IslamicFinance.de

Since the launch of Islamic 'participatory' banks in July 2017, more than 71 agencies have joined the non-interest banking program throughout Morocco. Abdellatif Jouahri, the governor of Bank Al Maghrib (Morocco’s central bank), said the participatory banks have granted a total of MAD 1.1 billion in loans. Jouahri highlighted the special interest that murabaha is especially attractive for both real estate and automobile customers. The governor stressed that Morocco is preparing to issue its first sukuk in July 2018, which will complement the services offered by participatory banks. While the order approving the takaful circular has already been finalized, the legislative texts are still being finalized.

Abu Dhabi Islamic Bank (ADIB) CEO Tirad Mahmoud said the bank was seeking to invest in Islamic banking in Morocco. ADIB has applied for approval from the Morrocan Central Bank for approval to invest in participatory banking in Morocco by 2016. Back in March this year, Abdellatif Jouahri, Governor of Bank Al Maghrib, had announced 2016 as the year of commencement of operations of the first participation banks in the Kingdom. ADIB has also filed applications for licenses in Algeria, Libya and Tunisia, said Tirad Mahmoud. Emirates Islamic has also filed an application with the Central Bank while Bahrain-based Al Baraka Banking Group is working in a joint venture with BMCE Bank to offer Shari’ah-compliant financial solutions.

In spite of several applications Bank Al Maghrib, the central bank of Morocco, did not issue a stand alone Islamic banking license. The reasons: too much stress for the Moroccan market and the problem of taxation on certain Islamic products. However, since their permission on the market, the total value of Islamic finance products is around DH 200 mn.