Business
A 1975 commercial code, with the 51/49 rule now limited to strategic sectors
Company law sits in the 1975 Commercial Code. The rule requiring majority Algerian ownership of foreign investments was repealed generally in 2020 and now applies only to defined strategic sectors.
Key rules
- Jurisdiction — Commercial chambers of the tribunals. The Agence Algérienne de Promotion de l'Investissement registers investment projects.
Governing law
- Commercial Code, Ordinance 75-59
- Law 22-18 on investment2022
- Ordinance 21-01 on the money and credit law
- Law 08-12 on competition
In practice
The 51/49 rule is the single most misdescribed feature of Algerian business law. It required Algerian majority ownership of all foreign investment from 2009, was abolished for most sectors by the 2020 finance law, and now survives only for a defined list of strategic activities including hydrocarbons, mining, defence-related industry, railways, ports and pharmaceutical manufacturing in part; advice that states it applies universally is out of date, and advice that states it is gone entirely is also wrong. Law 22-18 restructured the investment framework, created a one-stop shop and guaranteed transfer of profits for qualifying projects. Exchange control remains tight and repatriation is the practical constraint. Import and distribution activity has separate restrictions that have shifted repeatedly with finance laws.