{"id":4302,"date":"2026-01-17T18:18:42","date_gmt":"2026-01-17T18:18:42","guid":{"rendered":"https:\/\/www.jeune-independant.net\/en\/?p=4302"},"modified":"2026-01-18T17:48:23","modified_gmt":"2026-01-18T17:48:23","slug":"islamic-finance-growing-interest-in-sukuk","status":"publish","type":"post","link":"https:\/\/www.jeune-independant.net\/en\/2026\/01\/17\/islamic-finance-growing-interest-in-sukuk\/","title":{"rendered":"Islamic Finance: Growing Interest in Sukuk"},"content":{"rendered":"

As Algeria begins introducing sovereign Sukuk, these Islamic finance instruments are generating growing interest as an alternative to conventional bank credit. Based on backing by real assets and compliant with Sharia principles, Sukuk open new financing perspectives for the State, banks, and businesses. This is what Mazari Sofiane, President of the Islamic Finance Commission at the Algerian Banking and Financial Association (ABEF) and Head of the Islamic Finance Division at the Accounting and Auditing Council (CPA), indicated regarding the regulatory framework, challenges, and development prospects of these instruments in Algeria.<\/strong><\/p>\n

Used in Islamic finance, Sukuk are often compared to conventional bonds, with the difference that they do not rely on interest payments, which are prohibited by Sharia. Concretely, the investor does not lend money against an interest rate but acquires a share in a real asset or project (a building, infrastructure, or equipment) and receives income from its exploitation in the form of rents or profits. Sukuk thus allow States, banks, and companies to finance themselves while respecting Islamic finance principles and offering investors an ethical alternative to traditional investments.<\/p>\n

Regarding their introduction in Algeria, Mr. Mazari explained that it is necessary to distinguish between sovereign Sukuk and corporate Sukuk. Sovereign Sukuk issued by the State now have a regulatory framework recently adopted, he emphasized in an interview with the Insurance Review. On the other hand, he continued, Sukuk intended for businesses still require adaptations to the Commercial Code to provide them with a solid legal basis. While the legal framework for sovereign Sukuk is in place, the ecosystem remains to be completed, particularly through the development of a secondary market, as well as the adaptation of tax, accounting, and operational mechanisms essential for smooth functioning, in Mr. Mazari’s view.<\/p>\n

Current regulations specify the issuance conditions for sovereign Sukuk and the Sharia-authorized forms, such as Ijara, Mudaraba, or Musharaka. They also govern the designation of the Sharia advisor and subscription mechanisms. The model chosen by the public authorities does not rely on a specific financial vehicle (SPV), unlike practices in many countries. This option aims to simplify implementation while ensuring compliance with Islamic finance principles, similar to countries like Qatar, Malaysia, or Turkey.<\/p>\n

Sukuk also hold particular interest for financing small and medium-sized enterprises. They represent an alternative to conventional bank credit, especially for high-potential projects. Through corporate or project Sukuk, SMEs could access more flexible financing, particularly in public-private partnerships or sectoral platforms. This evolution, however, requires an adapted legal and tax framework, as well as strengthened financial education.<\/p>\n

Among the main challenges related to introducing Sukuk in Algeria is the need to build trust, both on the investor and issuer sides. Developing a liquid secondary market, integrating these instruments into banking and stock market systems, and harmonizing tax and accounting rules are also essential to ensure fair treatment between Sukuk and conventional financial instruments.<\/p>\n

In the short term, Sukuk issuance could involve, beyond the Public Treasury, Islamic window banks, fully Islamic banks, and Takaful companies. This diversification would broaden the range of financial instruments and better meet the expectations of investors seeking Sharia-compliant products<\/p>\n","protected":false},"excerpt":{"rendered":"

As Algeria begins introducing sovereign Sukuk, these Islamic finance instruments are generating growing interest as an alternative to conventional bank credit. Based on backing by real assets and compliant with Sharia principles, Sukuk open new financing perspectives for the State, banks, and businesses. This is what Mazari Sofiane, President of the Islamic Finance Commission at […]<\/p>\n","protected":false},"author":2,"featured_media":4303,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-4302","post","type-post","status-publish","format-standard","has-post-thumbnail","category-domestic"],"byline":"Rim Boukhari.","_links":{"self":[{"href":"https:\/\/www.jeune-independant.net\/en\/wp-json\/wp\/v2\/posts\/4302","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jeune-independant.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jeune-independant.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jeune-independant.net\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jeune-independant.net\/en\/wp-json\/wp\/v2\/comments?post=4302"}],"version-history":[{"count":2,"href":"https:\/\/www.jeune-independant.net\/en\/wp-json\/wp\/v2\/posts\/4302\/revisions"}],"predecessor-version":[{"id":4308,"href":"https:\/\/www.jeune-independant.net\/en\/wp-json\/wp\/v2\/posts\/4302\/revisions\/4308"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.jeune-independant.net\/en\/wp-json\/wp\/v2\/media\/4303"}],"wp:attachment":[{"href":"https:\/\/www.jeune-independant.net\/en\/wp-json\/wp\/v2\/media?parent=4302"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jeune-independant.net\/en\/wp-json\/wp\/v2\/categories?post=4302"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jeune-independant.net\/en\/wp-json\/wp\/v2\/tags?post=4302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}