The Algerian parliament on Monday adopted by majority of votes the 37 proposed amendments of the new investment law.

Minister of Industry and Mines Abdeslam Bouchouareb said that this project is an important step in the process of reforms undertaken by his department over the last two years.

Following the steady drop in oil prices for the last two years,  the government has been seeking to diverse its economy by boosting non-oil industries in order to stem the crisis. Oil and gas represent 92 percent of the nation's foreign exchange revenues.

In fact, the government started by drawing up the major axes of a new model of economic growth, which is to release gradually the country from hydrocarbons dependence.

The newly adopted investment law would pave the way for the government to boost Foreign Direct Investment (FDI), curb imports and boost key sectors, including agriculture, industry and tourism.

Thus, the controversial 49/51 rule is due to be limited only to "strategic sectors," including energy and finance, in a bid to boost FDI.

The 49/51 rule was introduced in the Budget Law of 2009, to provide the majority stake in partnership projects to Algerian operators. This measure was repeatedly criticized by foreign companies.

According to the report of the United Nations Conference on Trade and Development (UNCTAD) released on June 21, Algeria has experienced a decline in FDI flows, despite a noticeable recovery in the North Africa region.

Source:
courtesy of XINHUA NEWS AGENCY

by Xinhua News Agency

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