Development of private banking in Algeria – Can Islamic finance give it new life?

In the current context, characterized by an unprecedented financial crisis, Islamic finance appears increasingly as a genuine alternative.  Around the world, several countries (non Muslims) are beginning to adopt this mode of financing.  In Algeria, although the first private bank that specializes in funding (approved in 1991) Al Baraka Bank, the fact remains that the market for Islamic finance is far from being developed.

To better understand this new market and to identify many opportunities, especially highlighting the “virtues” of this type of financing, the firm Isla-Invest holds after tomorrow, the second edition of Islamic finance in the ‘Sheraton Algiers.  This appointment will, according to its organizers, to better understand the potential of the Algerian market, the different trades of the Islamic bank as well as challenges.

We’ll discuss during this meeting and potential development opportunities of Islamic finance by SMEs in Algeria.  There is also a space for exchanging experiences and knowledge, “said Ben Terdeyet Zobeir yesterday, managing partner of the firm Isla-Invest, during a press briefing at the headquarters of our confer El Mujahid.  The same source said that several foreign experts and specialists take part in this event.

Professionals and executives from private and foreign banks operating in Algeria will exhibit their work, their analysis of the current market and investment opportunities in this country.  This forum is concerned, moreover, the makers of the financial industry in Algeria, but also the leaders of all groups operating in the countries of North Africa and West and Europe, “he added.  Also indicating that the Islamic finance aims to develop a banking provision complies with the rules of Islam, Mr. Ben Terdeyet said it now accounts for over $ 700 billion in assets under management worldwide as Shariah principles and is growing over 15% over the last ten years.

In other words, the eyes of the speaker, the importance and need for such funding.  Today, 37 financial institutions operating in Africa for a Muslim population of 412 million inhabitants.  A study by Moody’s, the market in Africa is estimated at 235 billion dollars to a current level of 18 billion, a significant growth potential, “says he.  Islamic finance can give it a new impetus to the development of the private banking sector in Algeria?  The speaker’s answer is yes.

And because our country has become a land of choice for Islamic banks with the presence of Al Baraka Bank in Algeria since 1991.  Al Salam Bank Algeria has obtained its authorization.  ADIB and KFH are also up for approval, “says he.  For his part, Mr. Haideur, director of public relations at Al Baraka Bank, said that there is political will on the part of monetary authorities in Algeria for the development of this mode of payment.

 Discussions are underway with the Association of Banks and Financial Institutions (ABEF), the Bank of Algeria and the Ministry of Finance in order to spread this type of payment.

Source : allarfrica