March 30, 2020
This paper seeks to study some obstacles that led Islamic banks in Algeria to avoid using mudarabah in finance. where it touched on the concept of Mudarabah and its types, then to the most important regulatory obstacles, namely the regulations issued by the central bank and related to the legal reserves, and the liquidity ratio, It also referred to the money and loan law, which provides for setting the ownership of banks and acquiring shares, then double taxation was explained in the tax law through the professional activity tax and corporate profits tax, also pointed out that the lack of specialized texts on mudarabah in commercial law and civil law is a legal vacuum that is an obstacle to the Islamic banks in Algeria, then explained the obstacles related to the nature of the mudarabah contract, which is the Prohibition of warranty, and investing capital without having any control in the management of the venture. Finally, the study attempted to propose practical solutions that would contribute to removing or reducing these obstacles. Keywords: Mudarabah, Islamic Finance, Islamic Banks, Algeria.