S&P expects strong Islamic finance growth in Morocco
Islamic finance could represent - within three to five years - between ten and 20 per cent of Morocco's banking system, according to Standard & Poor's economic analyst Mohamed Damak.Islamic finance could represent - within three to five years - between ten and 20 per cent of Morocco's banking system, according to Standard & Poor's economic analyst Mohamed Damak.
He told L'Usine Nouvelle that Islamic finance should develop in Africa thanks to the increasing need for infrastructure funding.
"South Africa has issued a $500 million (€391.7 million) sukuk. Bonds in CFAF have also been issued in Senegal and Gambia. The significant infrastructure needs of the continent can be financed under the principles of Islamic law, as African countries become more familiar with this method of financing," he said.
However, he acknowledged that the total of outstanding Islamic finance loans granted since 2007
not currently exceed
€91 million due to the lack of an adequate regulatory framework.
These words echoed a report from the Economic, Social and Environmental Council (CESE ) - released on August 28th - on the draft law regulating
recently adopted by the parliament.
The institution believes that it is necessary to clarify the roles of the National Council of Ulemas and the Central Bank to supervise the sector.
CESE president Nizar Baraka stressed the importance of establishing Islamic banks, arguing that they will enhance the country's savings rate and increase the rate of
access to banking services
Morocco, which currently stands at 57 per cent.