The Algerian government admitted that the economic challenges posed by the Corona pandemic and the fall in crude prices impose the need to amend the investment and economy compass, by granting full ownership benefits to foreigners in non-strategic sectors, which raises political controversy.
The Algerian Minister of Finance, Ayman bin Abdurrahman, revealed that Algeria is planning economic reforms that allow foreign investors full ownership of projects in non-strategic sectors, in the latest series of measures to reduce pressure on the oil-dependent economy. Early this year, Algeria scrapped a rule preventing foreigners from owning stakes in excess of 49 percent as part of the effort to improve the investment climate and diversify its economy away from oil and gas.
According to the government, strategic sectors mainly include oil and gas, mining, and transportation infrastructure such as railways, ports and airports, as well as the pharmaceutical industry.
The new amendment exempts foreign investors working in sectors outside those of a strategic nature from the obligation to partner with a local party. The government aims to revive the national economy and reduce its dependence on oil and gas. Such a measure, by granting ownership to foreign investors, has long been controversial in political circles, as it is considered a decision that would compromise the sovereignty of wealth, while economists demand the necessity of granting additional facilities for investment.
Source (Al-Araby Al-Jadeed Newspaper, Edited)
