Financial innovations and modern technologies are essential to expanding access to Islamic finance, said Salah Eddine Taleb, Governor of the Bank of Algeria, Trend reports.
Taleb stated this in his address at the opening of the Global Forum on Islamic Finance, as part of the annual meetings of the Islamic Development Bank (IsDB), under the theme “Digital Transformation and Financial Inclusion in Islamic Finance.”
"Rapid technological transformations are reshaping the financial sector at both regional and global levels. These changes are increasingly aligned with the pursuit of sustainable and inclusive growth, which is one of the pillars of long-term economic development.
Following a series of shocks to the global economy, signs of stabilization have begun to emerge—though growth remains below historical norms. However, persistent and unprecedented levels of global uncertainty have altered investor sentiment. As a result, the global economic growth forecast has been significantly downgraded—from 3.3 percent to 2.8 percent —compared to initial projections for 2025," he said.
Taleb pointed out that Algeria has been on the upswing, enjoying a steady economic growth spurt in recent years, thanks to robust investment efforts and a favorable business environment.
“This is confirmed by both figures and reports from international organizations. Thus, the Algerian economy grew by 4.1 percent in 2023, and in the first 9 months of 2024, the growth rate was 3.3 percent. These indicators are explained by the fact that the state took reliable measures, including increasing foreign currency reserves, achieving a balanced payment position, and maintaining the stability of the external financial standing. Thanks to this, Algeria was able to implement a balanced monetary and budgetary policy that promotes economic growth while keeping inflation under control,” he added.
The head of the bank noted that as of the end of 2024, at the national level in Algeria, there were about 900 open Islamic finance windows, as well as over 100 specialized and certified branches.
"In terms of products, the number of Islamic current, savings, and investment accounts exceeded 600,000, with deposits reaching around AED 1,000 billion, representing a growth of 17.6 percent compared to 2023.
The volume of Islamic finance also showed a significant increase, exceeding AED 530 billion [$144 billion], representing a growth of 15.6 percent compared to the previous year. These figures indicate growing customer confidence and interest in Islamic financial products," he added.
Taleb mentioned that this leap forward in the Islamic finance sector is unfolding amidst a perfect storm of economic and financial hurdles, including a host of global pressures, the rollercoaster of international market volatility, geopolitical tensions, and the lingering shadow of the COVID-19 pandemic.
"In Algeria, despite the scale of these challenges, especially regarding the financial capacity of the banking sector, there remains strong confidence in the future of Islamic finance, particularly if coordinated and effective efforts are made at the national level.
In this context, the importance of financial innovation and the introduction of modern technologies — such as mobile banking, Islamic fintech solutions, reforms of internal banking processes, and the use of artificial intelligence — is highlighted as key to expanding access to Islamic finance, improving inclusion, and attracting customers who were previously excluded from the traditional banking system, including those who still rely on informal financial services," he concluded.
Taleb stated this in his address at the opening of the Global Forum on Islamic Finance, as part of the annual meetings of the Islamic Development Bank (IsDB), under the theme “Digital Transformation and Financial Inclusion in Islamic Finance.”
"Rapid technological transformations are reshaping the financial sector at both regional and global levels. These changes are increasingly aligned with the pursuit of sustainable and inclusive growth, which is one of the pillars of long-term economic development.
Following a series of shocks to the global economy, signs of stabilization have begun to emerge—though growth remains below historical norms. However, persistent and unprecedented levels of global uncertainty have altered investor sentiment. As a result, the global economic growth forecast has been significantly downgraded—from 3.3 percent to 2.8 percent —compared to initial projections for 2025," he said.
Taleb pointed out that Algeria has been on the upswing, enjoying a steady economic growth spurt in recent years, thanks to robust investment efforts and a favorable business environment.
“This is confirmed by both figures and reports from international organizations. Thus, the Algerian economy grew by 4.1 percent in 2023, and in the first 9 months of 2024, the growth rate was 3.3 percent. These indicators are explained by the fact that the state took reliable measures, including increasing foreign currency reserves, achieving a balanced payment position, and maintaining the stability of the external financial standing. Thanks to this, Algeria was able to implement a balanced monetary and budgetary policy that promotes economic growth while keeping inflation under control,” he added.
The head of the bank noted that as of the end of 2024, at the national level in Algeria, there were about 900 open Islamic finance windows, as well as over 100 specialized and certified branches.
"In terms of products, the number of Islamic current, savings, and investment accounts exceeded 600,000, with deposits reaching around AED 1,000 billion, representing a growth of 17.6 percent compared to 2023.
The volume of Islamic finance also showed a significant increase, exceeding AED 530 billion [$144 billion], representing a growth of 15.6 percent compared to the previous year. These figures indicate growing customer confidence and interest in Islamic financial products," he added.
Taleb mentioned that this leap forward in the Islamic finance sector is unfolding amidst a perfect storm of economic and financial hurdles, including a host of global pressures, the rollercoaster of international market volatility, geopolitical tensions, and the lingering shadow of the COVID-19 pandemic.
"In Algeria, despite the scale of these challenges, especially regarding the financial capacity of the banking sector, there remains strong confidence in the future of Islamic finance, particularly if coordinated and effective efforts are made at the national level.
In this context, the importance of financial innovation and the introduction of modern technologies — such as mobile banking, Islamic fintech solutions, reforms of internal banking processes, and the use of artificial intelligence — is highlighted as key to expanding access to Islamic finance, improving inclusion, and attracting customers who were previously excluded from the traditional banking system, including those who still rely on informal financial services," he concluded.
