For these reasons, “Halal” products will be at a lower price in banks within 60 days!

Sufyan Mazari to Al-Shorouk: Islamic banking is growing by 20 percent annually
Individuals and small enterprises are at the forefront, and youth loans are at the “NESDA” table.

The growth of Islamic banking in Algeria has reached about 20 percent annually, occupying between 6 and 7 percent of the national banking market, with expectations that its share will rise to 8 percent very soon, at a time when the entry into force of the new measures of the draft finance law for the year 2027 is expected to end the tax disparities between Islamic and traditional financing, by subjecting them to the same fees and costs, meaning their price will become lower within sixty days, ensuring the customer the freedom to choose between The two formulas without incurring additional burdens due to the nature of financing, which is the last burden that Islamic banking faces.
A member of the Islamic Banking Committee of the Professional Association of Banks and Financial Institutions, and an expert in Islamic banking, Sufyan Mazari, revealed the inclusion of a new measure in the draft finance law for the year 2027, which would achieve tax equality between Islamic and traditional financing, especially with regard to fees and taxes resulting from real estate transactions, ensuring that Islamic financing is not burdened with additional burdens compared to its traditional counterpart.
Mazari explained, in a statement to Al-Shorouk, that the expected measure aims to unify the tax system applied to various financing formulas, especially those approved at the level of Islamic windows in banks, allowing the two formulas to be placed on an equal footing from a tax perspective, and giving the customer the freedom to choose between them without the cost of Islamic financing being higher due to the tax treatment. The spokesman added that this approach would remove the problems associated with the tax treatment of some Islamic financing forms, and avoid what is known as the “tax effect.” “Double”, ensuring that the public treasury deals with Islamic and conventional financing on the basis of equality, and prevents additional fees and expenses from constituting an obstacle to the competitiveness of Islamic financial products.
Turning to the reality of Islamic banking in Algeria, six years after its launch, Mazari confirmed that the sector is recording continuous growth of more than 20 percent annually, with about 13 banks providing products and services compatible with the provisions and principles of Islamic Sharia, a pace of growth that is relatively higher than that recorded by traditional banking. The expert pointed out that this development is not limited to the increase in the volume of activity, but also includes the diversification of banking products and services, as the market records, from one month to another, the launch of new financing formulas and savings accounts, in addition to innovative banking services, which reflects the expansion of supply and the response of banks to the requirements of different categories of customers.
In this context, Mazari pointed out that Islamic banking services have now almost included various banking operations, including international cards of the “Visa” type linked to Islamic accounts, explaining that some banks provide this service within periods of up to 48 hours, while other banks provide it within 17 days, which reflects the development of services and the expansion of options available to customers of this type of banking. As for the share of Islamic banking in the national banking market, the speaker’s estimates indicate that it currently ranges between 6 and 7 percent, with the possibility of reaching 8 percent in the future, ruling out the possibility that this growth would lead to the superiority of Islamic banking over traditional banking, stressing that the relationship between them will be based primarily on integration, given that both systems respond to the needs and different categories of customers.
Mazari cited international experiences, especially Malaysia and a number of countries that have accumulated four or five decades of experience in the field of the Islamic financial industry, where the spread of this type of financing did not lead to the exclusion of traditional banking, but rather contributed to providing a banking alternative that responds to the needs of a segment of customers. He added that Islamic banking does not only attract Muslims, but also attracts customers from other religions, noting that about a fifth of the customers of some Islamic banks and windows in a number of countries are non-Muslims, among them. Christians and Buddhists, which, according to him, reflects that the demand for these formulas is not only related to religious affiliation, but rather to the nature of the products and services they provide.
Explaining the differences between the two systems, Mazari highlighted that Islamic banking is based on different contractual formulas, such as Murabaha, in which the various information related to the transaction, the price of financing and the installments are determined from the beginning, allowing the customer to know his financial obligations in advance, without there being increases associated with extending the repayment terms according to the nature of the contract. In contrast, traditional banking relies mainly on loan contracts whose benefits are linked to the time period, as the cost of the loan increases as the repayment period extends, which is What makes the difference between the two systems is based mainly on the nature of contracts and financing mechanisms, while leaving the freedom of choice to the customer according to his needs and capabilities.
Regarding the nature of customers, the expert explained that the Islamic banking market relies more on individuals, professionals, and small and medium enterprises, compared to large companies, and this is a peculiarity that is not limited to Algeria, but is also recorded in other international markets that know the spread of this type of financial industry. He stressed that the Islamic products and services offered in the Algerian market, whether at the level of banks or Islamic windows, are directed to various groups, from individuals and professionals to small and medium enterprises and large companies, and are subject to the approval of the National Authority for Fatwa for the Islamic Financial Industry, in a way that ensures their compliance with the controls. Approved legitimacy.
Mazari concluded by pointing out that the number of customers and operations is relatively greater among individuals, professionals, and small and medium enterprises, while the value of financing and amounts directed to the corporate sector is greater, especially when dealing with economic institutions, explaining that the number of small and medium enterprises exceeds the number of large companies within this market, which reflects the specificity of Islamic banking, which combines the wide spread among individuals and professionals on the one hand, and the importance of financing directed to institutions on the other hand.