Economy of the Sahrawi Arab Democratic Republic
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The majority of the territory of
Western Sahara Western Sahara ( '; ; ) is a disputed territory on the northwest coast and in the Maghreb region of North and West Africa. About 20% of the territory is controlled by the self-proclaimed Sahrawi Arab Democratic Republic (SADR), while the ...
is currently administered by the Kingdom of
Morocco Morocco (),, ) officially the Kingdom of Morocco, is the westernmost country in the Maghreb region of North Africa. It overlooks the Mediterranean Sea to the north and the Atlantic Ocean to the west, and has land borders with Algeria to A ...
. As such, the majority of the economic activity of Western Sahara happens in the framework of the
economy of Morocco The economy of Morocco is considered a relatively liberal economy, governed by the law of supply and demand. Since 1993, Morocco has followed a policy of privatization of certain economic sectors which used to be in the hands of the governme ...
. In the Moroccan-administered territory,
fishing Fishing is the activity of trying to catch fish. Fish are often caught as wildlife from the natural environment, but may also be caught from fish stocking, stocked bodies of water such as fish pond, ponds, canals, park wetlands and reservoirs. ...
and
phosphate In chemistry, a phosphate is an anion, salt, functional group or ester derived from a phosphoric acid. It most commonly means orthophosphate, a derivative of orthophosphoric acid . The phosphate or orthophosphate ion is derived from phosph ...
mining Mining is the extraction of valuable minerals or other geological materials from the Earth, usually from an ore body, lode, vein, seam, reef, or placer deposit. The exploitation of these deposits for raw material is based on the econom ...
are the principal sources of income for the population. The territory lacks sufficient rainfall for sustainable
agricultural production Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people to ...
; hence, most of the food for the urban population must be imported. Trade and other economic activities are controlled by the Moroccan government. The Free Zone (POLISARIO-administered territory) is mainly uninhabited. There is practically no economical infrastructure and the main activity is camel herding
nomadism A nomad is a member of a community without fixed habitation who regularly moves to and from the same areas. Such groups include hunter-gatherers, pastoral nomads (owning livestock), tinkers and trader nomads. In the twentieth century, the popu ...
. The government-in-exile of the
Polisario Front The Polisario Front, Frente Polisario, Frelisario or simply Polisario, from the Spanish abbreviation of (Popular Front for the Liberation of Saguia el-Hamra and Río de Oro), (in ar, rtl=yes, الجبهة الشعبية لتحرير الس ...
had also signed contracts for
oil exploration Hydrocarbon exploration (or oil and gas exploration) is the search by petroleum geologists and geophysicists for deposits of hydrocarbons, particularly petroleum and natural gas, in the Earth using petroleum geology. Exploration methods Vis ...
, but there is no practical work, due to the fact that the zones given are in the Moroccan-controlled part of the territory. Key agricultural products from Western Sahara include fruits and vegetables (grown in the few
oases In ecology, an oasis (; ) is a fertile area of a desert or semi-desert environment'ksar''with its surrounding feeding source, the palm grove, within a relational and circulatory nomadic system.” The location of oases has been of critical im ...
), as well as camels, sheep and goats. Fishing and oil exploration contracts concerning Western Sahara are sources of political tension.


Energy consumption

*Electricity – production: 0 (all estimates are for 2015)''The World Factbook''
United States
Central Intelligence Agency The Central Intelligence Agency (CIA ), known informally as the Agency and historically as the Company, is a civilian foreign intelligence service of the federal government of the United States, officially tasked with gathering, processing, ...
. Accessed April 27, 2018.
*Electricity – consumption: 0 *
Oil An oil is any nonpolar chemical substance that is composed primarily of hydrocarbons and is hydrophobic (does not mix with water) & lipophilic (mixes with other oils). Oils are usually flammable and surface active. Most oils are unsaturated ...
– production: *Oil – consumption:


Disputes over natural resources

Fishing and oil exploration contracts concerning Western Sahara are sources of political tension."The Battle for West Africa's Fish"
BBC News. 1 August 2001. Accessed 27 April 2018.
Lewis, Aidan
"Morocco's fish fight: High stakes over Western Sahara"
BBC News. 15 December 2011. Accessed 27 April 2018.
Harris, Bryant
"U.S. Oil Firm Creates Tension over Western Sahara"
Inter Press Service. 11 May 2014. Accessed 27 April 2018.
In 2015, a European court invalidated a trade deal between the
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are located primarily in Europe, Europe. The union has a total area of ...
(EU) and Morocco that involved Western Sahara, prompting a diplomatic backlash from Morocco. In 2018, the
European Court of Justice The European Court of Justice (ECJ, french: Cour de Justice européenne), formally just the Court of Justice, is the supreme court of the European Union in matters of European Union law. As a part of the Court of Justice of the European U ...
ruled that a fishing treaty between the EU and the Moroccan government did not include fishing grounds off the coast of Western Sahara. In April 2010, the Norwegian state-owned salmon company EWOS stopped the purchases of
fish oil Fish oil is oil derived from the tissues of oily fish. Fish oils contain the omega-3 fatty acids eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA), precursors of certain eicosanoids that are known to reduce inflammation in the b ...
from Western Sahara and Morocco (with an amount of around 10 million euros annually, and estimated between 12,000 and 20,000 tons of fish oil in total), for "not being in line with the Norwegian authorities' recommendations". In 2002, the petroleum companies
TotalEnergies TotalEnergies SE is a French multinational integrated energy and petroleum company founded in 1924 and one of the seven supermajor oil companies. Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and ...
and
Kerr-McGee The Kerr-McGee Corporation, founded in 1929, was an American energy company involved in oil exploration, production of crude oil, natural gas, perchlorate and uranium mining and milling in various countries. On June 23, 2006, Anadarko Petroleum ...
were awarded contracts to explore for oil in the region. In December 2004,
French French (french: français(e), link=no) may refer to: * Something of, from, or related to France ** French language, which originated in France, and its various dialects and accents ** French people, a nation and ethnic group identified with Franc ...
oil company TotalEnergies decided not to renew their license off Western Sahara. In May 2006, Kerr-McGee decided to not renew the contract signed with the Moroccan Authorities. The US-based firm
Kosmos Energy Kosmos Energy is an American upstream oil company founded and based in Dallas, Texas. While previously incorporated in Bermuda, Kosmos has reincorporated in Delaware. The company holds production and development operations offshore Ghana, Equato ...
began a contract to explore offshore from Western Sahara in 2013, prompting criticism from activist groups such as Western Sahara Resource Watch. Desertec, a
Munich Munich ( ; german: München ; bar, Minga ) is the capital and most populous city of the German state of Bavaria. With a population of 1,558,395 inhabitants as of 31 July 2020, it is the third-largest city in Germany, after Berlin and ...
-based solar energy company, declined to place a plant in Western Sahara for "reputational reasons."


See also

*
Economy of Morocco The economy of Morocco is considered a relatively liberal economy, governed by the law of supply and demand. Since 1993, Morocco has followed a policy of privatization of certain economic sectors which used to be in the hands of the governme ...
*
Legal status of Western Sahara Law is a set of rules that are created and are enforceable by social or governmental institutions to regulate behavior,Robertson, ''Crimes against humanity'', 90. with its precise definition a matter of longstanding debate. It has been vario ...
* Western Saharan cuisine *


References


External links

*
SADR Oil and Gas exploration, licence offering
{{DEFAULTSORT:Economy Of Western Sahara African Union member economies