How sovereign Sukuk Financing experiences could be adopted in Algeria

Abstract

This paper aims at demonstrating the contribution of sovereign instruments in maintaining economic stability and reducing the deficit. We shall be using a descriptive approach to display the concepts that are associated with the: Islamic finance, deficit financing and Sovereign Sukuk. We have presented and analyzed the experiences of some countries (Indonesia, Malaysia, Sudan, Saudi Arabia, Bahrain) in order to clarify the financing mechanisms by sovereign sukuk and their impact on the economies of these countries. Results highlight the importance of the Islamic sovereign Sukuk that represents the most appropriate mechanism at the state disposal towards managing efficiently Public Budget with more legitimacy.