Morocco’s $15 billion World Cup gambit turns desert outposts into oasis cities

By Gavin Serkin in Tenghir, Morocco

In the foothills of the Atlas Mountains, a couple of hours east of Marrakech near Tenghir, skeletal high-rises and half-built resorts stand like silent sentinels awaiting a promised influx of tourists. Heading south, the desert town of Ouarzazate—home to studios that provided the ancient backdrop for Hollywood blockbusters like Gladiator and Game of Thrones—is about to connect with Marrakech via a $2.5 billion expressway and a doubling in capacity for Ouarzazate Airport. Farther south, the vast sand dune plains of Zagora in the Draa River Valley, once a crossroads for camel caravans heading into the Sahara, are transforming into a billion-dollar high-end tourism oasis. 

These once remote and sleepy towns are at the epicentre of Morocco’s audacious $15 billion infrastructure push ahead of the 2030 FIFA World Cup. While the tournament’s co-hosts Spain and Portugal focus primarily on stadium upgrades, Morocco is undergoing full-throttle development, building entire tourism ecosystems in the vast desert expanse stretching towards the Algerian border, mirroring the futuristic desert metropolises of the UAE and Saudi Arabia.

Beyond these ambitious tourism hubs, Morocco is implementing nationwide transport upgrades in a bid for seamless connectivity. Within five years, the country plans to expand its airport capacity from 38 million to 80 million passengers annually, enlarging terminals and runways in Casablanca, Marrakech and Agadir.

A central connector for the updated transport network will be a $4.7 billion extension to Morocco’s first high-speed rail service, which currently links Tangier to Kenitra and Casablanca. Expansion of the Al Boraq line southwards to Marrakech will cut travel times by more than half. Kenitra, a rapidly growing city just north of Rabat, has become a key transit hub, and extending the line to Marrakech will significantly boost connectivity between Morocco’s economic centres and its southern tourist destinations.

Of course, Morocco is also investing in new sports infrastructure, including the construction of a 93,000-seat stadium in Benslimane. Less than 30 minutes north towards Casablanca will be the even more audacious Grand Stade Hassan II, a 115,000-seat stadium that is set to become the world’s largest football arena upon its completion in 2028. This will be Morocco’s premier venue for the World Cup’s most important matches. Major upgrades are also underway at existing stadiums in Casablanca, Rabat, Tangier and Fez. All told, stadiums and related construction is expected to cost at least $4 billion.

Morocco is building on its strengths. Short journey times from Europe and a proliferation of low-cost carriers operating frequent flights make Morocco one of the most accessible destinations for European travellers heading south. Year-round sunshine, diverse landscapes, and the relatively affordable cost of travel make it an attractive alternative to Mediterranean hotspots. Morocco's government has promoted this accessibility by supporting targeted airline routes. The government is also pushing to diversify Morocco’s tourist base beyond the traditional European markets, recognising in particular the growing spending power and travel demand from Asia. The Moroccan National Tourist Office in January renewed its partnership with Ctrip, a major Chinese travel platform, with a focus on tailoring travel packages to enhance Morocco's appeal to Chinese travellers and improving digital content.

Water Scarcity

Combined, Morocco's various World Cup infrastructure initiatives are expected to generate over 300,000 jobs, spanning construction, hospitality and tourism-related services. The government is positioning the tournament as a springboard for long-term economic growth, with targets to increase tourism’s contribution to GDP from 7% to 12% by 2035. This strategy aligns with the country’s broader Vision 2030 plan to promote Morocco as a premier global travel destination.

As part of this strategy, Morocco is also investing heavily in renewable energy projects, including large-scale solar farms in Ouarzazate and Midelt. Nestled in the Middle Atlas Mountains, Midelt is a growing hub for the renewable energy sector, strategically positioned between the high-altitude plateaus and the Ziz Valley. Improving access to these remote regions will help spur economic development, while enabling new resorts to reduce environmental impact.

Morocco’s vision for tourism expansion is ambitious, and significant challenges remain. Transport and energy are only part of the infrastructure needed. In remote desert towns, water scarcity is already a pressing issue, with droughts becoming more frequent in recent years. The influx of millions of tourists to these new destinations will put unprecedented pressure on local supplies. To address this, Morocco is expanding its desalination infrastructure, with major projects underway in Agadir and Laayoune.

For locals in towns like Ouarzazate and Zagora, the developments springing up all around them evoke mixed feelings. While new jobs and economic opportunities are welcomed, many fear rapid development will erode their traditional lifestyles and cultural heritage. Morocco has historically prided itself on its rich blend of Berber, Arab and Andalusian cultures, and the challenge now lies in integrating modern tourism without compromising these identities.

The solutions lie in promoting cultural tourism. Investment in heritage initiatives is growing, with restoration projects planned for historic kasbahs and old medinas to preserve Morocco’s unique architectural traditions while adapting them to modern visitor needs.

Several projects promote community-based tourism, where local Berber communities receive direct benefits from the influx of visitors. Traditional crafts, desert trekking experiences, and cultural festivals are being integrated into the tourism economy with the objective that economic gains trickle down to local populations rather than being concentrated in large corporate resorts.

Boom or Overbuild?

With such a massive construction push, the inevitable question arises: is Morocco overbuilding?

It’s tempting to compare Morocco’s building boom with those of the Gulf states. Certainly, Morocco’s $15 billion World Cup investment pales in comparison to Saudi Arabia’s $500 billion Neom city or Dubai’s multi-billion-dollar megaprojects, from artificial islands to sprawling desert resorts. Yet, it follows a similar blueprint—turning underdeveloped desert into premium tourist destinations.

Some of these developments, like Dubai’s Palm, have seen successful in attracting millions of visitors and boosting national GDP. Others have struggled to justify their immense costs. Morocco can learn from these experiences: careful planning, sustained marketing, and infrastructure that supports long-term visitor interest are crucial.

Morocco’s economic landscape provides some support for the scale of investment. According to the OECD, real GDP growth is projected to strengthen to 4.1% this year, supported by growth in tourism along with industrial sector expansion including in automotives, aeronautics, and phosphates. The Casablanca Stock Exchange has reflected this outlook, with companies exposed to tourism and construction benefitting from increased investor confidence.

While external factors such as inflation and regional instability pose risks, Morocco’s trade agreements with Europe and China, combined with expanding foreign direct investment, position it favourably for continued economic growth. The government has also secured major investment agreements with the UAE, Qatar, and Chinese firms to support tourism infrastructure. Chinese companies are funding parts of the rail expansion, while Emirati and Qatari investors have committed billions to resort developments in the south.

Among the key players is China Railway Construction Corporation (CRCC), which is overseeing segments of the high-speed rail extension to Marrakech, and the UAE’s Emaar Properties and Qatar Investment Authority, which are spearheading luxury resort projects in the Draa Valley and coastal cities.

The projects are unfolding on tight schedules, with the high-speed rail extension expected to be operational by 2028 and the resort developments set to be completed in phases leading up to the World Cup. Challenges remain, from navigating complex regulatory frameworks to addressing environmental concerns. To mitigate delays, the Moroccan government has introduced streamlined permitting processes and public-private partnership incentives to help keep the projects on track.

White Elephants

Some analysts caution that Morocco appears overly optimistic about the prospects for continued economic growth, stable geopolitics, and sustained tourist interest. World Cup co-hosts Spain and Portugal are taking a more cautious approach, focusing on stadium upgrades and moderate improvements to existing tourism infrastructure. Yet, this reflects a much more developed and exploited pre-existing tourist industry in Europe. The risk for Morocco in creating entirely new destinations in areas that have traditionally seen limited foot traffic is that these projects become white elephants – expensive developments that fail to generate the expected return on investment.

The ambition, scale and the strategic cohesion of Morocco’s construction push is most visible in its stadiums and luxury resorts. The design of the Grand Stade Hassan II makes it more than just a football stadium, paying homage to architectural traditions, with sweeping canopies inspired by traditional Moroccan tents and a state-of-the-art retractable roof. In the southern desert, resorts in Zagora and Ouarzazate are envisioned as oasis-like retreats, with high-end desert lodges blending into the Sahara’s vast emptiness. The government is especially pushing sustainability initiatives – eco-friendly desert lodges, renewable energy systems, and cultural tourism – to create experiences that will appeal to high-end travellers looking for unique, off-the-beaten-path destinations.

With relatively little development to date across vast swathes of the country, this kind of construction in harmony with heritage will be key to retaining long-term tourism appeal beyond 2030.

*Gavin Serkin is the author of Frontier: Exploring the Top Ten Emerging Markets of Tomorrow, and a Journalist and Consultant on emerging & frontier markets, with particular focus on Africa and the Middle East