UAE-backed consortium signs US$14bn Moroccan infrastructure deals

A consortium of Emirati and Moroccan investors has signed a series of memoranda of understanding with the Moroccan government and state utility ONEE to develop water and energy infrastructure projects worth US$14bn.

The group comprises Abu Dhabi National Energy Company (TAQA), through its local subsidiary TAQA Morocco, Moroccan energy firm Nareva, and the country’s sovereign wealth fund, the Mohammed VI Investment Fund. The planned investments aim to address Morocco’s acute water scarcity and rising electricity needs, while supporting longer-term ambitions for energy independence and climate resilience.

The consortium plans to build seawater desalination facilities with a combined annual capacity of around 900 million cubic metres. These plants will be powered by renewable energy projects developed alongside them. A report by British International Investment identified Morocco as one of Africa’s most viable markets for large-scale desalination, estimating annual investment needs of US$943m through to 2030 to meet demand from its growing population.

The agreement also includes the construction of a pipeline linking the Sebou basin in the north to the Oum Rabia basin in central Morocco, with the capacity to transfer 800 million cubic metres of water annually to ease regional water stress.

On the energy front, the consortium will acquire a 400MW combined-cycle gas turbine (CCGT) power plant in Tahaddart and explore the development of an additional 1,100MW of greenfield CCGT projects. It also plans to install 1,200MW of new renewable electricity capacity and build a 1,400km high-voltage direct current transmission line linking southern and central Morocco, with a capacity of 3,000MW, to support the integration of renewable energy into the national grid.

Morocco is aiming to reduce its reliance on coal and increase the share of renewables in its energy mix to 52% of installed capacity by 2030, up from 45% currently. The country already hosts one of the world’s largest concentrated solar power plants, the 510MW Ouarzazate complex, which uses molten salt to store heat and generate electricity after sunset.

TAQA Morocco and Nareva will each hold a 42.5% stake in the new infrastructure projects, with the remaining 15% held by the Mohammed VI Investment Fund and other public institutions. The consortium will seek both domestic and international financing to support the development of the projects.

In 2023, the UAE and Morocco agreed to double the volume of trade and investment between the two countries by 2030. At the time, the UAE was Morocco’s second-largest foreign investor, with its interests spanning sectors such as automobiles, communications, agriculture, healthcare, tourism, real estate, energy, and pharmaceuticals.

References

'Opportunities for impact in desalination', British International Investment, December 2022

'UAE and Morocco set the goal to double trade & investment exchanges over next seven years', United Arab Emirates Ministry of Economy, 27 April 2023

'TAQA Morocco joins forces with Moroccan public and private partners for the accelerated development of large-scale power and water projects in the Kingdom of Morocco', Zawya, 19 May 2025

'Morocco, TAQA, Nareva team up to develop energy, desalination projects', Reuters, 19 May 2025

'Strategic partnership between the government of Morocco with TAQA Morocco, Nareva, ONEE and Mohammed VI Investment Fund to develop key power and water infrastructures in the Kingdom of Morocco', TAQA Morocco, 19 May 2025

'Morocco, UAE sign $14 billion megadeal: Key details on the largest private investment in Morocco’s History', Morocco World News, 20 May 2025

'Morocco, UAE consortium to invest in strategic water, energy infrastructure', Kingdom of Morocco, 21 May 2025