Maroc Telecom, which is controlled by the UAE, and its domestic competitor Inwi, owned by Morocco’s royal family, have reached an agreement to settle a long-standing dispute. This resolution includes plans for two joint ventures aimed at expanding and upgrading telecommunications networks across Morocco.

This breakthrough is significant for Maroc Telecom, allowing it to reduce the compensation owed to Inwi. The settlement also strengthens the relationship between Morocco and the UAE, which is crucial for the nation’s economic development.

Previously, Inwi accused Maroc Telecom of unfair competition, leading a court to order Maroc Telecom to pay MAD6.38 billion ($661 million) in compensation. Although Maroc Telecom’s appeal was unsuccessful, the two companies have agreed to an out-of-court settlement that will see Maroc Telecom pay MAD4.38 billion ($455 million) to Inwi.

In addition to resolving the financial dispute, the companies have announced the creation of two joint ventures: FiberCo, which plans to build fiber optic networks to reach 3 million homes within five years, and TowerCo, which will construct 2,000 telecom towers over three years to support the rollout of 5G technology. The first phase of these projects is valued at AED4.4 billion ($1.2 billion) and is pending regulatory approval.

The agreement follows the completion of a comprehensive economic partnership agreement (Cepa) between Morocco and the UAE last July. This deal aims to enhance trade and investment ties, reduce tariffs, and improve market access and customs processes.

The UAE has invested $15 million in Morocco, making it the largest Arab investor in the country. This investment is essential for Morocco’s economic strategies, which include plans for infrastructure projects like a high-speed rail network and a gas pipeline to Nigeria.

Maroc Telecom has faced challenges due to the ongoing dispute with Inwi, leading to a decline in its stock value. As of late February, its shares reached a 21-year low on the Paris Euronext stock exchange. Despite this, Maroc Telecom remains a key player in the Moroccan telecommunications market, holding a 43 percent share of mobile subscribers.