Latest news with #IslamicFinancialServicesBoard
Maroc
07-07-2025
- Business
- Maroc
Morocco Emerging as Regional Financial Hub
Morocco has positioned itself as a regional financial hub thanks to its strategic location between Africa and Europe, and plays a growing role in the development of Islamic finance, said Ghiath Shabsigh, Secretary-General of the Islamic Financial Services Board (IFSB). Speaking to MAP on the sidelines of the 23rd Islamic Financial Stability Forum, recently held in Rabat, Shabsigh praised the progress Morocco has made in regulatory frameworks and in translating Sharia principles into practical financial mechanisms. 'We are impressed by the regulatory strides and the structured dialogue on Sharia compliance,' he said. 'These efforts are part of a broader strategy led by Bank Al-Maghrib to foster a robust and sustainable financial system.' Islamic finance remains relatively new in Morocco but is expanding rapidly, he noted, supported by a legal framework covering banking, insurance, and capital markets. 'This regulation marks a major milestone in ensuring the safe and structured development of Islamic finance in the Kingdom,' Shabsigh added. He highlighted the country's potential to expand its presence in the global Islamic finance industry, pointing to initiatives such as the introduction of sovereign Sukuk as particularly significant. 'To build investor confidence and improve financing conditions, Morocco should focus on establishing a strong domestic Sukuk market in dirhams,' he said. 'This would pave the way for future issuances in foreign currencies.' Founded in 2003 and headquartered in Kuala Lumpur, the IFSB promotes the soundness and stability of the global Islamic financial services industry. MAP: 04 July 2025
Ya Biladi
05-07-2025
- Business
- Ya Biladi
Morocco emerges as key Islamic finance hub, says IFSB Secretary General
Morocco has established itself as a regional financial hub thanks to its strategic position between Africa and Europe, and it represents a key lever for the development of Islamic finance, said Ghiath Shabsigh, Secretary General of the Islamic Financial Services Board (IFSB). «We are impressed by the progress made, both in terms of regulatory frameworks and the facilitation of dialogue around Sharia-related issues, particularly how these principles are translated into practical operational mechanisms», Shabsigh told MAP in an interview on the sidelines of the 23rd Islamic Financial Stability Forum, recently held in Rabat. He emphasized that financial education is also a fundamental pillar for the growth of participatory finance, noting that these efforts are part of a strategic plan led by Bank Al-Maghrib to support the sector's expansion and build a robust, trustworthy, and sustainable financial system. While Islamic finance is relatively new in Morocco, Shabsigh observed that it is developing rapidly, as evidenced by key indicators—thanks in large part to the introduction of an adapted legal and regulatory framework. «This framework covers the banking, insurance, and capital markets sectors, marking a major step in supporting the growth of Islamic finance in the Kingdom», he explained, adding that such supervision ensures the safe, sound, and structured development of the sector. He also affirmed that, within this dynamic, Morocco has significant potential to strengthen its role in the Islamic finance industry, both regionally and internationally. «Morocco's initiatives to develop its capital markets are particularly noteworthy, especially the introduction of sovereign sukuk», he said. In this regard, he recommended building a strong foundation by establishing a dynamic and well-structured domestic sukuk market in dirhams. «Once this base is in place, issuing sukuk in foreign currencies becomes much more feasible, with better financing conditions and greater credibility among international investors», he concluded. Founded in 2003 and based in Kuala Lumpur, the IFSB is an international organization dedicated to promoting the soundness and stability of the Islamic financial services industry.
Ya Biladi
04-07-2025
- Business
- Ya Biladi
Morocco emerges as key Islamic finance hub, says IFSB Secretary General
Morocco has established itself as a regional financial hub thanks to its strategic position between Africa and Europe, and it represents a key lever for the development of Islamic finance, said Ghiath Shabsigh, Secretary General of the Islamic Financial Services Board (IFSB). «We are impressed by the progress made, both in terms of regulatory frameworks and the facilitation of dialogue around Sharia-related issues, particularly how these principles are translated into practical operational mechanisms», Shabsigh told MAP in an interview on the sidelines of the 23rd Islamic Financial Stability Forum, recently held in Rabat. He emphasized that financial education is also a fundamental pillar for the growth of participatory finance, noting that these efforts are part of a strategic plan led by Bank Al-Maghrib to support the sector's expansion and build a robust, trustworthy, and sustainable financial system. While Islamic finance is relatively new in Morocco, Shabsigh observed that it is developing rapidly, as evidenced by key indicators—thanks in large part to the introduction of an adapted legal and regulatory framework. «This framework covers the banking, insurance, and capital markets sectors, marking a major step in supporting the growth of Islamic finance in the Kingdom», he explained, adding that such supervision ensures the safe, sound, and structured development of the sector. He also affirmed that, within this dynamic, Morocco has significant potential to strengthen its role in the Islamic finance industry, both regionally and internationally. «Morocco's initiatives to develop its capital markets are particularly noteworthy, especially the introduction of sovereign sukuk», he said. In this regard, he recommended building a strong foundation by establishing a dynamic and well-structured domestic sukuk market in dirhams. «Once this base is in place, issuing sukuk in foreign currencies becomes much more feasible, with better financing conditions and greater credibility among international investors», he concluded. Founded in 2003 and based in Kuala Lumpur, the IFSB is an international organization dedicated to promoting the soundness and stability of the Islamic financial services industry.
TimesLIVE
04-07-2025
- Business
- TimesLIVE
Morocco to resume sukuk issuance, says central bank governor
Morocco is preparing its second Islamic bond, or sukuk, issuance since 2018, Central Bank governor Abdellatif Jouahri said on Thursday. The central bank and the ministry of finance are reviewing the technical aspects of the issuance, Jouahri told reporters without offering details on the amount of the bond. The Higher Council of Ulema, Morocco's top religious authority, will assess whether the issuance complies with sharia, he said on the sidelines of the annual meeting of the Islamic Financial Services Board (IFSB), a Malaysia-based international standards-setting body that promotes Islamic finance. Morocco's first sukuk issuance in 2018 raised 1-billion dirhams (R1.95bn) and matured in 2023. The country permitted Islamic finance, locally known as participatory banking, in 2017 as part of a wider plan to bolster financial market liquidity and attract foreign investment.
Fintech News ME
09-06-2025
- Business
- Fintech News ME
Global Islamic Finance Grows 14.9%, Reaches US$3.9 Trillion in Total Assets
In 2024, the global Islamic financial services industry continued to expand, growing by 14.9% year-on-year (YoY) to reach US$3.88 trillion in total assets, according to a new report by the Islamic Financial Services Board (IFSB). Growth was observed across all major sectors, including Islamic banking, Islamic insurance, and sukuk, which are Islamic financial certificates, similar to bonds in Western finance, highlighting deepening market participation, and expanding geographic reach, especially in non-traditional markets. In 2024, total assets in Islamic banking grew by 17.05%, marking a significant increase. The segment remained the cornerstone of the industry, accounting for 71.6% of Islamic finance assets. Although assets remained concentrated in mature, systemically significant jurisdictions, there were signs of growing momentum in emerging markets, particularly in Africa and Central Asia. The Islamic capital markets also delivered strong gains, driven primarily by a surge in sukuk issuance. Global sukuk issuances rose by a remarkable 25.6% to reach US$230.4 billion, making it the fastest-growing segment in 2024. Sukuk outstanding accounted for 23.3% of total Islamic finance assets, further reflecting favorable financing conditions and growing demand from both sovereign and corporate issuers Within the Islamic capital markets still, the Islamic funds industry also recorded growth, with total assets under management (AUM) increasing by 9.2% to US$193.6 billion. This increase was largely supported by robust performance in global equity markets, and marked a recovery following a decline in 2023. Islamic insurance, referred to as takaful, recorded asset growth of 16.9% and an increase of 15.4% in gross written contributions. Despite the significant increase, the industry continued to account for a small portion of the market, accounting for 1.4% of the global Islamic finance assets. The report highlights that while traditional markets continue to dominate Islamic finance, the industry is steadily expanding into non-traditional regions. As of the end-of-year 2024, the Gulf Cooperation Council (GCC) region accounted for the largest share of global Islamic finance assets at 53.1%. This was followed by East Asia and the Pacific (EAP) with 21.9%, driven by Malaysia and Indonesia's well-established Islamic finance ecosystems. The Middle East and North Africa (MENA, excluding GCC) contributed 16.9%, while other regions such as Europe and Central Asia (ECA), South Asia (SA), and Sub-Saharan Africa (SSA) held relatively small shares, but represent emerging growth frontiers. The rise of Islamic fintech In addition to traditional growth drivers, fintech is another trend that's driving structural shifts within the Islamic finance, offering new avenues for growth, efficiency, and financial inclusion. For example, digital financing platforms, including Islamic equity crowdfunding and peer-to-peer (P2P) lending, are emerging as important sources of financing, particularly for small and medium-sized enterprises (SMEs) and underserved market segments. Cryptocurrency-related activity is also growing in popularity within the Islamic finance landscape covering trading, investments, and tokenization. Examples include Rain and CoinMENA, two crypto exchanges licensed by the Central Bank of Bahrain which offer crypto trading and custodial services that meet Islamic standards. Artificial intelligence (AI) is also gaining ground in Islamic finance, with institutions increasingly deploying the technology. An IFSB survey as part of the report highlighted identity verification (67%), chatbots and virtual assistance (56%), and digital footprint analysis (44%), as the most common uses of AI among Islamic banks. Despite benefits including improved operational efficiencies, customer experiences, and new business opportunities, technology also introduces new risks. Digital financing platforms and crypto-related solutions, for example, require close attention to issues of investor protection, sufficient transparency and disclosure, and appropriate Sharia governance frameworks. Finally, the adoption of AI introduces a unique set of risks. One particular concern is the potential lack of interpretative judgment in AI systems when applied to complex Sharia rulings and jurisprudential differences across jurisdictions. Moreover, the opaque and evolving nature of AI models poses significant challenges for supervisory authorities and Sharia boards in exercising effective oversight and informed judgment. Islamic finance outlook The Islamic fintech sector was valued at US$138 billion 2024. It's projected to exceed US$300 billion by 2027. Standard Chartered projects that the global Islamic finance sector will grow by 36% between 2024 and 2028, with sukuk outstanding expected to surge 54.5% and Islamic banking by 30%. The bank, which surveyed 26 leaders from various Islamic banking providers in Q1 2025, revealed a positive outlook for the industry, with 87% of respondents holding an optimistic view of the sector over the next five to ten years. The majority expect significant growth and expansion, along with increased adoption and innovation of Islamic finance products and services. Economies including China, the Middle East, and Africa are expected to offer the greatest opportunities over the next two to three years.
