Morocco has secured the 57th position in the Global Economic Diversification Index 2025, issued by the Mohammed Bin Rashid School of Government.
The report, which analyzed the economic diversification progress of 115 countries over 23 years, highlighted Morocco’s relatively strong performance in diversifying exports and trade partnerships compared to some Middle Eastern and North African nations.
Experts emphasize that Morocco still needs to expand its economic base by strengthening manufacturing industries, agribusiness, and startups specializing in technology and artificial intelligence. The country’s economy remains highly dependent on agriculture and rainfall, making it vulnerable to external shocks.
Diversification, they argue, is essential to reducing dependence on volatile sectors and enhancing economic stability and competitiveness.
Morocco ranks among the non-oil-producing countries in the Middle East that have outperformed certain Gulf Cooperation Council (GCC) nations in trade diversification. This success is attributed to a well-balanced export portfolio and a broad network of international trade partnerships.
According to the report, Morocco—alongside Tunisia and Jordan—boasts a more diverse export base than oil-reliant economies, enabling it to better withstand economic fluctuations.
The report notes that Morocco’s revenue diversification has remained relatively stable in recent years, with its tax policies maintaining structural consistency compared to many other countries in the region. However, it underscores the need for greater innovation in industrial and service sectors to enhance value creation and achieve long-term sustainable growth.
Despite its progress, Morocco still heavily relies on agriculture, phosphates, and tourism, making it susceptible to global economic disruptions.
To improve its ranking, the report recommends increasing investments in research and development, enhancing the business environment, and fostering entrepreneurship—particularly in high-value sectors. It also highlights the importance of accelerating industrial policies, improving logistical infrastructure, and expanding the digital economy as key factors in boosting competitiveness and reducing reliance on traditional industries.
Youssef Karoui Filali, an economic expert and president of the Moroccan Center for Governance and Management, emphasized that Morocco must intensify its efforts to diversify its economy. He pointed out that the country’s export structure lacks the required level of diversification.
“Although the automotive sector leads national exports, Morocco remains heavily reliant on phosphates, with only slight progress in the aerospace industry,” Filali stated in an interview with Hespress. “For effective economic diversification, the country must significantly develop its manufacturing sector and position it as a core component of exports to enhance global competitiveness.”
Filali further noted that Morocco’s economic productivity remains highly dependent on agriculture and rainfall, exposing it to periodic instability, particularly during drought seasons. “A shift towards industrialized agriculture, through advanced irrigation techniques and efficient water management, is essential to ensuring consistent agricultural output regardless of rainfall patterns,” he added.
He also stressed the importance of developing agro-processing industries, particularly in food manufacturing, and increasing domestic production of materials used in high-tech goods, such as wired and wireless technology components.
Regarding entrepreneurship, Filali highlighted Morocco’s lack of strong startups capable of competing regionally and globally, particularly in digital and artificial intelligence sectors.
“The country needs to support innovative startups that can establish a presence in African, Arab, and Middle Eastern markets—and ideally integrate into global supply chains to become a source of knowledge and technology, similar to firms in the U.S., Europe, and China,” he explained.
Filali concluded that economic diversification is crucial for reducing dependence on external factors, such as oil price fluctuations and inflation driven by global commodity price changes. “Diversification is the key to minimizing economic vulnerability and making Morocco’s economy more resilient and adaptable to crises,” he affirmed.
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