Morocco’s defence budget is forecast to increase from an estimated $3.4bn in 2017 to $3.9bn in 2022, marking a compound annual growth rate (CAGR) of 2.80% over the forecast period, according to a report by Strategic Defence Intelligence (SDI).
Titled ‘Future of the Moroccan Defense Industry-Market Attractiveness, Competitive Landscape and Forecasts to 2022’, the report states that Morocco is expected to spend $18.6bn cumulatively on its armed forces from 2017 to 2021, compared to $17.6bn from 2013 to 2017.
Morocco allocated 31.8% of its total defence budget towards capital expenditure and the remainder to revenue expenditure in 2017. The government is expected to spend large amounts on military IT-networking, submarines, and anti-tank missiles from 2017 to 2022.
Major factors such as unrest in the Middle East and North Africa (MENA) region, counter-terrorism and counter-insurgency efforts, and the arms race with bordering Algeria are anticipated to stimulate the defence expenditure in the next five years.
The report further forecasts Moroccan homeland security (HLS) expenditure to increase from $2.4bn in 2017 to $3.5bn by 2022. The nation is expected to invest in electronic identification systems, automated border crossing systems and CCTV systems to counter internal insurgencies, as well as human and drug trafficking.