The Algerian External Bank is set to soon launch a new Islamic banking product aimed at financing various types of enterprises. This initiative is part of a developmental plan that includes the introduction of innovative Islamic financial products for both institutions and individuals in the upcoming year 2024. These products are designed to be in compliance with Sharia law, marking a significant step in the bank’s expansion of its Islamic banking portfolio.
Hossam Akasha, the Director of Islamic Banking at the Algerian External Bank, announced in a statement to the Algerian Press Service that this new product, pending a marketing license from the Bank of Algeria, will join the ten currently marketed products. These include Islamic deposit accounts, Islamic savings accounts, Islamic current accounts, unrestricted Islamic investment accounts, real estate Murabaha, equipment Murabaha, car Murabaha, movable equipment leasing, commodity Murabaha, and Salam financing.
Speaking specifically about car financing, Akasha highlighted that with the onset of local manufacturing, individual customers of the Algerian External Bank can now apply for the car Murabaha product to purchase a vehicle. This product offers up to 90% financing, with a fixed profit margin rate of 7.5% annually, and is available for periods ranging from one to five years under competitive banking conditions.
Additionally, Akasha mentioned that enterprises can also benefit from car and movable equipment financing through the movable equipment leasing product.
In a broader context, the official from the Algerian External Bank emphasized the significance of the measures introduced in the new monetary and banking law. These measures have strengthened the position of Islamic banking within the Algerian banking system. The forthcoming regulatory texts for this law are expected to provide a further boost to Islamic banking activities in the country.
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