Until 2019, foreign shareholding in all Algerian companies were limited to 49% of its voting capital. In 2020, the supplementary finance law for 2020, published in the Official Gazette on 4 June 2020, repealed the previouslly applied 51/49 rule that prevented foreigners from acquisition majority-ownership in Algeria companies, except for distribution activities (including wholesale and retail activities) and strategic sectors (such as energy, mining, defense, transportation, infrastructure, and pharmaceuticals manufacturing (excluding innovative products) for which the 51/49 rule remained applicable.
On 30 December 2021, the Algerian Government enacted the Finance Act for 2022. The Act re-confirmed the application of the 51/49 ownership rule for companies engaged in distribution and strategic activities, and further clarified/added that the activity of 'importing raw materials' is also those subject to the 51/49 rule.
"Section 4 - Miscellaneous […]
Art. 49. —  Excluding the activity of importing raw materials, products and goods intended for resale as is and those of a strategic nature, falling within the sectors defined in Article 50 of Law No. 20-07 of 12 Chaoual 1441 corresponding to June 4, 2020 relating to the complementary finance law for 2020, which remain subject to a 51% resident national shareholding participation, any other activity of production of goods and services, is open to foreign investment without obligation of association with a local partner.” (Law No. 21-16 of 25 Joumada El Oula 1443 corresponding to December 30, 2021 relating to the finance law for 2022, Article 49 [google translation])
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Previously
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"Section 4 - Miscellaneous […]
Art. 49. — Excluding product purchase and resale activities and those of a strategic nature, falling within the sectors defined in Article 50 below, which remain subject to participation by resident national shareholders of up to 51 %, any other activity of production of goods and services is open to foreign investment without the obligation of association with a local party.
Art. 50. — The following sectors are considered strategic:
— The exploitation of the national mining domain, as well as any underground or surface resource relating to an extractive activity on the surface or underground, excluding quarries of non-mineral products;
— Upstream of the energy sector and any other activity governed by the law on hydrocarbons, as well as the operation of the network for the distribution and transmission of electrical energy by cable and gaseous or liquid hydrocarbons by overhead or underground pipes;
— Industries initiated or related to military industries under the Ministry of National Defence;
— Railways, ports and airports;
— Pharmaceutical industries, with the exception of investments related to the manufacture of essential innovative products, with high added value, requiring complex and protected technology, intended for the local market and for export.
The terms of application of this measure are specified, as necessary, by regulation.
[...]
Art. 52. — Any transfer of shares by foreign parties to other foreign parties, of the share capital of an entity governed by Algerian law carrying out one of the strategic activities defined in article 51 of this law, is subject to authorization from the Government. [...]" (Law n° 20-07 of 12 Chaoual 1441 corresponding to June 4, 2020 on the supplementary finance law for 2020)
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"Article 1. — Pursuant to the provisions of Article 50, as amended, of Law No. 20-07 of Chaoual 12, 1441 corresponding to June 4, 2020 referred to above, the purpose of this decree is to establish the list of activities with a strategic nature falling within the sectors of energy and mining, the pharmaceutical industry and transport, subject to a participation of resident national shareholders of up to 51%.
[...]
Art. 3. — The list of activities of a strategic nature relating to the sectors referred to in Article 1 above, is set out in the appendix attached to this decree.[...]" (Executive Decree No. 21-145 of 5 Ramadhan 1442 corresponding to April 17, 2021 setting the list of activities of a strategic nature)
Law No. 21-16 of 25 Joumada El Oula 1443 corresponding to December 30, 2021 relating to the finance law for 2022, Article 49
Law No. 20-07 of Chaoual 12, 1441 corresponding to June 4, 2020 on the supplementary finance law for 2020
Executive Decree No. 21-145 of Ramadhan 5, 1442 corresponding to April 17, 2021 setting the list of activities of a strategic nature
[<a href="https://www.joradp.dz/FTP/jo-francais/2021/F2021100.pdf">Act</a>],[<a href="Law">Law</a>],[<a href="Decree">https//www.joradp.dz/FTP/JO-FRANCAIS/2020/F2020033.pdf</a>]