Recent data from Bank Al-Maghrib in their banking supervision report show that Murabaha financing, which makes 99% of participative financing in Morocco reached 21.4 billion Dirhams in 2023, noting a 23% increase from last year.
Through a more specific look within the murabaha agreements, the Islamic financial bank lending scheme, 81% were real estate agreements, 13.6% were equipment agreements, while 5.5% were consumption agreements.
Five banks are authorized to operate Islamic banking Attijari Wafabank, Banque Central Populaire, CIH banque, BMCE Bank Of Africa, and Credit Agricole du Maroc allowing them to operate Islamic finance in subsidiaries or as part of the main bank.
By itself, the Murabaha category grew by 20.1% year over year, with notable amounts reaching 28 billion Dirhams. Notably, 21.2 billion Dirhams was the net amount of Murabaha funding after advance margins were subtracted.
With an astounding 75% yearly growth rate Morocco’s Islamic banking industry is expanding quickly due to rising demand for Sharia-compliant services like Murabaha financing, which had a significant uptick in 2023. Despite being in its infancy, the industry has shown remarkable growth rates since its founding in 2018.
Compared to other MENA nations, Morocco’s Islamic finance is still growing. Morocco has promise due to its mature banking industry, competitive capital market, and stable political environment. As opposed to this, the GCC nations control the majority of the Sharia-compliant assets in the area, accounting for over 90% of the worldwide Islamic finance sector.
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