In a bold move poised to redefine North Africa’s hospitality landscape, Morocco is embarking on an ambitious project to transform Lagouira, its southernmost coastal town, into a sprawling, state-of-the-art tourism village. This monumental undertaking is fueled by substantial Emirati investment, signaling a deepening economic partnership and aligning perfectly with Morocco’s aspirations to host the 2030 FIFA World Cup.
Lagouira: From ‘Ghost Town’ to Global Destination
Nestled along a largely uninhabited Atlantic strip bordering Mauritania, Lagouira (also known as La Güera) has long been described as a ‘ghost town.’ However, this desolate stretch of coastline is now slated for a dramatic metamorphosis. The proposed development, spearheaded by an initiative from the UAE to the Moroccan government, envisions a fully equipped, mixed-use leisure destination designed to attract visitors from across the globe.
The masterplan for Lagouira is comprehensive, promising a luxurious and diverse offering:
- Accommodation: A mix of hotels, chalets, villas, guesthouses, and unique luxury desert tents.
- Recreational Facilities: Extensive amenities including swimming pools, water parks, spa and fitness centers, sports fields, beautifully landscaped green spaces, and dedicated children’s playgrounds.
- Commercial & Event Spaces: A vibrant array of restaurants, cafés, retail outlets, quick-service kiosks, alongside modern event and conference halls.
- Central Marina: A key feature of the development, providing access to the Atlantic waters.
- Essential Infrastructure:
Robust electricity networks, advanced sewage systems, reliable internet connectivity, ample parking for various vehicles, and comprehensive reception and security services will underpin the entire complex.
The UAE-Morocco Alliance: A Pillar of Progress
The Lagouira project is a testament to the burgeoning economic ties between Morocco and the United Arab Emirates. The UAE has rapidly solidified its position as a pivotal foreign investor in the Kingdom, particularly within its southern provinces. This strategic alignment is underscored by several key indicators:
- Top Investor Status: In 2024, the UAE emerged as Morocco’s leading foreign investor, injecting MAD 3.1 billion ($310 million) – accounting for 18.9% of Morocco’s total net FDI and marking a remarkable 57.8% increase from 2023 figures.
- Growing Capital Inflow: By mid-2025, Emirati investments in Morocco had reached approximately $188 million, placing the UAE second only to France among the largest foreign investors.
- Diplomatic Momentum: This surge in investment follows King Mohammed VI’s significant official visit to Abu Dhabi in December 2023, alongside subsequent private visits, highlighting a robust and deepening bilateral relationship. The UAE’s establishment of a consulate in Laayoune in 2020 further solidifies its commitment to the region.
Beyond Tourism: A Broader Investment Framework
The Lagouira tourism village is not an isolated venture but rather a component of a much larger, strategic bilateral investment framework. In May 2025, a landmark $14 billion agreement was signed between a consortium of Emirati and Moroccan companies, the Moroccan government, and state utility ONEE. This historic deal, the largest private investment in Morocco’s history, targets critical water security and energy infrastructure.
Key elements of this expansive agreement include:
- A 1,400-kilometre high-voltage transmission line, designed to connect Moroccan Sahara to Casablanca.
- Four state-of-the-art seawater desalination plants, boasting a combined annual capacity of 900 million cubic meters, crucial for addressing Morocco’s water needs.
This comprehensive approach, involving entities like Abu Dhabi National Energy Company TAQA (via TAQA Morocco), Moroccan energy firm Nareva, and the Mohammed VI Investment Fund, showcases a long-term commitment to Morocco’s sustainable development.
2030 World Cup and Morocco’s Tourism Renaissance
The Lagouira initiative perfectly complements Morocco’s broader strategy to enhance its global appeal ahead of co-hosting the 2030 FIFA World Cup. With a record 19.8 million tourist arrivals in 2025 – a 14% increase from the previous year – Morocco is already experiencing a tourism boom. While traditional host cities like Rabat, Casablanca, Marrakech, Tangier, Fez, and Agadir prepare for the influx, developing the Sahara coastline represents a strategic diversification.
This expansion aims to:
- Diversify Offerings: Broaden Morocco’s tourism portfolio beyond its established urban centers.
- Ease Pressure: Alleviate the strain on traditional destinations by creating new, high-quality alternatives.
- Leverage Unique Geography: Capitalize on Lagouira’s unique position adjacent to the Sahara Desert and the Atlantic Ocean, an area largely untouched by mainstream tourism.
Furthermore, Lagouira’s proximity to Dakhla, a globally renowned kitesurfing and wind sports hub, strategically positions the new village within one of the Atlantic coast’s most dynamic and rapidly developing corridors. Efforts by the Moroccan National Tourism Office (ONMT) to attract GCC visitors, including partnerships with platforms like Wego, are already underway, laying the groundwork for Lagouira’s success.
Diplomatic Foundations: UN Resolution 2797
Underpinning this surge in international investment and confidence is the landmark UN Security Council Resolution 2797. For the first time, this resolution formally enshrined Morocco’s autonomy plan as the sole and exclusive basis for negotiations regarding the Moroccan Sahara. This pivotal diplomatic verdict has significantly bolstered international confidence, unlocking substantial capital flows from key partners like the UAE, France, and the US, and firmly establishing the region as a stable and sovereignly-anchored frontier for transformative investment.
A Vision for the Future
The Lagouira tourism village is more than just a development project; it is a powerful symbol of Morocco’s forward-looking vision, its strategic partnerships, and its unwavering commitment to economic growth and global prominence. With Emirati capital, sovereign ambition, and a clear diplomatic mandate, Lagouira is poised to become a jewel on the Atlantic coast, transforming a remote outpost into a vibrant hub of leisure and opportunity.
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