Morocco’s central bank governor has announced that the country will resume issuing sovereign Islamic bonds, known as sukuk, signaling a renewed emphasis on Islamic finance as a key funding strategy. The plan marks the second sovereign sukuk issuance since Morocco’s successful debut in 2018 and fits within a broader strategy to diversify national financing sources.
Governor Abdellatif Jouahri disclosed that the central bank and the Ministry of Finance are currently finalizing technical preparations for the new issuance. While the exact timing, amount, and structure of the bonds are yet to be confirmed, officials say that steps are underway and regulatory approvals are progressing smoothly.
Morocco’s return to the sukuk market comes after a multi-year hiatus, during which regulatory, Sharia-compliance, and market conditions were aligned to facilitate another Islamic bond issuance. The authorities are aiming to appeal to both regional and global Shariah-compliant investors as part of a push to expand the country’s financial base and tap into alternative capital pools.
First launched in 2018, Morocco’s maiden sovereign sukuk raised around 1 billion dirhams and was oversubscribed, setting a precedent for Islamic financing in North Africa. The anticipated second issuance is expected to build on that success while supporting the country’s fiscal funding needs without resorting solely to conventional debt.
Officials suggest that the renewed sukuk issuance will likely be denominated in local currency and structured to meet both investor returns and strict religious financing criteria. With global sukuk markets continuing to grow, Morocco aims to leverage its improved legal framework and strong central bank backing to attract new investors, both domestic and international.
As Morocco prepares to relaunch this key financial instrument, observers anticipate the move will boost confidence in the kingdom’s Islamic finance capabilities and enhance the country’s reputation as a regional pioneer in diversifying sovereign borrowing channels.
