The commercial relationship between Spain and Morocco encompasses a significant energy dimension, which, despite being less visible, is crucial for the economic growth model that Rabat has developed over the past few decades. This model is predicated on industrial activities that synergize with Europe. According to data compiled by EFE from various official sources, electricity imported by Morocco from Spain in 2025 accounted for 8% of its annual demand, while 23% of the petroleum products purchased during this period originated from Spanish territory.
Key Interconnections
While Morocco has its own electricity generation capacity and does not rely solely on Spain for its energy needs, the two underwater links connecting the countries through the Strait of Gibraltar play a vital role in ensuring the stability of the Moroccan energy supply. Manuel Antonio Fernández-Villacañas, a professor at EAE Business School, highlights that this cooperation commenced in 1997 with an initial line of 700 megawatts (MW), which expanded to 1,400 MW by 2006, as noted by analyst Ignacio Urbasos in a publication by the Real Instituto Elcano. Between 2007 and 2017, Spanish exports accounted for about 15% of Morocco's electricity demand, reducing costs and enabling Morocco to meet the rapid growth in domestic consumption while achieving electrification in rural areas.
The closure of the Maghreb-Europe gas pipeline at the end of 2021, following Algeria's decision not to renew the contract amid tensions with Morocco over Western Sahara, underscored the importance of these exports in securing Morocco's electricity supply. In 2025, for the fourth consecutive year, the balance of scheduled exchanges between Spain and Morocco was in favor of Spain, with a value of 3,743 gigawatt-hours (GWh), marking the highest levels since 2017, as recorded in the annual report by the national electrical system operator, Red Eléctrica. The total electricity sent—approximately 3.9 terawatt-hours (TWh)—constituted 8% of Morocco's demand, which reached 49 TWh that year, according to the National Office of Electricity and Drinking Water in Morocco. Data from Red Eléctrica indicates that the balance from January 1 to July 31, 2026, continues to show an export surplus for Spain, totaling 2,600 GWh. Both countries are currently working on a third interconnection to promote renewable exchanges, while Morocco and Portugal have resumed a bilateral project that had been stalled since 2022, seeking support from Brussels. These infrastructures also provide advantages for the Iberian Peninsula, which experienced an unprecedented blackout originating in Spain a year ago, as they help stabilize the frequency and voltage of electrical systems.
Petroleum Products and Economic Relations
Despite efforts to promote electrification and energy transition, petroleum products remain central to Morocco's energy system, representing 51% of its energy mix in 2025, according to the Economic, Social, and Environmental Council of Morocco. The estimated consumption hovered around 12.8 million tons, predominantly of diesel, with imports exceeding 13 million tons. Data from the Spanish corporation Cores reveals that Morocco imported over three million tons of petroleum products from Spain in 2025, accounting for 23% of its total imports. The most sought-after product was diesel, with 21.5% of the diesel imported by Morocco sourced from its neighbor, although shipments from Spanish refineries decreased by 22.4% year-on-year due to the increasing market share of Russian diesel, which has become more economical following discounts from exporters and traders since the European Union banned its importation in response to the invasion of Ukraine.
The energy dynamic distinctly differentiates Spain's relations with Morocco from those with Algeria, which is a significant gas supplier and possesses a clear and easily identifiable leverage tool. Fernández-Villacañas notes that in 2022, Algeria froze much of its trade with Spain over the latter's stance on Western Sahara. With relations now normalized, Algeria reestablishes itself as Spain's primary source of imported natural gas, and Moncloa has encouraged Spanish companies to seize opportunities in this new phase of bilateral relations. Conversely, the ties with Morocco are characterized by being "deeper and multidimensional," encompassing trade and counter-terrorism efforts, making disconnection significantly more challenging and costly for both parties.
The economic interdependence between Spain and Morocco translates into a bilateral trade valued at €22.757 billion in 2025, with significant national companies such as Gestamp, Antolín (components), and Inditex (textiles) operating within Moroccan territory. However, this relationship, also influenced by logistical, migratory, and security factors, complicates crises like that of Ceuta, which are of strategic importance. A prolonged dispute between the neighbors would likely incur greater costs for Morocco, as noted by Fernández-Villacañas.
Historically, Spain has maintained a trade surplus. The exchanges over the past decade grew rapidly, peaking at 12.8% in 2017, but have since moderated to below 3% from 2018 onward. In the most recent fiscal year, Spanish exports fell by 4.1%, coinciding with a decrease in fuel sales due to increased imports of Russian diesel in Morocco, while imports rose by 6%.
Spain continues to be essential in this economic relationship. According to the ICEX country report, the European Union (EU) is Morocco's primary trading partner, being its top supplier and customer. Within this context, Spain ranks as the leading bilateral trade partner in both exports and imports. In the first half of 2026, Spanish exports to Morocco increased by 3.5% to €6.420,5 million, representing 3.2% of total external sales, while imports rose by 4.1% to €5.795,5 million, accounting for 2.5% of total purchases.
This relationship intensifies in sectors such as automotive components and textiles. Fernández-Villacañas asserts that Morocco has supported a significant portion of its industrial growth through its integration with Europe via Spain. The automotive sector is Morocco's leading export sector, with 90% of its production directed towards other markets, primarily the EU, which absorbs 20% of the total exports. This activity is driven by two major European players: Renault, with plants in Tangier and Casablanca, operating under a 'twin poles' strategy alongside Valladolid, Palencia, and Seville; and Stellantis from Kenitra. The ICEX has noted an increase in Spanish suppliers, with over 90 companies in the Basque Country providing advanced materials like green steel. The Spanish Automotive Suppliers Association (Sernauto) recognizes Morocco as a "strategic market" due to the development of an ecosystem where companies like Gestamp, Antolín, CIE, and Ficosa have already established a presence, benefiting from geographic proximity, which Fernández-Villacañas emphasizes as a strategic asset.
Analysts suggest that a significant alteration in trade relations would incur costs for both countries. Spain would lose market opportunities for its exporters but possesses a much larger capacity for absorption due to its size and geographic diversification. Conversely, Morocco would face more structural impacts on industrial employment and the perception of the country as a manufacturing platform aimed at the European market. Additionally, there would be a psychological impact in the markets, as an economic confrontation with Spain could generate concern among international investors, who view this relationship as a pillar of the Maghreb's integration with the EU.
Such dynamics affect the textile industry, which focuses on mid-range garment production and relies heavily on exports to the EU, especially to Spain, due to the "locomotive effect" of companies like Inditex. According to a document from the Economic and Commercial Office of the Spanish Embassy in Rabat, Inditex's 2025 report highlights how one of its value chain links consists of non-exclusive suppliers and manufacturers organized in ten clusters, one of which is in Morocco, where they also operate 35 stores.
Moreover, Spain is the second-largest source of tourists to Morocco, with 4.6 million visitors in 2025, reflecting a 12% annual increase, only trailing France, according to the Moroccan Ministry of Tourism. Tourism is crucial for Morocco, partially compensating for the structural deficit in its goods trade balance with a surplus in services, driven by this sector and remittances from Moroccans living abroad. Morocco has positioned tourism as one of the cornerstones of its economic growth strategy, aiming to establish itself among the top fifteen tourist destinations globally. This scenario presents opportunities for Spanish companies in areas such as the construction and rehabilitation of hotel establishments, with established operators like Barceló, Be Live, Meliá, and Iberostar already active in the region.
As reported by eleconomista.es.
