Banking and Finance Algeria to issue its first sukuk in June By Nadim Kawach May 22, 2025, 1:57 PM Alamy via Reuters The Casbah of Algiers, a Unesco World Heritage Site. Algeria has passed a new budget law that allows sukuk to be issued Sukuk will fund domestic projects Plans at ‘advanced stages’ Budget law created opportunity Algeria intends to issue its first sovereign Islamic bonds or sukuk next month to fund infrastructure and other domestic projects, according to an official. Arrangements for the first such issue by have reached “very advanced stages”, said Ruzaika Mikatli, director of the public debt office at the Algerian finance ministry, according to the Al-Khabr newspaper. “We hope that this process will be completed before the end of June. We have instructions from the high authorities in the country to accelerate this process,” Mikatli told parliament on Wednesday, the newspaper said. Mikatli said that the 2025 budget law allows the finance ministry to issue sukuk for the first time in Algeria to enable citizens and foreigners to fund local projects. State first, market later for Algeria’s economic vision Omani fund to invest $300m in Algeria’s economy Chinese companies spearhead Algeria’s solar drive She said a committee created by the finance ministry and other relevant establishments is working to issue “simple Ijarah sukuk” on the grounds they are the most common and easiest to understand for professionals and citizens alike. Algeria is not rated by any of the big three credit ratings agencies. Traditionally it finances its budget deficits by issuing conventional interest-bearing bonds known as Obligations Assimilables du Tresor, or OATs, with maturities of seven, 10 and 15 years. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
