Islamic Windows as a Bridge Towards Islamic Banking in Algeria: An Inductive Study of Organizational and Operational Obstacles and Proposed Solutions

Abstract

This study examines Islamic banking windows in Algeria as transitional mechanisms toward full Islamic banking. Using an inductive approach, it identifies major challenges, including regulatory gaps, limited Sharia governance, insufficient qualified staff, and weak integration with conventional banking systems, alongside customer perception and competitive pressures. Despite these obstacles, Islamic windows have evolved from experimental initiatives into a growing sector. Data from 2024 indicate their increasing role in mobilizing savings and financing the economy. The sector’s future growth depends on diversifying products, strengthening operational frameworks, and enhancing human and institutional capacities to sustain double-digit expansion and deepen financial inclusion.