Until 2019, pursuant to the 2016 Finance Law, foreign shareholding in an Algerian-based company was limited to 49%. The law explicitly covered foreign investment in all economic sectors. Since 2020, the supplementary finance law for 2020, published in the Official Gazette on 4 June 2020, repealed the previously applied 51/49 rule that prevented foreigners from acquisition majority-ownership in Algeria companies, except for distribution activities and strategic sectors in which the 51/49 remain applicable (scored sectorally).
"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 for 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 distribution and transportation network of electrical energy by cables and gaseous or liquid hydrocarbons by aerial or underground pipes;
— Industries initiated or related to industries military personnel under the Ministry of National Defense;
— Railways, ports and airports;
— Pharmaceutical industries, with the exception of investments linked to the manufacturing of innovative essential products, with high added value, requiring  complex and protected technology, intended for the local market and for export. [...]" (Law No. 20-07 of 12 Chaoual 1441 corresponding to June 4, 2020 relating to the complementary finance law for 2020 [google translation])
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"Art. 66. — The exercise of production activities of goods and services, of a strategic nature for the national economy, is subject to the constitution of a company under Algerian law in which the capital is held, at least, at 51% by resident national shareholders.
The minister responsible for finance presents a presentation, before the finance and budget committee of the National People's Assembly, on the production activities of goods and services of strategic interest for the national economy.
The list of production activities of goods and services, of strategic interest for the economy national level is set by regulation." (Law n° 15-18 of 18 Rabie El Aouel 1437 corresponding to December 30, 2015 on the finance law for 2016, as amended 30 December 2019 [google translation])
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Previously up to 2019
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"Section 4 - Miscellaneous […]
Art. 66. The exercise of activities of production of goods, services and importation by foreigners is subject to the constitution of a company whose capital is held at least 51% by the resident national shareholders. Any modification of the registration in the commercial register entails, beforehand, the bringing into conformity of the company with the rules of distribution of the above-mentioned capital. However, these modifications are not subject to this obligation, the purpose of which is to:
i) the modification of the share capital (increase or decrease) which does not lead to a change in the proportions of distribution of the share capital set out above; ii) the transfer or exchange, between former and new directors, of guarantee shares provided for in Article 619 of the Commercial Code, without the value of said shares exceeding 1% of the company's share capital; (iii) the deletion of an activity or the addition of a related activity; (iv) the modification of the activity following the modification of the nomenclature of activities; (iv) appointment of the director or officers of the company; (v) change of address of the registered office. [...]" (Law n° 15-18 of 18 Rabie El Aouel 1437 corresponding to December 30, 2015 on the finance law for 2016)
Law No. 20-07 of 12 Chaoual 1441 corresponding to June 4, 2020 relating to the complementary finance law for 2020 [google translation]
Law n° 15-18 of 18 Rabie El Aouel 1437 corresponding to December 30, 2015 on the finance law for 2016, as amended 30 December 2019 [google translation]
Law n° 15-18 of 18 Rabie El Aouel 1437 corresponding to December 30, 2015 on the finance law for 2016
[<a href="https://www.droit-afrique.com/uploads/Algerie-LF-2020-rectificative.pdf">Law</a>],[<a href="https://www.mf.gov.dz/images/pdf/Algerie-LF-2020.pdf">Law</a>],[<a href="https://www.droit-afrique.com/uploads/Algerie-LF-2016.pdf">Law</a>]