(Ecofin Agency) - Al Salam Bank, which previously held 37.43% of the Algerian bank's capital, has acquired additional shares from several shareholders following the amendment of the 51/49 rule governing foreign investment in Algeria. 

Bahraini banking group Al Salam Bank has increased its stake in Al Salam Bank Algeria (ASBA) from 37.43% to 53.13%. According to a press release published by the banking group on Wednesday, June 21. It thus becomes the majority shareholder in Algeria's leading Islamic bank.

Al Salam Bank said it bought back shares from various ASBA shareholders, following the amendment of the 51/49 rule governing foreign investment in Algeria. This highly controversial rule, which does not allow foreign investors to hold more than 49% stake in Algerian companies, no longer applies to the banking sector since 2017. The new provisions of the Algerian Investment Code now allow foreign investors to hold up to 66% of the capital of local banks.

The Bahraini group also said that the acquisition of additional shares in Al Salam Bank Algeria is "an important step in the growth strategy" of the Algerian bank established in 2006.

"The transaction will strengthen the growth prospects of Al Salam Bank Algeria, which aims to expand its financing portfolio, diversify its product offerings, increase its market share, and accelerate its digitalization process," it stressed.

With total assets growing at an average annual rate of 23.3% since 2010, Al Salam Bank Algeria is the fastest-growing banking institution in Algeria. At the end of the first quarter of 2023, its assets totaled $2.2 billion, while its financing portfolio stood at $1.3 billion.

The bank, which is Algeria's first Sharia-compliant bank, has 23 branches. Its activities include retail banking, corporate and investment banking, trade finance, and leasing.