The United Arab Emirates is planning to develop one of the world’s largest tourism villages along a deserted stretch of Morocco’s Atlantic coastline in the Sahara region, according to local media reports.

The proposed project is located in La Güera, a sparsely populated coastal strip in southern Morocco often described as a “ghost town.” The area lies near the country’s southernmost border on the Atlantic Ocean.

Moroccan media outlets reported that the UAE presented the initiative amid shifting regional dynamics, including tensions with neighboring Algeria. The UAE opened a consulate in Laayoune in 2020 and reportedly plans to establish an embassy in Dakhla, both in the Sahara region.

According to reports, the proposed tourism complex would include chalets and villas, hotels and guesthouses, luxury desert tents, swimming pools and water parks, spa and fitness centers, sports facilities, landscaped green spaces, and barbecue areas. The development would also feature children’s playgrounds, restaurants and cafés, retail outlets, and quick-service kiosks.

Planned infrastructure includes reception and security services, parking facilities for cars and buses, electricity and sewage networks, internet connectivity, conference and event halls, and a marina.

The UAE’s proposal follows what it described as a steady improvement in bilateral relations between the two countries.

The UAE maintains strong political and economic ties with Morocco and ranks among the kingdom’s largest foreign investors. By the end of the first half of 2025, Emirati investments in Morocco had reached approximately $188 million, according to Morocco’s Ministry of Economy and Finance, placing the UAE second only to France in terms of foreign assets.

In May 2024, a consortium of Emirati and Moroccan investors signed a series of memoranda of understanding with the Moroccan government and the state utility ONEE to develop water and energy infrastructure projects valued at approximately $14 billion.

The consortium includes Abu Dhabi National Energy Company (TAQA), through its subsidiary TAQA Morocco, Moroccan energy company Nareva, and the Mohammed VI Investment Fund.