An insurance Bill introducing Takaful in Morocco has been submitted to the General Secretariat of the government, as the Muslim country moves closer to finalizing legislation for Islamic insurance. If the legislative process moves smoothly, Takaful is expected to be launched in the country by the end of this year. The Ministry of Finance and Economy submitted the Bill last week authorizing the creation of Islamic insurance companies. Prime Minister Abdelilah Benkirane, who wants to reform the financial sector, will soon sign the Bill, reported the Maghreb Emergent news website. He has managed to get the green light from the Shariah Committee overseeing finance. Minister of Finance and Economy, Mr Mohamed Bousaid, said: ”Islamic insurance occupies an important place in the global financial system … Morocco wants to develop this niche to meet the needs of all segments.”

Mr Othman El Alami, an official in the Ministry’s Department of Insurance and Social Welfare, told the local media that the Bill provides for takaful operators to be set up as separate companies rather than as windows of conventional insurers. This is to satisfy the group of Moroccans who adhere strictly to Islamic concepts. “As some of them have said, ‘We do not buy milk in a bar’,” he cited.

Mr El Alami said that the proportion of Moroccans who practise Islam strictly is significant. He said: “We thought it would be better to have offerings dedicated to this population which has not been served by conventional insurance.” Islam is the official religion of Morocco where 99.9% of the population are Muslims.