The Parameters of Islamic Finance and Their Role in Improving the Investment Environment in Algeria, a Critical Analytical Study

Abstract

This study aims to shed light on the parameters of Islamic finance and the extent to which they contribute to improving the investment environment in the Algerian economy. We find that the package of legal, ideological, economic, social and ethical parameters for Islamic finance support the creation of an investment environment free of manifestations of corruption, ambiguity and injustice in which investment varies according to the needs and requirements of society. Local investment thrives with it, which leads to achieving sustainable economic and social well-being. The research also analytically examined the Algerian investment environment by studying the overall economic situation and the reality of domestic and foreign investment, and then the status of the Algerian economy according to indicators of global competitiveness and corruption. The study concluded that the situation of real domestic and foreign investment in Algeria is still far below average as per the global indicators. The study recommended the adoption of a set of Islamic finance parameters in order to increase Algerian domestic production capacity, attract foreign investment, and improve the internal investment environment.