Expectations of individuals regarding the Ijara Mountahiya Bitamlik contract in Morocco: the case of financing the automotive sector

Abstract

The aim of this study is to explore the expectations of individuals with regard to the Ijаrа Mоuntahiya Bitаmlik contract for car financing in Morocco, and to identify the factors that may stimulate demand for this Islamic financing product.

To do this, we opted for a quantitative approach based on a questionnaire administered to a sample of 100 Moroccan individuals. However, due to the small sample size, the results obtained cannot be generalized to the entire Moroccan population.

The results reveal a growing interest in the Ijаrа Mоuntahiya Bitаmlik financial instrument, provided it is offered at a competitive price. However, religious conviction is a determining factor for some individuals, prompting them to accept a slightly higher cost in return for financing in line with the principles of Islamic finance.

Nonetheless, this study is a first step in the reflection on the adaptation of the Ijāra Muntahiya Bitamlik contract to the needs of individuals in the automotive sector in Morocco.

Classification JEL: G21

Paper type: Empirical Research