Morocco: Takaful forecast to lead to doubling of real estate financing
Source: Middle East Insurance Review | Jul 2021
Real estate financing transactions of participatory banks are expected to double, spurred by the launch of takaful in Morocco. Moroccan experts in the field of participatory financing expect a recovery in the segment financing the acquisition of residential real estate in the coming year, reported Hespress.
In 2020, real estate financing by participatory banks amounted to nearly MAD11.5bn ($1.3bn). The central bank and the Insurance and Social Insurance Supervisory Authority are working on putting the necessary touches to take takaful products to the market.
Market players estimate the market share for this new type of financing is about 10%, compared to 90% for conventional financing over a seven-year period.
Legislation to establish the regulatory framework for takaful and retakaful has been passed. However, Islamic insurance operations are yet to commence. This is because preparations are still underway to issue the application texts and to grant takaful licences. M