Cancellation of the rule of distribution of social capital 49/51% for foreign investments, excluding activities of purchase and resale of products and those of a strategic nature.

Already had been introduced in Supplemantary Finance Law 2020, foreign investments now are not required to be made under the framework of a partnership in which one or more Algerian national shareholders residing in Algeria must hold at least 51 percent of the partnership’s shareholding (51/49 Rule).  The strategic sectors are not concerned by the elimination of the rule such as: national mining operations, the upstream energy sector and other activities governed by the law on hydrocarbons and the operation of networks for the distribution and transportation of energy, the defence industry and related activities, the transportation infrastructure sector such as railways, ports and airports  and the pharmaceutical industry etc..

Accordingly, those who carry out non-production raw materials, products and goods import activities (if they will not use the goods they receive as production inputs and will put them on sale) will make the necessary adjustments to their commercial registration in accordance with the 51% local common requirement by June 30, 2021. The commercial registration records of those who do not make the necessary arrangements until this date will be considered invalid.



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