Clifford Chance

The development of Islamic Finance in Morocco and the wider African continent

31 January 2022

Whilst there is a strong appetite across the African continent for Islamic Finance, the pace of development varies across such African economies with only certain jurisdictions having developed the necessary legal and regulatory reforms to move the industry forward.

For example, the West African Monetary Union ("WAMU") announced in January 2021 that it is preparing a new regulatory framework destined to facilitate Islamic Finance. In this regard, given the high degree of similarity between the current laws in the WAMU and the previous securitisation law in Morocco, Morocco’s reformed securitisation law could serve as a useful benchmark for such jurisdictions to take inspiration from.

In this briefing, we focus on how the Moroccan securitisation law reform and the Kingdom’s first sovereign sukuk can serve as a legal benchmark for other North and West African jurisdictions. We also look at some of the continued opportunities for the development of the Islamic Finance industry in Africa.

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