Morocco Turns Ghost Town Into $14B Tourism Hub With UAE

Morocco is breathing new life into one of its most remote corners, turning the sleepy coastal town of Lagouira into a spectacular tourism destination with backing from the United Arab Emirates.

The ambitious project will transform what locals call a "ghost town" into a vibrant mixed-use village featuring hotels, luxury villas, desert tents, and a full-service marina. Located where the Atlantic Ocean meets the Sahara Desert near the Mauritanian border, Lagouira has remained largely untouched by modern development until now.

The development plans include swimming pools, water parks, spa facilities, sports fields, restaurants, and conference halls. Infrastructure upgrades will bring reliable electricity, internet connectivity, modern sewage systems, and secure parking to support the influx of future visitors.

The timing couldn't be better. Morocco welcomed nearly 20 million tourists in 2025, up 14% from the previous year, as the country prepares to co-host the 2030 FIFA World Cup with Spain and Portugal. The Lagouira village gives travelers a fresh alternative to crowded traditional destinations like Marrakech and Casablanca.

The UAE has emerged as Morocco's top foreign investor, pouring $310 million into the country in 2024 alone. That represents a 58% jump from the previous year and nearly one-fifth of Morocco's total foreign investment.

This tourism village is just one piece of a much bigger partnership. In May 2025, Emirati and Moroccan companies signed Morocco's largest-ever private investment deal worth $14 billion, focusing on water security and energy infrastructure including four massive desalination plants and a 1,400-kilometer power transmission line.

The Ripple Effect

The transformation of Lagouira could reshape Morocco's entire southern coastline. The town sits close to Dakhla, already famous worldwide as a premier destination for kitesurfing and wind sports, creating a natural tourism corridor along the Atlantic.

Local communities stand to benefit from thousands of new jobs in construction, hospitality, and tourism services. The infrastructure improvements including reliable electricity, internet, and water systems will raise living standards for residents long after the first tourists arrive.

The investment wave follows growing international confidence in the region's stability and potential. Morocco's tourism office has already launched campaigns targeting visitors from Gulf countries, tapping into a market of travelers seeking unique desert and ocean experiences.

For a town that was nearly forgotten, Lagouira's future now looks bright. What was once empty coastline will soon welcome visitors from around the world to experience where the desert meets the sea.