Islamic banking products spark interest in Morocco
2007-10-21
Morocco has introduced several Islamic banking products to provide alternatives to Muslims wary of traditional banking services. Although many Moroccans welcome the alternative products, banks plan to keep them expensive to reduce competition with their traditional financial products.
By Sarah Touahri for Magharebia in Rabat – 21/10/07
 [Sarah Touahri] Morocco's central bank expects the alternative products to be a success |
The launch of alternative banking products designed to be halal within Islam has sparked interest in Morocco. Many of Morocco's Muslims who refuse to use standard banking products have welcomed their arrival on the market, although no publicity campaign has been launched and details of the products have yet to be announced.
In response to high demand from the public, Morocco's central bank followed in the footsteps of Islamic banks around the world on October 1st, with its approval of Islamic products which offer a way around interest-bearing loans and other financial products forbidden in Islam. These so called "alternative products" include Ijarah, Musharakah and Murabahah.
Ijarah is a halal type of leasing contract between a lending institution and a customer. It can take the form of a simple lease agreement or be accompanied by a contract for the lessee to acquire the asset at the end of a fixed period.
Musharakah is a contract that enables lending institutions to help businesses finance themselves through the sale of stakes in a future or existing company. Both parties are liable for the value of their investment and each gains or loses a previously-agreed share of the profits or loses.
Murabahah enables people to acquire assets without taking out an interest-bearing loan. The bank purchases the asset and then resells it to the customer in instalments at an openly stated price, factoring in administrative costs and profit.
The new products have aroused little excitement in banks, who view them as competition to their traditional counterparts. "It's to be expected that the cost of alternative loans will be higher than that of ordinary ones," Economist Mohamed Berdai told Magharebia. "The banking lobby wants to be sure these products will not be competitive so that customers do not abandon ordinary loans. One of the ways this has been achieved is by setting short payment terms which put them beyond the reach of a lot of people."
Many Moroccans, however, are eager to learn more about the new products. Those who used to balk at the idea of taking out a bank loan for religious reasons regard the new products as a good solution. "I still don't really know much about the products that will be on offer, but at least they’re halal and will mean I can finally buy a home," said potential customer Abderrafia Tamachi.
Teacher Rabiaa Maliki is equally pleased. "My husband always refused to get a loan to buy a house. We can’t wait for the new schemes to come out."
Pointing to other Muslim countries, where Islamic banking products have garnered a large market share, the central bank predicts the new "alternative products" will be highly successful. Bank experts expect the true level of demand will emerge towards the end of the year.
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Tatai Posted 2007-10-22
Bravo to the initiative by the Moroccan authorities, who have accepted to extend to any bank that wants it the possibility of offering their clients services that conform to the Sharia (i.e. open competition and anti-monopoly.) I think that the Central Bank of Morocco needs to standardize beforehand, its services with regards to defining its terms, remuneration and guarantees. I would like to know which websites could offer me a bit more information on this initiative. Thank you. –Best wishes
hassan Posted 2007-10-22
I am fully behind these products. Please give me more details on this subject. –Thank you
Brian Kettell Posted 2007-10-23
Finally Morocco is waking up to the fastest growing sector of the financial market place Brian Kettell
ABOU LKACIM Posted 2007-10-27
It would be a shame if these products are not offered in other domains, such as real-estate construction or for individual residential housing. There surely must be a solution that does not go against what is already provided for. Maybe we can go through InStar in Al Ijara or Al Moucharaka. This possibility might solve the problem for many Moroccan families finding themselves with a plot of land and no means to build on it.
Abderrahim Posted 2007-11-05
It's really a great step to get rid of RIBA instututions, now i think that I can have a house in a Halal way. Please give us more details concerning the new 3 products Halal proposed by the moroccan banks thanks a lot
a3yal Posted 2007-11-11
Hello, What a relief! Unfortunately, we still need to wait for the MRE. Please, if you have anymore information about the MRE’s, give it to us. -Goodbye
tamie Posted 2007-11-14
assalamu alaikum! Please, can you give more information, such as which banks are doing the islamic banking? Can one use the islamic banking for buying land and building a house? thank you!
El Akhdari aziza Posted 2007-11-20
I would like to know why these products are more expensive than the older ones.
Ahmed Posted 2007-11-22
Wise step! keep up the good work.... and now RIBA = Terror!!
SA Posted 2007-11-22
I am from Canada. I must ask why Moroccan banks do not have websites like foreign banks do? Why is Morocco so far behind in the domain of communication? We want more clairification about these new products (loans without interest), but, unfortunately, we do not know how to contact you. We can get in contact with all foreign banks, even pay bills and request loans, everything via the Internet. But, Moroccan banks are so very very far behind. Wake up!
S a Posted 2007-12-05
Hi, I am very glad to learn of this news. I need to get one of these halal loans. We all know that usury is one of the causes of depreciation in the value of a currency and the inflation of prices. That is what is happening to today’s dirham; it is not worth one of yesterday’s. These products are competitive and are not like the usury loans we could not give a care less about. What is important is that they are halal. I would like to have more details on these products and the point of view of experts in this field. (Ulema)
Bourass Hamdoun Posted 2008-01-24
I am a forty-nine-year-old Moroccan coming from Norway. At the current time, I am living in Spain. I would like to open an account in an Islamic bank. Best regards, Hamdoun
Anonymous Posted 2008-02-02
Finally, the authorities are waking up and seeing that our country’s religion is Islam. I cannot wait for these products to launch so that I can have my country profit from my money.
Hiba Posted 2008-02-03
Dear all, Could you pls give me names of Islamic banks in morocco and particularly in Casablanca. Thanks to all
radouane laalej Posted 2008-02-05
I have been waiting for this fora a long time thank you
د.ثروت الحلو Posted 2008-02-10
Salam alaikoum. I hope that you will provide me with the names of banks which offer Islamic loans so that I can implement my own project which I want to do in Morocco.
AMINE Posted 2008-02-20
It first needs to be asked, what is the idea behind the so-called “Islamic Bank”, that so many experienced bankers have judged deceitful? In his book, “Islamic Banking: A $300-Billion Deception”, Mr. Saleem said, “Islamic banks are not practicing what they preach: they are charging all interests, but disguising them as Islamic habits. As a consequence, they are engaging in deceitful and dishonest banking practices.”
joubeir Posted 2008-02-22
IT S GREAT NEWS FOR MANY MOROCCAN ABROAD AND INSIDE,KEEP UP THE GOOD WORK GOOD LUCK.
youness Posted 2008-02-24
Honestly, we were waiting for this Islamic initiative so that many people can benefit from it. I was personally longing for it. I hope that you provide me with the names of banks that offer Islamic loans so that I can set up my personal project in Morocco.
محمد الزبيري Posted 2008-04-20
I want to know Morocco's currency is.
mounir Posted 2008-04-22
Sorry guys but there is no such thing as Islamic banking, its all the same crap, morocco just isnt insulting us by putting Islamic in front of its banking name. Like the guy said before its just a trick, replacing words so that we sleep better at night. There has to be a better way seriously, just dont know how.
Anonymous Posted 2008-07-04
Hi, I did research on what the Ulema said about these so-called “halal” loans. According to the fatwa of Albani, Utamine, this is crookery in disguise.
errazqi Posted 2008-07-31
I don'€™t think that any of the Moroccan banks will make any transactions according to the Islamic Sharia. I agree with the brothers that it is just an interest bluff like gambling or betting which we see in the programmes of satellite channels which offer thousands while it gets millions from the participation via phone calls and SMSs.
أبو كوثر Posted 2008-10-12
In the name of God the most gracious the most merciful. I would like to thank you firstly for this great efforts which helps us identify these Islamic products. We ask you for more explanations about the payment method as well as instalments method with profit. Thank you.
RIZKI AZZIANI Posted 2008-10-16
Hello my friends- I would indeed like to get a loan to build a house. Is there an Islamic banking product that will finance this?
dija Posted 2008-11-01
Salam- I am doing my final dissertation on alternative banking products in Morocco. Please, I would like to have more information on this subject.
البيطار عبد الطيف Posted 2008-11-15
Please provide me with names of banks which grant Islamic loans so that I can implement my private project which I want to set up in Morocco.
إلياس Posted 2008-12-24
Please my brother guide us to the fatwa of Al Albani and Al Othaimine which you mentioned. May God reward you with good.
younes Posted 2008-12-27
God is the greatest.
khldooon Posted 2009-01-01
Say goodbye usury.
حفيظة Posted 2009-01-06
I am a businesswoman but I don’t have an employment certificate. Can I get the help of the Islamic bank for a house loan? If the answer is yes, how is that possible? Thank you.
علي Posted 2009-01-24
Has work of Islamic banks really begun in Morocco?
mohammed Posted 2009-01-25
Yes, there is a bank. It is “Al Wafaa”.
احمد عبداالله Posted 2009-02-16
I am from Egypt. I am twenty. I support this as long as it respects the Islamic sharia and away from traditional interest banks. I am deeply sad because we are Muslims and there are interest banks in our countries. By God I am very sorry for this.
ALI Posted 2009-03-01
I have gone to all Moroccan banks looking for such a loan, however, I found that these loans have such high interest rates that no one dares to use them. This is because the interest rate lobby wants to discourage people from Islamic loans before Islamic banks enter Morocco and which are expected to attract the biggest number of citizens.
nour al islam Posted 2009-04-02
Salam alaikoum- At this time the Americans and Europeans are finding their solution in what they call “0% Interest”. At this time they are encouraging Islamic finance in none other than England, where - no matter name they give to them - there are five Islamic banks. Their solution to the current crisis is to catalyze the economy. Mourabaha is a form of trade and transaction that is profitable to both banks and businessmen. Moucharaka could help a lot in the creation of small and medium enterprises (SMEs) and aid young entrepreneurs. SMEs are one solution to the current crisis. People and lobbies impeding the establishment of Islamic banks here are wrong to do so and will regret it. –Salam alaikoum
mohamed 1976 Posted 2009-04-18
This is an ideal change in the monetary policy in Morocco. I share this huge change with my Moroccan brothers.
فاطمة Posted 2009-05-14
Salam alikum. Has this initiative entered into effect? I am getting married and want a legitimate loan with interests but found no one to help me in order to buy a house. In which bank is this initiative? Is it available in all cities? Please reply. Thank you.
هشام Posted 2009-08-08
Please provide me names of banks which grant Islamic loans.
NAOUAL Posted 2009-08-26
Salam. Please, I want a loan without interest to buy a house. Is there a solution? If so what are the conditions to get it?
Hayat Posted 2009-09-04
Salam- I would really like to have some more information about Islamic loans and the various offers that are out there.
خيرالله Posted 2009-09-11
In the name of God the Beneficent, the Merciful. In reality, the topic of loans without interest in Morocco is a sensitive subject. Therefore, we must take care of it before taking any law because you will certainly fall in usury. I am also confused. Those who deal in such transactions and say they are Islamic are famous traditional banks. I personally don't know of any Islamic Moroccan banks.
سعيد الدفري Posted 2009-09-29
In the name of God the beneficent the Merciful “Those who swallow down usury cannot arise except as one whom Shaitan has prostrated by (his) touch does rise. That is because they say, trading is only like usury; and Allah has allowed trading and forbidden usury. To whomsoever then the admonition has come from his Lord, then he desists, he shall have what has already passed, and his affair is in the hands of Allah; and whoever returns (to it)-- these are the inmates of the fire; they shall abide in it”. (Al Baqara: 275). "O you who believe! do not devour usury, making it double and redouble, and be careful of (your duty to) Allah, that you may be successful" (Al Imrane: 130).
كوكو Posted 14 days ago
In the name of God the Beneficent the Merciful. I want the address of an Islamic investment bank in the eastern region of Morocco. Thank you.
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