Presented to King Mohammed VI during the Cabinet meeting held in Casablanca on June 1, the draft decree outlines the establishment of two industrial acceleration zones dedicated to BITD. The land for these zones will be provided by the housing and military equipment agency. The document also regulates the activities of the future BITD, focusing on the production of military and security equipment, armament systems, and ammunition.

The two zones, however, will also accommodate other defense-industry-related activities. The text provides for the establishment of a sub-sector dedicated to sourcing and supporting the BITD, akin to what has been done in the automotive ecosystem: for instance, Renault and Stellantis have extensive supplier networks in Tanger and Kénitra, respectively. Finally, these industrial zones will be under the joint supervision of the Ministry Delegate for Defense and the Ministry of Industry.

Let’s recall that the outlines of the BITD were drawn in 2015, with the signing of a military and technical cooperation agreement with Saudi Arabia. This agreement was followed five years later by the implementation of a multi-year aid plan, again with Saudi Arabia, endowed with a budget of $22 billion, dedicated to the future BITD.

Since then, Morocco has been working to modernize its military capabilities, significantly increasing the budget allocated to the Royal Armed Forces (FAR), as evidenced by the 2024 Finance Act, which allocates a budget of 120 billion dirhams to the Defense Department. Beyond mere arms purchases, the Defense administration has prioritized establishing a military industry, diversifying partnerships with countries possessing operational BITDs (United States, Israel, and Brazil).

A New Asset for National Industrial Offerings

« Establishing a strong, sovereign, and competitive defense industry requires enormous financial and technological resources, time, but above all, a strategy that involves multiple stages, » emphasizes Nizar Derdabi, defense analyst and professor at the School of Economic Warfare (EGE) in Rabat.

He points out that the adoption of a legal framework aims to lay the foundations for the future BITD, before moving to the operational phase « by establishing industrial zones dedicated to the defense ecosystem, enabling future arms and defense equipment manufacturers to produce in a protected and secure environment, away from any risks of malicious acts or industrial espionage, while benefiting from efficient transportation infrastructure and logistics chains to remain competitive. »

Simultaneously, equipping Morocco with a BITD is not solely to ensure strategic autonomy, as it must defend its interests in an unstable geopolitical environment, underscores Rachid El Houdaigui, professor of international relations at Abdelmalek Essaadi University and Senior Fellow at the Policy Center for the New South (PCNS).

He explains, « It is important to remember that developing this industry is part of a strategic vision to make Morocco a leading geo-economic actor, taking into account the national, regional, and global context in which the Kingdom operates. »

Thus, establishing BITD aims to strengthen the national industrial offering with a new high-value-added sector. Beyond introducing a new element into the national industrial base, BITD can initially capitalize on existing segments of the aerospace and automotive ecosystems (avionics, electronics, electrical, chemical, mechanical…), easily adaptable from civilian to military use, before providing high-value-added solutions to other ecosystems itself.

In essence, the Defense administration aims for symbiosis between the future BITD and the rest of the country’s industrial base to facilitate its operational launch. This direction means that the defense ecosystem will not be exclusively reserved for the public sector.

Public-Private Partnerships for a « Business Culture »

This approach signifies that the defense ecosystem will not be exclusively reserved for the public sector. This view is shared by Nizar Derdabi, who suggests that « regarding the form this industry will take, everything suggests that defense companies setting up in the territory will take the form of joint ventures, with foreign partners experienced in defense partnering with Moroccan operators to ensure this industry remains sovereign. »

Developing BITD around public-private partnerships means prioritizing a business-oriented internal culture from day one. « Private investment is essential to ensure the commercial success of this industry. Given the nature of this activity, the public-private partnership model is the best to adopt. Private operators are inherently agile and risk-oriented, where the public sector can provide necessary guarantees to sustain activity, » confirms Rachid El Houdaigui.

Currently, there is no information on the appearance these industrial acceleration zones will take once they are established. « I believe they will be grouped into one or a few select sites, located within guarded military zones with regulated access, connected to major ports and main industrial zones of the Kingdom through existing major roadways. The outskirts of Casablanca or Tangier are well-suited for this type of military industrial zone, » predicts Derdabi.

Export in Focus

Once the BITD production facility is operational, the goal will be to sustain activity, which necessarily involves adopting a commercial policy geared towards exports. « Relying solely on local consumption is economically impractical. Meeting local market needs for equipment and ammunition should absorb only a small percentage of production from future industrial zones, » explains El Houdaigui.

He emphasizes, « The majority of production should be directed towards exports, as such an ecosystem, like any industrial complex, primarily aims to create employment, enable technological advancements, generate profit, and align with the Kingdom’s strategic orientations. »

Nizar Derdabi concurs, stressing that the ecosystem’s success hinges on diversifying its client portfolio. « Certainly, Morocco can expect to export some of the equipment, weapons, or ammunition it produces in the medium term. The military industry, which requires astronomical R&D budgets, can only be viable if geared towards exports, » explains the defense analyst.

He further specifies, « All countries with developed defense industries base their economic model on manufacturing high-value-added weapons and equipment for export. This not only provides significant leverage but also enhances their influence. »

To achieve this, the Moroccan BITD must, in addition to capitalizing on existing industrial production segments, quickly bridge its technological gap (through the famous leapfrog effect) to initially produce cutting-edge equipment.

This option, which seemed like science fiction in the early 2000s, is now within reach, considering the capabilities offered by Turkish, Indian, or South Korean BITDs. « The crucial step after establishing these industrial zones is acquiring advanced know-how and technologies to enable the design and production of high-tech equipment. This is what is sought on the battlefield and what typically makes the difference, » notes Derdabi.

However, utilizing and producing advanced technologies is not the sole imperative for sustaining BITD: like any other product, it will require battling for orders in an ultra-competitive environment. In essence, positioning « Made in Morocco » military equipment on the defense equipment sellers’ chessboard, regionally and internationally, will be crucial.

« To achieve this objective, communication and influencing efforts must begin now. Thus, when the first Moroccan-made drones or combat vehicles are produced, future clients—foreign armed forces—will already be aware of the technical specifications and performance of equipment manufactured in Morocco, » advises the analyst.

Moreover, to secure initial orders, Moroccan military equipment can capitalize on « basic » equipment, such as rolling stock (all-terrain vehicles or troop transport vehicles, spare parts…), equipment (uniforms, tents, medical supplies…), or various types of ammunition.

Besides being easier to produce through synergies with existing ecosystems and industries, some of these are already assembled or entirely manufactured in production units, whether located within military bases or dedicated production chains.

Preparing for Economic Warfare

This offer has the advantage of having proven itself in real-world conditions, notably in the Sahara and during peacekeeping operations. These operational theaters share similarities with the main commercial targets of the future BITD: African armies. Another advantage of the national offering for these potential clients is familiarity with its equipment, gained through numerous military training sessions and exercises in Morocco, such as African Lion.

This potential clientele will also require tailored packages to be convinced. « The offer must be enriched with tangible benefits these countries could gain if they opt for Moroccan military equipment over equipment purchased from their historical partners, » suggests Derdabi.

Moreover, developing the future BITD must consider the imperatives of economic warfare currently raging in an industry continually welcoming new actors (Turkey, Iran, Korea, India), gradually eroding market shares from established players like the United States, France, Italy, Germany, China, and Brazil.

« Therefore, Morocco must prepare to engage in fierce economic and informational warfare against states experienced in this type of competition, where all means are fair game, even among allies. One need only look at how the United States and the United Kingdom scuttled the astronomical contract promised by the Australian government to France for the purchase of attack submarines in 2021, in favor of American and British builders, » warns the defense analyst.

Written by Amine Ater, edited in English by Eric Nielson