The 2020 Finance Law is a key milestone for the opening-up of the Algerian market to foreign investors.
On December 30, 2019 was promulgated the Algerian 2020 Finance Law which provides that the 49/51 rule (i.e. the 49% limitation on foreign ownership in Algerian companies) shall from now on be only restricted to “production and service activities which are strategic for the national economy".
The list of strategic activities shall be determined by the Algerian executive regulations and should most probably include oil & gas, telecommunications and financial services.
The Finance Law for the year 2020 also authorizes the use of financing from international development finance institutions for “strategic” projects for the national economy. Until then, only local financing was permitted for investment projects. The implementation of this new rule will be detailed in upcoming executive regulations.
