Algeria has undertaken several reforms to attract foreign investors, particularly in the banking sector. The new monetary and banking law has completed a whole legislative arsenal that goes in this direction.
This law aims to modernize the banking system, strengthen its regulatory and supervisory missions, and enable it to be in tune with the force methods internationally. It was promulgated and published in the official journal on June 21, 2023.
The promulgation of this law aroused the interest of certain international financial institutions. The Tunisian bank Zitouna, specializing in Islamic finance, has shown interest in setting up in Algeria. Indeed, the ordinary general meeting of Banque Zitouna, held on February 2, 2024, approved the creation of Banque Zitouna Algeria.
This decision was taken following the reforms undertaken by Algeria in the banking sector. Banque Zitouna was indeed delighted with the cancellation of rule 51/49. Its General Assembly therefore approved the creation of an Islamic Bank in Algeria and asked the Board of Directors to ensure compliance with completion deadlines following the proposed schedule.
It should be noted that Banque Zitouna is a Tunisian commercial bank specializing in Islamic finance, i.e. the marketing of financial products that respect Islamic Sharia law. The bank was founded in 2009 by Tunisian businessman Mohamed Sakhr El Materi, son-in-law of the former president of Tunisia, Zine el-Abidine Ben Ali, with opening to the public in 2010.
On January 19, 2011, the bank was placed under provisional administration by the Central Bank of Tunisia (BCT). In 2018, the State sold its 69.15% stake to the Qatari group Majda.
The new law guarantees banks a legal framework for the exercise of activity relating to Islamic finance
a legal framework for the exercise of activity relating to Islamic finance which establishes, in particular, the possibility of approving banks and financial institutions carrying out exclusively operations linked to Islamic finance”, according to articles 70, 71, and 72.
It is notable at the basis of this article that the Tunisian bank wants to set up in Algeria. The law aims to “strengthen monitoring and control mechanisms, particularly through the creation of new committees, such as financial stability ”.
These committees will be responsible for “macro-prudential control and crisis management, in addition to the national payment committees, whose main mission is to develop the draft national strategy for the development of cashless means of payment, to strengthen banking transactions and financial inclusion”.
