Algeria is poised to make a historic entry into the Islamic finance market with the launch of its first-ever Sukuk in November 2025. Valued at $2.3 billion, this sovereign Islamic bond represents a strategic move to diversify the country’s financing sources and attract both domestic and international investors seeking Sharia-compliant financial instruments. The initiative marks a significant milestone in Algeria’s broader economic reform agenda, which aims to reduce dependence on hydrocarbons, stimulate non-oil sectors, and modernize the financial system to meet global standards.
Structured in accordance with Islamic finance principles, the Sukuk will avoid interest-based mechanisms and instead rely on asset-backed models that ensure compliance with Sharia law. Algerian authorities have indicated that the proceeds from the issuance will be directed toward funding critical infrastructure projects and bolstering public investment. This approach not only aligns with ethical investment standards but also offers a stable and transparent framework for long-term development. Financial experts view the move as a promising step toward integrating Algeria into the rapidly expanding global Islamic finance ecosystem, which has gained traction across the Middle East, Southeast Asia, and parts of Africa.
The timing of the Sukuk launch reflects Algeria’s growing commitment to financial innovation and economic resilience. As global markets increasingly embrace alternative financing models, Algeria’s entry into Islamic bonds signals its readiness to engage with a broader investor base and leverage untapped capital flows. Expectations are high that this debut offering will pave the way for future Sukuk issuances, deepen investor confidence, and position Algeria as a competitive player in the Islamic finance landscape. With careful planning and transparent governance, the Sukuk could become a cornerstone of Algeria’s economic transformation and a catalyst for sustainable growth.