Morocco's second lawmaking chamber, the House of Councillors, has passed without amendments the Takaful Insurance Bill, about five months after the lower house of Parliament approved the Bill unanimously on 5 February.
The text of the law will therefore not be subject to a second reading and will soon be published in the Official Gazette.
The implementing texts and model takaful contracts are also ready and awaiting the approval of the Higher Council of Ulemas.
These moves signal that the effective start to takaful could take place before the end of the year, according to local media reports.
"All circulars, standard contracts, etc, have been validated by the Moroccan Federation of Insurance and Reinsurance Companies," said a source. They are now with the Insurance and Social Insurance Supervisory Authority and the Higher Council of Ulemas
The first takaful licences are expected to be issued this year. No takaful windows are allowed under the new law.
Islamic banks have been operating in Morocco for several years. The country now has more than 70 banks and financial institutions providing Shariah-compliant financial services. A regulatory framework for Islamic banks was introduced in 2017. Due to the lack of availability of takaful, the banks have found a way to fill this gap by getting their customers to commit to buying Islamic insurance as soon as takaful licences are issued.