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Bank ABC highlights its role in financing the national economy
Islamic finance – Salon Tasshiil 2025
During a conference organized at SAFEX as part of the Tasshiil 2025 Exhibition, Bank ABC presented a range of Shariah-compliant financing, covering in particular the acquisition of vehicles and housing development work. The meeting was moderated by economist Professor Mohamed Boujalal, who spoke at length on the evolution and challenges of Islamic finance in Algeria.
An industry now structured
According to Professor Boujalal, Islamic finance has firmly established itself in Algeria thanks to a clear political will. It has moved from a niche market to a fully integrated segment, with a strengthened legal framework since 2020.
This structuring, he recalled, is expected to be further consolidated with the measures provided for in the 2026 Finance Bill, in particular its article 89. The economist also underlined that Islamic finance generated nearly 900 billion dinars, regretting however that a third of this amount was not transformed into financing:
“Of the 900 billion in deposits, only 600 billion were injected into the economy,” he said, referring to an intermediation deficit within public banks which were unable to absorb all of the funds collected.
An evolution fueled by field experience
Professor Boujalal returned to the pioneering role played by El Baraka (1991) and El Salam Bank (2008), who ensured the development of Islamic finance even before the existence of a real legal framework. Thanks to these cumulative experiences, he explained, the State was able to launch an organized and regulated version of this industry from 2020, in accordance with the commitments of the President of the Republic, Abdelmadjid Tebboune.
A still limited banking sector
The speaker took stock of the national banking system: Algeria today has 21 banks, including 7 public, while the others belong mainly to foreign groups. He regretted the absence of private banks financed 100% by Algerian capital, calling on national investors to become more involved in the creation of establishments capable of supporting the real economy.
He also expressed his astonishment at the reluctance of certain institutions which are still slow to open windows dedicated to Islamic finance: “I do not understand this hesitation, when the model is successful and popular throughout the world,” he insisted.
Bank ABC: a stated ambition
A major partner of the conference, Bank ABC appears to be a rapidly expanding player, with 24 agencies located across the country.
Its “El Burak” window dedicated to Islamic finance offers a range of diversified products, including financing for the purchase of vehicles, products intended for the development or renovation of housing and credit of up to 400 million centimes, over a period of 10 years, without mortgage.
The bank thus aims to become a key player in the offering of financial products compliant with Sharia law in Algeria.
Sofiane G.