Deal Details
Israel and Morocco said Wednesday they are advancing their Trump‑era normalization, agreeing to bring back direct air links and to open embassies. They are pushing to complete investment protection and double taxation accords by the end of 2026, and said they hope to restore flights within that same window.
Economic and Trade Measures
Beyond reconnecting the air bridge, the two governments are negotiating wider economic and trade cooperation. According to IMF figures, commerce that was negligible before the Abraham Accords reached $508 million in 2024, despite a 23% decline last year. The goal now is to lock in legal guardrails for investors and avoid taxing the same income twice by late 2026.
Security and Political Context
Morocco recognized Israel in late 2020 alongside the United Arab Emirates and Bahrain, with Washington backing Rabat's claim of sovereignty over Western Sahara. While the fighting in Gaza between Israel and Hamas has prompted occasional street demonstrations, Moroccan authorities have nevertheless continued to strengthen cooperation in sectors such as defense and agriculture. A planned step up to ambassador‑level relations was postponed amid strong domestic sympathy for Palestinians.
Rabat is betting that warmer ties will help expand its local arms industry and facilitate purchases of Israeli defense gear, while it manages a low‑level conflict with rebels in Western Sahara and heightened friction with Algeria, a vocal opponent of the Abraham Accords.
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What This Means For Your Portfolio
The practical to‑do list: restart flights, open embassies, and finalize investment and tax deals by the end of 2026, with flights hoped to return in that same period. Trade has already climbed to $508 million in 2024, even with a 23% slide last year, which is a reminder that politics can make growth bumpy before it compounds.
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