The Effectiveness of the Structural and Functional Organization of Islamic Banking Windows in Algeria: A Critical Examination of Sharia Compliance, Operational Integration, and Financial Performance

This article critically investigates the effectiveness of the structural and functional organization of Islamic banking windows in Algeria as an alternative financing mechanism within conventional banks.Structurally, Islamic banking windows require the alignment of departments, governance frameworks, and regulatory bodies to ensure adherence to Sharia principles while simultaneously meeting administrative and prudential banking requirements.Functionally, these windows depend on the diversification of products and services-particularly mudaraba, musharaka, murabaha, and ijara-to enhance their competitiveness against conventional offerings and to sustain financial inclusion.Drawing upon both doctrinal legal analysis and an institutional assessment of Algeria's regulatory framework, the study reveals that while Islamic banking windows have created opportunities for expanding Sharia-compliant financial services, their effectiveness remains constrained by weak coordination between supervisory institutions, insufficient human capital training in Islamic finance, and limited innovation in product diversification.The findings highlight that Islamic banking windows in Algeria can only achieve sustainable performance through the establishment of robust Sharia supervisory boards, the development of specialized risk management structures, and the adoption of technological solutions tailored for Islamic finance.Ultimately, the study underscores that Islamic banking windows should be seen not as parallel systems but as integrated models capable of contributing to both national financial stability and the fulfillment of societal demand for ethical finance.