IslamicFinance.de

Morocco will finally launch its first sukuk in 2018. According to Hicham Talby, head of the financial sector department at the Ministry of Finance, the new financial instruments that will be operational this year will include four different formulas: Ijara, Wakala, Musharaka, and Murabaha. First, the government must complete the operational, legal, and regulatory aspects of Islamic finance. As Morocco’s first sovereign debt is taking some time to be issued, Talby expects the process to be much faster for the next three planned sukuk issues. The government originally adopted legislation allowing Islamic banking and insurance in January 2014, but there was a delay in authorization.

Morocco will issue its first bonds on Islamic market this year. According to Hicham Talby, head of the finance ministry’s treasury department, the country plans to issue four dirham-denominated sovereign sukuk. While the first issuance would take much time due to the implementation of a legal framework for the operation, authorities expect the process to be faster for the three other issuances. Mali has already launched its first sukuk issuance for 2018. Likewise, South Africa and Sudan have recently announced their intention to follow the move in 2018. The Moroccan government also wants to establish a sovereign sukuk fund, ahead of an increase in dirham-dominated Islamic bonds, over the coming years.