Morocco is accelerating the development of its domestic defence industry through the establishment of two industrial acceleration zones dedicated to defence activities in Berrechid and Benslimane. The initiative aims to attract investors, develop technological partnerships and strengthen national expertise in the manufacture of strategic equipment. With new investment initiatives announced in October 2026, attention is increasingly shifting towards turning these projects into operational industrial facilities.

The development of a defence industry represents a new component of Morocco’s strategy to diversify its industrial base. Through the creation of specialised zones, the Kingdom aims to establish a favourable environment for investment and local production while gradually integrating domestic companies into technology-intensive value chains.

This initiative falls within the regulatory framework established by Law No. 10-20 of 25 July 2020, governing defence and security equipment, weapons and ammunition, as well as Decree No. 2-23-925 of 20 June 2024, which provides for the establishment of two defence industrial acceleration zones.

Berrechid and Benslimane at the Heart of the New Framework

Located in the Casablanca-Settat region, the two zones are intended to accommodate industrial activities specialising in defence and security. Their development and management involve the Agency for Housing and Military Equipment (ALEM) and MEDZ, a subsidiary of the Caisse de Dépôt et de Gestion (CDG) group.

The framework is designed to provide investors with an environment suited to the specific security, compliance and oversight requirements of the sector. It is also intended to facilitate the establishment of foreign companies and encourage industrial partnerships with Moroccan businesses.

Eligible activities include the manufacture of defence and security equipment, weapons systems and ammunition, as well as related industrial services, subject to the applicable regulatory requirements and authorisations.

The ambition extends beyond the production of finished equipment. The zones could also support the development of expertise in precision engineering, electronics, embedded software, communications systems and specialised maintenance.

International Industrial Groups Show Interest

The Marrakech Air Show, held from 7 to 10 October 2026, provided an opportunity to highlight investment prospects associated with the zones. Memoranda of understanding concerning the allocation of industrial land were announced with several manufacturers, including France’s Arquus, India’s MKU, Canada’s Inkas Aerospace & Defense and Harmattan AI.

Other companies, including Marcotec, ABA Technologie and the IGG/BAL TEQ Defense Industries partnership, were also identified among the industrial players interested in the projects.

These initiatives reflect growing interest in Morocco’s industrial opportunities in defence and related technologies. However, memoranda of understanding must be distinguished from completed investments. Signing an agreement does not necessarily mean that a factory has been built, financing has been fully secured or production has started.

The coming stages will therefore be crucial in assessing the projects’ actual progress, particularly in terms of implementation schedules, expected production capacity and job creation.

Domestic Suppliers as a Driver of Industrial Growth

One of the main economic objectives is to ensure that the zones generate opportunities across Morocco’s industrial ecosystem. Local companies could benefit from new demand for component manufacturing, precision machining, metalworking, industrial electronics and technical services.

The scale of these opportunities will depend on the level of local integration adopted by investors and the ability of Moroccan suppliers to meet the sector’s demanding quality, traceability and security standards.

Technology and skills transfer will also be essential. Industrial partnerships could help train technicians and engineers, facilitate the acquisition of specialised know-how and develop domestic capabilities in design, manufacturing and maintenance.

To maximise these benefits, Morocco will need to move beyond assembly operations towards higher-value activities, including engineering, testing, software development and advanced manufacturing technologies.

Industrial Sovereignty and Export Prospects

The establishment of these zones is also intended to strengthen national industrial capabilities. Local access to certain components, equipment and maintenance services could help reduce specific external dependencies, although it would not eliminate the need for international supply chains.

Defence technologies rely on specialised components, licences, protected know-how and international regulations governing the transfer of certain technologies and equipment. Morocco will therefore need to balance domestic production, technological cooperation and access to imported equipment.

Over the medium and long term, the industrial capabilities developed within the zones could create export opportunities. Their realisation will depend on product competitiveness, certification requirements, demand in foreign markets and compliance with the authorisation procedures governing international trade in the relevant equipment.

Actual Investments Will Determine Success

Assessing the programme will require close monitoring of investments actually made, the number of operational industrial facilities, jobs created, local content levels and measurable technology transfers.

The zones’ ability to attract sustainable projects, develop a network of Moroccan suppliers and train specialised workers will be essential indicators of their economic performance.

For Morocco, the challenge is therefore not simply to establish two specialised industrial areas. It is to build an integrated ecosystem capable of supporting innovation, increasing domestic value added and strengthening national technological expertise.

The transition from announced agreements to productive investment and operational manufacturing will ultimately determine the contribution these two zones make to diversifying the Kingdom’s industrial base in the years ahead.