Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and Bank of Algeria recently signed a memorandum of understanding (MOU) as part of their efforts to further promote Islamic banking and finance market in Algeria, and strengthen ties between the two organisations. The signing ceremony was held virtually on the 30^th of December, 2021.

Under the agreement, both institutions aim to work in the areas of common interest that support the development of Islamic finance industry in Algeria. This includes meaningful exchange of information, conducting joint capacity-building programmes related to AAOIFI standards in Algeria, as well as host events and activities to enhance awareness of Islamic finance within the local market for the benefit of various stakeholders including professionals working in regulatory and supervisory institutions, banks and financial institutions, academia and Shari’ah scholars and others.

On this occasion, the Governor of Bank of Algeria, H.E. Mr. Rosthom Fadli appreciated AAOIFI’s efforts towards developing the Islamic Finance industry in Algeria. Bank of Algeria’s MOU with AAOIFI covers the possible adoption of relevant AAOIFI standards by the local Islamic banking and finance industry, and cooperation in the area of capacity building.

His Excellency added that Bank of Algeria recognizes the importance of establishing formal ties with AAOIFI as this is in line with the Bank’s long-term vision towards enhancing Islamic banking and finance industry in the country.

From his side, the Secretary General of AAOIFI, Mr. Omar Mustafa Ansari stated that “AAOIFI is extremely pleased to sign this MOU with Bank of Algeria. Algeria is one country where the foundations of AAOIFI were laid with the signing of a memo to establish it in the year 1990. We sincerely hope that through this collaboration AAOIFI and Bank of Algeria will jointly work to spread awareness of Shari’ah compliant financial solutions in Algeria, as well as equip market participants to enhance their understanding and knowledge, absorb the growing demand of Islamic finance products and services and serve them accordingly”.

Mr. Abdelhamid Boulouadnine, General Manager of Credit and Banking Regulation, representing Bank of Algeria at the MOU signing ceremony, stated: “We are glad and honoured to sign this agreement and we look forward to a long and beneficial mutual relationship between Bank of Algeria and AAOIFI and we hope through this partnership we will be able to follow and adapt AAOIFI standards for the benefit of the industry. As banking system supervisor, Bank of Algeria recognizes the importance of establishing a mechanism of mutual co-operation, collaboration and support with AAOIFI, considering its experience in developing Shari’ah, accounting, auditing, governance and ethics standards for this industry.”

The bank of Algeria’s representative has also presented the situation of Islamic Finance in Algeria, especially, after issuing the first regulation in March 2020, related to the Islamic Financial operations and their practicing conditions.