However, the lack of a favorable regulatory environment in the region is a major hurdle that has so far detracted from the success of Islamic finance there. In this context, some North African countries might face some restrictions in tapping the market, even if they decide to follow the Islamic route. Islamic finance is not only about sukuk issuance, it also includes banking and insurance activities. Key takeaways from S&P include:Despite some progress over the past decade, the contribution of Islamic finance to North African economies remains small. We believe that some North African countries will slowly turn to the sukuk market to help finance the post-COVID-19 economic recovery.

Source: The North Africa Journal May 23, 2021 06:56 UTC