Officially launched in 2017, Morocco's Islamic (participative) banks have experienced remarkable growth. By end-2025, outstanding participative financing reached 32.8 billion dirhams (+27.1% year on year according to Bank Al-Maghrib), of which around 29 billion for home financing, demonstrating sustained demand for financial products compliant with Islamic principles. This guide covers everything you need to know — particularly valuable for MRE (Moroccans Residing Abroad) and international visitors.
What is an Islamic Bank?
An Islamic bank (or participative bank) is a financial institution that conducts its activities in accordance with the principles of Islamic law (Sharia). The two fundamental prohibitions are:
- ✗ Riba (interest): any form of fixed or variable interest on loans is prohibited
- ✗ Gharar (excessive uncertainty): contracts must be clear and transparent
Instead of interest, Islamic banks use profit-and-loss sharing mechanisms, or cost-plus sale contracts where the margin is known in advance (mourabaha). Every product must be validated by the Supreme Council of Scholars (Conseil Supérieur des Oulémas — CSO), the relevant religious authority in Morocco.
Key Figure
By end-2025, Morocco's Islamic banks had close to 297,000 accounts and 210 branches across the country, according to Bank Al-Maghrib. Three "participative windows" of conventional banks operate alongside them (Dar Al Amane by Saham Bank, Arreda by Crédit du Maroc, Najmah by BMCI).
Morocco's Regulatory Framework
Morocco has established a robust, progressive legal framework for Islamic finance:
- ✓ Law No. 103-12 on credit institutions (2014): creates the legal framework for Islamic banks
- ✓ Supreme Council of Scholars (CSO): validates Sharia compliance of each product before it goes to market
- ✓ Bank Al-Maghrib: supervises and regulates Islamic banks on the same basis as conventional banks
- ✓ ACAPS: supervises takaful (Islamic insurance) companies
This dual level of supervision (banking + religious) gives Morocco's Islamic finance system high legitimacy and is recognised as one of the most rigorous in the Arab world.
The 5 Licensed Islamic Banks
1. Bank Assafa (Attijariwafa Bank subsidiary)
Among the first Islamic banks to open its counters (26 July 2017), Bank Assafa is the participative arm of Attijariwafa bank group, Morocco's banking leader. With 40 branches at end-2025 (Bank Al-Maghrib), it has the country's second-largest participative network behind Umnia Bank and, together with it, leads the sector by outstanding financing. Its speciality is real estate mourabaha, complemented by vehicle mourabaha and a participative bank card.
2. Umnia Bank (CIH + CDG + Qatar International)
Co-owned by CIH Bank, CDG (Caisse de Dépôt et de Gestion) and Qatar International Islamic Bank (QIIB), Umnia Bank brings deep international Islamic finance expertise. With 53 branches at end-2025 (the country's largest participative network according to Bank Al-Maghrib), it is notable for its savings products, in particular investment deposits (wakala bil istithmar) accessible from 5,000 MAD.
3. Bank Al Karam, formerly BTI Bank (Bank of Africa)
Launched in 2017 as BTI Bank (Bank Al Tamwil wal Inmaa) in partnership with Bahrain's Al Baraka group, the bank became a wholly owned subsidiary of Bank of Africa (formerly BMCE) after the buyout of Al Baraka's 43.65% stake was completed in July 2023, then was renamed Bank Al Karam and recapitalised (share capital raised to 520 million MAD). Bank Al Karam relies on the Bank of Africa group and on a partnership with Damane Cash, which gives it access to an extensive network of service points to distribute its mourabaha financing. It targets all segments (individuals, professionals, businesses) and offers real estate, vehicle, equipment, goods and commodity mourabaha. The Bank of Africa group's long-standing presence among Moroccans living abroad makes it a natural partner for MRE seeking participative financing. Website: bankalkaram.ma.
4. Al Akhdar Bank (Crédit Agricole du Maroc + ICD)
A participative subsidiary of Crédit Agricole du Maroc (51%) and the Islamic Corporation for the Development of the Private Sector (ICD, Islamic Development Bank group, 49%), Al Akhdar Bank is the participative bank most oriented towards the agricultural and rural world. Launched at the end of 2017 with four branches, it had 26 branches at end-2025, concentrated in agricultural areas and mid-sized cities, and offers products adapted to agricultural cycles (salam, istisna'a) in addition to real estate and vehicle mourabaha. The bank is gradually developing its urban offer but remains mainly focused on rural areas. Website: aab.creditagricole.ma.
5. Bank Al Yousr (Banque Centrale Populaire + Guidance Financial Group)
Co-owned by Banque Centrale Populaire (Banque Populaire group) and Guidance Financial Group, a specialist in Islamic residential finance, Bank Al Yousr started operations in 2017. With 28 branches at end-2025, it relies on the Banque Populaire group's network, the densest in the country (1,269 branches in 2025), to expand across the regions. It targets individuals, liberal professions and businesses, and offers wakala investment deposit accounts and a mobile app for day-to-day banking. Website: alyousr.ma.
Products and Services Available
| Product | Type | Purpose | Availability |
|---|---|---|---|
| Mourabaha (real estate) | Financing | Home purchase | All 5 banks |
| Mourabaha (vehicle) | Financing | Car purchase | All 5 banks |
| Mourabaha (equipment) | Financing | Consumer goods | All 5 banks |
| Ijara (Islamic leasing) | Lease | Professional equipment | Select banks |
| Salam | Financing | Agriculture | Al Akhdar Bank |
| Istisna'a | Financing | Construction | Select banks |
| Wakala bil istithmar | Savings | Interest-free savings account | All 5 banks |
Mourabaha Financing Explained
Mourabaha is the flagship product of Islamic banks, especially for real estate. It works fundamentally differently from a conventional loan:
- ✓ The bank purchases the asset from the seller (the bank temporarily becomes its owner)
- ✓ The bank sells the asset to the client at a marked-up price (purchase price + profit margin)
- ✓ The total price (capital + margin) is fixed from the outset and does not change (no variable rate)
- ✓ The client repays in monthly instalments over the agreed term
In practice, the total cost of a mourabaha is often comparable to a conventional loan over the same term, but the mechanism is different: you do not pay "interest" but a "profit margin" on a sale contract. Use our mourabaha simulator to compare.
Comparing the 5 Islamic Banks
| Bank | Network | App | Mourabaha Margin (RE) | Strength |
|---|---|---|---|---|
| Bank Assafa | 40 branches (end-2025) | Yes | On quote | Backed by Attijariwafa bank group |
| Umnia Bank | 53 branches (end-2025) | Yes | On quote | Largest network, QIIB expertise |
| Bank Al Karam (ex-BTI Bank) | n/a (+ Damane Cash points) | Yes | On quote | Bank of Africa group, MRE |
| Al Akhdar Bank | 26 branches (end-2025) | Partial | On quote | Agriculture, rural |
| Bank Al Yousr | 28 branches (end-2025) | Yes | On quote | Banque Populaire group |
* Number of branches: Bank Al-Maghrib report on banking network coverage 2025. Mourabaha margins are not published as a grid: they are set on a case-by-case quote according to profile, down payment and term, and generally fall between 4 and 5.5% per year in 2026, a level comparable to the average APR of a conventional mortgage (4.64% in H1 2026 according to Afdal).
Pros and Cons
Advantages
- ✓Compliant with Islamic principles (halal)
- ✓Fixed price known in advance (no variable rate)
- ✓Same legal protection as conventional banks
- ✓Ethical savings accounts (wakala)
Disadvantages
- ✗Branch network still limited
- ✗Less diverse product range
- ✗Total cost sometimes equivalent to conventional credit
- ✗Digital services still being developed
Wafir Tip
Compare the real cost of a mourabaha with a conventional loan using our mourabaha simulator. Our Islamic finance comparison tool lets you receive offers from all 5 Islamic banks through a single form.
How to Open an Account
The procedure is similar to conventional banks. You will need:
- ✓ Valid national ID (CIN) + copy
- ✓ Proof of address (utility bill)
- ✓ Proof of income (pay slip or accounting balance sheet)
- ✓ Initial deposit (varies by bank, generally 500–2,000 MAD)
Frequently Asked Questions
Can I hold accounts at both an Islamic bank and a conventional bank?
Yes, absolutely. There is no legal incompatibility. Many Moroccans use a conventional bank for their main current account and an Islamic bank for their property or car financing.
Is mourabaha truly "interest-free"?
Technically yes: you pay a profit margin on a sale, not interest on a loan. Economically, the cost can be comparable. The difference lies in the legal structure and Sharia compliance, not necessarily in the total amount paid.
Are deposits in Islamic banks protected?
Yes. Morocco's Islamic banks are subject to the same prudential rules as conventional banks. Deposits are covered by the Collective Deposit Guarantee Fund, up to 80,000 MAD.
Can a mourabaha be repaid early?
Yes, but conditions vary by bank. Unlike conventional credit where unearned interest may be waived, early repayment of a mourabaha may or may not entitle you to a reduction on the margin, depending on your contract. Check before signing.
Can MRE (Moroccans living abroad) access Islamic banking products?
Yes. The Bank of Africa (Bank Al Karam) and Attijariwafa bank (Bank Assafa) groups have dedicated MRE offers. Applications can often be initiated remotely (online or through the group's representative offices abroad) and finalised during a visit to Morocco.
Sources and References
- • Bank Al-Maghrib — Banking sector review 2025 (July 2026) and banking network coverage report 2025
- • Law No. 103-12 on credit institutions and equivalent bodies
- • General Tax Code 2026, Articles 99 and 133; Law 31-08 (consumer protection)
- • Supreme Council of Scholars — Sharia compliance opinions on Islamic products
- • Bank Assafa, Umnia Bank, Bank Al Karam, Al Akhdar Bank, Bank Al Yousr — Official websites
- • Economic press (Médias24, La Vie éco, FNH) — Bank of Africa's takeover of BTI Bank (2023), mourabaha outstanding financing
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