ANNOUNCEMENT 04 Jun 2020

In June 2020, the Government passed the 2020 financial law that ends 51/49 majority ownership rule and allows for 100% foreign ownership of companies to boost the economy. 

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising
Inception date: 04 Jun 2020 | Removal date: open ended

FDI: Entry and ownership rule

On 4 June 2020, the government passed the 2020 financial act that ends 51/49 majority ownership rule that required Algerian shareholders to own 51% of the share capital. The new rule allows 100% foreign ownership of companies except in five strategic sectors: 

  1. Mining sector;
  2. Energy sector;
  3. Pharmaceutical sector;
  4. Hydrocarbons;
  5. Related activities under Military industries: railways, ports and airports. 

The financial act of 2020 offers foreign investors benefits such as: 

  1. The end of state pre-emption right that required a prior governmental authorisation for any transfer of shares by foreign parties. The state pre-emption right is placed on strategic sectors only.
  2. Foreign companies will be able to finance their investments through loans by foreign banks.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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