Foreign investments in Algeria failed to reach expectations

As a reaction to the criticism launched by the Algerian president towards foreign investors, the government has appointed experts to carry out a thorough survey of the direct investments at the level of the National Office for Investment’s Promotion in Algeria.

• One of the major changes that the government intends to make consists in reconsidering the incentive policy implemented to attract foreign investors and bar the route for speculators
• Estimates released by the Algerian central Bank reveal that the Algeria- based foreign companies have transferred the amount of $ 15.7 billions over the period 2005-2007, in comparison to $6.5 billions as from 2001 to 2004, putting the gross total of money transfer abroad to $22.2 billions from 2001 to 2007.
• The same estimates showed that foreign companies recorded net profits amounted to $ 5.6 billions in2006 compared to $5.1billions in 2005 to shrink to $ 4.7 billions in 2007 due to the revision of the law on hydrocarbons.
•  President Bouteflika has staunchly lashed at foreign investors who benefited from the facilities and incentives provided by the Algerian authorities to make money at the nation’s expense and transfer tremendous sums of money abroad.