Algeria is moving into high gear for the creation of Islamic financial institutions in the country. Indeed, the Islamic High Council (HCI) approved, Monday, April 6, the creation of the National Charaic Authority of the fatwa for the Islamic finance industry. In its press release, the institution indicated that this measure comes under Regulation N 20-02 of March 15, 2020 defining banking operations falling under Islamic finance and the conditions for their exercise by banks and financial institutions.
This authority will be responsible for issuing certification of compliance to banks and financial institutions active in Algeria. The body will also support the Bank of Algeria in the domiciliation of Islamic finance.
In late March, the Bank of Algeria introduced new regulations for banking related to Islamic finance. It should be noted that the operations of Islamic banks in Algeria consist of 8 products and services. These are Mourabaha, Moucharaka, Moudaraba, Ijara, Salam, Istisna’a as well as deposit accounts and deposits in investment accounts.