Rabat – Launched back in June of this year, the joint Qatari-Moroccan private Islamic insurance venture Takaful announced that it gained the approval of Morocco’s insurance watchdog, ACAPS to begin operations.
In a joint statement, Qatar International Islamic Bank (QIIB), Qatar Islamic Insurance Company (QIIC), Atlanta Insurance Company, and Morocco’s banking group CIH explained that the establishment agreement of the Islamic insurance venture Takaful Insurance was signed in Casablanca in the presence of QIIB chairman Sheikh Khalid bin Thani bin Abdullah al-Thani, and CIH board member Mohamed Hassan Bensaleh.
In early June, the parties officially announced the signing of a memorandum of understanding (MoU) aiming to establish a takaful insurance company in Morocco under the name of Takaful Insurance Company.
Takaful is a type of Islamic insurance policy wherein members contribute to a large pool of money dedicated to help each other in cases of loss or need.
The company’s shares will be distributed upon its establishment. Atlanta Company would hold 60% of the capital, CIH Bank 20%, QIIB 10%, and Islamic Insurance Company 10%.
The statement specifies that the Takaful Insurance Company is expected to provide takaful insurance services of all types in the North African country in accordance with the rules and regulations governing insurance activities in Morocco.
Through the Takaful Insurance Company, QIIB is further expanding its footprint in the Moroccan market. The bank currently holds 40% of the capital of the Moroccan Umnia Bank, which currently has 48 branches across Morocco.
Islamic banking, also known as participatory banking, is a relatively new phenomenon in Morocco. After debuting in 2018, the sector has been recording the highest annual growth across the board.
Islamic banking provides an alternative to conventional banking for a large untapped customer base who refrain from using conventional banks based on their religious beliefs.
According to a recent study from the World Bank, 19% of Morocco’s unbanked population cite religious beliefs as the main reason behind opting out of banking services.
Therefore, Islamic banking could potentially address the rising rates of those who are underbanked and unbanked in the country.
However, as of 2022, the sector remains in its infancy, and it is left to be seen whether new Islamic banking operators would appeal to Morocco’s underbanked population or compete with conventional banks for the existing customer base.
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