Advances in financial technology (fintech) have been slow to arrive to Algeria. A low bank penetration rate remains a significant challenge, notwithstanding substantial progress in recent years (see analysis), as do a cultural preference for cash and the dominance of state-run banks that have little incentive to innovate.
Welcoming only a few new entrants to the market, the structure of Algeria’s insurance sector has remained relatively stable in recent years, with the four largest state-run insurers continuing to dominate. Purely private sector insurers capture less than one-quarter of the market, despite making modest gains of late. While the life insurance...
The shadow of Algeria’s civil conflict in the 1990s and the authorities’ subsequent reluctance to be seen as empowering political Islam has delayed domestic growth in sharia-compliant finance. Further, the economic slowdown brought on by weak oil prices has been a big factor behind the drying up of liquidity in the banking system. In turn,...
As bank borrowing becomes increasingly expensive, capital markets are emerging as a financing alternative for a range of domestic firms. This is true of the government as well, as large fiscal deficits mean financing needs are likely to remain significant. Before hydrocarbons prices fell in 2014 – and the resulting economic headwinds occurred...
Internet and mobile banking in Algeria are still in the early stages of development, but market observers see these technologies as having great potential to improve financial inclusion if the relevant legal, regulatory and logistical frameworks are put in place.
TAX ANALYSIS: The Algerian tax system is structured and governed through five key tax codes:
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