Islamic Fund Management
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One of the first REIT market players, AjarInvest, is getting ready to launch its operations once
the regulatory framework is finalised discusses the case of AjarInvest.
Box 4.7: The Case of AjarInvest – A REIT in the Making
AjarInvest is set to become one of the first companies in Morocco to be authorised by the regulator
to launch a REIT management company under the legal structure of OPCI in Morocco. AjarInvest is
a subsidiary of CDG and CIH Bank, and has been leveraging the experience of the group in fund
management and real-estate investments to venture into structuring REITs. Its management has
been one of the contributors to the regulators’ efforts in developing the legislation of REITs in
Morocco.
Source: AjarInvest
4.4.4 Key Factors Underpinning the Development of Morocco’s Islamic Fund
Management Industry
Morocco seeks to establish a comprehensive Shariah-compliant financial system, with each
segment of the Islamic finance industry integrated within the sectorial strategy of the
respective components of the financial system, i.e. Islamic banking within the banking sector,
takaful within the insurance sector, and the ICM within the capital markets. The authorities
have thus put in place the necessary building blocks for the proper functioning of the industry,
as explained below. The Islamic fund management industry, when established in the Moroccan
market, would thus operate within the same infrastructural set-up that oversees the entire
Islamic finance industry.
Legal and Regulatory Framework
Morocco has adapted its legal and regulatory framework to meet the requirements of Islamic
financial institutions. Instead of issuing dedicated laws, it has amended its existing laws to
provide a suitable legal and regulatory structure for the development of Islamic finance, for
example:
 Participative banks and windows: Banking Law no. 103-12
 Takaful operators: Law no. 59-13
 Sukuk issuances: Law no. 5-14
 Shariah governance: Dahir no. 1-15-02
 Tax law: General tax code CGI
The aim is to ensure neutrality between Islamic and conventional financial institutions in
terms of requirements.
Regulatory texts are mainly inspired by Maliki laws in Morocco. However, they should be
drafted with an openness to other schools of thought and inspired by banking practices (Jouti,
2017). The market is currently awaiting these regulations (e.g. technical notes, circulars) for
the launch of takaful operations and a legal framework for the Islamic fund management
market.