Israel and Morocco deepen ties and prepare new economic agreements

Israel and Morocco have agreed to deepen bilateral relations, including the resumption of direct flights and the opening of embassies, as they continue to implement the normalization agreement reached during Donald Trump‘s first presidential term. In a joint statement with the USA released on Wednesday, the parties announced they are also discussing further economic and trade cooperation.

Israel and Morocco aim to finalize agreements on investment protection and the avoidance of double taxation by the end of 2026. The parties also hope to resume direct flights within that same timeframe.

Normalization of relations and trade

In late 2020, Morocco joined the United Arab Emirates and Bahrain in normalizing relations with Israel as part of the Abraham Accords. In return, the USA backed Morocco’s claims of sovereignty over the disputed and resource-rich territory of Western Sahara.

According to the International Monetary Fund, trade between Israel and Morocco grew from near-zero levels before the Abraham Accords to $508 million in 2024. However, trade volume fell by 23% in 2025.

Ties amid regional conflict

Despite periodic street protests in Morocco over the war between Israel and Hamas in Gaza, Moroccan authorities continue to develop ties with Israel in defense, agriculture, and other sectors. Initial plans to upgrade diplomatic representation to the ambassadorial level have been delayed due to strong public support for Palestinians among the Moroccan population.

Morocco hopes that closer ties with Israel will help it develop its own defense industry and purchase more military equipment from Israel. This comes amid a low-intensity conflict with rebels in Western Sahara and rising tensions with its main rival, Algeria, which is a staunch critic of the Abraham Accords.

Source: Bloomberg