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BNP Paribas to launch Islamic leasing product in Algeria

05.11.2014

The bank BNP Paribas El Djazair is preparing to launch a leasing product in accordance with the Islamic Sharia law in Algeria.

The bank BNP Paribas El Djazair is preparing to launch a leasing product in accordance with the Islamic Sharia law in Algeria.

"We are awaiting the regulator's approval to launch the product," CEO Pascal Fevre told TSA newspaper on Thursday 30 October.

" In conventional leasing, the customer starts to pay rent before being able to enjoy the good. The Ijara product allows him to take possession of the good first, enjoy it and pay later," said Fevre, adding that there is no limit to the value of the good that can be financed.

He explained that the decision to launch this offer was motivated by the attitude of some clients, as they were reluctant to turn to conventional financing.

Despite the importance of the Muslim population in Algeria, only a small percentage of financial transactions are carried out in accordance with the Sharia.

According to statistics published by American poll company Gallup, only three percent of Algerians would opt for Islamic finance products rather than more traditional means.

However, the survey suggests that this trend might evolve. Nearly half of respondents said they knew about Islamic finance.

More than 49 percent of Algerians were willing or eager to try these types of banking services.ADNFCR-2976-ID-801758441-ADNFCR