The Algerian Finance Law for 2020, promulgated on 30 December 2019, provides that the so-called 49/51 rule (i.e. the 49% limitation on foreign ownership in Algerian companies) shall now be restricted only to “production and service activities which are strategic for the national economy”. The list of strategic activities shall be established by executive regulations, it is anticipated that it will include oil & gas, telecommunications and financial services.
In a move to boost investments, the 2020 Finance Law 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). Here as well, the implementation of this new rule will be detailed in upcoming executive regulations.
The 2020 Finance Law is a key milestone for the opening-up of the Algerian market to foreign investors, we will monitor closely the issuance of the upcoming executive regulations.
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