Performance and Sharia Compliance of Islamic consumer financing: Evidence from the foreign bank of Algeria (BEA) – Arzew Branch (2020–2024)
Keywords:
Islamic finance, Islamic banking, Foreign bank of algeria, Arzew branch, murabaha, 2020–2024Abstract
This article aims to analyze the experience of implementing Islamic finance at the Foreign bank of Algeria through a case study of the Arzew branch during the period 2020–2024, which marked the effective launch of Islamic banking in Algeria's public banks following the issuance of the regulatory framework in 2020. The study adopted a descriptive, analytical, and statistical approach to present the theoretical concepts of Islamic finance, identify its adopted modes, and analyze its operational and financial performance within the branch. The results indicate that the integration of Islamic products—primarily murabaha, ijara, and mudaraba—has enhanced the branch's attractiveness and attracted new customer segments, despite challenges related to awareness-raising, marketing, and competency development. The study concludes that advancing Islamic finance requires updating management mechanisms, expanding the product base, and supporting digital transformation to achieve greater efficiency in Islamic banking within Algerian banks.
References
Shari’ah Standards.
Academy International Islamic Fiqh. (2015). Resolutions and Recommendations on Financial Transactions.
BANK OF ALGERIA . (2020). Regulation No. 20-02 concerning Islamic banking products.
Chapra, M. U. (2016). Islamic Finance: What It Is and What It Could Be. Djedda: Islamic Development Bank.
Development Islamic Bank. (1975). Agreement establishing the Islamic Development Bank. Djedda: Islamic Development Bank.
El-Gamal, M. (2006). Islamic Finance: Law, Economics, and Practice. . Cambridge University Press.
Financial, A. (. (2020). Shari’ah Standards.
Iqbal, Z., & Mirakhor , A. (2017). Islamic Finance: Theory and Practice.
Siddiqi, M. N. (2018). Partnership and Profit-Sharing in Islamic Finance.
Taymiyyah, I. (2004). Majmu‘ al-Fatawa (Collected Fatwas), edited by ‘Abd al-Rahman ibn Qasim.
The Islamic Financial Services Board. (2019). Core principles for Islamic finance regulation. (IFSB).
Published
How to Cite
Issue
Section
Copyright (c) 2026 Farida Lakahal, Fatima Zohra Benchikha
This work is licensed under a Creative Commons Attribution 4.0 International License.
Allows users to: distribute and copy the article; create extracts, abstracts, and other revised versions, adaptations or derivative works of or from an article (such as a translation); include in a collective work (such as an anthology); and text or data mine the article. These uses are permitted even for commercial purposes, provided the user: gives appropriate credit to the author(s) (with a link to the formal publication through the relevant URL ID); includes a link to the license; indicates if changes were made; and does not represent the author(s) as endorsing the adaptation of the article or modify the article in such a way as to damage the authors' honor or reputation. CC BY
