Northern Morocco: Morocco’s rising gateway of trade, culture and sustainable growth

Tanger-Tétouan-Al Hoceima, located in Northern Morocco, spans 17,262 km², accounting for 2.43% of Morocco’s total surface area. As one of the twelve regions established by the 2015 territorial reform, it holds a pivotal geographical position—bordered to the north by the Strait of Gibraltar and the Mediterranean Sea, to the west by the Atlantic Ocean, and surrounded by the regions of Rabat-Salé-Kénitra, Fès-Meknès, and the Oriental region.

Historically, this northern region has been the stage for major political, economic and social events. Ancient cities such as Lixus (modern-day Larache) and Tangier played central roles in trade during the Phoenician and Carthaginian colonial periods. Tangier, in particular, gained prominence under Roman rule and has retained its strategic importance as a multicultural city—a gateway between Africa and Europe where Berber, Andalusian, Arab and European influences converge.

Economic transformation
Following Morocco’s independence, national development focused primarily on cities like Casablanca, Rabat, and Marrakech, leading to regional economic disparities. However, the turn of the millennium marked a shift in development priorities. Tanger-Tétouan-Al Hoceïma began to flourish, especially with the launch of large-scale infrastructure projects—most notably the Tanger Med Port in 2007, which was expanded in 2015 (Tanger Med II), significantly boosting its capacity.

Tanger Med has rapidly become Africa’s foremost logistics platform and a key port for Europe. With a handling capacity of 9 million TEUs¹, this puts it ahead of traditional African ports like Durban in South Africa (which handles around 2.5 million TEUs) and Port Said in Egypt. Even when compared to European ports, Tanger Med stands out—it surpasses major hubs such as Barcelona and Valencia, and is closing in on Rotterdam, the largest port in Europe, which handles just over 14 million TEUs. This impressive scale underscores the region's strategic importance in global trade flows between Africa, Europe, and Asia. The port complex also includes the Renault Tangier Med plant, the largest automotive manufacturing facility in Africa. According to the 2024 Alphaliner report, Tanger Med ranks 17th globally, and it was named the 4th best-performing port in the world by the 2023 Container Port Performance Index (CPPI)—an impressive feat that underscores the vital role of maritime gateways in global economic development.

The region also boasts 15 seaports (including commercial, fishing, and passenger ports), three airports, and the Al Boraq high-speed train, further enhancing mobility, investment and connectivity of Morocco with European markets.

Northern Morocco now stands as Morocco’s second-largest economic centre. During the first three quarters of 2024, the region’s Unified Regional Investment Commission approved projects worth nearly 69 billion Moroccan dirhams—investments expected to create around 60,000 jobs.² A 2024 report by the High Commission for Planning³ ranked the region third in economic contribution, generating 10.4% of Morocco’s national GDP.

Strategic zones powering growth in Tanger-Tétouan-Al Hoceima
Tanger-Tétouan-Al Hoceima is a cornerstone of Morocco’s industrial and trade landscape, featuring a diverse array of economic zones that drive investment, manufacturing, logistics, and innovation. These zones are strategically positioned to capitalise on the region’s proximity to Europe and its robust infrastructure.​

Key economic zones in Tanger-Tétouan-Al Hoceima:

1. Tanger Free Zone 
   Established in 1999, Tanger Free Zone (TFZ) is Morocco’s premier industrial platform, hosting companies across sectors such as automotive, aerospace, electronics, and textiles. Its proximity to Tangier Ibn Battouta Airport enhances its logistical advantages. The TFZ hosts a wide range of notable companies across key sectors. In automotive and aerospace, major players such as Renault-Nissan, Denso, Magneti Marelli, Valeo, Yazaki, Sogefi, Delphi Auto, Hands Corporation, and Daher—known for its aerospace and industrial logistics expertise—have established a strong presence. The logistics and supply chain sector is represented by global giants like DHL, CEVA Logistics, Nippon Express, GEFCO, Emirates Logistics, and OMSAN Logistics. Leading names in electronics and technology, including Bosch, Huawei, 3M, Furukawa Electric, and Siemens, also operate in the zone. Additionally, prominent retail and consumer brands such as Decathlon and Adidas contribute to TFZ’s dynamic and diverse industrial landscape.
   
   
2. Tanger Automotive City (TAC)
   Launched in 2012, TAC spans 720 hectares and serves as a hub for automotive manufacturing, housing a comprehensive ecosystem of suppliers and logistics providers. Tanger Automotive City (TAC) has attracted a growing list of prominent international automotive suppliers. French component manufacturer Valeo expanded its regional production capabilities with a new facility inaugurated in May 2021. In early 2024, Germany’s KOSTAL Group launched a new assembly plant, further strengthening its Moroccan footprint. Romania’s MP Industry Group also established its first factory in TAC, focusing on plastic components for the automotive sector. German giant ZF Friedrichshafen set up operations to tap into the African market while reinforcing its presence in Europe. Additionally, Geocad Group, through its Second Stage plant plays a key role in supporting the zone’s plastics industry with tailored services for automotive clients.
   
   
3. Renault Tanger Med
   This 300-hectare facility is Africa’s largest automotive plant, operated by the Renault-Nissan Alliance. It boasts an annual production capacity of 400,000 vehicles and is recognised for its zero-carbon and zero-liquid-discharge operations.
   
   
4. Mohammed VI Tangier Tech City
   A visionary smart city project developed in partnership with China, this 2,167-hectare zone integrates industrial, residential, and commercial spaces, aiming to attract high-tech industries and foster sustainable urban development. Mohammed VI Tangier Tech City is driven by a partnership between the Moroccan government, China Communications Construction Company (CCCC), and BMCE Bank of Africa. Designed to attract global high-tech industries, the project integrates residential, industrial, and commercial zones, with infrastructure and zoning largely completed. Though still in its early stages, the city is expected to host companies in sectors such as electronics, smart manufacturing, automotive and aerospace components, renewable energy, and logistics. Chinese giants like CRRC and Huawei have shown interest, alongside firms focused on green tech and e-commerce. Positioned near existing logistics platforms like TAC and TFZ, the city aims to serve as a strategic entry point for Chinese and international firms targeting African and European markets.
   
   
5. Tetouan Shore
   Tetouan Shore is a key component of Morocco’s offshoring and nearshoring strategy, located in the Tanger-Tétouan-Al Hoceima region and developed by MEDZ, a subsidiary of CDG Developpement. As part of the national “Moroccan Shore” initiative, it offers advanced infrastructure, fiber-optic connectivity, and close proximity to Europe, making it ideal for Business Process Outsourcing (BPO), IT services, and customer support operations. The park hosts prominent firms such as Intelcia, Outsourcia, Webhelp, Foundever (formerly Sitel), and BNP Paribas subsidiaries, as well as newer entrants like ALTEN, Everis (NTT Data), FD Solutions, and Atento Morocco. These companies are drawn by the cost-effective, multilingual workforce, supportive government incentives, and the park’s integration with broader regional development and logistics networks.
   
   
6. Tetouan Park
   Tetouan Park, a 150-hectare industrial and logistics zone developed by Tanger Med Zones, plays a vital role in northern Morocco’s economic landscape by supporting small and medium-sized enterprises across sectors like light manufacturing, logistics, and trade. Its strategic location and modern infrastructure have attracted major investments, including Japan Tobacco International’s first eco-friendly factory in Morocco—a $92 million project expected to create up to 500 jobs—and IGA Pharma’s second manufacturing plant, reinforcing the region’s growing pharmaceutical footprint. These developments underscore Tetouan Park’s importance as a catalyst for industrial growth in the Tanger-Tétouan-Al Hoceima region.
   
   
7. Fnideq Economic Activity Zone (ZAEF)
   The Fnideq Economic Activity Zone (ZAEF), launched in February 2022, is a 95-hectare initiative designed to formalise trade and drive economic development in northern Morocco. Its first 10-hectare phase includes 76 warehouses, with over 55 companies active as of December 2023, and more than 1,000 import transactions completed. Notable tenants include Bindriss Tex, a textile firm, and several entrepreneurs from nearby Ceuta, highlighting the zone’s role in fostering cross-border commerce. ZAEF hosts a diverse mix of sectors, from textiles and electronics to food processing and home goods, positioning it as a vital hub for trade and distribution in the region.
   
   
8. Cabo Negro Commercial Zone
   Spanning 70 hectares, this zone is designed to bolster tourism-related commerce and services, enhancing the region’s appeal as a tourist destination.

Collectively, these zones encompass over 5,000 hectares, positioning the Tanger-Tétouan-Al Hoceima region as a pivotal hub for industrial and economic activity in Morocco and the broader Mediterranean area.​

A rising powerhouse in green energy innovation
Beyond its industrial strength and driver of economic growth, the region is a key player in Morocco’s 2030 green energy strategy, which targets 52% of national electricity production from renewable sources.

1. Solar energy projects:
   In Tangier, the construction of the GPM1 solar photovoltaic plant commenced in July 2022. Developed by Green Power Morocco and AMEA Power, this 34 MWp facility spans 75 hectares and is expected to produce 67 GWh annually, sufficient to power over 8,000 households. The plant aims to reduce CO₂ emissions by 30,000 tons per year and is dedicated to supplying electricity to Amendis-Tanger, the local utility company.
   
   Another solar project near Tétouan, with a capacity of 30 MW, is nearing completion. Equipped with photovoltaic panels manufactured in El Hoceima, this plant is also set to supply power to Amendis-Tanger, further bolstering the region's renewable energy infrastructure.

2. Wind energy developments:
   The Moroccan Agency for Sustainable Energy (Masen) has initiated the Nassim Nord Wind Programme, comprising two wind farms in the northern region. The Nassim Koudia Al Baida Extension Wind Farm, located in the Fahs-Anjra and M’diq-Fnideq provinces, will have a capacity of approximately 150 MW. The Nassim Dar Chaoui Wind Farm, situated in the Tanger and Tétouan provinces, is expected to add 250 MW. Together, these projects will contribute 400 MW to the national grid, reinforcing Morocco's commitment to sustainable energy.

3. Green hydrogen initiatives:
   In June 2024, Germany and Morocco established a climate and energy alliance to support the development of renewable energy and hydrogen production in Morocco. This partnership aims to facilitate the production of green hydrogen, with plans for a pilot plant capable of producing 10,000 tonnes annually. Germany, seeking to become climate-neutral by 2045, views Morocco's renewable energy potential as a key component in its strategy to import up to 70% of its hydrogen needs.

4. Local sustainability initiatives:
   The Tanger-Tétouan-Al Hoceima region is implementing the Local Energy and Climate Service (LECS) project, in collaboration with the South Region Provence Alpes Côte d’Azur, France. With a budget of €3.5 million, this initiative aims to establish eight eco-efficient and bioclimatic centres across the region. These centres will provide resources and support for energy and climate transition, involving local stakeholders through awareness, training, and advice.

These developments underscore Northern Morocco's strategic role in advancing renewable energy, contributing significantly to the country's sustainable development goals and positioning the region as a key player in the global green energy landscape.

Rising tourism in Northern Morocco
Tourism adds yet another dimension to the region’s appeal. Cities like Chefchaouen, Tetouan, and Tangier have long attracted artists and poets. The region’s scenic beauty and unique charm are increasingly featured in international film productions. With the upcoming 2025 Africa Cup of Nations (CAN 2025) set to host matches at the Grand Stade of Tangier, the region is poised to welcome even more visitors.

Northern Morocco is experiencing a significant surge in tourism, positioning itself as a key destination within the country. The Tanger-Tétouan-Al Hoceima region is central to this growth, benefiting from strategic investments and development initiatives.​

In 2024, Morocco welcomed a record 17.4 million international tourists, marking a 20% increase from the previous year and surpassing targets initially set for 2026. The Tanger-Tétouan-Al Hoceima region is set to benefit from 21 major projects outlined in the 2023–2026 tourism roadmap, aiming to enhance the region's appeal and infrastructure. 

A notable development is the transformation of Tangier's old cargo port into a modern, mixed-use waterfront, featuring cruising and yachting facilities. This project positions Tangier as a flagship destination for sustainable cruise tourism on an international scale.

In preparation for hosting matches during the 2030 FIFA World Cup, Tangier's tourism industry is mobilising to strengthen the city's hospitality infrastructure. This includes the implementation of special licensing measures to facilitate the development of new hotels and tourist facilities.​

However, some tourism projects in Tangier have faced delays due to pending investment law implementations, affecting the adoption of exceptional licenses intended to stimulate hotel and tourism developments.

Overall, Northern Morocco's tourism sector is on an upward trajectory, driven by strategic projects, infrastructural enhancements, and international events, solidifying its status as a burgeoning tourist hub.

Challenges and opportunities for Northern Morocco: Transforming disparities into sustainable growth
While the region continues to thrive with its natural, economic, and human resources, it still faces significant challenges—most notably the disparity between rural and urban areas, and the need for improved infrastructure and public services. A 2024 study by Fatima Elhachloufi, published in the French Journal of Economics and Management, highlights the importance of adopting an integrated and sustainable development strategy to ensure balanced, inclusive growth.

In addition to these disparities, the region is grappling with a need for diversification in its economic base. While tourism is on the rise, there is a reliance on traditional industries, such as agriculture and fishing, which are vulnerable to environmental changes and global economic shifts. Increasing efforts to foster innovation and entrepreneurship in sectors like technology, renewable energy, and manufacturing could further stabilise and expand the region's economic outlook.

Tanger-Tétouan-Al Hoceima exemplifies a region in transformation—one that blends rich heritage with modern progress. However, for the area to fully realise its potential, investments in human capital and education are crucial to equip the local population with the skills needed for the evolving job market. Additionally, the improvement of digital infrastructure is essential for bridging the gap between rural and urban areas and unlocking further economic growth.

With Morocco’s vision for a prosperous, green, and globally connected future, the region must prioritise sustainable development projects, encourage public-private partnerships, and promote policies that foster inclusivity and resilience in the face of future challenges. By embracing these strategies, Northern Morocco will continue to strengthen its position as a key player in the country's broader economic and social development goals.