Algeria's Groundbreaking $2.3 Billion Sukuk Launch

Algeria is set to launch its first-ever sovereign sukuk in November, worth $2.3 billion, to diversify its financial resources and reduce reliance on oil. The subscription period starts November 2, open to Algerians globally, but excluding foreign investors. Real estate assets back the sukuk, offering 6% annual returns over seven years.

In a historic financial move, Algeria will launch its inaugural sovereign sukuk, valued at $2.3 billion, as early as November. Aimed at diversifying the nation's financial avenues, the initiative is part of broader economic reforms to decrease dependency on oil revenues.

According to a finance ministry document, the subscription period will commence on November 2, lasting for two months. Open to Algerians worldwide, the opportunity excludes foreign investors.

The issuance is backed by state-owned real estate, carrying a fixed annual lease return of 6% over seven years, marking a pivotal step towards expanding Algeria's Islamic finance sector.

(With inputs from agencies.)