The Importance of Adopting Istisna Financing in Algerian Banks to Increase the Efficiency of Islamic Banking Activity and Support the Business Sector

Abstract

The study aims to highlight the importance of resorting to Istisna financing—one of the most important forms of Islamic finance—in improving the efficiency of financing in Algerian banking institutions, especially in light of the significant challenges in providing sufficient liquidity within these institutions and their inability to mobilize resources when dealing with interest-based transactions. Additionally, there are difficulties stemming from the reduced operational efficiency in the units seeking financing, which leads banking institutions to approach them cautiously due to insufficient guarantees and high risk.

Therefore, the study seeks to clarify the basic concepts of the Istisna financing contract, its importance in Islamic banking institutions, and shed some light on its application and relevance in banks operating in Algeria.