Spain is Morocco's leading trading partner, and Morocco is a major market for Spanish exports. Their relationship further improved after Spain recognized and endorsed Morocco's stance claiming Western Sahara in 2022, after being silent on the issue for years.
Algeria, who claims Western Sahara should be independent, and is in direct dispute with Morocco over this, froze diplomatic relations with Spain as a result of this statement. In 2026, Spain is actively rebuilding their diplomatic and economic ties with Algeria mainly because Algeria remains Spain’s largest supplier of natural gas.