Rabat: Morocco’s Central Bank Governor, Abdellatif Jouahri, emphasized the need for enhanced international cooperation in the field of Islamic finance, advocating for alignment with global standards while acknowledging each country’s unique characteristics. Jouahri made these remarks at the 23rd Stability Forum on Islamic Financial, an event organized by Bank Al-Maghrib (BAM) and the Islamic Financial Services Board (IFSB). The forum, themed “Reinforcing Stability: Strengthening the Resilience of the Islamic Financial Sector and Addressing Structural Vulnerabilities,” highlighted the importance of cooperation to tackle existing challenges in Islamic finance.

According to Agence Marocaine De Presse, Jouahri identified four primary challenges facing the sector: Shariah compliance, liquidity management, sustainable finance, and digitization risks. He noted that Islamic finance’s integration into the global financial system is progressing, with a principle-based approach enabling regulators to tailor standards to each country’s needs.

Jouahri cited Morocco as a prime example of effective Islamic finance integration, mentioning the centralization of fatwa issuance backed by the Supreme Council of Ulema. This centralization ensures that financial products comply with Sharia principles, thereby bolstering public trust. He mentioned that participatory finance now accounts for 2% of Morocco’s banking assets, a development supported by BAM’s collaboration with stakeholders since 2015 to build a strong regulatory, institutional, and tax framework.

Jouahri also praised the IFSB’s achievements since its inception in 2003, noting its ongoing governance reform aimed at addressing new challenges, enhancing member institutions’ capacity, and providing technical assistance, as seen with BAM. The IFSB’s annual meetings and side events, held from July 1-3, brought together central banks, regulatory authorities, and industry stakeholders from its global members.