Western Sahara economy

The economy of Western Sahara is characterized by the importance of the primary sector due to the existence of the Bucraa phosphate mines and the oil fields of the marine space. These are resources exploited, either by Moroccan state companies in their entirety, or in partnership with foreign companies.

The SADR controls the economy of the free zone. In addition, it opposes any type of economic activity in Western Sahara due to its political status and, in turn, negotiates the exploitation of its resources with foreign companies in the event that the conflict in Western Sahara is resolved in its favor.

Economic indicators

Currently 9.8% of Sahrawis live in poverty against 15% in the rest of Morocco.

Primary sector

Phosphates

Highlight the phosphate mines of Phosboucraa (the former FosBucraa founded in the time of the Spanish Sahara) of the Moroccan state chemical and mining company OCP group.

The SADR considers the exploitation of natural resources in Western Sahara illegitimate, having signed agreements related to the exploitation of phosphate mines with mining companies such as the Belgian Nettin or the Dutch ProFinance, which would become effective in the event of obtain recognition of the political and economic sovereignty of Western Sahara.

Phosphates are used by the chemical industry in the manufacture of multiple products, especially fertilizers, but also detergents, artificial yeasts or cement, and are the main unconventional source of uranium.

Gas and Oil

There are prospections to obtain gas and oil in the maritime space off Cape Boujdour promoted by the Moroccan Ministry of Energy (ONHYM) and the Israeli mining company NewMed Drilling. [1]

The SADR does not approve the exploitation of the natural resources of Western Sahara due to its political status.

Fishing

Puerto pesqueo de El Aaiún

Indicate the fishing wealth of the Saharan Canary fishing bank. The European Union entered Morocco 52 million euros (period 2019-2023) for fishing licenses for a total of 128 fishing vessels, 92 of which are Spanish.

Secondary sector

Morocco finances the infrastructures of Western Sahara through direct and indirect investments. In 2009, the investment reached 1,200 million dollars of social and wealth-generating resources for the inhabitants of the Saharan provinces in southern Morocco. The good economic, urban, cultural and social state of the Saharan cities is a reality today in Western Sahara. The wind energy production of the Fum el Uad (El Aaiún) and Aufist (Boujdour) wind farms owned by GE and Nareva, a subsidiary of the state-owned company Energie Eolienne du Maroc (EEM), must be highlighted.

On the other hand, the report by Hans Corel, legal adviser to the UN on the exploitation of natural resources in the Saharan provinces of Morocco, has never called into question Morocco's competence in the matter or cast doubt on the legality of the investment contracts that Morocco had initiated with international economic partners, did not show that the exploitation of the natural resources of the Sahara was done to the detriment of the local populations. Quite the contrary, everything that is undertaken is first and foremost, at the service of the populations that live and work in Western Sahara.

According to the Moroccan economist Fouad Abdelmoumni: «The cost of the conflict is simply the development of Morocco». In fact, the conflict in the Sahara costs Morocco 3% of annual growth. The colossal budget of the army (about 5% of Morocco's GDP) passes each year before parliament without discussion or blockade in the State commission or in the parliamentary chambers where it is voted unanimously, since it is part of the royal instructions, since the king is also the supreme commander of the armies. Fouad Abdelmoumni estimates that "without the Sahara, Morocco would have been in the world average and would spend 1.90% of its GDP annually for its army." In other words, the kingdom would save about 20,000 million dirhams a year, with which it could easily pay the interest on the public debt.

Welfare State

There is a social benefit known colloquially as the primer, with a monthly amount similar to the Smig (guaranteed minimum wage in Morocco) or 1,200 to 1,500 dirhams, around 60 euros. In addition, public transport is free.

The SADR is dissatisfied with the social benefits since they encourage the return to the Sahara of the residents in the Tindouf refugee camps and point out cases of corruption in their concession.

Fiscal Policy

There are tax and customs exemptions as well as preferential financing conditions to encourage investment in Western Sahara, especially in El Aaiún.