Algeria Embarks on Privatization as Part of Reforms

People wearing protective masks walk past the La Grande Poste (main post office) building in the center of the capital Algiers, Algeria, Aug. 12, 2020. (AFP)
People wearing protective masks walk past the La Grande Poste (main post office) building in the center of the capital Algiers, Algeria, Aug. 12, 2020. (AFP)
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Algeria Embarks on Privatization as Part of Reforms

People wearing protective masks walk past the La Grande Poste (main post office) building in the center of the capital Algiers, Algeria, Aug. 12, 2020. (AFP)
People wearing protective masks walk past the La Grande Poste (main post office) building in the center of the capital Algiers, Algeria, Aug. 12, 2020. (AFP)

Algerian President Abdelmadjid Tebboune ordered the government to sell stakes in state-owned companies and banks as part of the long-awaited economic reforms.

This is the first time Tebboune presents tangible steps that the government should take, after his vow to reform the economy.

Reforms in Algeria aim at reducing reliance on oil and gas, which account for 60 percent of the state budget and 94 percent of export revenues.

The plan to open up state-owned firms to private capital intends to “find effective solutions” and avoid “administrative management”, the presidency added after a cabinet meeting chaired by Tebboune.

He did not give details on the number or size of companies and banks involved.

Algeria has six state banks, representing 95 percent of the banking assets.

Moreover, Tebboune underlined the recovery of the national economy, which recorded a growth of 3.8 percent.

He assured citizens about the economic situation, saying that all the indicators, including the reports of the World Bank and the IMF speak of progress.

Tebboune added that the state-owned banks granted loans worth 1,665 billion Tunisian dinars, describing this as is a good investment.

Foreign exchange reserves reached $44 billion, he added.

Furthermore, he stressed that Algeria was diversifying its economy away from oil.

It exported $2 billion worth of non-oil products in the last six months. The total is expected to reach $4-$5 billion by the end of the year.



Saudi Sovereign Fund Allocates $19.4 Billion for Green Projects Spending

King Abdullah Financial Center in Riyadh (Asharq Al-Awsat)
King Abdullah Financial Center in Riyadh (Asharq Al-Awsat)
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Saudi Sovereign Fund Allocates $19.4 Billion for Green Projects Spending

King Abdullah Financial Center in Riyadh (Asharq Al-Awsat)
King Abdullah Financial Center in Riyadh (Asharq Al-Awsat)

The Saudi Public Investment Fund (PIF) has earmarked $19.4 billion for eligible green projects, with $5.2 billion allocated by June of this year.

As one of the largest sovereign wealth funds in the world and the investment arm of Saudi Vision 2030, PIF places significant emphasis on the utilities and renewable energy sectors, which are considered strategic. The fund also supports the Saudi Green Initiative and the National Renewable Energy Program under the Ministry of Energy.

On Friday, PIF published the second edition of its Investment Allocation and Impact Report, reaffirming its commitment to transparency and disclosure at various stages of its green financing initiatives. The allocated funds will be directed towards spending on renewable energy projects, green buildings, and sustainable water management.

According to the report, new eligible green projects will soon be added to PIF’s green financing portfolio, including a wide range of initiatives in renewable energy, sustainable water management, green buildings, pollution prevention, energy efficiency, sustainable management of living natural resources and land, and clean transportation.

The report also highlights that all eligible green projects contribute to the United Nations Sustainable Development Goals and are expected to deliver significant environmental benefits.

In October 2022, PIF issued the first green bonds from a sovereign wealth fund globally, including century-long green bonds. This issuance helps diversify the fund’s financing sources and supports green investments that positively impact the Saudi economy.

PIF has been rated “A1” by Moody’s with a positive outlook and “A+” by Fitch Ratings with a stable outlook.