At the same time, however, it is believed that Algerian monetary reserves in US banks are threatened by the current US financial situation and that could result in an inflow of currency physically back into Algeria. This currency could be diversified into many areas, including property.
The Saudi-owned company Snasco has announced plans to invest into the Algerian market and expand in the Arab region. Snasco holds a considerable number of properties and other investments in their portfolio including the Dh2 Billion Sharjah Investment Centre. The real estate company has been a major player in the United Arab Emirates (UAE) real estate market, particularly in Sharjah.
Snasco chairman Saleh Al Sorayai said, "The Arab world's growing role in the global economy has opened up opportunities and the company is willing to enter prospective markets." He went on to continue, "Entering the Algerian property market is part of our strategy. Expansion throughout the UAE and the Arab region currently feature heavily on the agenda and there are possible projects in the pipeline in Abu Dhabi and Jordan."
It appears as though Snasco has done considerable due diligence in regards to the Algerian market and noted that Algeria had received approximately $20bn of investment funds, primarily from Arabian sources, in the areas of tourism, agriculture, property investments, and commodities. Relatively low key, Algeria seems as though it is headed on its way towards a stable economic boom and market expansion.
The fact that Algeria has control over its own very valuable hydrocarbon resources is quickly becoming known by everyone, particularly the consumption heavy European Union. Al Sorayai commented, "This combination promises to yield exceptional opportunities in terms of oil and gas production, which, in turn, will lead to heightened opportunities across the full spectrum of Algeria's economic sectors, including property." He further added, "Our studies show that there is an increasing demand in the property sector."
Snasco's optimistic outlook of Algeria may hit snags as the country's economy can be affected by the U.S. market's currency problems. With a substantial amount of Algerian reserves deposited in U.S. banks, many are considered about the risk associated with such a position. Economist Abdelmalek Serai strongly cautioned against the move saying that the U.S. Government's strong position in opposition to China and competition from the European Union pose real threats.
