While there has been some progress over the past decade, the contribution of Islamic finance to North African economies remains small due to a lack of a favorable regulatory environment in the region, S&P Global Ratings said in a new report titled “Islamic Finance is still finding its feet in North Africa”. S&P Global Ratings said that while sukuk issuance could help mobilize external resources, it is neither a panacea nor free money. Islamic finance is not only about sukuk issuance, it also includes banking and insurance activities. While it has become slightly more prevalent over the past five years, the contribution of Islamic banks to the overall banking system in North Africa remains limited. In some countries, the limited refinancing sources for Islamic banks has also stymied their growth, according to the ratings agency.

Source: The North Africa Journal May 17, 2021 05:15 UTC