Mourabaha is the flagship product of Islamic finance in Morocco. Since the launch of participative banks in 2017, it has become a mainstream alternative to conventional mortgages — and the only Sharia-compliant home financing option available at scale. This guide covers how it works, compares the 5 participative banks, and includes a real cost simulation on an 800,000 MAD property.
How Does Mourabaha Work?
Unlike a conventional loan where a bank lends money and charges interest, in a Mourabaha transaction the bank purchases the property on your behalf and then sells it to you at a higher price — the difference being the bank's profit margin (ribh). You repay in fixed monthly instalments.
Conventional Mortgage
- Bank lends 800,000 MAD at 4.5%
- You repay principal + interest
- Rate can be fixed or variable
- Interest is a percentage of outstanding debt
Mourabaha
- Bank buys property for 800,000 MAD
- Bank sells it to you for 1,160,000 MAD
- Profit margin fixed at signing — never changes
- You repay in equal monthly instalments
The 5 Participative Banks Compared
| Bank | Parent Group | Margin (ribh) | Max. Term | Min. Down Payment | Branches (end-2025) |
|---|---|---|---|---|---|
| Bank Assafa | Attijariwafa bank | On quote | Up to 25 yrs | Per file | 40 |
| Umnia Bank | CIH Bank, CDG and QIIB (Qatar) | On quote | Up to 25 yrs | Per file | 53 |
| Bank Al Karam (ex-BTI Bank) | Bank of Africa (100% since 2023) | On quote | Up to 25 yrs | Per file | n/a (+ Damane Cash network) |
| Al Akhdar Bank | Crédit Agricole du Maroc (51%) and ICD (49%) | On quote | Up to 25 yrs | Per file | 26 |
| Bank Al Yousr | Banque Centrale Populaire and Guidance Financial Group | On quote | Up to 25 yrs | Per file | 28 |
* Participative banks do not publish a margin grid: the margin is set on a case-by-case quote according to profile, down payment, amount and term. In 2026 it most often falls between 4 and 5.5% per year, a level comparable to the average APR of a conventional mortgage (4.64% in H1 2026 according to Afdal). Usual maximum terms of 20 to 25 years depending on the bank. Number of branches: Bank Al-Maghrib, banking network coverage 2025.
Compatibility with Daam Sakane
Good news: the Daam Sakane government grant programme (2024-2028) is open to Mourabaha financing. The grant (70,000 or 100,000 MAD) is paid directly to the notary at the time of the property purchase, reducing the amount the bank needs to finance. This lowers your monthly instalments and may help you qualify for a smaller Mourabaha. Check with your participative bank how the grant is integrated into the mourabaha structure.
Required Documents
Personal Documents
- ✓ National ID card (CIN)
- ✓ Proof of résidence (<3 months)
- ✓ Marriage certificate or single status declaration
- ✓ Bank account details (RIB)
Financial Documents
- ✓ Last 3 pay slips (or 2 years' tax returns for self-employed)
- ✓ Last 6 months' bank statements
- ✓ Employment contract or civil service certificate
- ✓ Property deed or preliminary sale agreement (compromis)
Real Cost Simulation (800,000 MAD Property)
| Scenario | Margin | Term | Monthly Payment | Total Cost |
|---|---|---|---|---|
| Mourabaha 4.5% | 4.5% | 25 yrs | 4,360 MAD | 1,308,000 MAD |
| Mourabaha 5.0% | 5.0% | 25 yrs | 4,680 MAD | 1,404,000 MAD |
| Conventional 4.5% | 4.5% | 25 yrs | 4,360 MAD | ~1,308,000 MAD |
* Simulation with 10% down payment (80,000 MAD), loan/Mourabaha amount: 720,000 MAD. Use our mortgage simulator for personalised results.
Validation by the Supreme Council of Ulemas
All Mourabaha products offered by Moroccan participative banks must receive a fatwa (religious compliance opinion) from the Conseil Supérieur des Oulémas (CSO), Morocco's supreme religious authority. This ensures the product genuinely avoids riba (interest) and meets Sharia standards. The Bank Al-Maghrib also provides prudential supervision to ensure financial stability.
Mourabaha vs. Conventional Loan
| Criterion | Mourabaha | Conventional Mortgage |
|---|---|---|
| Religious compliance | Yes (CSO fatwa) | No |
| Rate predictability | Fixed at signing | Fixed or variable |
| Indicative rate / margin | ~4–5.5% (profit margin, on quote) | 4.64% (average APR, H1 2026, Afdal) |
| Early repayment | Possible, with conditions | Possible, indemnity capped at 2% of remaining capital (Law 31-08) |
| Daam Sakane compatible | Yes | Yes |
Frequently Asked Questions
Can non-Muslims use Mourabaha?
Yes. Moroccan law does not restrict Mourabaha to Muslims. The product is open to all Moroccan residents. Some non-Muslims choose it for the fixed-cost predictability it offers, regardless of religious motivation.
Is Mourabaha more expensive than a conventional mortgage?
There is no public margin grid: margins are negotiated case by case. In 2026 they most often fall between 4 and 5.5% per year, a level comparable to the average APR of a conventional mortgage (4.64% in H1 2026 according to Afdal). Depending on the margin you negotiate, the gap with a conventional loan can be reduced or even nil. The main extra cost lies in the notary fees for the second deed, since the General Tax Code aligns registration duties (4%, Article 133) and VAT on the margin (10%, Article 99) with those of a conventional loan.
Can MRE (Moroccan residents abroad) use Mourabaha?
Yes. All five participative banks accept applications from MRE. The process requires the same apostilled documents as a conventional MRE mortgage. Some banks (Umnia, Bank Assafa) have dedicated MRE advisors.
Sources and References
- 1. Bank Al-Maghrib — Banking sector review 2025 (participative financing outstanding 32.8 billion MAD) and banking network coverage 2025
- 2. Conseil Supérieur des Oulémas — Sharia compliance fatwas for participative finance products; Law 103-12
- 3. General Tax Code 2026 — Articles 99 and 133
- 4. Bank Assafa, Umnia Bank, Bank Al Karam, Al Akhdar Bank, Bank Al Yousr — Official websites
- 5. Ministry of Housing — Daam Sakane programme (2024-2028)
- 6. Afdal — Mortgage APR barometer H1 2026
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