Emaar Properties decided to liquidate its Algeria-based investments following the new foreign direct investment (DI) procedures imposed by the government since year-start.
These procedures included reviewing the Algerian party’s stake in the planned local projects and banning realty developers from maquette selling. Moreover, the real estate developer was faced by bureaucracy and implicit war within the local financial arena.
Emaar’s representative in Algeria, Abdelwahab Sofian, told Shorouknews that the MoU inked by the group and the Algerian government has become invalid , as per the Group’s decision, adding that the UAE’s developer will take the necessary legal procedures to withdraw from Algeria.
Sofian added that no one can comment on the Algerian sovereign decision, as the country’s interest is a priority.
However, prohibiting maquette selling obligates companies to fully finance their projects, driving foreign investors away. He said the withdrawal of a leading realty developer may suggest a negative indicator of the country’s investment environment.
Emaar has started evacuating its Algeria-based office, which was rent at more than $0.5 million to monitor its four ventures.
The UAE Group urged competent authorities to interfere to free its projects from imposed restrictions, and quell the rumors circulated by some anti-foreign investment parties in Algeria.
The Dubai-based property developer initiated four mixed-use projects in Algeria, valued at more than $20 billion. Costing $10 million for study and designs, these projects are the waterfront development by Algiers Bay at 260 hectares; the New City of Sidi Abdellah, a tourist resort at Colonel Abbas; and a modern healthcare city at Staouali County.
