Islamic real estate loans in Morocco reached 23.1 billion dirhams by the end of June 2024, marking a 13.5% increase from the same period last year, according to the Kingdom’s central bank.
This growth reflects a rising demand for Sharia-compliant financial products, as more Moroccans turn to Islamic banking options that align with Islamic principles, said Bank Al Maghrib in a recent note.
The broader loan market in Morocco has also experienced steady growth. Loans to households increased by 1.2% annually, driven by a 1.3% rise in real estate loans and a 0.5% uptick in consumer loans. Despite rising costs, the demand for loans, particularly in the real estate sector, remains robust.
Interest rates for new loans have risen, averaging 5.45% in the second quarter of 2024. Large companies face rates of 5.34%, while very small, small, and medium-sized enterprises (SMEs) are dealing with rates around 5.68%. These increases could challenge future loan demand if the trend continues.
Despite the higher rates, businesses report that access to bank financing remains stable. The continued growth in Halal real estate loans underscores the enduring appeal of Islamic finance in Morocco, even as the financial landscape evolves.
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