Algeria seeks to breathe new life into its investment landscape with a new investment law. Published at the end of July, the updated legislation aims at boosting investment flows in a bid to enhance the country’s economic performance and, more importantly, break with its hydrocarbons dependence.

Following years of social and political uncertainty triggered by popular uprisings in 2019, the investment law is in itself a strong signal sent by the public authorities to all capital holders and potential domestic and foreign investors. In addition to local contractors, Algeria also has its eyes set on foreign ones.

Indeed, attracting foreign direct investments (FDIs) is a key objective of the new legislation. For instance, the 49/51 rule, which formerly stipulated all foreign investment be carried out with a majority Algerian stakeholder, is now only applicable to a few strategic activities. Moreover, the right of first refusal has been relaxed as well as the possibility for foreign investors to access financing outside of the national banking system.

The new law also guarantees the right for foreign investors to repatriate profits, dividends and capital in foreign currency and broadens the prerogatives previously provided under its single window system.