Moroccan Minister of Industry: We will Cover 8% of UK's Electricity Needs

 Moroccan Minister of Industry and Trade Ryad Mezzour (Asharq Al-Awsat)
Moroccan Minister of Industry and Trade Ryad Mezzour (Asharq Al-Awsat)
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Moroccan Minister of Industry: We will Cover 8% of UK's Electricity Needs

 Moroccan Minister of Industry and Trade Ryad Mezzour (Asharq Al-Awsat)
Moroccan Minister of Industry and Trade Ryad Mezzour (Asharq Al-Awsat)

Moroccan Minister of Industry and Trade Ryad Mezzour said that his country was working to provide the United Kingdom with 8% of its total electrical needs, from low-cost renewable energy sources.

In an interview with Asharq Al-Awsat on the sidelines of a visit to London, Mezzour emphasized the importance of the huge XLinks energy project, which links Morocco with Britain, with the participation of ACWA Power.

According to the minister, the project aims to provide about 8% of electricity in the UK from Moroccan production, and to secure nearly 7 million British homes with low-cost electricity by 2030, through four direct submarine cables stretching over a distance of more than 3,800 km.

- Energy Diversity -

Morocco has emerged as one of the most important producers of renewable energy around the world, and has adhered to the Paris climate agreement, which aims to contain global warming by 1.5 degrees.

“We don’t have a large stock of hydrocarbons, so we have looked for our competitive advantage in renewables. Today, we are among the top three countries in the world to produce renewable energies, along with Chile and the Australian West Coast,” Mezzour underlined.

“We are committed to an energy mix to generate electricity. We aim to produce 52 percent of our electricity from renewable sources by 2030.”

- Inflation -

On a different note, the minister said that his country succeeded in controlling inflation and ensuring food supplies, despite the global challenges that resulted from the Covid-19 pandemic and the Ukraine war.

In the past years, Morocco focused on the development on the local industry, which was reflected in the success of the Made in Morocco label to access international markets.

Mezzour noted that ''Made in Morocco'' was a three-pronged concept.

“A product made in Morocco is first of all a product with at least 40 percent of its added value made locally.”

As for the second axis, it revolves around quality.

“This means that the product complies with international quality standards,” he said, adding: “Third, Made in Morocco is a brand that includes different products, with a clear identity based on competitiveness and quality in all its aspects.”

- Food security -

Asked about threats to food security, in the wake of the Ukraine war, Mezzour said: “Morocco is a country that was built over twelve centuries on the basis of ensuring food security. Moroccans sometimes refer to their country as “the store”, in reference to Morocco’s ability to store and provide its population with food, in appropriate quantities and prices, even when supplies are declining.”

Today, although inflation has caused the prices of certain products and some foodstuffs such as oil to rise, manufacturers are deploying huge efforts to ensure permanent availability, according to Mezzour.

“The prices have witnessed a controlled development, thanks to a responsible relationship between manufacturers, residents and customers,” he added.

On the other hand, the minister said that Morocco was witnessing very complex climatic conditions, with a significant decrease in rainfall this year, which prevented the country to achieve the usual levels of production.

“Despite these factors, we were able to provide products, control inflation, and subsidize the prices of basic foodstuffs such as bread and sugar,” he emphasized.

- The aviation industry -

Today, the Moroccan aviation industry is one of the “most dynamic in the world,” and one of the most competitive, according to Mezzour.

“Today, Morocco can manufacture 42 percent of aircraft with highly advanced technologies, which is unique in the world,” he noted.

In this context, at the Farnborough Air Show in London, Morocco signed a Memorandum of Understanding with “one of the largest airlines in the world, Collins, to develop an integrated system in which we jointly commit to developing a network of suppliers.”

“This will allow Collins to invest up to $1 billion annually in Morocco. It’s only a first step, as we are working with several of the Collins Group companies to develop similar systems,” Mezzour told Asharq Al-Awsat.

- Integrated industrial system -

Morocco and Saudi Arabia agreed to set a road map that paves the way for the creation of an integrated industrial system, aimed at enhancing investment opportunities and creating added value and job opportunities in the two countries.

Mezzour praised this agreement, which was announced during talks he held last April with the Saudi Minister of Industry and Mineral Resources, Bandar Al-Khorayef.

“Rabat and Riyadh benefit from strong ties to promote integration between the two countries’ industrial platforms.... This cooperation will allow both platforms to improve their competitiveness, growth and access to other markets,” he stressed.

“Saudi Arabia, and other Gulf countries, possess important raw materials, whether in the field of energy or minerals such as aluminum and others, the development of which may constitute an opportunity, especially in the automotive and aviation industries. For its part, Saudi Arabia is developing a huge and interesting industrial platform, which can benefit from Moroccan suppliers.”



Global Markets Reel from Putin's Nuclear Threats

A Russian Yars intercontinental ballistic missile system drives in Red Square during a military parade on Victory Day, which marks the 78th anniversary of the victory over Nazi Germany in World War Two, in central Moscow, Russia May 9, 2023. Sputnik/Gavriil Grigorov/Pool via REUTERS
A Russian Yars intercontinental ballistic missile system drives in Red Square during a military parade on Victory Day, which marks the 78th anniversary of the victory over Nazi Germany in World War Two, in central Moscow, Russia May 9, 2023. Sputnik/Gavriil Grigorov/Pool via REUTERS
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Global Markets Reel from Putin's Nuclear Threats

A Russian Yars intercontinental ballistic missile system drives in Red Square during a military parade on Victory Day, which marks the 78th anniversary of the victory over Nazi Germany in World War Two, in central Moscow, Russia May 9, 2023. Sputnik/Gavriil Grigorov/Pool via REUTERS
A Russian Yars intercontinental ballistic missile system drives in Red Square during a military parade on Victory Day, which marks the 78th anniversary of the victory over Nazi Germany in World War Two, in central Moscow, Russia May 9, 2023. Sputnik/Gavriil Grigorov/Pool via REUTERS

President Vladimir Putin’s remarks on Tuesday about revising Russia’s nuclear doctrine triggered immediate reactions in global financial markets, as investors rushed to safe haven assets.

Putin issued a warning to the US lowering the threshold for a nuclear strike after the administration of Joe Biden reportedly allowed Ukraine to fire American-made long-range missiles deep into Russia.

The Russian President’s warnings sent markets to extreme volatility.

In this context, global stocks sharply fell while gold prices and the Japanese yen climbed amid rising geopolitical tensions between Ukraine and Russia.

Kremlin spokesperson Dmitry Peskov said Tuesday, “The Russian Federation reserves the right to use nuclear weapons in the event of aggression against it or the Republic of Belarus, ... with the use of conventional weapons, in a way that poses a critical threat to their sovereignty and (or) territorial integrity.”

The spokesperson further said that Russia would view the use of Western non-nuclear missiles by Ukraine as an attack by a non-nuclear state with the support of a nuclear state against the country, potentially justifying the use of nuclear weapons by Moscow, according to NBC news.

Rise of safe-haven assets

Global stocks briefly fell and investors fled to safe-haven assets on Tuesday, as global markets reacted to escalating tensions between the world's two largest nuclear powers: Russia and the US.

Investors rushed to safe-haven assets including gold and the Japanese yen.

Wall Street’s fear index, the Chicago Board Options Exchange’s CBOE Volatility Index, jumped to 17,88, its highest level since the November 5 US elections. It then fell to 16.61.

The Dow Jones Industrial Average shed 327 points, or 0.7%. The S&P 500 and Nasdaq Composite lost 0.5% each. Treasurys increased as investors moved into the safe haven, driving yields lower.

Europe's main stock index touched its lowest level in three months on Tuesday, spurring investors to head to safer havens.

The pan-European STOXX 600 closed 0.9% lower, after logging a third straight day of losses.

Metals and currencies under pressure

Meanwhile, base metals prices came under pressure on Tuesday as some investors chose safe-haven assets due to signs of escalating tensions between Russia and the United States over Ukraine.

Three-month copper on the London Metal Exchange (LME) fell 0.3% to $9,042 per metric ton in official open-outcry trading. Spot gold prices rose by about 1%.

Meanwhile, LME aluminium prices were stable at $2,607 in official activity as the market digested China's plan to remove a tax refund on exports of some aluminium products.

Lead lost 0.4% to $1,983 due to the second day of a significant inflow of the metal to the LME-registered warehouses in Singapore.

Zinc fell 0.1% to $2,947.5, tin eased 0.4% to $28,900 and nickel rose 1.2% to $15,915.

In currency markets, the Japanese yen rose 0.7% and 0.36% against the euro and US dollar respectively.

“Typical risk-off move in forex following the headline,” said Athanasios Vamvakidis, global head of forex strategy at Bofa, referring to the reaction to the Kremlin statement.

“The market has been complacent on geopolitical risks, focusing on other themes,” he added. “Positioning has been a long risk, getting even more stretched after the US elections.”

In return, crude oil futures were down slightly. A barrel of West Texas Intermediate, scheduled for delivery in December, fell 0.53% to $68.79.

Meanwhile, the price of a barrel of Brent, scheduled for delivery in January, fell 0.38% to $73.02.