This paper presents a comprehensive literature review on participative finance commonly referred to as Islamic finance with a specific focus on its development, institutionalization, and economic impact in Morocco. Since the formal integration of participative banking into Morocco's financial system in 2017, researchers and policymakers have shown growing interest in understanding the potential of this ethical, Sharia-compliant financial model to enhance financial inclusion, stability, and sectoral productivity. The paper is structured around three pillars: (1) theoretical foundations of participative finance; (2) empirical evidence from international and national contexts; and (3) an in-depth review of Moroccan case studies, institutional challenges, and regulatory evolution. The review reveals that while participative finance offers promising avenues for inclusive growth, investment diversification, and financial democratization, its impact remains constrained by limited product innovation, legal ambiguities, and weak sectoral integration. The paper concludes by identifying key research gaps and proposing directions for future empirical inquiry and policy reform. Keywords: Participative finance, Islamic banking, Morocco, financial inclusion, literature review, dual banking system.
Abid et al. (Tue,) studied this question.
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