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The Impact of Islamic Financing at Al Baraka Bank on the Growth of the Country’s Cover

The Impact of Islamic Financing at Al Baraka Bank on the Growth of the Country’s

By: Bilal Hasnaoui  
Open Access
|Dec 2025

Abstract

Purpose

This study aims to explore the impact of Islamic finance at Al Baraka Bank on the growth of Algeria’s Gross Domestic Product (GDP). It focuses on the development of the Islamic finance market in the Algerian economy, examining the size of Shariah-compliant financial assets and the role of the bank’s intermediation structure based on profit-and-loss sharing.

Design/methodology/approach

The study utilizes statistical data from the EViews system to model the relationship between Islamic finance (independent variable) and GDP (dependent variable), based on hypotheses developed to examine the relationship between the variables.

Findings

The study includes an analysis of the budget allocated to Islamic financial services, along with an overview of total deposits and equity at Al Baraka Bank. These represent the financing sources used to deploy Islamic financial products in Algeria through the bank’s Shariah-compliant framework.

Originality/value

This study investigates the role of the first Islamic bank in Algeria, established in 2006, in contributing to economic growth through Shariah-compliant financial practices.

DOI: https://doi.org/10.2478/ers-2025-0024 | Journal eISSN: 2451-182X | Journal ISSN: 2083-3725
Language: English
Page range: 325 - 340
Submitted on: Jun 1, 2025
|
Accepted on: Jul 1, 2025
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Published on: Dec 11, 2025
In partnership with: Paradigm Publishing Services
Publication frequency: 4 issues per year

© 2025 Bilal Hasnaoui, published by John Paul II University of Applied Sciences
This work is licensed under the Creative Commons Attribution 4.0 License.