In 788, about a century after the Arab conquest of North Africa, a series of Moroccan Muslim dynasties began to rule in Morocco. In the 16th century, the Sa'adi monarchy, particularly under Ahmad al-MANSUR (1578-1603), repelled foreign invaders and inaugurated a golden age. The Alaouite Dynasty, to which the current Moroccan royal family belongs, dates from the 17th century. In 1860, Spain occupied northern Morocco and ushered in a half-century of trade rivalry among European powers that saw Morocco's sovereignty steadily erode; in 1912, the French imposed a protectorate over the country. A protracted independence struggle with France ended successfully in 1956. The internationalized city of Tangier and most Spanish possessions were turned over to the new country that same year. Sultan MOHAMMED V, the current monarch's grandfather, organized the new state as a constitutional monarchy and in 1957 assumed the title of king. Since Spain's 1976 withdrawal from what is today called Western Sahara, Morocco has extended its de facto administrative control to roughly 75% of this territory; however, the UN does not recognize Morocco as the administering power for Western Sahara. The UN since 1991 has monitored a cease-fire between Morocco and the Polisario Front - an organization advocating the territory's independence - and restarted negotiations over the status of the territory in December 2018. On 10 December 2020, the US recognized Morocco's sovereignty over all of Western Sahara.

King MOHAMMED VI in early 2011 responded to the spread of pro-democracy protests in the North Africa region by implementing a reform program that included a new constitution, passed by popular referendum in July 2011, under which some new powers were extended to parliament and the prime minister, but ultimate authority remains in the hands of the monarch. In November 2011, the Justice and Development Party (PJD) - a moderate Islamist party - won the largest number of seats in parliamentary elections, becoming the first Islamist party to lead the Moroccan Government. In September 2015, Morocco held its first direct elections for regional councils, one of the reforms included in the 2011 constitution. The PJD again won the largest number of seats in nationwide parliamentary elections in October 2016. In December 2020, Morocco signed a normalization agreement with Israel, similar to those that Bahrain, the United Arab Emirates, and Sudan had concluded with Israel earlier in 2020 .

Algeria has known many empires and dynasties starting with the ancient Numidians (3rd century B.C.), Phoenicians, Carthaginians, Romans, Vandals, Byzantines, over a dozen different Arab and Berber dynasties, Spaniards, and Ottoman Turks. It was under the latter that the Barbary pirates operated from North Africa and preyed on shipping beginning in roughly 1500, peaking in the early to mid-17th century, until finally subdued by the French capture of Algiers in 1830. The French southward conquest of the entirety of Algeria proceeded throughout the 19th century and was marked by many atrocities. The country was heavily colonized by the French in the late 19th and early 20th centuries. A bloody eight-year struggle culminated in Algerian independence in 1962.

Algeria's primary political party, the National Liberation Front (FLN), was established in 1954 as part of the struggle for independence and has since largely dominated politics. The Government of Algeria in 1988 instituted a multi-party system in response to public unrest, but the surprising first round success of the Islamic Salvation Front (FIS) in the December 1991 legislative elections led the Algerian army to intervene and postpone the second round of elections to prevent what the secular elite feared would be an extremist-led government from assuming power. The army began a crackdown on the FIS that spurred FIS supporters to begin attacking government targets. Fighting escalated into an insurgency, which saw intense violence from 1992-98, resulting in over 100,000 deaths - many attributed to indiscriminate massacres of villagers by extremists. The government gained the upper hand by the late-1990s, and FIS's armed wing, the Islamic Salvation Army, disbanded in January 2000.

Abdelaziz BOUTEFLIKA, with the backing of the military, won the presidency in 1999 in an election that was boycotted by several candidates protesting alleged fraud, and won subsequent elections in 2004, 2009, and 2014. The government in 2011 introduced some political reforms in response to the Arab Spring, including lifting the 19-year-old state of emergency restrictions and increasing women's quotas for elected assemblies, while also increasing subsidies to the populace. Since 2014, Algeria's reliance on hydrocarbon revenues to fund the government and finance the large subsidies for the population has fallen under stress because of declining oil prices. Protests broke out across the country in late February 2019 against President BOUTEFLIKA's decision to seek a fifth term. BOUTEFLIKA resigned on 2 April 2019, and the speaker of the upper house of parliament, Abdelkader BENSALAH, became interim head of state on 9 April. BENSALAH remained in office beyond the 90-day constitutional limit until Algerians elected former Prime Minister Abdelmadjid TEBBOUNE as the country's new president in December 2019.

Morocco is undergoing a demographic transition. Its population is growing but at a declining rate, as people live longer and women have fewer children. Infant, child, and maternal mortality rates have been reduced through better health care, nutrition, hygiene, and vaccination coverage, although disparities between urban and rural and rich and poor households persist. Morocco's shrinking child cohort reflects the decline of its total fertility rate from 5 in mid-1980s to 2.2 in 2010, which is a result of increased female educational attainment, higher contraceptive use, delayed marriage, and the desire for smaller families. Young adults (persons aged 15-29) make up almost 26% of the total population and represent a potential economic asset if they can be gainfully employed. Currently, however, many youths are unemployed because Morocco's job creation rate has not kept pace with the growth of its working-age population. Most youths who have jobs work in the informal sector with little security or benefits.

During the second half of the 20th century, Morocco became one of the world's top emigration countries, creating large, widely dispersed migrant communities in Western Europe. The Moroccan Government has encouraged emigration since its independence in 1956, both to secure remittances for funding national development and as an outlet to prevent unrest in rebellious (often Berber) areas. Although Moroccan labor migrants earlier targeted Algeria and France, the flood of Moroccan "guest workers" from the mid-1960s to the early 1970s spread widely across northwestern Europe to fill unskilled jobs in the booming manufacturing, mining, construction, and agriculture industries. Host societies and most Moroccan migrants expected this migration to be temporary, but deteriorating economic conditions in Morocco related to the 1973 oil crisis and tighter European immigration policies resulted in these stays becoming permanent.

A wave of family migration followed in the 1970s and 1980s, with a growing number of second generation Moroccans opting to become naturalized citizens of their host countries. Spain and Italy emerged as new destination countries in the mid-1980s, but their introduction of visa restrictions in the early 1990s pushed Moroccans increasingly to migrate either legally by marrying Moroccans already in Europe or illegally to work in the underground economy. Women began to make up a growing share of these labor migrants. At the same time, some higher-skilled Moroccans went to the US and Quebec, Canada.

In the mid-1990s, Morocco developed into a transit country for asylum seekers from Sub-Saharan Africa and illegal labor migrants from Sub-Saharan Africa and South Asia trying to reach Europe via southern Spain, Spain's Canary Islands, or Spain's North African enclaves, Ceuta and Melilla. Forcible expulsions by Moroccan and Spanish security forces have not deterred these illegal migrants or calmed Europe's security concerns. Rabat remains unlikely to adopt an EU agreement to take back third-country nationals who have entered the EU illegally via Morocco. Thousands of other illegal migrants have chosen to stay in Morocco until they earn enough money for further travel or permanently as a "second-best" option. The launching of a regularization program in 2014 legalized the status of some migrants and granted them equal access to education, health care, and work, but xenophobia and racism remain obstacles.

For the first two thirds of the 20th century, Algeria's high fertility rate caused its population to grow rapidly. However, about a decade after independence from France in 1962, the total fertility rate fell dramatically from 7 children per woman in the 1970s to about 2.4 in 2000, slowing Algeria's population growth rate by the late 1980s. The lower fertility rate was mainly the result of women's rising age at first marriage (virtually all Algerian children being born in wedlock) and to a lesser extent the wider use of contraceptives. Later marriages and a preference for smaller families are attributed to increases in women's education and participation in the labor market; higher unemployment; and a shortage of housing forcing multiple generations to live together. The average woman's age at first marriage increased from about 19 in the mid-1950s to 24 in the mid-1970s to 30.5 in the late 1990s.

Algeria's fertility rate experienced an unexpected upturn in the early 2000s, as the average woman's age at first marriage dropped slightly. The reversal in fertility could represent a temporary fluctuation in marriage age or, less likely, a decrease in the steady rate of contraceptive use.

Thousands of Algerian peasants - mainly Berber men from the Kabylia region - faced with land dispossession and economic hardship under French rule migrated temporarily to France to work in manufacturing and mining during the first half of the 20th century. This movement accelerated during World War I, when Algerians filled in for French factory workers or served as soldiers. In the years following independence, low-skilled Algerian workers and Algerians who had supported the French (known as Harkis) emigrated en masse to France. Tighter French immigration rules and Algiers' decision to cease managing labor migration to France in the 1970s limited legal emigration largely to family reunification.

Not until Algeria's civil war in the 1990s did the country again experience substantial outmigration. Many Algerians legally entered Tunisia without visas claiming to be tourists and then stayed as workers. Other Algerians headed to Europe seeking asylum, although France imposed restrictions. Sub-Saharan African migrants came to Algeria after its civil war to work in agriculture and mining. In the 2000s, a wave of educated Algerians went abroad seeking skilled jobs in a wider range of destinations, increasing their presence in North America and Spain. At the same time, legal foreign workers principally from China and Egypt came to work in Algeria's construction and oil sectors. Illegal migrants from Sub-Saharan Africa, particularly Malians, Nigeriens, and Gambians, continue to come to Algeria in search of work or to use it as a stepping stone to Libya and Europe.

Since 1975, Algeria also has been the main recipient of Sahrawi refugees from the ongoing conflict in Western Sahara (today part of Morocco). More than 1000,000 Sahrawis are estimated to be living in five refugee camps in southwestern Algeria near Tindouf.

Morocco has capitalized on its proximity to Europe and relatively low labor costs to work towards building a diverse, open, market-oriented economy. Key sectors of the economy include agriculture, tourism, aerospace, automotive, phosphates, textiles, apparel, and subcomponents. Morocco has increased investment in its port, transportation, and industrial infrastructure to position itself as a center and broker for business throughout Africa. Industrial development strategies and infrastructure improvements - most visibly illustrated by a new port and free trade zone near Tangier - are improving Morocco's competitiveness.

In the 1980s, Morocco was a heavily indebted country before pursuing austerity measures and pro-market reforms, overseen by the IMF. Since taking the throne in 1999, King MOHAMMED VI has presided over a stable economy marked by steady growth, low inflation, and gradually falling unemployment, although poor harvests and economic difficulties in Europe contributed to an economic slowdown. To boost exports, Morocco entered into a bilateral Free Trade Agreement with the US in 2006 and an Advanced Status agreement with the EU in 2008. In late 2014, Morocco eliminated subsidies for gasoline, diesel, and fuel oil, dramatically reducing outlays that weighed on the country's budget and current account. Subsidies on butane gas and certain food products remain in place. Morocco also seeks to expand its renewable energy capacity with a goal of making renewable more than 50% of installed electricity generation capacity by 2030.

Despite Morocco's economic progress, the country suffers from high unemployment, poverty, and illiteracy, particularly in rural areas. Key economic challenges for Morocco include reforming the education system and the judiciary.

Algeria's economy remains dominated by the state, a legacy of the country's socialist post-independence development model. In recent years the Algerian Government has halted the privatization of state-owned industries and imposed restrictions on imports and foreign involvement in its economy, pursuing an explicit import substitution policy.

Hydrocarbons have long been the backbone of the economy, accounting for roughly 30% of GDP, 60% of budget revenues, and nearly 95% of export earnings. Algeria has the 10th-largest reserves of natural gas in the world - including the 3rd-largest reserves of shale gas - and is the 6th-largest gas exporter. It ranks 16th in proven oil reserves. Hydrocarbon exports enabled Algeria to maintain macroeconomic stability, amass large foreign currency reserves, and maintain low external debt while global oil prices were high. With lower oil prices since 2014, Algeria's foreign exchange reserves have declined by more than half and its oil stabilization fund has decreased from about $20 billion at the end of 2013 to about $7 billion in 2017, which is the statutory minimum.

Declining oil prices have also reduced the government's ability to use state-driven growth to distribute rents and fund generous public subsidies, and the government has been under pressure to reduce spending. Over the past three years, the government has enacted incremental increases in some taxes, resulting in modest increases in prices for gasoline, cigarettes, alcohol, and certain imported goods, but it has refrained from reducing subsidies, particularly for education, healthcare, and housing programs.

Algiers has increased protectionist measures since 2015 to limit its import bill and encourage domestic production of non-oil and gas industries. Since 2015, the government has imposed additional restrictions on access to foreign exchange for imports, and import quotas for specific products, such as cars. In January 2018 the government imposed an indefinite suspension on the importation of roughly 850 products, subject to periodic review.

President BOUTEFLIKA announced in fall 2017 that Algeria intends to develop its non-conventional energy resources. Algeria has struggled to develop non-hydrocarbon industries because of heavy regulation and an emphasis on state-driven growth. Algeria has not increased non-hydrocarbon exports, and hydrocarbon exports have declined because of field depletion and increased domestic demand.

despite Morocco's economic progress, the country suffers from high unemployment and illiteracy affecting telecom market, particularly in rural areas; national network nearly 100% digital using fiber-optic links; improved rural service employs microwave radio relay; one of the most state-of-the-art markets in Africa; high mobile penetration rates in the region with low cost for broadband Internet access; improvement in LTE reach and capabilities; 5G tests underway; mobile Internet accounts for 93% of all Internet connections; World Bank provided funds for Morocco's digital transformation; government supported digital education during pandemic; submarine cables and satellite provide connectivity to Asia, Africa, the Middle East, Europe, and Australia; importer of broadcasting equipment and video displays from China (2021)

Algeria has a steadily developing telecom infrastructure through sound regulatory measures and government policies aimed at providing Internet connections across the country, including underserved areas; mobile penetration and LTE services are growing steadily; in common with other markets in the region, mobile connections account for the vast majority of Internet accesses; well served by satellite and submarine cable connections; importer of broadcasting equipment from China (2021)

Morocco protests Spain's control over the coastal enclaves of Ceuta, Melilla, and Penon de Velez de la Gomera, the islands of Penon de Alhucemas and Islas Chafarinas, and surrounding waters; both countries claim Isla Perejil (Leila Island); discussions have not progressed on a comprehensive maritime delimitation, setting limits on resource exploration and refugee interdiction, since Morocco's 2002 rejection of Spain's unilateral designation of a median line from the Canary Islands; Morocco serves as one of the primary launching areas of illegal migration into Spain from North Africa; Algeria's border with Morocco remains an irritant to bilateral relations, each nation accusing the other of harboring militants and arms smuggling; the National Liberation Front's assertions of a claim to Chirac Pastures in southeastern Morocco is a dormant dispute

Algeria and many other states reject Moroccan administration of Western Sahara; the Polisario Front, exiled in Algeria, represents the "Sahrawi Arab Democratic Republic" which Algeria recognizes; the Algerian-Moroccan land border remains closed; dormant disputes include Libyan claims of about 32,000 sq km of southeastern Algeria and the National Liberation Front's (FLN) assertions of a claim to Chirac Pastures in southeastern Morocco.