A shipping line will soon be opened between Morocco and Saudi Arabia to strengthen trade between the two countries. What is the nature of these exchanges and how to develop bilateral economic cooperation? Update with Khalid Benjelloun, President of the Moroccan-Saudi Business Council.
The Federation of Saudi Chambers recently signed an agreement with a shipping company to set up, in the coming weeks, a direct line between Morocco and Saudi Arabia, announced Thursday March 19 Khalid Benjelloun, President of the Council Moroccan-Saudi businessman.
Contacted by Le360he explains that this new maritime line will play a key role in the development of trade between the two countries, thanks in particular to the reduction of the transport time of goods, which should go, according to the studies carried out, from two months to 11 days without transhipment to Tanger Med port.
“The transport time between Morocco and Saudi Arabia is too long. Goods sent in January this year took up to two and a half months to be delivered. As the majority of products exported by Morocco are agricultural, and therefore perishable, this constituted a real obstacle which should soon be lifted”, he underlines.
Saudi Arabia is Morocco’s largest trading partner in the Arab world. The total value of bilateral trade stood at 17.2 billion dirhams in 2021, according to the latest data from the Ministry of Industry and Trade.
“The large share of Saudi exports to Morocco consists of petroleum and parachemical products such as polyethylene, polypropylene and PET. On the other hand, Morocco exports to Saudi Arabia mainly agricultural products and textile products”, Benjelloun specifies.
But beyond agriculture, new opportunities are opening up for Morocco to develop its exports to the Saudi market with more added value. “There are other sectors on which Morocco can capitalize, particularly the information technology, building and construction sectors, as well as the chemical sectors, in particular painting. The Saudi market is also on the lookout for textile products and handicrafts,” explains the president of the Moroccan-Saudi Business Council.
New perspectives Africa-Middle East
Other possibilities are on the horizon for Moroccan actors under the “Vision 2030” plan. As a reminder, this development plan was put in place by the Saudi government in 2016 to diversify the country’s economy beyond the oil sector.
“There are huge opportunities for Moroccan companies to take part in various public works contracts in Saudi Arabia under its new development program. We managed to get the support of Saudi officials to prioritize all Moroccan products,” says Benjelloun.
Food security is also at the top of Saudi Arabia’s list of priorities for 2030. An advantage for Morocco, which might thus double its agricultural exports. “We have very fertile agricultural land in Morocco. We can, together, create mixed partnerships to develop this sector and adapt it to the needs of the Saudi market,” he says.
Morocco will also be able to position itself as a partner of choice to guarantee Saudi Arabia’s access to the African market while capitalizing on this partnership to in turn penetrate other Middle Eastern markets.
“Our Saudi friends know that Morocco has excellent relations with a large number of African countries. Today there is a desire to create joint ventures so that we can go to these markets together. This support will also allow us to access the various markets in the Middle East through the Saudi market,” insists Benjelloun.
To further improve economic relations between the two countries, the President of the Moroccan-Saudi Business Council nevertheless insists on the need to relax administrative restrictions on exports and imports, as well as the establishment of a Moroccan-Saudi investment fund to facilitate market access for small and medium-sized enterprises that are still struggling to explore new opportunities on other continents.
“95% of the Moroccan economic fabric is made up of VSMEs which need financial support to seek out, discover and develop new markets. We must therefore support and accompany them to develop their activities beyond borders,” concludes Benjelloun.
