Morocco to issue debut sukuk by 2017

Dec 23, 2016

The debut Islamic bonds will enhance participative banking in Morocco

The Moroccan Economic and Finance Minister, Mohammed Boussaid has disclosed that the nation will issue her debut government-supported Sukuk before the end of 2017. He made this known while speaking at the second annual symposium of Islamic Economics and Finance earlier this month. During the event where the future of Sharia-complaint banking was discussed, Boussaid said the Islamic bonds will enhance participative banking and it will be made open to Moroccans in diaspora to purchase. "These new financial instruments should contribute to the development of participative banking, allowing the mobilization of funds as needed". "For the operationalization of the first participatory programs on the capital market and the support of participatory finance, our department is looking, firstly, to develop the regulatory framework necessary for the issuance of the sukuk in Moroccan financial markets, and on the other hand, and secondly, to structure the first sovereign sukuk issue, which will serve as a benchmark for other similar initiatives," he said. Going by an agreement signed with the Islamic Society of Private Sector Development, Morocco's debut sukuk should have been issued by the end of 2016. However, the National Sharia Board which oversees Islamic finance products recently accredited domestic operation of the bond category.