September 16, 2023 | 5 days ago

High growth in the market for Islamic banking products

ALGIERS - The market in Islamic banking products, launched three years ago, is growing at a fast pace, driven in part by buoyant demand, as a dozen public and private banking institutions offer a broad range of products and services.



According to recent data from the Association of Banks and Financial Institutions (ABEF), bank deposits total "just over 700 billion (bn) Da" collected by some 600 outlets, between dedicated branches and Islamic one-stop shops in conventional branches spread across the national territory.

“This brings the share of Islamic bank deposits in the global resources collected by the banks to more than 4%, compared to just over 1% five years ago,” Sofiane Mazari, president of the Islamic Finance Committee at ABEF, told APS.

According to the same official, who underlines "the real political will to promote Islamic finance", this result is very interesting and encouraging for all banks in view of the growth of resource collection, financing but also the panoply of banking products compliant with Sharia and which is constantly growing.

By the end of August 2022, Islamic bank deposits had totaled Da 500 billion Da, financing had totaled Da 400 billion, while the number of Islamic one-stop shops at bank level had reached 469, according to a previous assessment provided by the Banque d’Algérie.

Currently, twelve (12) banks offer these products, in particular since the promulgation in 2020 of the framework governing this finance, namely Regulation 2020-02 defining Islamic finance banking operations, and Instruction 03-20 defining Islamic finance products and laying down the modalities and technical characteristics of their implementation.

September 17, 2023 | algeria-logo