Turkey is expanding its economic presence in Algeria into the banking sector. Already present in steel with Tosyali, textiles, and construction, it has recently obtained authorization to establish a branch of Ziraat Bankasi, its first public bank in Algeria.
This marks the first time a Turkish banking institution has entered the Algerian market, which is dominated by public banks.
The Bank of Algeria has indeed granted, by decision No. 25-02 dated January 16, 2025, an approval to T.C Ziraat Bankasi-Algeria. This decision was published in the Official Gazette No. 7 this Friday, February 7, confirming the announcement of the branch opening made at the end of January by the bank’s executives.
“The branch of Ziraat Bankasi-Algeria is located at 7 Larbi Alik Street, Hydra-Alger. An endowment of twenty billion dinars (20,000,000,000 DA), fully paid and in cash, has been allocated to said bank branch,” specified the Bank of Algeria in its decision reviewed by TSA Algérie. The amount of 20 billion dinars, equivalent to 150 million dollars at the current rate (one dollar = 135 dinars), is the minimum required by the Bank of Algeria for opening a bank in the country.
Ziraat Bankasi-Algeria is “under the responsibility and direction of Tolga Deniz ILGAR, as General Manager, and Humayun ASIM, as Deputy General Manager,” added the same source.
Turkish Bank Ziraat Bankasi Authorized to Open a Branch in Algeria
Ziraat-Bankasi-Algeria can perform “all banking operations,” the Bank of Algeria stated, adding that this approval can be withdrawn in two cases.
The first case is upon “request of the bank or ex officio, in accordance with Article 104 of the law of June 21, 2023.” This article stipulates that Algeria can withdraw a bank’s license in two situations:
- At the “request of the bank, financial institution, independent brokerage intermediary, exchange office, or payment service provider.”
- Or, it can be withdrawn ex officio “when the conditions for which the approval was granted are no longer met, if no use has been made of the approval for a period of 12 months, or if the activity for which the approval was granted has ceased for 6 months.”
The second case involves “reasons listed in Article 126 of Law No. 23-09 dated June 21, 2023” concerning Monetary and Banking Law. This article specifies that license withdrawal can be decided “if a subject has violated a legislative or regulatory provision related to their activity, has not complied with an injunction, or has disregarded a warning.”
The arrival of Ziraat Bankasi illustrates Turkey’s interest in developing economic relations with Algeria. In 2023, Algeria exported goods worth 3.6 billion dollars to Turkey, from which it imported goods worth 2.5 billion dollars, according to figures provided by Trade Minister Tayeb Zitouni in June last year. The goal is to reach a trade volume of 10 billion dollars by 2030, compared to 7 billion in 2023, the minister stated during the Algerian-Turkish business forum.
