Despite Growth, Islamic Finance in Morocco Still Faces Big Challenges

While hailing the considerable growth witnessed of late in Morocco’s “nascent” Islamic finance industry, a new report by Fitch Ratings has concluded that the sector's “growth potential” could face some major challenges in the future. 

Islamic mortgages fall under the umbrella term of Islamic finance, a sector that has shown substantial growth in recent years. February 2022 alone marked a 37% year-on-year growth within the bracket of Islamic finance for housing. Islamic mortgages differ from atypical mortgages as they do not bear any financial interest. 

Fitch Ratings’ report identified Islamic mortgage growth as a factor that could potentially “accelerate the industry’s trajectory,” noting that the Islamic finance industry was worth $2.7 billion at the end of 2022.