Algerian market's capital still flowing

The Bahrain-based Arab Banking Corporation and the Algerian government signed an agreement to establish a local branch of the corporation in the form of an independent bank with a value of $20 million, of which the corporation will own 80% while the rest will be distributed among other Gulf corporations.

After signing the agreement, the corporation's manager for North Africa said the bank is confident in the promising Algerian economy and said the company will examine the possibility of increasing the number of its branches in other cities. Despite continued violence in Algeria over several years that costs the country about $1 billion annually in security expenses, investment in the Algerian market continues.

The local branch being established by the Arab corporation is the third of its type after branches were set up by US Citibank and French Societe Generale. Italian corporations are also taking steps to enter the Algerian market in the future.

These developments came as a direct response to the efforts exerted by the Algerian government to attract foreign investors.