Morocco: Strategic rail expansion for a country in the process of transformation
The contract, attributed to Alstom, CAF and Hyundai Rotem, aims to strengthen the country's connectivity and modernize public transport. All in all, the Office national des chemins de fer (ONCF) is planning a total investment of 8 billion euros for the period 2024-2030.
Modernization driven by international players
The purchase of these trains marks a new stage in the evolution of the Moroccan rail network. The most emblematic contract concerns the acquisition of 18 high-speed trains from Alstom, which had already supplied the TGVs for the Tangier-Casablanca line inaugurated in 2018. This new fleet will be deployed on the future high-speed line between Kénitra and Marrakech, a 400 km route. At the same time, Spanish manufacturer CAF will supply 30 modern intercity trains, with an option for a further 10 units, while South Korea's Hyundai Rotem will deliver 110 transport trains for connections between major cities and their suburbs. ONCF is also planning to set up a local commuter train manufacturing plant, an initiative that will enable Morocco to strengthen its industrial autonomy and, ultimately, export trains to other African markets.
The Moroccan Rail Plan 2040
In addition to recent acquisitions, Morocco has adopted a long-term strategic vision with the Rail Maroc 2040 Plan (PRM). This plan aims to extend and modernize the rail system to meet future transport needs, with a particular focus on sustainable mobility and regional development. The ambition of the PRM is based on several major axes. Firstly, the country's rail coverage will be considerably extended, from 23 to 43 towns and cities, giving 87% of the population access to the train, compared with 51% at present. In addition, the development of new high-speed lines will link the main strategic hubs, with trains capable of speeds of up to 320 km/h. The plan also calls for 12 ports and 15 international airports to be connected, compared with 6 and 1 respectively today, thus improving the fluidity of freight and passenger transport.
In economic terms, the impact of the PRM is considerable. A total budget of 375 billion dirhams has been allocated to finance these infrastructure projects, and forecasts predict the creation of 300,000 jobs across the country. Beyond infrastructure, this transformation of the Moroccan rail network also aims to establish a connection with sub-Saharan Africa. One of the flagship projects of this vision is the future line linking Marrakech to Lagouira, a major undertaking that would reinforce Morocco's role as a rail link between Europe and Africa.
Morocco, the locomotive of rail development in Africa
The development of Morocco's rail infrastructure is not simply a matter of modernizing infrastructure, but is part of a wider drive to accelerate the country's ecological transition and improve its citizens' quality of life. By promoting rail travel, the country hopes to reduce road congestion and greenhouse gas emissions, while offering residents a reliable, safe and economical means of transport. In addition, the PRM will enable better integration of landlocked areas, by facilitating travel between major cities and rural regions.
With these huge investments, Morocco confirms its role as a pioneer in the railway sector in Africa. The extension of its network and the improvement of its rail infrastructure are major assets in attracting foreign investors and strengthening its economic position on the continent. What's more, the kingdom's ambitions extend far beyond its borders: by developing local know-how in railway construction and strengthening its connections with Europe and Africa, it is establishing itself as a development model for other nations on the continent. By 2040, Morocco could well be one of the world's most advanced rail hubs.
Growth driven by the non-oil sector
According to data from the General Authority for Statistics (GASTAT), Saudi GDP growth in 2024 was largely driven by a 4.3% increase in non-oil activities and a 2.6% rise in government activities. This trend is in line with the objectives of Vision 2030, which aims to reduce the country's dependence on hydrocarbons and build a more diversified and resilient economy. On a quarterly basis, the fourth quarter of 2024 was particularly buoyant, with real GDP up 4.5% on the same period of the previous year. In detail, non-oil activities jumped by 4.7%, while the oil sector rebounded by 3.4% after several months of slowdown. Growth in the public sector was a more moderate 2.2%.
These figures for the evolution of Saudi GDP in 2024 are by no means insignificant, and illustrate the ambitious strategy pursued by the government to transition from an economy based on black oil to one based on services, tourism and technology. As proof, despite a 6.5% drop in oil production over the first nine months of the year, the Saudi economy has managed to maintain a positive growth rate, proving that the transition to a more diversified model is well underway.
A cautious and visionary fiscal policy
Alongside this diversification, Saudi Arabia is adopting a rigorous budgetary approach to ensure the country's economic stability. For example, the 2024 budget forecast expenditure amounting to 1.25 trillion riyals, against estimated revenues of 1.17 trillion riyals. Despite this slight budget deficit, estimated at 1.9% of GDP, the country's financial situation remains stable, thanks to government reserves and controlled public debt. A few months ago, Finance Minister Mohammed Al-Jadaan reaffirmed that these economic policies will enable Saudi Arabia to weather any economic turbulence and ensure a sustainable growth trajectory.
The reforms undertaken by the kingdom as part of Vision 2030 are beginning to show results, with the non-oil sector emerging as a key driver of the economy. The dynamism of the services, tourism and entertainment sectors, as well as the ramp-up of major infrastructure projects, bear witness to a far-reaching economic transformation. Although oil remains a strategic pillar, Saudi Arabia is building a more resilient economic future, less dependent on fluctuations in the energy market. While the transition to a diversified economy will still take several years, the figures for 2024 show that the gamble of a long-term exit from hydrocarbons can be won. The country is thus moving forward with determination into a new era, in which innovation, investment, decarbonization and openness to the world will be the keys to its economic success..
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