UAE and Morocco investment partnership to develop tourism hub

By Global Infrastructure Sherpa · Feb 24, 2026

Development Utilities announced La Güera, Western Sahara Feb 24, 2026

USD14B

Deal Value

development

Stage

Dubai of Africa

Project

Abu Dhabi and Rabat will work on a project to develop a tourist destination in Western Sahara under an investment partnership framework, backed by Emirati capital, with a UAE firm carrying out construction works.

Deal Analysis

This announced investment partnership between Abu Dhabi and Rabat aims to develop a tourism hub in Western Sahara, with ADQ and an unnamed UAE firm leading the construction efforts. The deal signifies a strategic collaboration to expand tourism infrastructure in the region, leveraging Emirati capital and expertise. While the financial value remains undisclosed, the involvement of ADQ, a major Abu Dhabi-based investment and holding company, suggests a potentially substantial commitment. The project's success hinges on navigating the complexities of operating in Western Sahara, a disputed territory, and effectively attracting tourists to the new destination.

Partnership between Abu Dhabi and Rabat for tourism development.
ADQ, a major UAE investment firm, is involved in the project.
Project located in Western Sahara, a disputed territory.
Financial value of the deal is currently undisclosed.

Market Context: The tourism sector in North Africa is experiencing growth, with governments actively seeking foreign investment to develop new destinations and improve existing infrastructure. However, projects in disputed territories like Western Sahara carry inherent political and operational risks.

Source Intelligence

KEY DETAILS

The project comes amid growing economic cooperation between the UAE and Morocco. In Western Sahara specifically, the UAE was the first Arab country to establish a consulate in the region’s largest city, Laayoune. Three major UAE firms were also in discussions to develop USD 10 bn worth of wind projects in Western Sahara last year.

“

Deal Size

In May 2025, the two inked a USD 14 bn investment agreement to develop water and energy infrastructure projects in Morocco.

“

Location

The UAE is set to develop a part of Western Sahara’s southernmost Atlantic coastal strip into a tourist destination, according to Moroccan local media . La Güera, which was once a fishing port, is located within the disputed territory claimed by Morocco.

“

Signing

In May 2025, the two inked a USD 14 bn investment agreement to develop water and energy infrastructure projects in Morocco.

PARTIES MENTIONED IN SOURCE

Abu Dhabi developer

"Abu Dhabi to build “ Dubai of Africa” in Western Sahara"

Rabat developer

"Both Abu Dhabi and Rabat will work on the project under an investment partnership framework."

UAE firm construction

"The development is set to be backed by Emirati capital, with a UAE firm carrying out construction works."

high quality Enriched Feb 24, 2026