Since 2008, Algeria has been applying foreign ownership restrictions, which limit the non-Algerian shareholders’ equity interest in Algerian entities to 49%. On September 11, 2019, a preliminary draft of the 2020 Finance Law was presented to the Government Council. The new law calls for the repeal of ownership restrictions for foreign investors. In accordance with the draft law, foreign investors will be allowed to hold up to 100% of Algerian entities’ shares, excluding companies operating in removing the hydrocarbon and telecommunication industries.
The new law is expected to be approved by the end of 2019 year by the parliament.
Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above changes.