2020 Additional Finance Act
04 Jun 2020
On 4 June 2020, Algeria published Law 20-07 on the 2020 Additional Finance Act, which removed restrictions on foreign investments by the “49%-51% rule”, except for strategic sectors. Already on 30 December 2019, Algeria had published the “2020 Finance Act", which had lifted these restrictions; however, the law did not provide a definition of “strategic sectors”. The new law allows foreign investors to set up a 100% foreign-owned company in Algeria, except in “purchase and resale activities” and five defined “strategic sectors”, where the 49%-51% rule will continue to apply.
The five strategic sectors are (1) exploitation of the national mining domain as well as all underground or surface resources relating to an extractive activity, with the exception of quarries of non-mineral products; (2) the upstream energy sector and any other activities governed by the hydrocarbons law (which includes downstream activities), as well as operating the distribution network and transportation of electrical energy by cable, and transportation of hydrocarbons (gas and liquids) by overhead or underground pipelines; (3) the military industry and related activities under the authority of the Ministry of National Defense; (4) railways, ports and airports, and (5) the pharmaceutical industry, except for investments related to the manufacturing of “essential innovative, high value-added products, requiring complex and protected technology”, intended for the domestic market or export
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