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

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.