Algeria: Country set to embrace Islamic insurance

Algeria will for the first time launch Islamic insurance, known as takaful, as the government seeks to boost the country’s Islamic finance industry, Finance Minister Ayman Benabderrahmane said on Monday.

Benabderrahmane also said authorities planned to set up banks in African countries as part of wider economic reforms in the North African OPEC member nation.

Algeria has announced plans to develop its economy and diversify it from oil and gas after a fall in energy earnings caused financial problems.

“Takaful will be available at state companies from next week,” Benabderrahmane told state radio.

That step follows a move by state banks last month to start offering Islamic finance products in a bid to attract money from the parallel market, he said.

The government has said sharia-compliant services would help find new funding sources for the economy, which currently relies heavily on oil and gas export revenues.

The authorities have also said they will open the door for the private sector to set up banks, part of reforms pledged by President Abdelmadjid Tebboune in the banking sector.

The next steps include expanding abroad by setting up banks in African countries, mainly in neighboring Niger and Mali, Benabderrahmane said.

“Opening an Algerian bank in Africa has become necessary in order for Algeria to gain access to the African market,” he said.


SOURCE: Reuters

More News

Ethiopia: Hurdle cleared for M-Pesa inclusion in telco licence

Ethiopia has cleared the way for Safaricom to introduce M-Pesa in the market of 110 million people after deciding to include the ...

East Africa: Egyptian lender CIB reaches for a bigger piece of region’s banking sector

Egyptian largest private sector bank by assets Commercial International Bank (CIB) is seeking to acquire more banks to strengthen ...

Africa: Off-grid solar access solutions for continent identified

The European Investment Bank and International Solar Alliance have published a study outlining access solutions to overcome key ...

Kenya | country tops world in growth in new electricity connections

Kenya has been ranked the top country in the world in reducing population with no access to electricity, pointing to the impact ...