The impact of Islamic finance on Financial Inclusion Evidence from Algeria

Abstract

Abstract: The study aims to highlight the impact of Islamic finance on financial inclusion in Algeria over the period (2004 – 2021) using a multiple linear regression model. The total deposits of Al Baraka Bank Algeria were used as a measure of Islamic finance (dependent variable), and the number of ATMs was used as an indicator of financial inclusion (independent variable). The study concluded that there is a significant effect and positive relationship between Islamic finance and financial inclusion. However, the impact of Islamic finance on financial inclusion is weak in Algeria. This is attributed to the small number of Islamic bank branches and the high costs of Islamic financial services. And The Islamic financial industry in Algeria is still in its early stages.