Algeria has adopted a new model of economic growth based on the investment and enterprise development and valorization dynamic, the economy financing new mode, based namely on the resources of the market and the available various forms of savings.
This model is based, in particular, on the consolidation of the priority sectors development, including Industry, Agriculture, Tourism, Renewable Energies and a service economy supporting the Information and Communication Technologies development and the R&D.
It aims the economy diversification and competitiveness, geared towards the substitution for the imports and the increase in exports and this, in order to lead gradually to the hydrocarbons dependence and the public expenditure reduction, while at the same time ensuring the achievement of the growth and development objectives of an emerging economy.
I. The Agriculture Sector
Agriculture and Rural Development Policy
Agriculture and rural development policy is focused on the permanent support of food security, making of the agriculture sector an engine of economic growth and diversification, through the intensification of production in strategic agri-food chains, and the development of rural areas
Strategic Axes of Agricultural and Rural Development Policy
• Preservation of efforts of strengthening and extending the productive base
• Continuation of the integrated intensification of the agricultural sector
• Adaptation of the support instruments and supervision of the national product
• Continuation of human resources and technical support strengthening
Main assets of Algerian agriculture
- Wide variety of agro-climatic environments
- Low use of chemicals
- A large market (local and close to external market: Mediterranean region, African countries)
- Ability to place on the market, throughout the year and off season:
- A wide range of products;
- High quality products and even biological
Agricultural activities to be developed
• Agricultural land development
• The development of integrated farms
• Encouraging public-private partnership in pilot farms
• The development of agricultural mechanization
• The development of economical irrigation systems
• The development of fertilization techniques to enhance the inputs production in the various agricultural sectors
• The creation and development of modern nurseries
• The development of greenhouse crops (multi-chapel greenhouse)
• Development of forage crops (alfalfa, hydroponics ...)
• Valuation of agricultural production in the ovine, bovine and caprine sectors, white meat, fruit and vegetables and the milk sector
• Valuation of local products “terroire” (dates, oils, table grapes, etc.)
• Development of storage capacities and cold storage
• Investment in the agri-food industry sector:
- Implementation of fruit and vegetable processing units
- Implementation of dairy and derivatives processing units
- Implementation of fertilizer production units
- Manufacture of products for veterinary medication
II. The Industry sector
Algeria recently set up a new strategy of industrial revival the purpose of which is to develop, to modernize and integrate more the Algerian industry. From this perspective, the government seeks to improve the attractiveness of Algeria as investments destination, in order to revitalize the industrial activity, create new business opportunities and encourage the implementation of new investments. This initiative also aims at promoting the digital economy, developing and providing flexible and innovative financing, in order to encourage manufacturers to modernize their production facilities.
The major axes of the industrial strategy
• The industry Sectoral deployment:
- Natural resources valuation
- Industrial fabric densification
- New industries Promotion
• The industry Spatial deployment :
- To create synergies through:
- Exploiting the spatial concentration of economic activities
- Networking of enterprises, public institutions and research, training and expertise structures
- To generate a business microclimate and to intensify investment.
• Industrial development policy
- Companies upgrading
- Innovation, an industrial development engine
- Human resources development
- Foreign direct investment promotion (FDI)
The strategic activities
1. Iron and steel,
2. Hydraulic binders,
3. Electrical and electrical appliances,
4. Industrial chemistry, pharmaceuticals
5. Mechanical and automotive,
7. Shipbuilding and repair,
8. Advanced technologies,
9. Food processing,
10. Textiles and Clothing,
11. Leather and derivatives
12. Wood and Furniture Industries
III. The Tourism Sector
National Plan of Territory Development (SNAT )
Algeria intends to give to the tourism sector a dimension worthy of its potentialities and of its assets. The challenge now is to develop the national tourism, one of the engines of sustainable development, to support economic growth.
This objective is part of a comprehensive spatial planning policy, which has led to the adoption of a strategic reference framework and a vision by 2030, through the adoption of a National Plan of Territory Development, instituted by Law n° 01-20 of June 29th, 2010 on the SNAT approval.
This scheme aims at ensuring a balance of the population and activities localization throughout the country as well as the territories attractiveness.
It relies, in particular, on the territorial programming spaces organization, on the attractiveness and industrial development poles emergence, and on new towns implementation, on the basis of which mechanisms will be put in place, allowing the growth spreading throughout the country.
The Master Plan of the Tourism Development (SDAT)
An integral part of National Plan of Territory Development (SNAT 2030), the SDAT is the strategic reference framework for Algeria's tourism policy, the main objectives of which are as follows:
- The enhancement of Algeria Destination;
- Quality Tourism Plan (PQT)
- The tourist offer development and qualification by investing in tourist and villages centers of excellence;
- The public-private partnership to strengthen the tourism chain;
- The financing mobilization
The activities to be developed
- Hotel / Catering / Resort
- SPA tourism
- Tourism in Mountains
- Saharan Tourism
- Development and diversification of tourism products
- Quality Development / Brand / Labeling
IV. The Renewable Energies Sector
The integration of renewable energies into the national energy mix is a major challenge in terms of preserving fossil resources, diversifying electricity production channels and contributing to sustainable development.
According to the renewable energy development program 2011-2030, these energies are at the heart of Algeria's energy and economic policies, namely the development of photovoltaic and wind power on a large scale, Biomass (waste recovery), cogeneration and geothermal energy, and the development of solar thermal .
The renewable energy program consistency, to be achieved for the national market needs, over the period 2015-2030 is 22 000 MW, of which more than 4500 MW will be achieved by 2020.
The distribution of this program by technology activities is as follows:
• Photovoltaic Solar: 13,575 MW
• Wind energy: 5010 MW
• Thermal Solar: 2000 MW
• Biomass: 1,000 MW
• Cogeneration: 400 MW
• Geothermal energy: 15 MW
The implementation of the program will make it possible to achieve by 2030 a share of renewable energy of nearly 27% in the national balance sheet of electricity production.
The volume of natural gas saved by the 22 000 MW in renewable energy, will reach approximately 300 billion m3, representing a volume equivalent to 8 times the national consumption of 2014.
In accordance with the regulations in force, the program is open to national and foreign public and private sector investors.
The implementation of this program benefits from the substantial and multifaceted contribution of the State, which intervenes namely through the National Fund for Renewable Energies and Cogeneration (FNERC).
The implementation of this program is supported by the Algerian government through the establishment of the "Algerian Institute of Renewable Energy" as well as a network of research and development centers such as Electricity and Gas Research and Development Center, National Agency for the Use of Energy Promotion and Rationalization, Renewable Energy Development Center, Solar Equipment Development Unit, etc.
The investments development plan in renewable energies
The renewable energy capacities will be set up according to the specificities of each region:
• South region, for the hybridization of existing power stations and supplying scattered sites, given the availability of space and the significant solar and wind ;
• Highlands region for their sunshine and wind potential with the possibility of acquiring land;
• Coastal region according to the land availability with the exploitation of all the spaces such as the roofs and terraces of the buildings and other unused spaces.
The renewable energy development strategy is accompanied by the setting up of a National Research Program (NRP) in Renewable Energies, whose main scientific objectives are to evaluate renewable energy sources, control and optimize Conversion, transformation and storage of these energies and to develop a necessary know-how, ranging from the study to the construction of the installations on site.
V.The Information and Communication Technologies Sector ICT
The progress in the sector of Communication and Information Technologies become increasingly determining for the construction of an efficient economy based on the knowledge and information.
The Algerian State has, therefore, put the Information and Communication Technologies development (ICTs) at the center of economic and social development strategies and policies.
Thus, according to its achievements and use of new technologies, Algeria was ranked the third most dynamic country in the world, by the International Telecommunication Union (ITU), the highest international telecommunications body, and positioned it among countries which have made "substantial progress" in the development of information and communication technologies.
In fact, important achievements have been made in this sector whose principal ones concern:
- The optical fiber link Algiers / In Guezzam:
The optical fiber link Algiers - Ain Guezzam, until the border with Niger, is integral part of the optical fiber link Algiers (Algeria) – Zinder (Niger) - Abuja (Nigeria).
This project that is initiated within the framework of the NEPAD is intended to make available this infrastructure for these three countries, and neighboring countries, and to provide a communication towards Europe through landing points in Algeria, via submarine optical fiber cables.
This link will be strengthened and secured through the realization of at least two different routes to ensure redundancy and continuity of services in case of cable dysfunction.
- The submarine optical fiber link Oran / Valence:
The implementation of the submarine optical fiber link (ORVAL), linking Oran to Valence with a capacity of 100 Gbps and with a length of 563 Km, represents a strategic technological investment which will reinforce access to high-quality network services such as the two existing cables, namely SMW4, linking Annaba to Marseille and Alpal2, linking Algiers to Palma.
- Mobile telephony:
As regards mobile telephony, this booming sector is marked by an emulation stimulated by three operators competing in the market, now totaling close to 45 million subscribers with increasingly diversified offers, at competitive costs.
The 3G technology mobile telephony, which has been in operation since 2014, has been gradually deployed throughout the country, and by 2016 it has expanded to 4G technology, which is growing rapidly, making digital life easier to many companies and citizens because of the very high speed that characterizes this 4th generation technology
- Telecommunications by satellite:
As a complement to the terrestrial and submarine networks, several actions and measures have been carried out or are under way in the field of satellite telecommunications, based in particular on the implementation of a set of platforms, offering users a multitude of solutions in terms of telecommunications and service by satellite (VSAT, IP phone, Videoconferencing, Geo localization).
In matter of space communications:
In addition to the three already operational satellites, Algeria will launch in 2017 the Alcomsat-1 satellite, which will allow Internet connection throughout the national territory, including the most landlocked regions. This satellite will support, during the disturbance phases on the optical fiber, the connection continuity and this, at reduced costs.
Other areas requiring a contribution for the ICTs development:
- The development of the digital economy
- Technology Parks (Innovation R & D and the ICT industry)
- Electronic banking
- Introduction of e-Learning and Logistics Transport
- Electronic certification
- Data banks security systems
- Postal service modernization
- Antennas and satellites
- Space infrastructures
- Expertise and training
- The computerization of the public service (e-administration)
GEOGRAPHY and CLIMATE
Cradle of civilizations and cultures through its millennial history, vast country at the heart of the MENA region - largest country in Africa and the crossroads of the Mediterranean,Arab and African worlds, , Algeria has abundant and diverse natural resources, basic infrastructure and huge potential and opportunities and other comparative advantages that make it one of the most attractive countries in the region.
Country Official Name: Algerian Democratic and Popular Republic
Area: 2,381,740 km²
Climate: temperate climate of Mediterranean type in the North, and of Saharan type in the south.
Official languages: Arabic and Tamazight.
Other spoken languages: French and English.
Location: Algeria is located in North Africa, close to Europe and the regions of north Africa and the Sahel, its bordering countries are: Tunisia, Mali, Niger, Libya, Morocco, Mauritania, Western Sahara.
Currency : Algerian dinar (DZD)
Algeria is bordered in the north by the Mediterranean Sea; in the east by Tunisia and Libya; in the south by Niger and Mali; in the south-west by Mauritania and Western Sahara and in the west by Morocco.
The first country in Africa as regarding its area, Algeria is composed of four main sets of reliefs, which are successive from the north to the south:
- In the North, along the Mediterranean Coast, the Tell narrow plain extends, as well as the adjacent valleys;
- Limiting the coastal plain in the south, there are two important mountain ranges, the Tellian Atlas in the north, the Saharan Atlas and the Aurès massif in the south, which surround a highlands region.
- In the South of the Saharan Atlas extends the huge Sahara desert which represents the largest part of the area of Algeria, and is composed of rocky plateaus and stony plains, and two vast sand regions (the Great Western Erg and the Great Eastern Erg) constitute the main sets of dunes reliefs of the Sahara.
- Finally, in the south of the Sahara, the Hoggar massif extends, a succession highlands which rise in a step-like way, dominated in its central part by imposing reliefs with a serrated profile which culminate to 3000 m to the north of Tamanrasset
In the north, the Tell region is characterized by a Mediterranean climate, with hot, dry summers and mild, rainy winters. It is the wettest area of Algeria, with annual rainfalls varying from 400 to 1000 mm of water. The average summer and winter temperatures are 25 ° C and 11 ° C respectively.
The more one goes down towards the south, the more the climate becomes dry: the annual rainfalls in the highlands and the Saharan Atlas are situated between 200 to 400 mm.
Total population: 40, 4 Million inhabitants in January 2016 -
Urban population: 70.7%
Density: 17 inhabitants / km² with concentration in the North
Average age: 28 years
Life expectancy: 75.6 years old (better life expectancy of the African continent)
Active population: 11,770,000
INVEST IN ALGERIA:
IT IS ENCOURAGED AND SUPPORTED
TO INVEST IN ALGERIA:
THE MOST COMPETITIVE ADVANTAGES
WHITIN THE REGION
INVEST IN ALGERIA:
GUARANTEES AND PROTECTIONS
Who can invest in Algeria ? Any legal entity or natural person, resident or non resident.
What are the company’s forms in Algeria? Companies belonging to persons: • Individual company;• General partnership;• Limited partnership;• Equity partnership Capital companies – minimum issued capital: • Joint stock company: 1 000 000 Dinars;• Limited liability company: unlimited;• Single shareholder limited company: 100 000 Dinars;• Partnership limited by shares: 1 000 000 Dinars. What are constitutive procedures to establish a company?
• A company Setting up: - Establishment of the company act in authentic form by a notary- Publication of memorandum of association in the official bulletin of legal advertisements;- Registration in trade register within two months following the setting up of the company The trade register may be obtained within 24 hours on the basis of a file comprising the following documents: • A signed application, drawn up on forms provided by the Center of the Trade Register, or by its representative at the formalities fulfillment center of ANDI;• The premises Proof, justifying its capacity to host a commercial activity;• The receipt confirming the payment of stamp duty as provided by the law;• The payment receipt of registration fees in the trade register, fixed by the legislation in force;• A copy of the resident card for foreign people• The approval or authorization issued by the competent authorities for carrying out regulated activities; For legal entities: • A copy of the company statutes;• A copy of the Company's statutes insertion notice in the Official Bulletin of Legal Announcements (BOAL) Investors will be able to fulfill the formalities for setting up their company through the online services of the Algerian portal of company setting up: www.jecreemonentreprise.dz • Declaration of Existence It must be made at the Inspectorate of Taxes territorially competent, within thirty (30) days from the beginning of the activity. • Foreign trader card (if need be) It is issued by services in charge of regulations of the territorially competent province. The application must be submitted, attached with the following documents: • Copy of trade register of the legal entity established abroad;• Copy of the represented company statutes, drawn up in authentic deed;• Passport copy;• Five (5) regulatory identity photos. What are the basic principles of labour law? • Legal duration of work: full- time 40 hours per week, arranged according the employer’s needs;• Legal daily amplitude: 8 hours with one break hour including a half hour which is considered as working time;• Guaranteed minimum wage: 18 000 DZD per month;• Overtime pay: Increase of 50 % of the hourly wage with recovery of the day worked on a legal day of rest;• Employment Contracts: * Open-ended contract * Fixed term contract * Contract of professional integration Is employment of foreigners authorized?
Yes, subject to a work permit or authorization. What are the procedures concerning the employment of foreigners?
a) Procedure for obtaining work permit: An application is submitted to the concerned person’s file is submitted by the employer to the National Agency of Employment – Department of labour.The permit is generally given within two weeks. b) Procedure for obtaining resident’s permit: An application is submitted to an administrative file is submitted to the territorially competent police station. What are the main rules governing foreign investment? ? • Investments initiated by foreign individuals or legal entities in production, services and imports activities, must be realized in partnership with one or several national resident investors, public or private, in which the Algerian partner must hold 51% of the partnership company capital. • The indirect transfers (a transfer of 10% or more of shares, carried out in one or several operations cumulated for the benefit of a same purchaser) of Algerian law companies, having benefited from advantages during its implementation period, gives rise to inform the State shareholdings Council (CPE). Is the activities offshoring allowed and in which case does it give rise to the investment advantages granting ? Yes. activities offshoring is allowed. Renovated old equipments imported under the conditions set by the regulations in force in the case of activities offshoring are eligible to the advantages, granted within the framework of investment incentives scheme. These goods are cleared, in exemption from the foreign trade and banking domiciliation formalities. How to find a partner for your investment project? The National Agency for Investment Development has developed a database called partnership portfolio. This portfolio is intended to collect investment projects, the promoters of which are looking for partners.Operators wishing to register in this database may submit a description of their projects, as well as their expectations, in terms of partnership, according to the Project Sheet available to them in the web site of the Agency "www.andi.dz" at the "Partnership portfolio" section. The Agency, after treatment of this information will proceed to a restricted dissemination of some information and ensuring the confidentiality of the other. The promoters may also consult the projects already registered by clicking on the second part of this section. Registration to the partnership Portfolio is free. What are the categories of lands intended for investment? The lands availability for investment is present on two markets:
- The private market including land or property belonging to private owners and they are acquired on the land open market - The Institutional market regarding land in the private domain of the State, and is governed by the provisions of Ordinance 08-04 of September 1st , 2008, modified and completed, fixing the conditions and modalities for land concession in the private domain of the State for the investment projects implementation. 50 industrial parks spread out over 39 Wilayas will be made available to potential investors during the year 2017 What are the bodies in charge of land management? • The concession is allocated to the investor upon the Wali decision. How a promoter can obtain land or other property to implement his investment? • Land assignment certificate : concession for 33 years, renewable twice• Assignment mode: By mutual agreement• Assignment modalities: concession allowed by a decision of the Wali, on the proposal of: • Director of wilaya in charge of the investment, acting, whenever necessary, in relation with the directors of wilaya of the concerned sectors, for land in the State private domain, for the remaining assets of dissolved public enterprises, for the excess assets of public economic enterprises as well as for land within industrial and activity areas;• The organism which manages the new town organization, for land located within the new town after approval of the Minister in charge from the town;• The tourism development national agency for lands within a tourism expansion area and after the agreement of the Minister in charge of tourism; Are excluded from this procedure: • Agricultural land;• Plots of land located within the mining perimeters;• Plots of land located within hydrocarbons exploration and exploitation perimeters and protection of electricity and gas structures perimeters;• Plots of land for real estate and property promotion benefiting from state support;• Plots of land located in the archaeological and cultural sites perimeters;What are the possibilities for investment projects financing? The projects financing can be done through the private or public banks and financial institutions in Algeria, in number of 29. There is, as well:- An investment national fund, which participates up to 34% in the share capital of major projects - The investment funds of Wilayates, designed for SMEs financing, managed by five financial institutions throughout the country, which can participate up to 49% in share capital of SMEs. The investor may also have recourse to institutions of financial guarantees such as CGCI the FGAR. The guarantee issued by the latter to banks and financial institutions in order to support the investment credits they grant to SMEs is similar to the State guarantee.
Establishment of a company in Algeria
What are the main taxes applied to companies within the framework of the common law? • Tax on the Companies Profits (IBS)• Tax on the Total Income (IRG)• Tax on the Professional Activity (TAP): tax on the turnover• Value Added Tax• Land Tax: Applied on the built and undeveloped properties, for residential, commercial or industrial use, according to a scale of calculation• Customs Duties What are the bodies involved in the advantages obtaining and the companies setting up support? What is ANDI?ANDI is a government agency in charge of the investment promotion in Algeria What is its role?Among the many missions of ANDI, we can mention those of- Promoting investment in Algeria- Registering investment requesting incentives- Assisting the investors in the implementation of investment projects What is the Investment National Council (CNI)? CNI is a board chaired by the Prime Minister and composed of various Ministers. This Board examines and decides namely about the advantages to be granted to investment projects according to their importance What are the projects that must be submitted to the Investment National Council? - Investment projects which exceed the amount of 5 000 000 000 dinars;- The projects of national interest giving rise to an investment agreement; Who takes benefits from advantages granted by investment promotion law? Any natural person or legal entity, resident or non-resident, wishing to set up a company of Algerian law, in an economic activity of producing goods or services that are not excluded.The people having benefited from tax advantages, within the framework of different employment aids plans (ANSEJ, ANJEM and CNANC) may be eligible for investment encouragement system within the framework of ANDI after:. Expiration of the exemption period during the operational phase, granted within the framework of the employment aids plan;. Renunciation to benefits of the employment aids plan.What are the activities that benefit from advantages related to investment encouragement plan? All economic activities of production of goods and services, except those excluded by the Law carried out within the framework of foreign and/or domestic investments. Which types of investments are eligible to advantages? • Creation of new activity (Greenfield);• Extension of production capacities by including supplementing investments;• Rehabilitation Are the properties acquired in leasing, eligible to the advantages?
Yes, properties being subjects of a taking up of the purchase option, by the lessee, within the framework of international leasing, are eligible to the advantages, provided that these goods are introduced as new, on the national territory.What are the advantages granted by the investment promotion law? The investment projects may enjoy from tax and special taxation exemptions and reductions, depending on the project location, the carried out activity and the project impact on the economic and social development.Three levels of advantages are provided:- the common advantages to all eligible investments;- the additional advantages to the privileged and/or jobs creating activities;- the exceptional advantages to investments bringing a particular interest for the national economy. Main granted advantages : Level 1: the common advantages to all eligible investments A/ Projects implemented in the north a) Implementation perioda- exemption from customs duties on imported goods, directly involved in the investment implementation;b- VAT exemption for goods and services, imported or acquired locally, directly involved in the investment implementation;c- exemption from the transfer duty and land advertisement fees on all property acquisitions made as part of the investment concerned;d- Exemption from registration fees, land advertisement fees and the state owned property remuneration on built and non-built property, granted for the implementation of investment projects. This benefit is applied for the minimum duration of the granted concession.e- Deduction of 90% on the annual rental fee amount, set by the service of domain for the investment implementation period;f- Exemption from land tax on real estate within the framework of the investment for a period of ten (10) years from the acquisition date;g- Exemption from registration duties on acts of corporations and capital increases. b) Exploitation period:For a period of (3) years after the operation start up report, drawn up by the tax authorities at the behest of the investor:a- Tax exemption on companies profits (IBS);b - Exemption from the tax on the turnover (TAP);c- 50% deduction on the annual rental fee amount set by the state property department B/ projects implemented in the South, the highlands and areas whose development requires a particular contribution de the State a) Implementation period:• Exemption from customs duties on imported goods directly involved in the investment implementation.• VAT exemption on goods and services directly involved in the investment implementation, whether they are imported or purchased on the local market;• exemption from transfer tax, subject to payment, on real estate acquisitions made within the framework of the investment• exemption from registration fees, land advertisement tax and the state owned property remuneration on built and non built properties concessions, granted for the investment projects implementation. This benefit is applied for the minimum duration of the granted concession;• Exemption from land tax on real estate within the framework of the investment for a period of ten (10) years from the acquisition date;• Exemption from registration duties on acts of corporations and capital increases;• partial or total support by the State, after the Agency’s assessment, of expenditures concerning infrastructure works needed to the implementation of investment;• Reduction of the annual rental fee amount set by the state property department, on the land concession, for the investment projects implementation:- To the symbolic dinar per square meter (m2) for a period of ten (10) years and 50% of the annual rental fee amount beyond this period for investments located in localities within the Highlands and other areas whose development requires special contribution of the State;- To the symbolic dinar per square meter (m2) for a period of fifteen (15) years and 50% of the annual rental fee amount beyond this period for investment projects implemented in the regions of the South. b-Exploitation period and for ten (10) years: - Tax exemption on companies profits (IBS); - Exemption from the tax on the turnover (TAP); -50% deduction on the annual rental fee amount set by the state property department Level 2: additional advantages to the privileged and/or jobs creating activities There are particular taxes and financial incentives introduced by the legislation in force, for tourist, industrial and agricultural activities, which can not be cumulated with the advantages of the Investment Promotion Law provisions. In this case the promoter benefits from the most advantageous incentive plan. For investments, implemented out of areas to be promoted, and generating more than one hundred (100) permanent jobs, the duration of tax exemption during the exploitation period is five (5) years. Level 3: exceptional advantages to investments bringing a particular interest for the national economy a) Implementation period• All the common advantages for the implementation period• granting, according to the legislation in force, of exemptions or reduction of customs duties, taxes, and any other imposition with fiscal character, granting of subsidies, aids or financial supports, as well as any facilitation measures likely to be granted,• Possibility, after the CNI agreement, of the implementation period advantages transfer from the investor to contracting parties, in charge of the investment implementation, for the investor. b) Exploitation period• extension for a period of up to ten (10) years, of the duration of the common advantages granted during the exploitation period,• granting of the duty-free purchase scheme for goods and materials used in the production of goods benefiting from the value added tax exemption,• Granting for a period not exceeding 5 years of exemptions or reductions of duties, taxes including VAT applied on the prices of goods produced within the framework of emerging industrial activities. What are the areas to be developed? All the wilayates of the South, some wilayates of the highlands and some municipalities of some wilayates of the highlands, as follows. The South: Adrar, Biskra, Bechar, El Oued, Ghardaïa; Illizi; Laghouat; Ouargla, Tamanrasset,Tindouf.The Highlands : Batna; Djelfa; El Bayadh; Khenchela; M'sila; Nâama; Saida; Tébessa; Tiaret. The municipalities of the rest of the wilayate:Bouira: Bordj Okhriss; Dechmia; Dirah; El hakimia; Hadjra Ezargua; Maamoura; Mezdour; Ridane; Sour El Ghozlane; Taguedite.Bordj Bou Arreridj: Al yachir; Belimour; Bordj Bou Arreridj; El Ach; El Anaceur; El hamadia; El Ksour; Rabta.Medea: Ain Boucif; Ain Ouksir; Aziz; Bouaichoune; Boughzoul; Chabounia; Chelalet El Adhaoura; Cheniguel; Derrag; Djouab; El Ouinet; Kef Lakhdar; Ksar El Boukhari; Meftah; Oum El Djallil; Ouled Maaref; Saneg; Sidi Damed; Sidi Zahar; Tafraout.Mila: El Mechira; Oued Khalouf; Tadjenanet.Oum El Bouaghi: Ain El Beida; Ain Zitoun; Behir Chergui; Berriche; Dhala; El belala; El Djazia; El Fdjoudj Boughrara Saoudi; Fkirina; Meskiana; Oued Nini; Rahia; Zorg.Setif : Ain Azel; Ain Lahdjar; Ain Oulmane; Beida Bordj; Boutaleb; El Oueldja; Hamma; Hammam Soukhna; Ouled Si Ahmed; Ouled Tebben; Rasfa; Salah Bey; Tella; Taya.Sidi Bel Abbes: Ain Tidamine; Benachiba Chelia; Bir El Hammam; Chetouane Belaila; Dhaya; El Hacaiba; Hassi Dahou; Marhoum; Mcid; Merine; Mezaourou; Moulay Slissen; Oued Sbaa; Oued Sefioun; Oued Taourira; Ras El Ma; Redjem Demouche; Sidi Ali Ben Youb; Sidi Chaib; Tafissour; Taoudmout; Teghalimet; Telagh; Tenira.Souk Ahras: Bir Bouhouche; Drea; Mdaourouche; Oum El Adhaim; Oued Kebrit; Safel El Ouidane; Sidi Fredj; Terraghelet; Taoura.Tlemcen: Ain Ghoraba; Ain Tallout; Azails; Béni Smiel; Béni Snous; Béni Bahdel; Béni Boussaid; El Aricha; El Bouihi; Elgor; Sebdou; Sidi Djilali.Tïssemssilt: Ammari; Bordj Emir Abdelkader; Khmisti; Layoune; Maacem; Ouled Bessem; Sidi Abed; Theniet El Had; Tissemssilt. Is there any other advantages granted to investment by the regulation? Yes, in addition to the advantages instituted by the Law related to the Investment promotion, there are as well many advantages, applied within the framework of the common right, for various sector and activities. Advantages granted for export activities The main fiscal advantages granted to the exporting producers are:• Direct Tax and Similar Taxes exemption• Tax on the turnover exemption• Companies profits tax exemption• Abolitions of the profits or income reinvestment condition, concerning sale transactions and services intended for the export• These exemptions are granted in proportion to the turnover realized in currencies. To enjoy from these measures the companies must present to the competent tax authorities, a document attesting the payment of receipts in currencies to a bank established in Algeria• VAT exemption on exported goods• customs duties exemption and duty free purchase of goods, acquired locally or imported, and which are intended to be incorporated in the products manufacture, composition or packaging, intended for export as well as the services directly related to the export operation. Can we combine the advantages of different support plans? The advantages granted by the law on investment promotion are not exclusive from special tax and financial incentives introduced by the legislation. However, in case of coexistence of advantages of the same nature, the investor benefits from the most advantageous incentives, without accumulation. How to obtain the advantages • Registration at the local representation of ANDI for investments whose amount is less than 5.000.000.000 DA • the CNI approval and then registration at the local representation of the ANDI for investment:• whose amount is greater than or equal to 5.000.000.000 DA• requesting the exceptional advantages • the advantages consumption during the implementation period and which are subject to:• the registration in the trade register;• the possession of the tax identification number;• the real taxation system • the advantages consumption during the exploitation period and which are subject to the operation start up report, drawn up by the tax authorities at the behest of the investor.
Investment incentives and Encouragement Measures
What are the conventions signed by Algeria on investment?
Algeria has signed 34 bilateral agreements on non-double taxation and 46 on reciprocal encouragement and protection of investments.
Is it possible to recourse to international arbitration in Algeria?
Yes. Algeria is member of New York Convention 1958 of International Center for Settlement of Investment Dispute between States and nationals of other States (ICSID) and United Nations Commission on International Trade Law (UNCITL).
What are the measures to protect foreign investment?
Foreign investment is protected through the membership of Algeria to various international conventions regarding guarantee and protection of investments, and the signing of several bilateral agreements on foreign investment, including 46 conventions on reciprocal encouragement and protection of investments.
• fair and equitable treatment as regards to the rights and obligations attached to investments made by foreign physical and legal persons
• Intangibility of the acquired advantages in the case of the legal framework change
• Protection of Industrial Property (trademarks, invention patents, designs and models, appellations of origin, diagrams of integrated circuits).
•Protection against administrative requisitions
• Admission of profits and dividends declared transferable, as the external inputs, for reinvestment in capital.
• Possibility of capital and income transfer, according to the regulation in force.
• Possibility of the technical capital assets transfer, acquired during the advantages period
Are capital transfers allowed?
The investment code and the regulations of the Bank of Algeria No. 05-03 of June 06th, 2005, guarantee to foreign investors the right to transfer of dividends. This guarantee applies to the capital contributions in cash, in kind and the net products from the investments transfer and liquidation
What are the transfer conditions?
1. Capital contributions in cash shall be imported through the banking channel, in a freely convertible currency, regularly quoted by the Bank of Algeria. Their amount must be equal to or more than minimum thresholds, determined according to the overall project cost, in accordance with the regulations.
N.B : the reinvestment in capital, of profits and dividends that are declared transferable in accordance with the legislation and regulations in force, are admitted as external inputs.
Only dividends generated from economic activities goods and services production are eligible for transfer. Dividends arising from resale activity are not, unless significant investments are made.
2. The contributions in kind must be of external origin and be subject to an assessment, according to the rules and procedures governing the companies constitution.
3. The entity must duly prove that it has fulfilled all its tax obligations, including the payment of the withholding tax due in respect of the distribution of dividends. It must also prove that it has published the company accounts of the prior year.
What are the guarantees offered by the land concession?
The concession gives to its beneficiary the right to obtain a building permit and allows him as well, to constitute, in favour of credit institutions, a mortgage affecting property right resulting from the concession and structures to be built on the granted land, as guarantees for loans obtaining, exclusively for project financing.
Where can we get other information?
- Algerian portal for companies setting up: www.jecreemonentreprise.dz
- ANDI: www.andi.dz
- Ministry of Industry and Mines : www.mdipi.gov.dz
- National Center of Trade Register: www.cnrc.org.dz
- General tax directorate: www.mfdgi.gov.dz
- General customs directorat: www.douane.gov.dz
The recognized strategic role of infrastructure in development and economic growth has led the Algerian Government, within the framework of the various five-year plans, to carry out major projects for the strengthening and modernization of the basic infrastructures, built in Algeria, in order to meet the national economy requirements and to constitute a logistic and multifunctional services platform, which is essential for improving the attractiveness of investment and the economic growth.
The level of achievement reached in the matter has allowed raising Algeria to the rank of the most competitive countries in the Mediterranean region and Africa.
1. A port Infrastructure worthy of the extent of the Algerian coast which runs along the Mediterranean
47 operational ports, between commercial ports, hydrocarbons ports, fishing ports and marina
Spread over an area of 2,000 ha and comprising 23 docks, this megaproject located 100 km from the capital, is expected to triple the current cargo handling capacity of the country, to reach a processing capacity from 40 to 45 million tons of goods and a container traffic of 3.5 million (twenty-foot equivalent), integrating a part of the international transshipment traffic of containers, transiting in the Mediterranean as well as the implementation of an appropriate logistic area, in line with the size of the port.
2. One of the densest road network of the African continent
The Algerian road network remains one of the densest in the African continent, with a length of more than 123,000 km of roads and more than 10,102 civil engineering structures, 3478 of which, on the East / West Highway.
The East-West motorway is a motorway project crossing all Algeria, in parallel to the Mediterranean coasts. The motorway connects the Tunisian border with that of Morocco for a distance of 1,216 km.
This major project meets the needs of transport and is a communication channel for commercial traffic.
The Trans-Saharan Highway is fully built and coated on the Algerian territory from Algiers to the border with Niger, on a line of 2,415 km.
The section of 400 km between Silet and Timiaouine (Malian branch) is supported over a length of 200 km under way of construction.
This road infrastructure linking six African countries, namely Algeria, Tunisia, Mali, Niger, Chad and Nigeria, is expected to have a significant impact on the development of trade between these countries.
3. Modern airport infrastructures and in extension
Algeria has important airport facilities, comprising 36 aerodromes, 16 of which are international, equipped of modern infrastructures corresponding to the international standard.
The extension of the airport area of Algiers, from 82 000 m²
to 200 000 m², will allow an additional flow of 10 million passengers per year, bringing up the total to almost 17 million passengers. It is an airport of category A, equipped with a Hub -passengers, commercial and relaxation spaces
4. A consistent Railway Infrastructures
Algeria's railway network, one of the most modern in Africa, meets the needs of people and goods transport, with 3750 km of operational railways lines, it comprises single lines and double track as well as an electrified part, distributed as follows:
Among the recent railway achievements, the most important are:
- The Metro of Algiers which covers most of the Capital zones and districts, with an extension towards the eastern suburbs, in its final achievement stage,
- In addition to the Tramways of Algiers, Oran and Constantine, which are already operational, new tram lines, are also under way on implementation in the major cities of Setif, Sidi Bel Abbes, Ouargla and Mostaganem.
5. Major hydric infrastructure
The water sector in Algeria comprises 74 dams, spread over the whole national territory, with an overall capacity of 8.4 billion cubic meters; This sector will be strengthened by the underway implementation of 14 dams that will improve the water resource capacity, in order to meet the growing needs for drinking water supply, sanitation and irrigation of agricultural land and other industrial utilities ... etc.
6. Important sanitary, scientific research centre and higher education infrastructures
The Algerian university network is composed of one hundred and forty-six (146) Establishments of higher education distributed on the forty-eight wilayas (48), covering all the national territory.
This network consists of ninety-seven (97) universities, ten (10) university centers, twenty (20) higher National schools, Seven (07) national teacher high scjools, twelve (12) preparatory high schools.
As for the scientific research network, it is composed of thirty (30) establishments gathering twelve (12) Research centers; twelve (12) Research Units and six (6) Research Agencies.
The Health Infrastructures of in Algeria comprise 15 University hospital Centers (CHU), 01 Teaching hospital establishment, 09 Medical establishments, 204 Public Hospitals, 76 specialized Medical establishments, 273 Public Health establishments of Proximity, 187 Private Medical establishments , adding up a total capacity of 77 245 beds.
7. Some recent big leisure, culture and sports infrastructures achievements
This structure, implemented on 27 hectares, the largest of its kind in Africa, is intended to host major events, namely international events.
This cultural space is composed of several lounges, designed for different functions and capacities, including an auditorium with 6,000 seats, in addition, all infrastructures intended for various services (offices, media, simultaneous translation booths ...) as well as a 12,400 m² space to host fairs and exhibitions.
The center is also equipped with a medical clinic, comprising an operating room, a radiology unit and a recovery room.
Located in the heart of Oran, a city of charm named “Oran El Bahiya”, this center is composed of a set of complementary works: The congresses palace, the exhibition centre and “the Meridian” hotel, equipped with a logistics and means of high standing.
The Algiers opera, located in the western suburbs of Algiers and inaugurated in July 2016, is one of the most important cultural works recently .
This grandiose building of an original architectural style is erected on three floors and includes a large hall with 1,400 seats, ballet room, choir and rehearsal rooms, two cafeterias, as well as conference and function rooms.
The room Ahmed Bey, of Zenith type, located in the administrative center of Wilaya of Constantine not far from the international airport Mohamed-Boudiaf, covers a total surface area of 60,000 m2. Designed according to an original, spacious and welcoming architecture, it is equipped with advanced acoustic equipment and an artistic lighting of last generation. This big room of 3,000 places is one of the major achievement of : « Constantine the Arab culture capital » event in 2015.
The Big Mosque of Algiers or Djamaâ el-Djazair is the biggest mosque in Africa and the third in the world after Masjid al-Haram of Mecca and Masjid al-Nabawi of Medina.
This building, with the highest minaret in the world with a height of 270 m, is based on five (5) structural branches soared skywards, symbolizing the five pillars of Islam.
Spread over an area of more than 20 hectares, the Big Mosque of Algiers includes a prayer hall with an area of 20,000 m², an esplanade, a library, a cultural center, a house of the Koran, gardens, parking, administrative buildings.
This project is an attractive religious, cultural and scientific center, combining authenticity and modernity, through its exceptional architectural style
The great Mosque of Oran, a masterpiece designed according to the Andalusian-Maghreb architectural style, is distinguished by its minaret, 104 meters high, fully covered with glass, and has a cupola of 64 meters high and two Wood and bronze doors, two big prayer rooms as well as a vast esplanade, offering a total capacity of 25,000 followers.
Space located at the capital bay, this portion of the Algiers coast extends from the mouth of the El Harrach Wadi to the sea water desalination station of El Hamma, on a distance of 4.5 kilometers dedicated to the pedestrian promenade.
The project concerns the extension over the sea, on a width from 80 to 100 meters, as it comprises piers and ears, to make safe the littoral as well as artificial beaches of a capacity of 40,000 summer tourists.
Underway of construction, on an area of 106 hectares, this sports Olympic complex will host the competitions of the Mediterranean games which will take place in 2021 in the capital of the West of the country.
It will comprise the new Olympic stadium of a capacity of 40 000 places, which will be coated by natural grass as well as a Cycle-racing track of 3,000 places, an athletics stadium of 4,000 seats, a aquatic Center equipped with two covered Olympic swimming pool, an external swimming pool and a training swimming pool.
It also has a tennis stadium with 3,300 seats, six annexes courts with a capacity of 1,800 places each, and a multi-surfaces field (basketball, handball, volleyball ...) for collective sports as well as a multi-sports hall of 6,000 places.
This project in its final achievement stage, located south-east of Algiers and with a capacity of 40,000 places, is intended to host major national and international sports events.
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CHAPTER 1 : SCOPE OF APPLICATION
Art1. — This law is intended to set the scheme applicable to domestic and foreign investment in economic activities of goods production and services.
Art. 2. — It is understood by investment, within the meaning of this law:
1. Acquisitions of assets within the framework of creation of new activities, production capacity expansion and / or rehabilitation;
2. Investments in the capital of a company.
Art. 3. - The investments referred to by the provisions of this law, are made in compliance with laws and regulations, including those relating to environment protection, to regulated activities and professions and, in general, to the exercise of economic activities.
Art. 4. – To benefit from the advantages provided for by the provisions of this law, investments must be, prior to their implementation, subject to registration at the National Investment Development Agency referred to in Article 26 below.
Investment registration shall fixed by regulatory way.
CHAPTER 2: THE ADVANTAGES
Section 1: General provisions
Art. 5. — investments that benefit from the provisions of this chapter are new creation, production capacity expansion and / or rehabilitation on activities and goods that are not subject to exclusion from advantages.
The lists of activities of goods and services excluded from advantages here below, referred to as the "negative list", are set by regulatory way.
In case of exercise of a mixed activity or many activities, only those eligible are qualified for the advantages of this law. The beneficiary holds for this purpose, an accounting allowing the isolation of the figures that corresponds to eligible activities.
The types of investments mentioned in paragraph 1 above, the modalities for applying the advantages to capacity expansion investments in production and / or rehabilitation and the thresholds amounts required for investments other than creation, in order to benefit from advantages, are fixed by regulatory way.
Art. 6. - are considered as investments within the meaning of Article 2 above, and eligible for benefits, goods, including those that are renovated, which constitute external contributions in kind, within the scope of activities of delocalization operations from abroad.
The goods referred to in paragraph 1 above, are cleared by without the formalities of foreign trade and bank domiciliation.
Also considered as investment eligible for benefits, goods that are subject to an exercise of purchase option by the lessee, within the framework of international leasing, provided that these goods are introduced, on national territory, in new condition.
The modalities of application of this Article will be fixed by regulatory way.
Art. 7. - The advantages provided by this law include:
- Common advantages to all eligible investments;
- Additional advantages for privileged activities and / or activities generating employment;
- Exceptional advantages for investments of particular interest to the national economy.
Art. 8. - Notwithstanding the provisions of Ordinance No. 08-04 of Aouel Ramadhan 1429 corresponding to September 1st , 2008, as amended and supplemented, mentioned above, and subject to the special provisions for investments, referred to in Articles 14 and 17 below, investments registered in accordance with Article 4 above, which are not on the negative list, benefit automatically, from advantages for the realization provided by this law.
Registration is done trough a by a certificate, issued forthwith, allowing the investor to claim at all the concerned administrations and agencies, the advantages to which he qualifies under the provisions of section 4 above .
The modalities of application of this Article will be fixed by regulatory way.
Art. 9. - The real consumption of the advantages for the realization related to the investment is submitted to :
- The registration in the trade register;
- Possession of the taxpayer identification number;
- The actual tax system.
The implementing rules of this Article will, as necessary, be fixed by regulation.
Art. 10. - The benefit from advantages, granted for the operational period, provided by this law, takes place on the basis of a minutes of a statement of starting operation, established at the behest of the investor, by the competent regional tax services.
The modalities of application of this Article will be fixed by regulatory way.
Art. 11. - Any investor who considers himself aggrieved, in enjoying advantages, by an administration or a body, in charge for the implementation of this Law or being subject of a removal procedure or forfeiture, incurred under the provisions of Article 34 below, has a right of appeal, lodged at a commission whose composition, organization and operation are fixed by regulatory way, without prejudice to his rights of appeal to the competent jurisdiction.
Section 2: The common advantages to eligible investments
Art. 12. - In addition to fiscal, para-fiscal and customs incentives provided by the common law, the investments concerned by the advantages defined in Article 2 above, shall enjoy:
1- During the implementation phase: as referred to in Article 20 below, the following advantages:
a- exemption from customs duties on imported goods, directly involved in the investment implementation;
b- VAT exemption on goods and services, imported or acquired locally, directly involved in the investment implementation;
c- exemption from the transfer tax, subject to payment, and land advertisement fees on all property acquisitions made as part of the investment concerned;
d- exemption from registration fees, land advertisement tax and the state owned property remuneration on built and non built properties concessions, granted for the investment projects implementation. This benefit is applied for the minimum duration of the granted concession.
e- Deduction of 90% on the annual rental fee amount set by the state property department for the investment implementation period;
f- Exemption from land tax on real estate within the framework of the investment for a period of ten (10) years from the acquisition date;
g- Exemption from registration duties on acts of corporations and capital increases.
2- During the operational phase: after the operation start up report, drawn up by the tax authorities at the behest of the investor, and for a period of three (3) years, the following advantages:
a- Tax exemption on companies profits (IBS);
b - Exemption from the tax on the turnover (TAP);
c- 50% deduction on the annual rental fee amount set by the state property department .
Art. 13. - Investments in localities, whose list shall be defined through regulatory way, within the South and Highlands regions and in any other area whose development requires special contribution of the State, benefit from:
1. During the implementation phase: in addition to the benefits mentioned in paragraph 1, subparagraphs a, b, c, d, f and g of Article 12 above:
a- partial or total support by the State, after the Agency’s assessment, of expenditures concerning infrastructure works needed to the implementation of investment;
The modalities of application of the above subparagraphs (a), are fixed by regulatory way.
b- Reduction of the annual rental fee amount set by the state property department, on the land concession, for the investment projects implementation:
- To the symbolic dinar per square meter (m2) for a period of ten (10) years and 50% of the annual rental fee amount beyond this period for investments located in localities within the Highlands and other areas whose development requires special contribution of the State;
- To the symbolic dinar per square meter (m2) for a period of fifteen (15) years and 50% of the annual rental fee amount beyond this period for investment projects implemented in the regions of the South.
2- During the operational phase: the advantages provided in paragraph 2, subparagraphs a and b of Article 12 above, for a period of ten (10) years from the date of starting operation determined by an operation start up report, drawn up by the tax authorities, at the behest of the investor.
Art. 14. - Notwithstanding the provisions of Article 8 above, the granting of advantages to investments whose amount is equal to or exceeds five billion dinars (5,000,000,000 DA) is subject to the prior approval of the National Council the investment referred to in Article 18 of Ordinance No. 01-03 of Aouel Jumada Ethania 1422 corresponding to August 20th, 2001, as amended and supplemented, hereinabove.
The modalities of application of this Article will be fixed by regulatory way.
Section 4: Exceptional advantages for the benefit of investments presenting a particular interest for the national economy
Art. 17. – investments that benefit from exceptional advantages, which are established by way of negotiated agreement between the investor and the agency acting on behalf of the state, are investments presenting a particular interest to the national economy.
The agreement is concluded by the agency after approval by the National Investment Council.
The qualification criteria of the investments referred to in paragraph 1 above, as well as the content and treatment procedures of exceptional advantages granting application file are fixed by regulatory way.
Art. 18. - 1. The exceptional advantages referred to in Article 17 above, may carry along:
a) an extension of the duration of the operational period advantages referred to in Article 12 above for a period of up to ten (10) years;
b) the granting, according to the legislation in force, of exemptions or reduction of customs duties, taxes, and any other imposition with fiscal character, granting of subsidies, aids or financial supports, as well as any facilitation measures likely to be granted, during the implementation period, for an agreed duration, pursuant to the provisions of Article 20 below.
2. The national investment Council has the authority to grant, on terms fixed by regulatory war, and for a period not exceeding five (5) years, exemptions or reductions of duties and taxes including the added value tax applied on the price of produced goods within the scope of the emerging industrial activities.
Pursuant to the modalities that are fixed in Articles 43 and following the Code of taxes on the turnover, goods and materials, used in the production of goods benefiting from the tax exemption on the value added, benefit of duty free purchases scheme, according to the provisions of paragraph above.
3. The advantages of for the implementation period, provided in this article may, after approval of the National Investment Council, according to the terms and conditions fixed by regulatory way, be transferred to the contractors of the beneficiary investor, responsible for implementation of the investment, on behalf of the latter.
The modalities of setting the level and the nature of the advantages, provided by this Article shall be determined on the basis of an evaluation grid established by way of regulation.
Art. 19. - The advantages referred to in Article 18 above, are added to those that can be obtained, under Articles 12, 13, 15 and 16 above, in accordance with Article 8 above.
Section 3: Additional advantages for privileged activities and / or activities generating employment
Art. 15. - The advantages specified in Articles 12 and 13 above are not exclusive to special tax and financial incentives, established by the legislation in force in favor of tourism activities, industrial activities and agricultural activities.
The coexistence of advantages of the same kind established by the legislation in force, with those provided by this Law does not give rise to cumulative application of considered advantages. In this situation, the investor benefits from the most advantageous incentives.
Art. 16. - The duration of the operating advantages granted in favor of investments made outside the areas referred to in Article 13 above, is increased from three (3) to five (5) years when they give rise to the creation of more than one hundred (100) permanent jobs during the period from the investment registration date to the completion of the first year of the operation phase, at the latest.
The modalities of application of this Article will be fixed by regulatory way.
Chapter 3: DURATION OF THE IMPLEMENTATION
Art. 20. - The investments referred to in Articles 1 and 2 above must be achieved within a duration, previously agreed with the agency.
The duration of implementation starts to run from the date of registration, provided for in Article 4 above; it is focused on the registration certificate, referred to in Article 8 above.
The achievement duration may be extended according to the terms fixed by regulatory way.
Chapter 4: GUARANTEES GRANTED TO INVESTMENTS
Art. 21. - Subject to any bilateral, regional and multilateral agreements signed by the Algerian State, foreign individuals and legal entities receive fair and equitable treatment as regards the rights and obligations attached to their investments.
Art. 22. - The impact of revisions or abrogation concerning this Law, which may occur in the future, do not apply to the investment made under the influence of this law, unless the investor specifically requests.
Art. 23. - In addition to the rules governing the expropriation, the investments may not, except in cases provided by law, be subject to requisition through administrative way.
The requisition and expropriation lead to a just and fair compensation.
Art. 24. - Any dispute arising between the foreign investor and the Algerian state, resulting from the fact of the investor or from an action taken by the Algerian government against him, shall be submitted to Algerian courts territorially competent, unless bilateral or multilateral agreements signed by Algeria, on conciliation and arbitration or agreement with the investor, stipulating an arbitration clause enabling the parties to agree on an compromise by ad hoc arbitration.
Art. 25. - Investments made from contributions in the capital in cash, imported by the banking channel and denominated in a freely convertible currency, regularly quoted by the Bank of Algeria and transferred to the latter, the amount of which is equal to or higher than minimum thresholds, determined according to the overall cost of the project under rules fixed by regulatory way, benefit from the transfer guarantee of the invested capital and the income from it.
The reinvestment in a capital of profits and dividends, which are declared transferable in accordance with the laws and regulations, are admitted as external inputs.
The transfer of guarantee as well as the minimum thresholds referred to in paragraph 1 above, apply to contributions in kind, made according to the law, provided that they are of external origin and that they are subject to an assessment, in accordance with the rules and procedures governing the establishment of companies.
The transfer guarantee under paragraph 1 above also concerns the real net product from the sale and liquidation of foreign investment, even if the amount is greater than the capital initially invested.
Chapter 5: ORGANS OF INVESTMENT
Art. 26. - The National Agency of Investment Development, known by abbreviation ANDI, created by Article 6 of Ordinance No. 01-03 of Aouel Jumada Ethania 1422 corresponding to August 20th, 2001, amended and supplemented, referred to above, is a public administrative institution endowed with a moral personality and financial autonomy, responsible, in coordination with relevant agencies and organizations, of:
- The investment registration;
- The promotion of investment in Algeria and abroad;
- The promotion of local opportunities and potentials;
- The facilitation of business practice, monitoring of the incorporation of companies and implementation of projects;
- The assistance and guidance to investors;
- The information and awareness within the business community;
- The qualification of the projects referred to in Article 17 above, their assessment and the establishment of the Investment Agreement to be submitted to the approval of the National Investment Council;
- The contribution to the management, in accordance with the law, of the investment support expenses;
- The management of projects portfolio that are previous to this law and those referred to in Article 14 above.
The organization and functioning of the Agency are fixed through regulatory way.
The agency receives for the treatment of investment projects, both through its own services and the management centers listed below, a fee, the amount and terms of perception of which are set by regulation.
Art. 27. - It is created at the Agency, four (4) centers gathering all departments that are authorized to provide the necessary services for the creation of enterprises, their support, their development and the realization of projects :
- The advantages management center, in charge of managing, excluding those assigned to the agency, advantages and other incentives set up to investment, by the legislation in force;
- The formalities fulfillment center, in charge of providing services related to constitutive formalities of companies and implementation of projects;
- The Support center for the creation of companies in charge of assisting and supporting the creation and development of enterprises;
- The center of territorial Promotion, in charge for the promotion of opportunities and local potentialities. The decisions of the members of these centers are opposable to the administrations of their origin.
The powers, organization and functioning of these centers are fixed through regulatory way.
Chapter 6 : MISCELLANEOUS DISPOSITIONS
Art. 28. - In addition to the advantages provided for by the provisions of this Law, investments may benefit from aid and support provided by the Trust account No. 302-124 entitled "National Fund for SME upgrading, investment support and promotion of industrial competitiveness. "
Art. 29. - The assets composing the technical capital, acquired during the period of advantages, for the purposes of the requirements of the activity exercise of the registred investment, may be subject of transfer, subject to authorization issued, as appropriate, by the agency or the territorially competent center of advantages management.
The purchaser is committed to the structure in question, quoted in paragraph above, to honor all obligations undertaken by the initial investor and having allowed the granting of those advantages, otherwise, these benefits are withdrawn.
However and under reserve of refund, as appropriate, of all or part of the advantages consumed, shall be subject to declaration at the agency or the territorially competent management center, sales of isolated assets.
Any sale without notification or permission is considered as misappropriation of privileged destination and liable to the penalties provided for the case, by the customs and tax legislation.
The modalities of application of this Article shall be fixed through regulatory way.
Art. 30. - Notwithstanding the provisions of Article 29 above, the State has a right of preemption on any sale of shares or of social shares carried out by or for the benefit of foreigners.
The exercise of the preemptive right shall be fixed through regulatory way.
Art. 31. - It is an indirect sale of Algerian law company, sold at 10% or more, of shares or social shares of foreign company holding shares in the first mentioned.
The indirect sale of Algerian company which was granted benefits or facilities during the implantation period, gives rise to information of the Council of State Shareholdings.
The percentage mentioned above concerns the sale in one or more combined operations for the benefit of the same purchaser.
The non-respect of the formality referred to in paragraph 2 above, or motivated objection, formulated by the Council of State Shareholdings, within a period of one (1) month from the receipt of the information on the sale, confers to the State a preemptive right on a proportion of the share capital, corresponding to that of transfer abroad, without exceeding the part of the transferee in the share capital of the Algerian law company.
The exercise modalities of the preemptive right shall be fixed through regulatory way.
Art. 32. - Investments enjoying the advantages granted under this Act, are followed up during the period of exemption.
The following-up exercised by the agency is realized through guidance and assistance to investors as well as by collecting various statistical information on the progress of the project.
The investor is required to provide the agency with all the information, needed for the performance by the latter, of the following up task entrusted to the agency.
The modalities for collecting the project advancement information, the obligations for investors for the following up task and the penalties for failure to obligations in return for the granted advantages are fixed through regulatory way.
Art. 33. – For the following up, administrations and organizations involved in the implementation of the incentive system, provided by this Law, are responsible for ensuring, in accordance with their duties and during the legal period of depreciation of assets, acquired through the privileged tax regime, the proper fulfillment by the investor of his obligations for the granted advantages.
Notwithstanding the provisions of the paragraph above, and excluded the land granted in the private domain of the State, which obey their own rules, land and buildings acquired through privileged tax regime, are subject to the same following up operation, for a period corresponding to the longest period of amortization, for the other goods.
Goods imported or acquired locally, through the preferential tax regime, provided by this Law, shall, except for the non-transferability taking away, kept by the investor for a period fixed through regulatory way.
The modalities of application of this Article shall be fixed through regulatory way.
Art. 34. - In case of non-compliance with obligations arising under this Law or the commitments made by the investor, the advantages are withdrawn, without prejudice to the penalties provided by law.
Investments falling under paragraph above are subject, as appropriate, of a decision of advantages withdrawal or revocation proceedings.
The modalities of application of this Article shall be fixed through regulatory way.
CHAPTER 7 : TRANSITIONAL AND FINAL PROVISIONS
Art. 35. - Are maintained the rights, acquired by the investor, regarding the advantages and other rights he enjoys by virtue of the previous legislation to the present law, establishing incentives for investment.
Investments, benefiting from the advantages provided by the laws relating to the promotion and development of the investment, prior to this Law, and all subsequent texts, remain governed by the laws under which they were declared, until expiry of the duration of those benefits.
Art. 36. - While awaiting the establishment of the centers referred to in Article 27 above, the provisions of this Law and the effects induced by the transition period are supported by the decentralized one stop if the agency, established by Ordinance No. 01-03 Aouel of Jumada Ethania 1422 corresponding to August 20th, 2001, referred to above, as amended and supplemented, on the development of investment.
Art. 37. - are abrogated the provisions of Ordinance No. 01-03 of Aouel Jumada Ethania 1422 corresponding to August 20th, 2001, amended and supplemented, on the development of the investment, except Articles 6, 18 and 22.
Are also abrogated article 55 of tle Law No. 13-08 of 27 Safar 1435 corresponding to December 30th, 2013 on finance law for 2014.
Art. 38. - Notwithstanding the provisions of Article 35 above, the regulatory texts of Ordinance No. 01-03 of Aouel Jumada Ethania 1422 corresponding to August 20th, 2001, amended and supplemented, on the development of investment, remain in force until the promulgation of implementing regulations provided for by this law.
Art. 39. - This act will be published in the Official Journal of the Democratic Republic of Algeria.
STRATEGIC ECONOMIC SECTORS
INVESTOR'S PRATICAL GUIDE
NEW LAW OF INVESTMENT
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