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 In 2020, the supplementary finance law for 2020, published in the Official Gazette on 4 June 2020, repealed the previouslly applied 51/49 rule that prevented foreigners from acquisition majority-ownership in Algeria companies, except for distribution activities and strategic sectors for which the 51/49 rule remains applicable, including mining of non-strategic minerals.
Private investment in the mining of strategic minerals is subject to a minority joint-venture requirement with the state-owned company. For the purposes of the OECD FDIRI, this is not considered a restriction as it is not discriminatory against foreign investors; it applies to all private investors, regardless of ownership nationality.
"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 April 17, 2021 setting the list of activities of a strategic nature)
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"Chapter 2 - Exploration and exploitation of deposits of mineral or fossil substances other than those classified as strategic
Art. 69. - Without prejudice to the legislative provisions in force, the activities of research and exploitation of mineral or fossil substances other than those classified as strategic may be undertaken, under the terms and conditions of this law, by any legal person governed by Algerian law, justifying sufficient technical and financial capacities. Artisanal mining permits and permits to collect, collect and/or harvest mineral substances under the quarry regime may be issued to any Algerian natural or legal person.
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Chapter 3 - Specific provisions applicable to mineral or fossil substances classified as strategic
Art. 70. - The research and mining activities of deposits and deposits of strategic mineral or fossil substances, referred to in article 10 above, are carried out on the basis of a mining permit issued exclusively to a public economic company. whose share capital is exclusively held directly or indirectly by the State or a public establishment.
To carry out the said activities, the public economic enterprise, referred to above, or the public establishment may conclude a contract with any legal person governed by foreign law or any legal person governed by Algerian law, in accordance with the provisions of this law. This exploration and/or mining contract defines the rights and obligations of the parties to the contract.
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Art. 72. - The mining exploration and/or exploitation contract, provided for in article 70 above, confers on the parties to the contract the right to exercise within the perimeter defined by the mining permit exploration and/or mining operations. The rate of participation in the contract of the public economic enterprise, referred to in Article 70 above, or of the public establishment must be a minimum of 51%. [...]" (Law n° 14-05 of 24 Rabie Ethani 1435 corresponding to February 24, 2014 on mining law [google translation])
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
Law n° 14-05 of 24 Rabie Ethani 1435 corresponding to February 24, 2014 on mining law [google translation]
[<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>],[<a href="https://faolex.fao.org/docs/pdf/alg201099.pdf">Law</a>]