The Algerian parliament passed a legislation allowing foreign investors to hold majority stakes in "non-strategic sectors" projects, as part of the country's effort to diversify its economy away from oil and gas. The parliament also approved increases in gasoline and diesel prices and new car taxes to help the country offset a sharp drop in energy revenues.
The government had announced its plan to open the doors of non-strategic sectors to more foreign investment earlier this year. Algeria, a member of OPEC, has increased the need to diversify its economy in light of the recent sharp drop in oil prices in the wake of the Coronavirus epidemic.
The drop in global oil prices prompted the Algerian government to cut spending and postpone projects that were scheduled for this year, but it kept the policy of support as it is to avoid social unrest. As a result, the government expects the economy to contract by 2.6% this year after achieving a 0.8% growth in 2019.
Source (Al-Arabiya.net website, Edited)
