Reuters: Algeria intends to launch the first sovereign instruments with $ 2.3 billion economy

Algeria is expected to make the first sovereign instruments in its history worth $ 2.3 billion in early November, according to Reuters quoting an informed source and a government document.

The issuance of sukuk comes within the framework of the state’s efforts to diversify its sources of financing and strengthen local financial markets, amid continuous economic reforms aimed at
To diversify the returns outside the oil sector.

The Ministry of Finance document showed that the subscription process is scheduled to start on the second of November, to continue for two months.

The proposal will be available to Algerians residing inside and outside the country, with foreign investors with the exception of the subscription.

The total value of the release – which will be supported by state -owned real estate – is about 296 billion Algerian dinars (2.31 billion dollars).

The sukuk will carry a steady annual rental return of 6%, which is paid to investors for a period of 7 years.

Step is widely seen as it is very important to expand the scope of Islamic financing in Algeria and its goal of attracting money from outside the traditional banking sector.

Globally, the Islamic financial sector recorded remarkable growth, with its activities expanding in new markets in Asia and Africa, reaching about $ 3.9 trillion in 2024.

The reality of Islamic banking in Algeria

The Algerian radio reported last May from the head of the Islamic banking pole in the Algerian popular loan, Sufyan Mazari:

• The total Islamic banking deposits in Algerian banks amounted to about 900 billion Algerian dinars (about 7 billion dollars).
• The activity of Islamic banking in Algeria has witnessed an evolution since the date of the issuance of the organizational framework of this activity in 2020, as transactions have increased by 25% during the past 5 years.
• 12 banks in Algeria are currently dealing with Islamic products, including a bank that works exclusively according to the Islamic banking system, in addition to 10 other banks that provide these services through specialized windows.