Israeli business leaders expect surge in trade with Morocco

The Abraham Accords has led to development in financial and enterprise ties between Israel and the United Arab Emirates (UAE). Now Morocco desires in on that, too. Two giant delegations from Morocco arrived in Israel over the previous few weeks. These included a number of dozen heads of main corporations, businessmen, high-tech entrepreneurs and buyers. On the identical time, an Israeli delegation from the Israel Export Institute, the Chamber of Commerce and the Israel Industrialists Union set off for Casablanca March 29, for a four-day go to.

One of many two Moroccan delegations — the Common Confederation of Companies of Morocco — got here to Israel March 13 for a particular three-day occasion. At this convention of enterprise leaders, the 2 nations signed an settlement to enhance financial cooperation between Israel and Moroccan corporations, which included the enlargement of enterprise infrastructures between the 2 nations.

Common Supervisor of Morocco’s Ministry of Business and Commerce Abdelouahed Rahal advised Al-Monitor that his nation has free commerce agreements with dozens of nations, representing 2 million customers. He stated that it’s in talks to signal the same free commerce settlement with Israel.

Chakib Alj, president of the Common Confederation of Moroccan Industries (CGEM), advised Al-Monitor that after arriving in Israel he realized that there’s far more potential than he beforehand imagined. As anticipated, the principle areas of cooperation will likely be agriculture, with an emphasis on agriculture in arid desert areas, of which Morocco has many, the managed use of water, gray water utilization and desalination. In relation to gray water, he famous that Morocco solely reuses some 20% of its sewage waters, however that it desires to learn to elevate that to Israeli ranges. “We’d like water particularly, and the provision of water at these ranges would make it doable for us to take advantage of our agricultural lands in desert areas,” he stated.

One other essential level raised by Alj was that Morocco serves as a bridge to Africa. Its banks have branches in 22 African nations, and it has intensive commerce all through the continent. The truth is, Morocco helped Israel receive observer standing on the African Union, regardless of fierce opposition from Algeria and different African states.

As for expertise, startups and innovation, he stated that Israel is a trailblazer. Morocco want to imitate this success and learn to develop and implement its concepts. Upon visiting startup nation Israel, it was agreed to carry a convention for buyers and high-tech corporations in Casablanca this Might to advance this venue of cooperation.

Maybe probably the most fascinating level, nonetheless, revolved across the scarcity of high-quality manpower in Israel’s high-tech trade. Alj famous that Morocco has an abundance of graduates in engineering from Moroccan universities and a few even from European universities, particularly France. The issue is that the native trade continues to be too small. However, the choice of using them by Israeli corporations looks like an excellent resolution for each events. He famous that Israel already makes use of programmers and engineers from different nations like Ukraine and India, after which requested, “Why not Morocco?” He added, “The world is altering and transferring forward. Morocco is boarding that prepare. Cooperation with Israel will assist with that.”

Additionally associated to manpower, Morocco want to be a part of the listing of countries that provide Israel with visitor staff, and in various fields at that. The principle focus can be building and infrastructures, however there are additionally different fields, a few of them new, together with professionals in older industries like metallurgy and welding, the place there are many out there jobs. Israeli salaries in these professions (roughly $3,000 per thirty days) are a number of occasions increased than the common salaries for this work in Morocco.

In line with Israel’s Central Bureau of Statistics, commerce between Israel and Morocco jumped by 84% within the final yr, however it nonetheless comes to simply $42 million. Exports to Morocco grew by 147% in 2021, coming to $31 million. It centered primarily on plane and freight tools (about 61%), chemical compounds (15%), and plastic and rubber merchandise (14%). The Israel Export Institute estimates that potential exports to Morocco may very well be $250 million per yr, not together with protection exports.

The identical supply stated imports from Morocco final yr had been valued at $11 million, a rise of 10% in comparison with 2020. The principle import objects had been clothes and meals. Nonetheless, the determine is seemingly increased, since a few of the items imported from Morocco come by the use of a 3rd nation. As such, there can be way more important development, when in comparison with 2020.

Alj estimates that commerce between the 2 nations may very well be considerably elevated inside 5 years, to achieve as excessive as 1 / 4 of a billion {dollars}. CGEM, an umbrella group representing 90,000 companies earlier than the general public authorities, is taken into account an financial powerhouse in Morocco. Alj is a key determine within the shut relationship between Morocco’s enterprise sector and the authorities. He ended his interview by mentioning that there was a particular heat within the relationship between the 2 nations, which he attributed, amongst different issues, to the big variety of Israelis of Moroccan origin, and particularly, King Hasan II and his inheritor King Mohamed VI, who’ve maintained ties with Israel.

Ron Tomer, president of the Producers Affiliation, visiting Morocco this week with the delegation, advised Al-Monitor that not like the UAE, the connection with Morocco has been growing extra shortly, with fewer obstacles ensuing from cultural variations. The Israeli and Moroccan peoples are far more alike. He believes that Morocco might help Israel discover building supplies equivalent to cement and iron, and function a substitute for Turkey that imports these supplies now. Then there’s the diplomatic relationship. “If this relationship works and progresses, it is going to be a shining instance to the opposite nations within the area, notably within the fields of water and agriculture. It could even open the door for different nations equivalent to Tunisia and Mauretania to affix the Abraham Accords,” he famous.