Growth of Participatory Financing in Morocco

As of June 2026, Morocco has witnessed a significant surge in participatory financing aimed at housing, with the total amount reaching 31.5 billion dirhams. This represents a year-over-year increase of 16.7 percent from 27 billion dirhams recorded the previous year. The Central Bank of Morocco (Bank Al-Maghrib) reported that the overall banking activity in the country remains robust, indicating a healthy financial climate characterized by rising loans and deposits among banks.

According to the Bank Al-Maghrib's dashboard detailing loans and deposits, the total amount of bank loans had climbed to 1.301.8 billion dirhams by the end of June 2026, marking a 10.9 percent increase compared to the same period in the previous year. The rise in loans can be attributed to an increase in financing for non-financial agents, which saw a growth rate of 9.9 percent, while financial agents experienced a more substantial increase of 15.2 percent. Specifically, loans extended to private non-financial enterprises rose by 8.2 percent, driven by a notable 15.8 percent increase in equipment loans, 9.4 percent in real estate financing, and 6.7 percent in treasury facilities.

Household loans also experienced growth, increasing by 3.4 percent overall. Within this category, housing loans saw a 2.7 percent rise, while consumer loans increased by 4.6 percent. Furthermore, the participatory financing model, especially in the form of real estate Murabaha, continues to gain traction among the population, reflecting a growing acceptance of Islamic finance principles in the housing sector.

Bank Al-Maghrib also noted that during the first quarter of 2026, banks reported easing credit granting criteria for both housing and consumer loans. However, there was a slight decline in demand for housing loans, while demand for consumer loans remained stable. This mixed trend highlights the ongoing evolution in Morocco's financial landscape, where participatory financing is becoming an increasingly viable option for housing solutions.

As reported by pjd.ma.