Morocco to launch Takaful insurance soon

Morocco is putting the final touches on the Takaful insurance key to a growing participatory finance triggered by real estate mainly.

Speaking at a national insurance seminar, Central Bank Governor Abdellatif Jouahri said Takaful will be launched soon as the main stakeholders are working together to finalize it.

A law on Takaful was approved by parliament but regulatory bodies have yet to give permits to companies that want to engage in this sort of insurance.

Participatory banks offered in 2020 financing worth 13.5 billion dirhams from 9.1 billion a year earlier.

The Central Bank approved the first five participatory banks in January 2017. Subsequent legislation was passed in 2018 and 2019 regarding solvency and liquidity, respectively.

Most of Moroccan largest banks have Islamic finance branches, including Attijariwafa Bank, Groupe Banque Centrale Populaire, BMCE Bank of Africa, CIH Bank and Crédit Agricole du Maroc. Subsidiaries of the main French banks with operations in Morocco – including Société Générale, BNP Paribas and Credit Agricole’s Islamic Development Bank – were also approved to offer Islamic financial services.