Financial innovation and modern technologies are essential for expanding access to Islamic finance, said Salah Eddine Taleb, Governor of the Bank of Algeria, according to Trend.
Taleb made the remarks during the opening session of the Global Forum on Islamic Finance, held 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 both regionally and globally. These changes increasingly align with principles of sustainable and inclusive growth, which are fundamental to long-term economic development,” he emphasized.
Following a series of shocks to the global economy, signs of stabilization have emerged, although growth remains below historical averages. However, the persistent and unprecedented level of global uncertainty has significantly affected investor sentiment. As a result, the global growth forecast for 2025 has been revised downward—from 3.3% to 2.8%, Taleb noted.
Economic Performance in Algeria
Taleb highlighted that Algeria has demonstrated consistent economic growth in recent years due to active investment and a favorable business environment.
“This is confirmed by both quantitative indicators and reports from international organizations. In 2023, Algeria’s economy grew by 4.1%, and in the first nine months of 2024, growth reached 3.3%. These results reflect the government’s strong policy measures, including increased foreign exchange reserves, a balanced external accounts position, and stable financial fundamentals. This has allowed Algeria to pursue a balanced monetary and fiscal policy that supports economic growth while keeping inflation under control,” he added.
Expansion of Islamic Finance in Algeria
As of the end of 2024, Algeria had nearly 900 Islamic finance windows and more than 100 specialized and certified branches nationwide.
Regarding products, the number of Islamic current, savings, and investment accounts exceeded 600,000, while Islamic deposits reached approximately 1 trillion dinars, a 17.6% increase compared with 2023.
Islamic financing also grew significantly, surpassing 530 billion dinars (USD 144 billion) — an increase of 15.6% year-on-year. According to Taleb, these figures reflect growing customer confidence and strong demand for Islamic financial products.
Sector Growth Despite Global Challenges
Taleb stressed that the rapid development of the Islamic finance industry is taking place amid a “perfect storm” of economic and financial constraints, including global pressures, market instability, geopolitical tensions and the lingering effects of the COVID-19 pandemic.
“In Algeria, despite these challenges — particularly in terms of financial resources within the banking sector — there is strong confidence in the future of Islamic finance, especially if coordinated and effective national efforts are undertaken.”
In this context, Taleb underlined the importance of financial innovation and modern technologies, including mobile banking, Islamic fintech solutions, modernization of internal banking processes and the use of artificial intelligence. These tools, he said, are key to expanding access to Islamic finance, enhancing financial inclusion, and attracting customers who were previously excluded from the traditional banking system, including those who still rely on informal financial services.
