A strategic turning point for Islamic finance

The introduction of sovereign sukuk has marked the financial landscape at the start of this year (2026). This new financial instrument should further boost Islamic finance, which is already on a positive trajectory. By opting for the "Ijara" or usufruct form, with a 6% yield, a 7-year maturity, and, above all, zero taxation, the public authorities are demonstrating their determination to diversify financing methods. Many financial experts have welcomed this move, which they consider to be a "historic step forward", especially as it offers an alternative to traditional financing.

Capturing savings outside the banking system

This initiative is intended to capture savings circulating outside the official sphere, as it should overcome reluctance, particularly among people with religious sensitivities towards conventional financial products. From their point of view, sovereign sukuk could become a structuring pillar of the national capital market, provided that the regularity of future issues is ensured.

This would enable the development of a comprehensive and attractive Islamic financial ecosystem. For the public authorities, the issuance of these financial securities meets an expectation expressed by both market players and a significant segment of the population. "It is part of a vision aimed at diversifying the state's sources of financing and mobilising national savings," according to the Treasury's information note published following the announcement of the operation.

A target amount of DZD 296.650 billion 

Regarding terms and conditions, the same source specified in the same information note that the nominal value of the security (sak) is set at 100,000 DA and 1,000,000 DA. For this initial issue, the subscription period is set at two months or until the target amount of DA 296.650 billion is reached.

The funds raised through this issue will be used to finance major public projects related to the country's economic and social development, particularly in infrastructure, facilities and public services. This operation perfectly illustrates "the government's desire to strengthen financial inclusion, boost the capital market and consolidate confidence in new financial instruments," the Treasury emphasised.

The categories concerned by the operation are Algerian individuals, both resident and non-resident (private individuals), as well as legal entities (companies) under Algerian law, the note specifies, indicating that subscriptions can be made at bank counters, branches of the Bank of Algeria, the Central Treasury and the Main Treasury, as well as wilaya treasuries and insurance agencies.