Algeria to end the “51/49 rule”:Doors open to foreign investment?

Economic news

The Algerian government has announced the end of the ‘51/49 rule’ governing foreign investment. This famous rule caps foreign ownership of a company incorporated under Algerian law at 49%, versus 51% for a local investor, thereby requiring the foreign investor to form a joint venture with an Algerian company.

The initiative is encouraging sign for the Algerian economy and foreign direct investment could make a comeback in the country. However, it will require a review of the finance law for 2020 which raises several pending questions.

Source : The Africa Report

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