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2013). Access to finance at competitive rates is a common issue for SMEs. The development of
Shariah funds, especially PE and VC funds, will provide a boost to the SME sector by injecting
both capital and know-how.
Supply Side
New financial instruments in the making: At the level of the capital markets, several
financial instruments are under way, including collective undertakings for real-estate
investment (REIT/OPCI), sukuk, crowdfunding, green finance (including green bonds, which
have been issued by three issuers). Additional products could be included in the list under
consideration by the capital market authority (AMMC), such as SRI-Shariah funds, SRI sukuk,
listing of sukuk on the Casablanca Stock Exchange, listing of Shariah-compliant securities, and
an Islamic stock market index. These products could be considered under the country’s
Financial Sector Roadmap for Sustainable Finance and Development. The AMMC is taking
several measures to promote the integration of sustainable dimensions into the governance
model of issuers and asset managers and within their decision-making processes. The
development of Shariah funds fall within the scope of these initiatives, notably the
development of sustainable financial instruments and products, the promotion of financial
inclusion, market transparency and discipline, among others.
Availability of quality Islamic assets and opportunities to promote new funds: Morocco
has several levels of quality for assets that underpin the development of the Islamic fund
management industry, i.e. renewable energy, real estate, logistics, infrastructure,
industry/agriculture, waqf. The scope for developing Shariah funds can thus be extended to
include different types of funds, including:
 Pension funds
 Waqf funds
 Shariah-compliant SRI funds
 Technology and science funds
 Infrastructure funds
4.4.5 Country-Specific Recommendations
Morocco can be categorised as a market with a low level of development for conventional and
Islamic funds. Based on the principal factors underpinning the development of the Islamic
finance market as well as the critical success factors outlined in the stage-of-development
matrix (outlined earlier), summarises the country’s current position in the
development of Islamic funds.