Algeria Suspends Tax Payments for Firms Affected by Coronavirus

A general view shows an empty street after a curfew was imposed to prevent the spread of the coronavirus in Algiers, Algeria on March 25, 2020. (Reuters)
A general view shows an empty street after a curfew was imposed to prevent the spread of the coronavirus in Algiers, Algeria on March 25, 2020. (Reuters)
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Algeria Suspends Tax Payments for Firms Affected by Coronavirus

A general view shows an empty street after a curfew was imposed to prevent the spread of the coronavirus in Algiers, Algeria on March 25, 2020. (Reuters)
A general view shows an empty street after a curfew was imposed to prevent the spread of the coronavirus in Algiers, Algeria on March 25, 2020. (Reuters)

Algeria’s government, aiming to ease the impact of the coronavirus lockdown on state and private firms, will freeze the payment of taxes, the finance ministry said on Monday.

The move, which comes amid growing pressure on state finances due to a drop in energy earnings, follows a decision earlier this year to suspend the implementation of penalties on companies for delays in carrying out projects.

The government has also approved a measure to defer or reschedule loan payments for firms suffering losses due to restrictions meant to limit the spread of the pandemic.

OPEC member Algeria’s economy has been significantly hit because of a fall in global crude oil prices since the coronavirus outbreak which pushed down demand on international markets.

Oil and gas account for 60% of the state budget and 93% of total export revenue as the authorities have failed for now to diversify the economy away from energy.

Lockdowns aimed at reining in infections have further affected production in the North African nation of 45 million people.

The economy contracted 3.9% in the first quarter of 2020 compared with a 1.3% growth in the same period last year, according to official data.

But that situation has not prevented the government from taking steps to help firms with the aim of maintaining output and jobs mainly in the non-energy sector.

“Those measures aim to alleviate the repercussions of the health crisis and ensure the revival and preservation (of firms’) activities,” the finance ministry said in a statement.



Saudi Real Estate Projects Surpass $40 Bn in 2024

Officials are seen at a panel discussion at the Real Estate Future Forum in Riyadh, Saudi Arabia. (Real Estate General Authority)
Officials are seen at a panel discussion at the Real Estate Future Forum in Riyadh, Saudi Arabia. (Real Estate General Authority)
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Saudi Real Estate Projects Surpass $40 Bn in 2024

Officials are seen at a panel discussion at the Real Estate Future Forum in Riyadh, Saudi Arabia. (Real Estate General Authority)
Officials are seen at a panel discussion at the Real Estate Future Forum in Riyadh, Saudi Arabia. (Real Estate General Authority)

Saudi Arabia’s real estate sector saw significant growth in 2024, with 192 licenses issued for projects valued at 147 billion riyals ($40 billion).

This growth is supported by new regulations and laws that reflect the government's focus on strengthening the market.

Speaking at the Real Estate Future Forum, held in Riyadh from January 27 to 29, Saudi Minister of Municipalities and Housing Majid Al-Hogail said the sector has introduced over 20 new real estate regulations in recent years. These changes aim to boost the sector's appeal, vitality and reliability.

“The real estate sector in Saudi Arabia is no longer just about urban development; it is now a key driver of economic and social change, as well as sustainability and innovation,” said Al-Hogail.

He also pointed out that the forum offers unique global opportunities to grow the real estate sector and improve quality of life by building sustainable cities with services that meet the needs of residents.

On the private sector, Al-Hogail explained it currently manages 39% of the real estate market and aims to increase this to 70%. He also noted that the sector’s revenue has grown fourfold in the past three years.

Abdullah Al-Hammad, CEO of the Real Estate General Authority, said that the real estate sector’s contribution to the gross domestic product reached 12%, reflecting its growing importance in the national economy.

“The real estate sector achieved the highest participation rate in the labor market, with 25% of the participants in the social insurance system,” Al-Hammad said, emphasizing the sector’s role in employment generation and economic diversification.

More than 1,130 licenses for foreign real estate investments were issued during the third quarter of 2024, demonstrating increased international interest in the Saudi market, he remarked.