Hey Dale! Thanks for reading.
In Arabic, this is the term we use to refer to Morocco and other countries in a similar tier (there are other terms that translate to "developing" as well though, they're just rarely used).
Personally, being from this country myself and having lived here since 2003, I don't find it offensive or wrong to use this term. I think it's accurate. First vs third world. Countries with advanced social, economic development vs those that just aren't quite there yet.
With that said, I do sometimes use "developing," although I don't find it reflects the situations in these countries very accurately. At work, we use "Global South" which I don't particularly like. I recognize there are issues with a lot of these terms!
I grew up with my parents and family members using the word third world, so it's normal for me. Moroccans are a self-deprecating people, haha. :P We're fine with "insulting" ourselves but will turn around and defend our country when outsiders do it!
Razane