AhlulBayt News Agency (ABNA): Algeria’s financial landscape entered a new and decisive phase at the start of 2026 with the launch of its first sovereign Islamic bonds (sukuk), a move widely viewed by observers as a strategic milestone in the development of Islamic finance and the diversification of government funding instruments.
The sukuk have been issued under an ijara (lease-based) structure, offering a 6 percent return, a seven-year maturity, and full tax exemption. According to experts, these features signal a strong political and institutional commitment to strengthening the capital market and providing a credible alternative to conventional financial instruments. Many have described the initiative as a “historic opening” that broadens the range of investment options in the national market.
One of the core objectives of the initiative is to attract savings circulating outside the formal banking system. Algerian authorities hope that offering a Sharia-compliant instrument will help overcome the reservations of segments of the population toward traditional financial tools. Analysts believe that consistency and predictability in future issuances could turn sovereign sukuk into a structural pillar of Algeria’s capital market.
According to the Public Treasury, the nominal value of each sukuk has been set at 100,000 and 1,000,000 Algerian dinars, with the subscription period for the initial offering lasting two months or until the target amount of 296.650 billion dinars is reached. The proceeds will be allocated to financing major public projects in infrastructure, equipment, and public services.
Subscriptions are open to Algerian individuals, both residents and non-residents, as well as legal entities and companies operating under Algerian law. The offering is being conducted through a wide network of banks, treasury offices, and insurance companies, a measure intended to ensure broad and inclusive access to this landmark financial operation.
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