Morocco approves Islamic banking service

The Sharia Committee of the Moroccan government yesterday approved the operations of Islamic banks.

The permit came in a book issued by Bank Al-Maghrib, the central bank in the country, for the participating banks which want to open Islamic channels within their services.

Bank Al-Maghrib

Islamic banking institutions will begin marketing their services to the public starting today.

“The Sharia Committee’s approval of Islamic banks to deal with some contracts, such as Murabaha [interest] and Ijarah [rental], will enable banks to start their services,” said Talal Lahlou, an expert on Islamic finance.

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Despite the announcement of Umnia Bank, the first Islamic bank in Morocco, that it would open three branches in Rabat and Casablanca in May, it was waiting for the approval of the legal committee of contracts in addition to procedural matters.

Lahlou added that the actual launch of banking services is a fundamental marketing step for these institutions. “The receipt of model contracts is a key step in opening accounts and providing services,” said Hunaida Al-Bukhari, director of Islamic bank Dar Al Aman. She added that the bank would open new branches later this year.