Question 1

What is Murabaha financing?

Accepted Answer

Murabaha is an Islamic financing method where the bank purchases a property and resells it to the buyer at a disclosed profit margin. The total price is fixed at signing and paid in equal monthly installments. Unlike conventional interest, the profit is a one-time commercial margin, not compounding interest.

Question 2

How does Murabaha differ from a conventional mortgage?

Accepted Answer

In Murabaha, the bank buys the asset and resells it, a real sale transaction. The profit is fixed upfront and never changes. In conventional loans, interest compounds over time and the rate may vary. Murabaha complies with Islamic law by avoiding riba (interest).

Question 3

Can I repay my Murabaha early?

Accepted Answer

Yes, Moroccan participatory banks allow early repayment with no penalty. However, the full agreed selling price remains contractually due. The bank may voluntarily reduce the remaining profit margin, but this cannot be stipulated in the contract.

Question 4

Am I eligible for the Daam Sakane subsidy?

Accepted Answer

Daam Sakane (2024-2028) offers 100,000 MAD for properties up to 300,000 MAD, or 70,000 MAD for properties between 300,001-700,000 MAD. The property must be new, first sale, and used as primary residence for at least 5 years.

Question 5

What is Takaful insurance?

Accepted Answer

Takaful is Shariah-compliant insurance based on mutual cooperation. It's required for Murabaha financing in Morocco. Participants contribute to a shared fund that covers losses. Unlike conventional insurance, surplus may be returned to participants.

Question 6

Which participatory bank should I choose?

Accepted Answer

Morocco has 7 participatory banks: Bank Assafa, Umnia Bank, Bank Al Yousr, Bank Al Karam, Al Akhdar Bank, Dar Al Amane, and Arreda. Compare their profit margins (typically 4.5-6%), processing times, and branch proximity. All are supervised by Bank Al-Maghrib and validated by the CSO.

Year	Annual Payment	Cumulative Paid	Remaining Balance
1	65.280	65.280	1.240.320
2	65.280	130.560	1.175.040
3	65.280	195.840	1.109.760
4	65.280	261.120	1.044.480
5	65.280	326.400	979.200
6	65.280	391.680	913.920
7	65.280	456.960	848.640
8	65.280	522.240	783.360
9	65.280	587.520	718.080
10	65.280	652.800	652.800
11	65.280	718.080	587.520
12	65.280	783.360	522.240
13	65.280	848.640	456.960
14	65.280	913.920	391.680
15	65.280	979.200	326.400
16	65.280	1.044.480	261.120
17	65.280	1.109.760	195.840
18	65.280	1.175.040	130.560
19	65.280	1.240.320	65.280
20	65.280	1.305.600	0

Year	Annual Payment	Cumulative Paid	Remaining Balance
1	65.280	65.280	1.240.320
2	65.280	130.560	1.175.040
3	65.280	195.840	1.109.760
4	65.280	261.120	1.044.480
5	65.280	326.400	979.200
6	65.280	391.680	913.920
7	65.280	456.960	848.640
8	65.280	522.240	783.360
9	65.280	587.520	718.080
10	65.280	652.800	652.800
11	65.280	718.080	587.520
12	65.280	783.360	522.240
13	65.280	848.640	456.960
14	65.280	913.920	391.680
15	65.280	979.200	326.400
16	65.280	1.044.480	261.120
17	65.280	1.109.760	195.840
18	65.280	1.175.040	130.560
19	65.280	1.240.320	65.280
20	65.280	1.305.600	0

Murabaha Calculator

About Murabaha in Morocco

About Murabaha in Morocco