Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Algeria prepares new investment law, aims for non-energy funding sources

09/16/2021 | 04:00pm EDT

ALGIERS, Sept 16 (Reuters) - Algeria is preparing a new investment law to improve its business climate and attract foreign investors with the aim of boosting the non-energy sector, Prime Minister Ayman Benabderrahmane said on Thursday.

He also announced plans to develop the country's small stock exchange and launch banking and financial reforms to find new funding sources for the oil-reliant economy.

OPEC member Algeria, which relies heavily on oil and gas exports, has been facing financial problems due to lower energy earnings. The situation worsened during the pandemic, which slammed crude demand and pressured international prices.

The North African country has so far failed to reduce reliance on energy despite promises to develop the non-energy sector, with both local and foreign investors complaining about obstacles, including bureaucracy.

"The government is working on a deep review of the investment law to take care of the various concerns of businessmen and the obstacles that prevented the realization of projects," Benabderrahmane, also finance minister, told parliament after debating government action plan.

"We want to create an attractive investment environment to attract foreign direct investment to our country."

The new law will be ready within a few weeks to be submitted to lawmakers for debate, he said, without providing details on plans.

Legislation approved last year allowed foreign investors to take majority stakes in projects in non-strategic sectors to diversify the economy away from oil and gas. Strategic sectors include mainly energy and pharmaceutical industries.

The new investment law will be accompanied by other measures to seek new financing sources, including developing the Algiers stock exchange, improving banks management, encouraging partnerships between private and state firms to carry out major projects and opening door for greater role of Islamic finances, Benaberrahmane said.

"The banking and financial reform will allow a transparent and efficient management," he said, repeating the government will sell stakes in some of the country's six state banks.

The Algiers bourse is still one of the world's smallest, with a law capitalisation compared with neighbouring Tunisia and Morocco.

"We want to have alternative funding methods," Benabderrahmane said. (Reporting by Hamid Ould Ahmed; Editing by David Gregorio)

ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
LONDON BRENT OIL 0.72% 84.89 Delayed Quote.62.65%
WTI 1.09% 82.468 Delayed Quote.69.35%
Latest news "Economy & Forex"
12:12pAPEC ASIA PACIFIC ECONOMIC COOPERATION : New Zealand Joins APEC's Efforts to Implement Ethics Pacts, Strengthens Small Businesses & Patient Health
12:02pBANK OF THAILAND : Thai Version Only
11:40aBOX OFFICE : 'Halloween Kills' Scores Bloody Great $50.3 Million Debut, 'The Last Duel' Bombs
11:26aChina faces challenges from 'mismanagement' at certain firms, says PBOC head
10:55aBank of England will have to act to contain inflation - Bailey
10:32aNOC NATIONAL OIL : The National Oil Corporation, in cooperation with the Italian company Eni, inaugurates the desalination plant project at the Sabratha Cancer Institute.
08:43aEgypt's oil minister says foreign investments down 26% to $5.4 bln in 2020-21
08:32aWORLD BANK : End Poverty Day – time to regroup and build back better
08:24aCzech opposition parties plan lower 2022 budget deficit after election win
05:29aChina's coal shortage to ease in coming months, industry body says
Latest news "Economy & Forex"