Foreign Direct Investment | Algeria | Africa Competition Guide

Foreign Direct Investment

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Please indicate whether there is a foreign direct investment review regime in your jurisdiction in relation to mergers involving foreign buyers / acquirers and kindly indicate the relevant review/regulatory body? If there is, please indicate whether there have been any foreign direct investment notifications to date. If there is no foreign direct investment regime, kindly indicate whether there are any plans announced to introduce it.

The Algerian foreign direct investment regime was eased in 2020 and 2021, with the removal of the 51 / 49% rule, in terms of which, foreign investors are required to partner with Algerian resident nationals holding at least 51% of the share capital. This rule was eased for all foreign direct investment, except in certain strategic sectors, including (i) military industries under the Ministry of Defense; (ii) importation of raw materials and products for resale “as is”; and (iii) for 44 activities in strategic sectors, such as pharmacy, transportation and energy and mining.

A number of industry sectors are regulated in Algeria and require specific approvals or licenses from the supervisory ministry, including telecommunication, pharmaceutical products, medical devices, oil and gas, automotive, mining, insurance and banking.

For instance, mergers involving companies operating in the upstream hydrocarbon sector in Algeria are subject to prior authorisation by the State, which in this context, enjoys a right of pre-emption

If there is a foreign direct investment regime in your jurisdiction, please indicate whether it applies to all sectors or specific sectors (such as sectors considered to relate to ‘national security’).

Please refer to the response above.

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