Rabat is situated on the Atlantic at the outlet of the river Oued Bou Regreg, which divides Rabat from Sale. Rabat's industries include manufacture of textiles, processed food and building materials.
Tourism is also an important source of income, together with the administration for all of Morocco.
Rabat is a commercial and administrative centre, but this is challenged by the economically more important city of Casablanca 80 km southwest. Rabat has many historical monuments and some of Morocco's most important museums. All foreign embassies in Morocco are located to Rabat. A settlement is founded about 1 km in from the Atlantic coast on the southern green slopes south of Oued Bou Regreg. The place is eventually named Chellah.