The National Youth Employment Support Agency (Ansej), Algeria’s public body that manages the business creation fund, has announced the implementation of Sharia-compliant financial products as of November 2020.
The Agency will collaborate with the National Bank of Algeria for the implementation of this mode of financing based on the principles of Islamic law. The Islamic financial products that will be proposed as well as the terms and conditions for their granting are not yet known.
According to Mohamed Cherif Bouaoud, Director of Ansej, this mode of financing will be more beneficial to entrepreneurs living in remote areas. Islamic finance represents a financing option for young project leaders who have difficulty in raising funds. The zero interest rate and the system of sharing profits with customers are all advantages of this type of financing.