Islamic Finance in Morocco – Sizing the retail market’
10th July 2012 – Key findings published last week from Morocco’s first independent market study, entitled ‘Islamic Finance in Morocco – Sizing the retail market’ points to a very strong interest from local consumers in Islamic Finance products and services. Over 80% of the Kingdom’s consumers indicated their likelihood to take up a Sharia compliant financing (loan) upon launch.
‘Islamic Finance in Morocco – sizing the retail market’, was independently commissioned and published by IFAAS (Islamic Finance Advisory & Assurance Services) (www.ifaas.com), the international Islamic Finance consultancy. The report sets out the market opportunities for financial institutions interested in developing an offering for the Moroccan consumer market. It provides a full analysis of the consumer demand for Islamic retail banking, finance and Islamic insurance “Takaful” and measures the likely consumer response and take-up to such products.
The report analyses consumers’ current consumption of financial products and services and their attitudes towards conventional, interest-based retail finance. It then gauges their appetite for Sharia compliant retail financial products. This includes their likelihood to take up Islamic loans and savings accounts, their price elasticity towards these products and their likely speed of response to the launch of such products. The subjects of Shariah compliance, distribution channels and preferred providers are also covered in this extensive report.
The report summarises its findings with several conclusions including:
The level of interest in Islamic financial products and services is very high, at over 90%, within the general public in Morocco. The majority of consumers are dissatisfied with interest-based banking but, having no Halal options, find they are compelled to engage in conventional finance.
Providing the technical Shariah compliance aspects are managed properly, Islamic Finance poses a significant opportunity for financial institutions in the North African Kingdom
Following the introduction of an Islamic finance system, the Moroccan retail finance market will see a significant growth in the penetration of banking and finance products amongst consumers. Providers will see a marked shift away from conventional, interest-based, products and the current low banking penetration will change to a high of consumption of assets and liability products.
Commenting on the findings, Farrukh Raza, managing director, IFAAS said, “‘Islamic Finance in Morocco – Sizing the retail market’ is the first specialised independent report providing an insight in to the Moroccan consumer’s appetite for Islamic Finance products and services. The findings from the report reveal that consumer interest in Islamic Finance has the potential to be much bigger than currently expected. The challenge for decision makers is to ensure that their early critical decisions are based on accurate market information to ensure long term success. IFAAS’ report and findings have proved invaluable for many institutions considering their next move. ”
Mr Raza also revealed, “Institutions are considering key questions such as whether to focus on customer retention or acquisition, which products to launch first, how to price their new products and how to distribute them. ‘Islamic Finance in Morocco – Sizing the retail market’ contains these and other findings and offer a wealth of information that will help shape critical business decisions. It is helping businesses to plan their resources, design their communications and understand what is required to achieve a strong market share in this dynamic market.”
IFAAS commissioned a highly reputed local research firm to independently undertake the quantitative survey. Random, face-to-face, street interviews were conducted on a weighted sample size of over 800 individuals, reflecting a true picture of the Moroccan consumer market. The target sample was composed of men and women aged 18 to 55 years, from a variety of socio-economic categories, living in urban and rural areas and consisted of both banked and unbanked groups of the population. In terms of geographical coverage, the study was conducted in towns and surrounding rural municipalities of Casablanca, Rabat, Marrakech, Agadir, Fez, Tangier and Oujda.
IFAAS has published several similar market reports analysing the consumer market for Islamic Finance including France in 2008 and Oman 2011, both considered by the industry to be ground breaking benchmarks. IFAAS has been at the forefront of the development and growth of the Islamic finance industry. Its founding members were instrumental in establishing a number of pioneering Shariah-compliant brands and launching innovative products across different sectors of the Islamic financial industry. Over the last few years IFAAS has developed into the first point of call for professional advisory on Islamic Finance projects in Europe, Africa, the Americas, Middle East, and beyond.
ABOUT IFAAS
IFAAS (Islamic Finance Advisory & Assurance Services) is an independent specialist consultancy with offices in Birmingham (UK), Paris (France) and Manama (Bahrain), providing professional advisory services to a wide range of financial institutions in the critical and complex area of Shariah Compliance.
Founded in 2007, IFAAS is at the forefront of the dynamic Islamic Finance industry and has rapidly grown into a leading provider of a wide range of specialist and bespoke Shariah advisory services to some of the leading financial institutions and key stakeholders in the UK, Europe, Middle East, Africa and the Americas.
IFAAS’ principle services include Shariah audit and compliance, advisory on product development and operational implementation, marketing strategy for Shariah compliant financial institutions, products and services, PR & communications, market research and feasibility studies and providing professional training in Islamic finance.
Full details can be found at the website www.ifaas.com
Contacts: Ghezala Sultan, Manager, PR & MediaTelephone: +44 (0) 7739 337 063
Email: ghezala.sultan@ifaas.com
© Press Release 2012
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