Aside from its rich fishing waters and phosphate reserves, Western Sahara has few natural resources and lacks sufficient rainfall and freshwater resources for most agricultural activities.
Western Sahara's much-touted phosphate reserves are relatively unimportant, representing less than two percent of proven phosphate reserves in Morocco.
There is speculation that there may be off-shore oil and natural gas fields, but the debate persists as to whether these resources can be profitably exploited, and if this would be legally permitted due to the Non-Self-Governing status of Western Sahara (see below).

Western Sahara's economy is based almost entirely on fishing, which employs two-thirds of its workforce, with mining, agriculture and tourism providing modest additional income.
Most food for the urban population comes from Morocco.
All trade and other economic activities are controlled by the Moroccan government (as its de facto southern province).
The government has encouraged citizens to relocate to the territory by giving subsidies and price controls on basic goods.
These heavy subsidies have created a state-dominated economy in the Moroccan-controlled parts of Western Sahara.

In 2011, leaked United States diplomatic cables revealed that the territory is somewhat of an economic burden for Morocco; the Moroccan US$800 million subsidy program to Western Sahara was said to be one of the larger per-capita aid programs in history.
Supporting life in a territory with scarce freshwater resources is extremely costly.
For example, all drinking water for the city of Laayoune comes from desalinization facilities and costs 3 US dollars per cubic meter but is sold at the national price of 0.0275 US dollars; the difference is paid for by the government of Morocco.
Fuel is sold at half the price, and basic goods are heavily subsidized; businesses operating in the territory do not pay taxes.
All of this is done to keep the balance of Western Sahara's finances.
The territory is otherwise thought to be economically unviable and unable to support its population without the Moroccan subsidies.
The cable concluded that the territory is unlikely ever to be of any economic benefit for Morocco, even if offshore oil fields were to be discovered and exploited.

Due to the disputed nature of Moroccan sovereignty over the territory, the application of international accords to Western Sahara is highly ambiguous.
Political leadership of trade agreement signatories such as the United States (US-Morocco Free Trade Agreement) and Norway (European Free Trade Association trade accord) have made statements as to these agreements' non-applicability – although practical policy application is ambiguous.
Aside from its rich fishing waters and phosphate reserves, Western Sahara has few natural resources and lacks sufficient rainfall and freshwater resources for most agricultural activities. Western Sahara's much-touted phosphate reserves are relatively unimportant, representing less than two percent of proven phosphate reserves in Morocco. There is speculation that there may be off-shore oil and natural gas fields, but the debate persists as to whether these resources can be profitably exploited, and if this would be legally permitted due to the Non-Self-Governing status of Western Sahara (see below).
Western Sahara's economy is based almost entirely on fishing, which employs two-thirds of its workforce, with mining, agriculture and tourism providing modest additional income. Most food for the urban population comes from Morocco. All trade and other economic activities are controlled by the Moroccan government (as its de facto southern province). The government has encouraged citizens to relocate to the territory by giving subsidies and price controls on basic goods. These heavy subsidies have created a state-dominated economy in the Moroccan-controlled parts of Western Sahara.
In 2011, leaked United States diplomatic cables revealed that the territory is somewhat of an economic burden for Morocco; the Moroccan US$800 million subsidy program to Western Sahara was said to be one of the larger per-capita aid programs in history. Supporting life in a territory with scarce freshwater resources is extremely costly. For example, all drinking water for the city of Laayoune comes from desalinization facilities and costs 3 US dollars per cubic meter but is sold at the national price of 0.0275 US dollars; the difference is paid for by the government of Morocco. Fuel is sold at half the price, and basic goods are heavily subsidized; businesses operating in the territory do not pay taxes. All of this is done to keep the balance of Western Sahara's finances. The territory is otherwise thought to be economically unviable and unable to support its population without the Moroccan subsidies. The cable concluded that the territory is unlikely ever to be of any economic benefit for Morocco, even if offshore oil fields were to be discovered and exploited.
Due to the disputed nature of Moroccan sovereignty over the territory, the application of international accords to Western Sahara is highly ambiguous. Political leadership of trade agreement signatories such as the United States (US-Morocco Free Trade Agreement) and Norway (European Free Trade Association trade accord) have made statements as to these agreements' non-applicability – although practical policy application is ambiguous.
Western Sahara