Algeria’s Islamic finance sector has amassed nearly 900 billion dinars in deposits, accounting for around 6% of the national banking market, according to Sofiane Mazari from the Crédit Populaire d’Algérie (CPA). These figures were shared during the annual meeting of the Association of Ifid Graduates last Thursday.
Mazari highlighted the sector's growing role and confirmed that sovereign sukuk—a Sharia-compliant financial instrument—will be implemented under the 2025 Finance Law. Subscriptions will be open to both Islamic and conventional financial institutions, along with other economic entities, and potentially the general public in case of public offerings.
“This financial instrument represents a new method of financing while ensuring transparency and governance in the execution of major development projects,” Mazari emphasized.
Experts attending the event pointed out that the issuance of sovereign sukuk will offer fresh investment opportunities, enabling both financial institutions and private investors to allocate surplus funds toward infrastructure development and economic growth.
The move is seen as part of Algeria's broader strategy to build a full-fledged Islamic finance ecosystem, which includes dedicated Islamic banking windows, specialized Islamic banks, takaful insurance companies, and institutions such as the National Office of Awqaf and Zakat.
Further, corporate sukuk are also on the horizon, with plans for private companies to issue Sharia-compliant bonds to fund various projects. Mazari acknowledged the significant efforts made to develop a comprehensive legal framework for Islamic finance in Algeria.
Hichem Kacimi El Hassani, Director of Orientation at Al Salam Bank Algeria, also emphasized the potential of sukuk, citing global models like Ijara, Musharaka, Murabaha, Mudaraba, Salam, and Istisna’a. He noted that their adoption in Algeria represents a natural progression in the development of the Islamic finance industry.
With nearly 900 billion DZD in deposits and upcoming sovereign and corporate sukuk offerings, Islamic finance is gaining momentum in Algeria. Experts believe that with continued legal and institutional reforms, it could become a central pillar in funding national development projects.
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