Overview
After legal and market developments in 2024-2025, most major Algerian banks now offer Islamic finance products (Mourabaha, Ijara, Musharaka). This 2025 guide summarizes the main providers and product types.
Why focus on Islamic finance?
- It aligns with the desire of a large segment of citizens to avoid interest-based (usurious) loans.
- The new legislation and the expansion of banking products have made Islamic options more widely available than before.
Main banks offering Sharia-compliant home finance
- Al Baraka Bank Algeria — Mourabaha solutions and online simulators for home purchases.
- Al Salam Bank Algeria — Sharia-compliant product range (Dar Essalam).
- BNA — rolled out Islamic finance product lines; Islamic deposits ~ DZD 50bn as of March 2025.
- CPA — Islamic finance window (Mourabaha, Ijara); deposits exceeded DZD 53bn by early 2025.
- CNEP — opening branches dedicated to Islamic finance.
Understanding common Islamic formulas for home purchase
- Murabaha (مرابحة): The bank buys the property and sells it to the buyer with a known profit margin, to be paid in installments.
- Ijara (إجارة): Leasing with an option to purchase at the end of the term or gradual ownership sharing.
- Musharaka / Mudaraba (مشاركة / مضاربة): A partnership between the bank and the buyer to acquire the property, with shared ownership and gradual payment.
Comparison table (reference 2025)
| Bank | Islamic product | Typical term | Note |
|---|---|---|---|
| BNA | Mourabaha / Islamic offers | Up to 25-30 yrs | Islamic deposits ≈ DZD 50bn (Mar 2025). |
| CPA | Mourabaha / Ijara / Musharaka | Up to 30-40 yrs | Islamic deposits > DZD 53bn (2025). |
| Al Baraka | Mourabaha | Up to 25-30 yrs | Online simulators available. |
| Al Salam | Sharia-compliant products | Up to 30 yrs | Sharia committee & licensed bank. |
| CNEP | Islamic products | 20-35 yrs | Dedicated branches for Islamic finance. |
Buyer tips
- Request a clear written simulation showing purchase price, bank margin and repayment schedule.
- Check for Sharia compliance certificate and the bank’s Sharia committee.