​​​​​Algiers on May 12th , 2025: Bank ABC Algeria is organizing a training session on Islamic Finance for journalists. The objective of the training is to enhance of the knowledge of journalists specializing in economics about this financial model, which complies with the precepts of Islamic Sharia law.

Islamic finance constitutes a specific and growing segment of the global economy. It is based on principles that prohibit riba or interest on bank loans, excessive speculation, and investments in sectors considered illicit. It prioritizes risk and profit sharing, contractual transparency, and productive investment. ​​​

This financial system is essentially based on two financing instruments:​​​

• Sales contracts (Mourabaha, Ijara Salam and Istisna’a).

• Murabaha: The bank (the creditor) specific asset at a price known to both parties on behalf of its customer. The bank (the creditor) then resells this asset to the customer in exchange for staggered payments or a lump same over a specified period at a price agreed in advance between the two parties that is higher than the purchase price (the profit margin).
• Ijara: An "Ijara" transaction involves the creditor (the bank) purchasing assets that it rents to a client who can benefit from the option to repurchase them at the end of the contract.
• Salam: a forward sale, where payment is made upfront, but delivery occurs in the future. Islamic finance, in principle, prohibits the sale of a non-existent good because it involves chance (gharar). However, to facilitate certain transactions, particularly in agriculture, exceptions have been granted.
• Istisna'a: This financial contract allows a buyer to purchase goods for delivery in the future. Unlike "Salam," in this type of contract, the price, agreed in advance, is paid gradually throughout the goods' manufacturing process. The specific terms of payment are determined by the terms of the agreement between the buyer and the seller (in this case, the bank). This financing structure is primarily used in real estate, shipbuilding, and aeronautics.
• Participatory financing contracts (Moucharaka and Moudharaba) involve a partnership between the bank and the customer.
• Moucharaka: is the translation of "association" In this operation, two partners invest jointly in a project and share the profits according to the capital invested. In the event of a loss, this is borne by both parties in proportion to their respective capital invested.
• Moudharaba: This operation brings together an investor ("Rab el Mel") who provides the capital (financial or other form) and an entrepreneur ("Moudharib") who provides his expertise. In this financial structure, the responsibility for managing the business falls entirely on the entrepreneur. The profits generated are shared between the two both parties according to a pre-agreed distribution after the investor has recovered their capital and the entrepreneur's management expenses have been covered.

Samir Rezak or Mehdi Lakel, from Bank ABC Algeria’s Islamic Finance, explained that this finance also relies on the mechanisms of Takaful (Islamic insurance), a cooperative system based on the principle of solidarity between members. Each participant contributes to a common fund intended to cover potential losses incurred by one of them. Among the fundamental concepts is "hibat al asl," which consists of allocating the income generated by capital to public utility projects, whether religious or social, thus enabling unequivocal management of resources.​​​

​​​Samir Rezak, or Mehdi Lakel, highlighted the important role of the media in popularizing this financial model. According to them, the success of Islamic finance depends not only on banking offerings, but also on collective awareness. Economic journalists contribute to Public financial education by disseminating verified, reliable, and educational information about model that remains widely misunderstood.

​​​The speaker recalled that Islamic finance represents one of the answers to major contemporary challenges, such as financial inclusion, social justice and the financing of small businesses, which are often marginalized from conventional banking channels.

​​​It also offers real opportunities for the development of key sectors, such as housing, agriculture and renewable energy, through several instruments, including Ijara (rental with promise of sale), soukuk, or waqf (endowment funds).

In Algeria, Islamic finance is experiencing gradual development, supported by a clearer regulatory framework, notably Regulation 02/20 of 15/03/2020, the creation of Islamic counters within public and private banks, and growing public interest. This progress, however, requires more dynamic media support. ​​​

​​​"The media must become the compass guiding the public towards a deep understanding, first by sparking interest, then building trust, and ultimately fostering adoption of fair and responsible financial services," concluded Samir Rezak or Mehdi Lakel.

We conclude the press release with the latest development from “alburaq”.​​​

​​​- Opening of three new branches: Constantine, Sidi bel Abbes and Mostaganem (15 branches nationwide by the end of 2025).

​​​- Launch of New product:

“alburaq soukna amenagement Ijara”​​​

Service financing products: Umrah/Hajj – Travel – Study and Medical Service.​​​