This time the project was welcomed from Bank al Manager after that he started suffering from lack of liquidity since Since Islamic Financial Institutions from leading countries were approaching Moroccan authorities in order to establish their business in the country without any success.
Geography is also on its side. Prior to the Islamic banking law passed earlier this year, a handful of conventional banks and other financial institutions in the country launched ijara, musharaka and murabaha Islamic banking products.
There were several reasons behind this failed attempt- lack of a supportive regulatory framework due to shortage of expertise, double taxation issue along with restrictions on marketing- all leading to a non-existent participative banking sector. The Moroccan authorities are still reluctant in tacking seriously this project but there are several factors that will lead them to facilitate this new project.
The aim is to have an independent Islamic financial system in parallel with the established conventional one, following the successful example of Malaysia. In a next step, Morocco is preparing for the introduction of Islamic insurance, or takaful, in the country possibly by There are enough savings in Morocco to finance the needs of issuers in dirhams and at the same time, local corporates and banks are unlikely to take on dollar-denominated debt.
The interest shown by these banks in the Moroccan banking industry is based on both the domestic banking demand and the potential for Morocco to act as a financial hub in the West African region. Also, Banks have calculated a high rate of return to protect themselves because the price was fixed and could not be revised.
It also emphasizes the unsatisfactory of Moroccan consumers about the slang conventional products Ana ten lack AT snarls compliant alternatives In ten market. However, this year the authorities sent a strong signal to the market when they issued five participatory banking licences to Moroccan banks and three to international banks.
It is important to underline that almost half of the Moroccan population is illiterate and the main language used in the marketing campaigns is generally classical Arabic, which is not fully understandable from this big part of population.
Recent developments The Islamic Development Party PIG used the introduction of Islamic finance products and institutions one of the main points of its campaign.
In addition, the government wants to establish a sovereign sukuk fund for infrastructure and other public expenses. We have seen that it takes time and money to set Islamic finance up. This is expected since the ICD has focused about half of its activities on financial sector development in its member countries.
The role of the committee will be verifying the compliance to the Islamic law of the products and services offered to the public by the Islamic institutions. Islamic finance is operational in over 75 countries worldwideand its robust performance has attracted a wide range of major multinational financial institutions.
The spokesman of the Ministry of Finance says that the first Islamic Institution will be starting its activity on October Also they had no interest in making the new products attractive and competitive.8 Islamic Banking and Finance in North Africa Private Equity Investment in Morocco Shari’ah Compliant Private Equity 40 8 Conclusions 42 Appendices: Case Studies of Islamic Banks in North Africa A.1 Egypt A Faisal Islamic Bank of Egypt A Al Baraka Bank Egypt A Al Watani Bank Egypt A Islamic Branches of Egypt’s State B anks A.2 Tunisia A Al Baraka Tunisia.
Almost all of the pieces are in place for Islamic finance to start offering products in the second half ofadding yet another sector supporting Morocco as an investment destination.
With Europe’s economic recovery still sputtering, the kingdom needs more sources to fund its impressive and ambitious economic development, from supporting.
However a change in the political leadership inled by the moderate Islamist Justice and Development Party, pushed forward measures including those making changes in the banking and finance regulations that could accommodate and promote the Islamic banking sector in Morocco.
Islamic Finance development: the Moroccan experience. Uploaded by. (IB ) Project Work “Islamic Finance development: the Moroccan experience” BOUDAD, Introduction to Islamic Finance and Ethics “Islamic Finance in Morocco” Euromed Management. ‐ Ministry of the Economy and Finance, Kingdom.
The World Bank Group and the Islamic Development Bank published the first Global Report on Islamic Finance, which details the prospects for the global Islamic finance industry and its potential to help reduce worldwide income inequality and achieve the SDGs.
Morocco - عربي - Français New Report Outlines Actions to Leverage Islamic. Morocco launches Islamic banking services. These efforts to facilitate access and harmonise finance signposts Morocco’s path toward becoming an important economic crossroad between Africa and the rest of the world.
It is also an important development for the global Islamic finance industry, as its rapid expansion over the past decade has.Download