Bahrain’s Sharia-compliant lender Al Baraka Banking Group (ABG) and Moroccan Bank for Foreign Commerce of Africa (BMCE Bank) have launched a new Islamic, or participation, lender in the North African country to tap its nascent Islamic financial industry.
Bank Al Tamweel wa Inma (BTI) Bank, which opened its headquarters in Casablanca this week, plans to have 37 branches by 2022 in various cities of Morocco, ABG said in a statement on Nasdaq Dubai where its shares are listed.
“We are confident of the large opportunities for the success of our bank, given the Morocco’s significant and promising development potential in the field of participation banks,” said Adnan Yousif, chief executive of Al Baraka Banking Group. “Our studies have shown the promising opportunities in the area of investment and financing that await the services and products of BTI Bank.”
Morocco is the latest Arab country to allow the establishment of Islamic or participation banks after approving legislation for the new market, with the country’s central bank forming a central sharia board to oversee the sector.
The central bank approved in January five requests to open participation banks in the country; the first of these was Umnia Bank, a joint venture of Qatar International Islamic Bank (QIIB) and Moroccan lender Credit Immobilier et Hotelier, which started operations in May.
“Al Baraka Banking Group and the BMCE Bank have sought to establish a new model for participation banking in the Moroccan market, which is undergoing a gradual restructuring, coinciding with the development of Sharia banking regulations and this will ensure its success,” said Mohamed Maarouf, general manager of BTI Bank.
He said, “We aspire to quickly become a real and reliable banking partner for individuals, professionals and businesses, through a strong and equal relationship, a relationship that is based on strong values and mutual benefit to both parties. We also aspire to contribute to the creation of a financial system that rewards the effort and contributes to the development of society. “
BTI Bank is committed to developing tangible and practical solutions to the financing and investment needs of the Moroccan market and to offer a variety of products and services that meet the needs and requirement of all its customers. With this, individuals will benefit from a wide range of bank accounts and cards, as well as receive financial solutions for buying property, vehicles and equipment, apart from ofcourse, savings accounts and deposits. As for professionals, contractors, and businesses, they will benefit from carefully designed services to meet their needs with ease and flexibility, in addition to the bank’s expertise to arrange financing deals and structured deals. In addition, there are many services that customers will know of when they visit the BTI Bank headquarters, which was inaugurated yesterday at 161, Hassan II Mosque in Casablanca. This headquarter is the first of our plan to establish a wide network of 37 branches by 2022 in different cities of Morocco, supported by banking services and electronic channels.
BTI Bank aspires to create real partnerships with its clients, allowing the Bank and each of its clients to contribute to the development of society, and also to be a partner in achieving the success and aspirations of each one of them.
The Islamic finance industry has expanded in 2017, but lower oil prices and slower economic growth could force the sharia-compliant financial sector, a key area marked for growth by financial hubs in the Middle East and Asia, to lose momentum, S&P Global Ratings said in September.—Agencies