Effects of Islamic banking on economic growth (The case of Islamic banks in Algeria)

Abstract

This study aims to testing the relationship between the financing offered by islamic bank and their impact on economic growth as measured by the GDP of Algeria during the period 1998- 2023, where we adopted in the study of financial development in Algeria through the total funds provided by islamic banks represented in Al baraka and Salam bank ,we looked at the most important products offered by islamic banks through their total transactions. We have found that there is a strong relationship between the selected variables and economic growth in general. There is also a direct correlation between islamic financing and economic growth. Is that the Murabaha product is one of the most traded products in the Algerian market.