Morocco has announced a $17 billion investment plan to develop a domestic defense industry, primarily through joint ventures with Israeli companies, according to reports from July 2026. The initiative aims to reduce Morocco's reliance on foreign arms imports and enhance its military self-sufficiency.
The investment will focus on manufacturing drones, missiles, and other advanced military equipment. Key Israeli defense firms, including Israel Aerospace Industries and Rafael Advanced Defense Systems, are expected to partner with Moroccan state-owned entities. The first joint venture, announced in early 2026, involves the production of loitering munitions at a facility near Casablanca.
Morocco's defense budget has grown significantly in recent years, reaching $13.2 billion in 2025, according to the Stockholm International Peace Research Institute (SIPRI). The new investment represents a major expansion, with production facilities planned across multiple regions, including Tangier and Marrakech.
The partnership builds on the 2020 normalization of relations between Morocco and Israel under the Abraham Accords. Since then, bilateral defense trade has increased, with Israel becoming a key supplier of drones and missile systems to Morocco. The new joint ventures are expected to create thousands of jobs and transfer advanced technology to Moroccan engineers.
Analysts note that the investment aligns with Morocco's broader strategy to diversify its defense partnerships beyond traditional suppliers like France and the United States. However, the plan has drawn criticism from Algeria, which views the military buildup as a threat to regional stability.
