Industrial fisheries targeting small pelagic fish have significant socio‐economic implications for North West African countries. This study examines the economic performance of fleets operating in Mauritania's exclusive economic zone under the free license and chartering systems. Using national production data from 1989 to 2010 and economic indicator ratios from European pelagic fishing vessels, we assess the economic performance of pelagic fisheries over one decade. Our findings show that vessel characteristics have rapidly evolved, with free‐licenced vessels having a higher average fishing capacity than chartered vessels. The nominal number of free licenses increased from under 8% in 1995; the year of free licencing began in Mauritania, to over 80% in 2010. The estimated average economic output for 2000–2010 was US$ 231 million, with free licenses contributing over 80% of the total turnover (US$ 187 million). Vessels operating under free licenses made a greater contribution to wealth creation than the chartering regime. Foreign ship owners generated US$ 40.7 million (22%) in income, while chartering yielded US$ 3.6 million (8%). However, the chartering regime was more fiscally advantageous, contributing over 68% of pelagic fisheries tax revenues (estimated at over US$ 29 million). The small pelagic fishery has been subject to a system of total allowable catches and fishing quotas since 2015. This study provides insights into the economic dynamics of the small pelagic fishery, informing decision‐making and potential strategies to enhance the sector's performance and overall economic impact.