Expectations are that real estate financing transactions of participatory banks will double, spurred by the launch of takaful.
Moroccan experts in the field of participatory financing expect a recovery in financing the acquisition of residential real estate in the coming year, in the event of the issuance of the law governing takaful, reported Hespress.
Last year, real estate financing by participatory banks amounted to nearly MAD11.5bn ($1.3bn).
The central bank, which is Bank Al-Maghrib, and the Insurance and Social Insurance Supervisory Authority are working on putting the necessary touches to take takaful products to the market..
Available data confirm that participatory financing was able to find a comfortable foothold in the Moroccan banking sector, as professionals estimate the market share for this new type of financing is about 10%, compared to 90% for conventional financing over a seven-year period.
The 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.