According to the supplementary finance law for 2020, foreign acquisition of equity held by other foreign parties in an Algerian entity operating in distribution activities or other strategic setors,as defined in the law, is subject to government authorization.
"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.
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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%.
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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 the April 17, 2021 setting the list of activities of a strategic nature)
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/2020/F2020033.pdf">Law</a>],[<a href="https://www.commerce.gov.dz/reglementation/decret-executif-n-deg-21-145-du-17-avril-2021-jo-n-deg-30-du-22-avril-2021">Decree</a>]