A long-standing feud in Morocco’s telecom sector has quietly ended — and the aftershocks may reshape the country’s digital infrastructure and its broader economic ties with the United Arab Emirates.
Maroc Telecom and Inwi, two of the country’s top telecom firms, have not only buried the hatchet after years of legal wrangling, but are now joining forces to build Morocco’s next-generation digital networks. The settlement ends a courtroom dispute that saw Maroc Telecom accused of anti-competitive practices and ordered to pay significant damages. But it’s the business pivot that follows — a pair of ambitious joint ventures — that may have the bigger, longer-term impact.
Under the agreement, the firms will collaborate on two major projects: FiberCo, which aims to connect 3 million homes with fibre optics in five years, and TowerCo, which will build 2,000 telecom towers within three years to accelerate the roll-out of 5G. These are not minor projects — they represent foundational infrastructure needed to drive digital transformation in Morocco, especially in underserved regions.
What makes this partnership even more notable is who’s behind it. Maroc Telecom is majority-owned by the UAE through its former state telecom monopoly, Etisalat (now E&), while Inwi is owned by the Moroccan royal holding company. That means this isn’t just a corporate handshake — it’s a diplomatic and economic signal.
Business Settlement, But Also Political Realignment
At first glance, this looks like a simple business deal: a financial dispute resolved, and a collaboration launched. But scratch deeper and you’ll see a strategic re-alignment at play.
For one, the compensation Maroc Telecom will now pay Inwi — MAD4.38 billion ($455 million) — is significantly lower than what the courts initially ordered (MAD6.38 billion, or $661 million). That discount suggests a pragmatic shift in mindset: compromise now to enable bigger shared gains in the future.
More importantly, this deal paves the way for greater UAE investment into Morocco’s strategic sectors. In recent years, the UAE has gone from being a passive investor to an active economic partner. In 2023 and 2024, both countries signed a Comprehensive Economic Partnership Agreement (CEPA), pledging deeper collaboration across infrastructure, trade, energy and logistics. The telecom joint ventures now look like one of the earliest real-world outcomes of that agreement.
Why This Matters for the Market
For Morocco, this joint venture may act as a blueprint for how future public-private collaboration could roll out across sectors. The scale and ambition of FiberCo and TowerCo mirror the country’s digital goals — universal internet access, broader 5G coverage, and improved connectivity for businesses.
For investors and observers, it’s a clear reminder that Morocco is positioning itself as a hub between Arab capital and African opportunity. The UAE, already the largest Arab investor in Morocco with $15 billion committed, is reinforcing its presence with infrastructure that is essential to competitiveness in the digital age.
What this also suggests is a maturing of Morocco’s investment environment — one where disputes don’t just drag through courts, but are resolved in ways that unlock bigger strategic opportunities.
Looking Ahead
Pending regulatory approvals, the success of FiberCo and TowerCo could open the door to further partnerships — possibly even cross-border ones, considering Maroc Telecom’s footprint across Francophone West Africa.
And while the legal battle may be over, the underlying message is that Morocco is now serious about building an investment climate where cooperation, not competition, drives sectoral progress.
