Algeria's Groundbreaking Move: First Sovereign Sukuk Issuance Set for November

Algeria plans to launch its inaugural sovereign sukuk, valued at $2.3 billion, starting November. The initiative aims to diversify the nation's financial sources beyond oil, aligning with broader economic reforms. It solely targets Algerian investors and is backed by state-owned real estate, offering a 6% annual return over seven years.

Algeria is set to issue its first-ever sovereign sukuk, valued at $2.3 billion, according to official documents and insider sources. This significant financial move is scheduled for November, as the nation seeks to expand its financing options and lessen its dependence on oil revenues.

The subscription will commence on November 2, continuing for two months, as part of Algeria's broader economic reforms. The sukuk, backed by state-owned real estate, will be available exclusively to Algerian residents both domestically and abroad, excluding foreign investors.

Offering a fixed annual return of 6% over seven years, the sukuk is a strategic step toward enhancing Algeria's Islamic finance sector. This initiative is crucial for channeling funds outside the traditional banking system, reflecting the country's commitment to financial diversification and growth.

(With inputs from agencies.)