Turkish defence company's Morocco drone investment isn't what it seems

Baykar, Turkey's leading drone manufacturer, has established a subsidiary in Morocco to provide maintenance services for drones previously sold to Rabat. According to Middle East Eye, the subsidiary, named Atlas Defence, was officially registered with the Moroccan Trade Registry on December 5, 2024.

According to the Moroccan official gazette published on January 29, the Rabat-based company has a registered capital of 2.5 million dirhams (approximately $680,000 USD). The announcement indicates that the company will engage in activities related to the design, production, and manufacturing of drones.

Despite previous widespread reports and rumors suggesting that Baykar would establish a full-scale drone production facility in Morocco, the relatively low registered capital of the subsidiary indicates that it is unlikely to set up a production line there. A source familiar with the matter told Middle East Eye that Baykar established the subsidiary to provide maintenance and spare parts services for the drones sold in 2021, as Moroccan regulations require foreign companies to have a local entity to operate in the country.

In September 2021, Morocco received its first batch of 13 armed drones purchased from Baykar, in a deal reportedly worth $70 million. The source also explained that Baykar's strategic investments in foreign markets, including establishing factories and assembly lines, are transparent. The company is currently building a factory in Ukraine and has multiple facilities in the region, including a reported assembly line in Saudi Arabia.

However, Turkish defense experts believe that Morocco is not a strategic market that would significantly boost Baykar's production and sales. Baykar, owned by Selcuk Bayraktar, the son-in-law of Turkish President Recep Tayyip Erdogan, has become a global leader in drone technology. The company's success is attributed to the popularity of its Bayraktar TB2 drone, which has demonstrated its effectiveness in conflicts in Libya, Azerbaijan, and Ukraine.

Morocco reportedly purchased the TB2 systems to enhance its capabilities against the Polisario Front, which advocates for the independence of Western Sahara, a disputed territory over which Rabat claims sovereignty. The 2021 drone sale angered neighboring Algeria, a supporter of the Polisario Front. Ankara capitalized on the tensions by selling Anka drones, produced by Turkish Aerospace Industries (TAI), to Algeria in 2022.

Furthermore, according to a report by local media outlet Le Desk in November, Morocco is also reportedly preparing to incorporate Turkish Bayraktar Akinci combat drones into its arsenal in 2024. The Akinci drone is a significant upgrade from its predecessor, the TB2, offering more advanced capabilities and a higher payload capacity.