IFSB lauds Morocco’s Sharia-compliant finance

Morocco’s regulatory progress and strategic efforts to integrate Sharia-compliant finance into its broader economic framework have positioned the country as a rising hub in the Islamic finance industry, according to the Secretary-General of the Islamic Financial Services Board (IFSB).

Speaking to Morocco’s official news agency MAP on the sidelines of the 23rd Islamic Financial Stability Forum, held recently in Rabat, Ghiath Shabsigh commended Bank Al-Maghrib’s role in advancing regulatory development and promoting dialogue on Sharia compliance.

Terming the efforts as part of a broader strategy led by Bank Al-Maghrib to foster a robust and sustainable financial system, Shabsigh lauded the regulatory strides taken by Morocco and appreciated the structured dialogue on Sharia compliance.

While Islamic finance remains relatively new in Morocco, it is developing quickly under a legal framework that encompasses banking, insurance, and capital markets. Shabsigh noted that these foundations are critical for ensuring the industry’s safe and structured growth.

He also highlighted Morocco’s potential to expand its presence on the global Islamic finance map. The introduction of sovereign sukuk was highlighted as a particularly significant step.

Shabsigh further noted that Morocco needed to focus on establishing a strong domestic sukuk market in dirhams to build investor confidence and improve financing conditions. He added that the move would pave the way for future issuances in foreign currencies.

Founded in 2003 and based in Kuala Lumpur, the IFSB is an international standard-setting organisation that promotes the soundness and stability of the global Islamic financial services industry.