Seven members of a "dangerous cell" were arrested in a dawn operation on Friday in five different cities and "other suspects are on the run", said Abdelhak Khiam who heads Morocco's anti-terrorism security service.
He told a press conference that the group's chief, calling himself an "emir" was among those arrested, and that he had sought to set up a branch of IS in the kingdom.
Khiam said the man had received "financing and weapons from members of the Libyan branch of IS".
The suspects were aged between 20 and 29.
Reporters were shown seized weapons and equipment including seven handguns and a machinegun that Khiam said "came from Libya and were transported via the border with Algeria".
Two military jackets "containing explosives products" were also recovered.
Several suspects were apprehended in a rented apartment in the city of El Jadida.
In a statement today, the interior ministry said it intended to strengthen controls on the renting of furnished properties.
This "helps suspects conceal themselves and prepare acts of sabotage," it warned, urging owners "to notify the authorities of tenants' identities", on pain of prosecution for complicity.
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