutional and macroeconomic level

Morocco has many advantages for America but also for Israel as a regional investment hub, especially towards Africa. Indeed, the Kingdom enjoys institutional and macroeconomic stability in a North Africa that has experienced a turbulent last decade, and the country is gradually establishing itself as a major industrial platform, producing no less than 700,000 vehicles per year and hosting the ecosystem of the American giant Boeing. In addition, the country has deployed a substantial "green" strategy, housing the largest solar power station and pursuing an energy mix strategy that should drastically reduce its carbon emissions by 2025. Finally, the country enjoys an excellent infrastructure and has been operating the first high-speed railway line between Tangier and Casablanca for several years. Morocco also enjoys Free-Trade Agreements with over 50 countries in the world, and is very active in the African continent, being the second largest investor in Africa. Moroccan banks and insurance companies are particularly active, with a footprint in more than 30 African countries.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes