‘Explain within which context how can we adopt the contract of Murabaha in Mauritius “
 Islamic Banking in Mauritius
In 2007, the Banking Act in Mauritius was amended to cater for Islamic banking activities.
The Bank of Mauritius issued the first Islamic banking license in October 2009 to cater for the approximately 18 per cent of the 1.2 million Mauritian population that is Muslim.
According to the Governor of the Central Bank it would have been a big task to build a sustainable Islamic retail banking model that is profitable to service just over 200,000 Muslims in the Indian Ocean Island if it were not for the Bank of Mauritius’s plans to introduce short term liquidity instruments.
Governor of the Central Bank said that it is a major step in translating the vision of the Authorities to provide an alternative mode of financial intermediation, thus enhancing the options available to bank customers.
 Use of Murabaha contracts in Mauritius
With the sub-prime crisis challenging conventional banking and financial products, there is mounting interest in Islamic products which comply with the principles of shariah law.
According to report, the size of the global market for shariah compliant products is estimated at $800 billion.
The increase in wealth in Islamic countries (especially in the Middle East with its accumulation of petrodollars), the growth in the Muslim population, the huge capital requirements for infrastructure projects across the Muslim world as well as the active participation of investors and sovereign nations in Islamic capital market have not only resulted in a remarkable growth in the Islamic finance industry but have also led to the development of a wide range of shariah compliant products.
Mauritius has a long tradition of commercial banking dating back to 1812 and has historically adopted a cautious attitude to banking development.