Algeria's inaugural issuance of Islamic bonds marks a symbolic step toward diversifying government funding, but the limited size of the effort means it will have minimal short-term impact on reducing dependence on hydrocarbon revenue and more traditional forms of raising government funds. Algeria is set to issue its inaugural sukuk, or Islamic bonds, with a seven-year maturity and a 6% fixed annual return in early 2026. According to reports, the initial issuance will be valued at around 297 billion Algerian dinars, or $2.3 billion, equivalent to about 1% of the country's GDP. The bond sale -- which was initially planned for November 2025 but later postponed due to government efforts to finalize debt issuance regulations -- is only open to Algerian citizens and backed by state-owned real estate assets. The original plans for sukuk issuance, initially reported in September, came during early discussions for Algeria's 2026 fiscal year budget. ...
