Islamic banks to start operating in Morocco by 2017, reports Healy Consultants

MARRAKECH, Morocco - Aug. 2, 2016 - PRLog -- Last month, the Central Bank of Morocco announced it will start granting approvals and licences for Islamic banks this year to allow them start their business operations by early 2017.

Some of the leading Islamic banks and insurers are already setting up in Morocco after the legislation was adopted allowing them access to the domestic market. The new financial industry will be overseen by a central sharia board involving an elite body of Islamic scholars appointed by the central bank.

Issues of Islamist movements around the region has seen Morocco reject Islamic banking over a long period of time, however the lack of liquidity and foreign investment in the country's financial market has seen the country soften its rules and welcome Islamic banking, which could attract such investments.

"It is absolutely wrong that some banks had been pushing to delay the process. To launch this industry, and to launch it in the correct way needs a lot of work. That is all," said the central bank's head of banking supervision, Lhassane Benhalima.

Speaking to reporters, Lhassane said the central bank has been planning an Islamic interbank marketplace and was in negotiations with the Moroccan government to grant Islamic bonds (sukuk) to guarantee financing tools and liquidity in the new industry.

"We expect the treasury to issue the first sukuk, ever, in the domestic market in the coming months," added Lhassane.

Islamic banking is generally based on religious Islamic principles and prohibit monetary speculation and acceptance of certain interests or fees for monetary loans.

The past decade has seen the rise and rapid growth of Islamic banking and finance in regions including North Africa, Southeast Asia and the Middle East as its investor base continue to expand.

Healy Consultants is a professional corporate services provider headquartered in Singapore and with a presence in Morocco since the year 2003. The company helps global entrepreneurs looking to establish their international businesses in different sectors of the economy with, among others, company registration, tax and vat registration, assistance with obtaining business licenses and official business addresses, opening a corporate and merchant bank account and obtaining work or residence visas.