Revenue Regulation Fund
|Algeria||US$ 77.2 Billion||Origin: Oil|
Transparency Rating: 1
View Sovereign Fund Transaction Data
|Origin: Oil & Gas
Firm Investment Style: N/A
Entity Structure: Fund
Population Est.: 38.1 million – 2013
Wealth Per Capita Est.: 2027
Immeuble Ahmed Francis
Governance[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]
The stabilization fund was set up in 2000 to insulate the Algerian economy from price volatility in oil & gas commodity prices. The official name is the Fund for the Regulation of Receipts (FRR). It is also known as Fond de Regulation des Recettes (FRR). Fund contributions stem from annual oil taxation surpluses.
Background on Algeria’s FRR
By far Algeria’s most significant exports, financially, are petroleum and natural gas. Hydrocarbons provide Algeria with almost two-thirds of government income and over a third of gross domestic product. The FRR is funded by the differences between the price of oil sold on the market and the reference price ($37 per barrel) on the basis of which is established on the state budget. There is no limit on how much can be extracted from the fund to finance spending.