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Algeria has a strategic location  and considerable economic potential

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The new Algeria, led by the President of the Republic, Mr. Abdelmadjid Tebboune since December 2019, is determined to change its system of government and build a modern state where social justice and the force of law prevail, and to consolidate popular sovereignty in a democratic manner. It is based on transparent governance, the morality of political life, and the promotion of individual freedom.

The new Algeria continues to restore its prominent role in the international arena, through an efficient and active diplomatic apparatus, by strengthening its bilateral and multilateral relations; diversifying cooperation and partnerships with various groups and countries, promoting international peace and security, serving African, Arab and Islamic interests, supporting just causes in the world and in the world. Foremost among them is Palestine and the Western Sahara. As well as advocating for a multi-world system that is balanced, solidarity, understanding and tolerant.


-Strategic location and considerable economic potential:

Algeria is a pivotal country and a bridge of communication and strategic cooperation with the continent. It is the largest country in Africa , the Arab and Mediterranean regionswith an estimated area of 2,382,000 km2. It connects the north of Africa with the Europe across the Mediterranean.

The Algerian economy is the fourth in Africa and the Arab world, with a gross national product of $187 billion, but it is the tenth in the continent in terms of population, with only 46 million. Significant capabilities and a modern infrastructure, 36 airports, 11 seaports, major human resources in the sectors of education, training and scientific research in 63 universities and 48 higher schools, 1 million 700 thousand university students, more than 11 million students in the three stages of education, more than 500 thousand students vocational education and training centers, and more than 120,000 graduates from universities and higher institutes annually. All these increasing numbers are a wager to bring about a qualitative transformation and opening up to the world towards a desired future.

Algeria is carrying out major structural projects that contribute to the achievement of regional and continental integration, through huge structural projects underway, such as the large port of Algiers “Hammadiye”, the 10,000 km long trans-Saharan road linking northern Algeria with the capital of Nigeria, Lagos, through Tunisia, Mali, Chad and Niger. And the trans-Saharan gas pipeline of 5,000 km linking Algeria and Lagos to export Nigerian gas to Europe, and parallel to this line is the fiber optic network project.

It also has a road network, the second in Africa, with more than 140,000 km, and a railway network that will cover the entire national territory and link it with the neighboring countries of the Maghreb and the southern borders. It will reach 6,300 km soon and 12,500 km in 2030.

-Rich resources, Algeria is a country of energy par excellence:

Diverse rich wealth, at the African level, the second in gas production (more than 100 billion m3 annually) and in reserves (4.5 trillion m3) and 56 billion m3 will be exported in 2022, and it is expected that it will soon reach 100 billion m3. It is the third in oil production (1 million barrels per day) and reserves (12 billion barrels). Its capabilities in the oil and gas market were enhanced by 15 new discoveries in 2022, and 6 discoveries in the first quarter of 2023.

As for energy prices, they are very low, to serve the lives and comfort of citizens, reduce the cost of production and encourage investment. Natural gas: 0.21 to 0.40 euros / electricity: 0.1 to 0.4 euros / hundred kilowatts / hour, gasoline: 0.30 euros / liter, diesel: 0.17 euros / Liter.

Algeria is the first African financier of natural gas to Europe, as it has a pipeline to Spain through the Mediterranean Sea, another pipeline to Italy via Tunisia, and a third pipeline through the Mediterranean Sea, Sardinia and southern Italy. It was also agreed at the beginning of this year to construct a new pipeline for energy transmission linking Algeria with Italy, which is characterized by its ability to transport gas, hydrogen, ammonia and electricity to Italy, as a station for marketing these materials throughout Europe.

Algeria possesses rich and diversified mining resources, as it has the largest iron mines, such as Ghar Djebeilat-Tindouf, the third world reserve with 3.5 billion tons, and a production capacity of between 40 and 50 million tons annually of raw iron, while the national needs are estimated at 5 million tons. It has the sixth global reserves of phosphate (2.2 billion tons), with a production capacity of 10 million tons annually. In addition to gold, copper, marble, nickel, lithium, zinc and other mines. As well as huge renewable energies, where the sun shines more than 3000 hours annually. It produces more than 40 million tons of cement, with an export capacity of 18 million tons.

– Vast geography of fruitful agriculture and attractive tourism:

A fertile land for all types of agriculture, in the north/the coast, the center/the plateaus, the south/the oases and the Sahara desert, full of various agricultural products. Agricultural production contributes 14.7% of the gross national product, with 34.5 billion dollars, and covers 75% of the national needs, and is second only to hydrocarbons, with 24%. As well as 1,600 km of beaches on the Mediterranean, rich in marine resources.

A vast and varied charming geography, a climate with four seasons in one day, beautiful beaches on the Mediterranean, a mountain range in the north and south, wide steppes, beautiful oases and a great desert.

An attractive tourist destination with all kinds of beach, mountain and desert tourism, Byzantine, Phoenician, Roman, Christian, Islamic, Ottoman and modern archaeological sites. There are seven sites classified as UNESCO World Heritage: the Kasbah of Algiers, the Roman ruins of Djemila (near the city of Setif / east), the M’zab Valley region (the south center), Timgad (near Batna, the capital of the Aures region, / the east), Bani Hammad Castle (east, since the year 1007, the era of the Hammadid state) Tassili region (Tamanrasset – the farthest desert) is the largest natural museum in the world.

-New investment law, with international standards and guarantees:

Algeria has moved to economic reforms with international standards, activating production mechanisms, huge structural projects and a policy of regional and continental integration, economic governance and transparent management by spreading digitization in all sectors (customs, taxes, land survey management, trade, agriculture and industry…), as well as updating the regulating laws The economy, finance, investment and trade, in a way that makes the economy developed, flexible, transparent, effective and attractive to economic dealers.

In this context, in April 2023, a new law was adopted: Money and Credit, which “contributes to strengthening the independence of the Central Bank, encouraging foreign investment and facilitating the movement of capital. And before that, a new investment law – 24 July 2022, provides privileges and necessary guarantees for national and foreign companies and businessmen, taking into account the stability of the system  at least 10 years .The new law also exceeded the rule of 49% for foreigners compared to 51% for nationals, by granting foreigners the right to invest in all sectors by 100% except for some strategic sectors.

The law provides for the creation of an “Algerian Agency for Investment Promotion – APP” under the authority of the Prime Minister, bringing together representatives of the various sectors concerned with investment. The process of investment registration and follow-up during the completion period takes place through the “digital platform for the single window” for major and foreign investments, which communicates with diplomatic and consular representations, and accompanies investors in implementing all procedures related to their projects. There are also “decentralized single windows” with local jurisdiction, regarding investments that do not fall under the jurisdiction of the single window for major projects and foreign investments.

The legal system has been strengthened to protect investors from bureaucratic arbitrariness through the creation of a high-level independent mechanism, to be placed with the Presidency of the Republic, to adjudicate complaints and appeals submitted by investors within a maximum period of one month.

-Important tax advantages and incentives:

Article 26: Investments made in the following fields of activities shall be eligible for benefiting from the “sectoral system”:Mines and quarries, agriculture, German education and fishing, industry and food industry, pharmaceutical and petrochemical industries, services and tourism, new and renewable energies, knowledge economy and information and communication technologies.

Article 27: In addition to the fiscal, quasi-fiscal and customs incentives stipulated in the general law, investments that can benefit from the “sectoral system” benefit from the following advantages

  • Entitled stage of completion

1) Exemption from customs duties with regard to imported goods that are directly involved in realizing the investment,

2) Exemption from value-added tax with regard to imported or locally acquired goods and services that are directly involved in realizing the investment.

3) Exemption from paying the right to transfer ownership in exchange for compensation and fees for real estate advertising from all real estate acquisitions made within the framework of the concerned investment.

4) Exemption from registration rights imposed in respect of articles of incorporation of companies and capital increases,

5) Exemption from registration rights, fees on real estate advertising, and the sums of national property that include the right of concession on built and unbuilt real estate intended for the realization of investment projects,

6) Exemption from real estate tax on real estate properties that fall within the framework of investment for a period of ten (10) years, starting from the date of acquisition.

  • Titled Exploitation Stage: From a period ranging from three (3) to five (5) years, starting from the date of commencement of exploitation: Exemption from tax on corporate profits. Exemption from tax on professional activity.

Article 28: The investments made in: the sites belonging to the high plateaus, the south and the great south, the sites whose development requires a special accompaniment from the state, the sites that have the potential of valuable natural resources.

Article 29: The investments subject to benefiting from the benefits of the “region system” can benefit from the following advantages: Titled Completion Stage: One of the advantages specified in Article 27. Titled Exploitation Stagefor a period ranging from (5) to (10) years starting from the date of commencement of exploitation: Exemption from tax on corporate profits. Exemption from fees for professional activity.

Article 30: Investments with a high potential for wealth creation and job creation, can benefit from the “structured investments” system.

-Where we can get other information:

Algerian Investment Promotion Agency ( WWW.aapi.dz), Algerian portal for companies setting up (WWW.jecreemonentreprise.dz), Ministry of industry (WWW.industrie.gov.dz), Ministry of Labor, Employment and Social Security (WWW.mtess.gov.dz ), National Center of Trade Register(WWW.mtess.gov.dz ), Tax General Directorate(WWW.mfdgi.gov.dz), Customs General Directorate (WWW.douane,gov.dz).

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