Morocco is preparing to keep pace with the growth of the participatory financial sector through “ongoing preparations for cooperation between the Central Bank of Morocco with the Islamic Development Bank and the Islamic Financial Services Council, to study the obstacles facing Islamic financing in Morocco, and then exceeded them,” according to Abdel Latif Al -Jawahiri during a press conference attached to the opening works of the 23rd Forum for Islamic Financial Stability, which was received by Rabat, at the beginning of July. A joint organization between Bank Al -Maghrib and the Islamic Financial Services Council.
Al -Jawahiri, interacting with the questions of the media, said that “participatory financing is proceeding in an accelerated growth and an increasing rise, although it still represents 2 percent of the national bank fabric and its origins,” pointing to “promising capabilities that store it in the direction of providing participatory instruments from the state and the private sector … as well as the banking deposit market and not only to be satisfied with loans.”
Bank of Bank Al -Maghrib added in this regard: “Our expectations about the development and growth of participatory banks in Morocco were more than what happened on the ground,” noting that “this does not deny the numbers the slow improvement in this sector; which highlights the importance and end of the study that we will do in this field will appear obstacles to it.”
The Moroccan official described “the experience of participatory banks in the Kingdom as” a young experience and in its early stages “; however, he predicted it with a” promising growth future (…) as the participatory banking system began to remedy the delay that took place in the Islamic/participatory finance sector, especially after the year 2020 and the repercussions of Corona at the time. “
Al -Jawahiri recovered the “beginnings” of the participatory system in Morocco, adding that it is “gradually evolution since 2017 .. We closely follow up with a special committee”, as “Morocco entered the field of participatory banks since its approval in the banking law for the year 2014 and began granting licenses in 2017”.
In response to a question for the electronic newspaper Hespress, during the same symposium, about “the extent to which the Moroccan participatory banks support for projects and dynamics of the 2030 FIFA World Cup investments”, the prominent financial official said: “Yes, of course, certain; Participants can mobilize funds for development projects, rehabilitate and construct the infrastructure that Morocco knows in preparation for the organization of the 2030 World Cup, indicating that “the only test and problem that these banks may face is the scarcity of financial liquidity.”
Al -Jawahiri continued, stressing that “the enterprises that operate within the framework of the infrastructure projects to organize Morocco for the 2030 World Cup, in front of them are freedom of choice, whether in accessing participatory banks or regular banks.” What qualifies it to ensure the success of the ongoing preparations and the effective contribution to the investment dynamics.
The human element
In another topic related to “developments in a draft law for framing encrypted assets and digital currencies, the governor of Bank Al -Maghrib answered that“ the bank has finished preparing it and referring it to the Ministry of Finance to accelerate its studies and express the government’s observations ”, benefiting that“ the central bank is in the process of preparing the details of the applied texts that will be accompanied by the path of its download. ”
In a sign, Al -Jawahiri stressed that “the problem is not in legalizing encrypted assets in Morocco and keeping pace with the ongoing international changes in this regard … Rather, the bank faces basic challenges represented in the availability of the human element qualified in the field of modern technologies, and also specialized.”
He added in a tone of alert: “There is a gap that expands in this field due to the lack of engineers, where 20 engineers left the central bank in the last two years, and may attract them other countries and seduce them with privileges (…)”, stressing “a decisive role that the human element that qualifies in the application of new technologies and facing financial risks and the risks of digitization associated with them.”
He also pointed out, in his speech, that “the global geo-political conflict between countries and major powers affects progress in the field of digital currencies, and each time shows emerging developments and risks that require caution and tracking (…).”
Technological development
During the press conference, Ghiath Shangig, Secretary -General of the Islamic Financial Services Council, who announced that “the ongoing change in the global financial system carries with it enormous opportunities to develop participatory financial tools”, especially since Islamic financial systems “know the joining of new countries that are not necessarily with a Muslim population.”
The Secretary -General of the Islamic Financial Services Council (known as IFSB) stressed that “the organization works within the jurisdiction of the global monetary system and deals with various institutions, including the International Monetary Fund (for example),” hinting that there are “opportunities for change in the traditional financial system due to its complexities, while Islamic financing is considered closer to human nature and less complex.”
“There is a great opportunity to improve Islamic financing and give it a strong boost using modern technologies and rapid digitization,” Ghiath Shangig stressed, explaining to the media that “the financing tools in the traditional system are developing to resemble some aspects of Islamic financing.”
The same spokesman added: “The impact of these changes on the global financial system is currently unclear. The political conflict will play a role in determining the final form of the financial system.”
While the Secretary -General of the Islamic Financial Services Council pointed out that “the change in Islamic banking is a great opportunity, Islamic financing tools may provide preference and advantage in the current market conditions,” according to his estimation.
#Morocco #seeks #overcome #obstacles #Islamic #financing #cooperation #international #partners