Taroudant, Morocco - The Moroccan Islamist-led government on Thursday adopted a bill regulating Islamic banks and sukuk issues after months of delays.
Under reference number 103-12, the preliminary draft relating to credit institutions will, if approved by parliament, pave the way for “establishing full-fledged Islamic banks in Morocco,” according to Reuters.
The draft defines Islamic finance, officially called Participatory Finance, the types of products it can deal with, and the powers given to the Wali of Bank Al Maghrib (the governor of the Bank of Morocco) and the Supreme Council of Ulemas in the matter.
“We have adopted that law today and we are sending it to the parliament,” communication minister and government spokesman Mustapha Khalfi told Reuters by telephone.
A national committee composed of Islamic scholars and financial experts will be created in order to ensure the control of the legitimacy of these transactions, and whether instruments and activities of the institution complied with sharia principles.
Abdul Latif Jaouahiri, the governor of the Bank of Morocco, said earlier that the Bank had received two requests from foreign entities to invest in this area, and that these requests are being reviewed before starting any potential negotiations with the concerned stakeholders.
The Islamic bank, like other banks, carry out all banking and financial transactions, including trade and investment and craft projects that contribute to the economic and social development in conformity with Islamic law and sophisticated modern techniques.
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