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Morocco is gearing up for its second issuance of Islamic bonds, or sukuk, since 2018, as part of broader efforts to deepen its participatory finance sector. The announcement was made by Central Bank Governor Abdellatif Jouahri during the annual meeting of the Islamic Financial Services Board (IFSB) held on Thursday.
Jouahri noted that the central bank, in collaboration with the Ministry of Finance, is currently reviewing the technical specifications of the upcoming sukuk issuance. However, he did not disclose the expected value or timing of the issuance. The Higher Council of Ulema, Morocco’s top Islamic authority, is also set to evaluate the instrument to ensure its full compliance with sharia principles.
Morocco made its first foray into Islamic capital markets in 2018, issuing a 1 billion dirham ($110 million) sukuk, which matured in 2023. The country formally introduced Islamic finance—branded locally as participatory banking—in 2017 as part of a strategic initiative to enhance financial market liquidity and attract foreign capital.
Despite these policy moves, the adoption of Islamic finance remains limited in Morocco. According to Jouahri, participatory banking accounts for just 2% of total banking assets. Since inception, Islamic banks in Morocco have disbursed 35 billion dirhams in financing but mobilised only 12 billion dirhams in deposits, highlighting a structural liquidity gap.
Nonetheless, the sector has recorded impressive momentum in recent years. The IFSB’s latest industry report revealed that Morocco posted the second-fastest growth in Islamic banking assets globally between 2019 and 2024, at a compound annual growth rate of 27.6%.
To build on this growth, IFSB Secretary General Ghiath Shabsigh emphasized the importance of developing a vibrant government sukuk market in Morocco, which he described as essential to further institutionalise and scale Islamic finance in the country.
Shabsigh also praised Morocco’s measured and deliberate rollout of participatory finance, suggesting it could serve as a benchmark for emerging Islamic finance jurisdictions in Sub-Saharan Africa and Central Asia—regions where the IFSB is aiming to expand its influence.
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