Growth and development of islamic banking in Morocco as factors of enhancing of the banking sector of the country

Abstract

Nowadays, the political situation in Morocco looks stable enough in relation to other countries of North Africa. Not affected, unlike its neighbours, by the events of Arab spring and armed conflicts, the country is getting more and more attractive for investors. The consequences of the financial crisis in 2008 and social-economic disturbances of the countries - Morocco's neighbours gave some incentive to the start of developing Islamic financial institutions in the country. According to experts, Morocco is the most cutting-edge country in North Africa at the development of Islamic finances in the region. Despite the fact that North African countries consider the works of Islamic banking very cautiously, it is to be noted that the financial markets of these countries need liquidity and attracting foreign capital. These problems can be solved by establishing relevant financial institutions. Banks and insurance organizations working under the principles of Sharia began operating after passing relevant regulations in the Banking Act in 2017, and setting up Sharia Board in the Central Bank of Morocco whose functions are oversight and regulation of the activity of Islamic financial institutions in the part of their observing of the Sharia law. From the point of view of its geopolitical location, Morocco is a perspective state for the development of Islamic banking having a sufficient number of Moroccan banks operating in Africa andEurope which are able to attract quality finance not included in speculative schemes.