Abstract

Algeria depends solely on publicly produced housing. Algeria’shousing industry has been lagging behind in its development. This has causedmany citizens to struggle with finding proper housing. Aside from being oneof the highest countries in terms of rent rates, construction and distribution ofpublic houses in Algeria takes more than 15 years of waiting. Despite that thequality of the housing is bad. This paper proposes Shari’ah-compliant housingcertificates, a new Islamic financial instrument that would assist in houseconstruction in Algeria. This instrument uses Istisnaʽ as the underlying contractand accommodates guaranteed returns as well as negotiability for investors. Ithas great potential in contributing to solving the prolonged problem of housingin Algeria as well as countries facing problems in financing the construction ofhousing.