Reasons to invest in Algeria :
- Economic stability;
- Attractive investment opportunities:
- 5 billion dollars of imports in 2015 (during the first 9 months of the year);
- 262 billion of public investment for the period 2015-2019;
- Promising sectors with matured projects.
Agriculture and rural development policy is focused on the permanent support of food security, making of the agriculture sector an engine of economic growth and diversification, through the intensification of production in strategic agri-food chains, and the development of rural areas.
Opportunities offered by the sector:
- Acquisition of fishing ships;
- Acquisition of fishing materials and equipments;
- Rehabilitation and re-mechanisation of ships;
- Support units for production means (means of careening, lifting, drying ships,
- Construction and repairing ships and manufacturing of fishing materials);
- Support units for production (cold chain, refrigerated warehouses and tunnels of
- Freezing, transformation and distribution);
- Marine aquaculture;
- Continental aquaculture;
- Saharan aquaculture acquisition
Algeria recently set up a new strategy of industrial revival, the purpose of which is to develop, to modernize and integrate more of the Algerian industry. From this perspective, the government seeks to improve the attractiveness of Algeria as an investment destination, in order to revitalize the industrial activity, create new business opportunities and encourage the implementation of new investments. This initiative also aims at promoting the digital economy, developing and providing flexible and innovative financing, in order to encourage manufacturers to modernize their production facilities.
Algeria intends to give the tourism sector a dimension worthy of its potentialities and of its assets. The challenge now is to develop the national tourism, one of the engines of sustainable development, to support economic growth. This objective is part of a comprehensive spatial planning policy, which has led to the adoption of a strategic reference framework and a vision by 2030, through the adoption of a National Plan of Territory Development, instituted by Law n° 01-20 of June 29th, 2010 on the SNAT approval. This scheme aims at ensuring a balance of the population and activities localization throughout the country as well as the territories attractiveness. It relies, in particular, on the territorial programming spaces organization, on the attractiveness and industrial development poles emergence, and on new towns implementation, on the basis of which mechanisms will be put in place, allowing the growth spreading throughout the country.
The health system is organized around the Algerian Ministry of Health, Population and Hospital Reform (MSPRH), which manages the hospital and health sector. There are five regions across the country with 5 Health Regional Councils (CRS) and 5 Regional Health Observatories (RHAs). In the Wilayates there are 48 Directorates of Health and Population (one direction per wilaya).
Transport is one of the fundamental pillars of sustainable development and prosperity of any country. Efficient transport systems and modern networks are a necessity for economic development, social welfare, the large-scale production, and environmental protection.In Algeria, the transport sector is experiencing a real change. A large number of projects were carried out, or are in course of realization, in order to make the sector more efficient and effective in its contribution to the economic development of the country.
- Road network
- Railway network
- Air transport
- Maritime transport
- Urban transport
The integration of renewable energies into the national energy mix is a major challenge in terms of preserving fossil resources, diversifying electricity production channels and contributing to sustainable development. According to the renewable energy development program 2011-2030, these energies are at the heart of Algeria’s energy and economic policies, namely the development of photovoltaic and wind power on a large scale, Biomass (waste recovery), cogeneration and geothermal energy, and the development of solar thermal .
The progress in the sector of Communication and Information Technologies become increasingly determined for the construction of an efficient economy based on knowledge and information. The Algerian State has, therefore, put the Information and Communication Technologies development (ICTs) at the center of economic and social development strategies and policies.
The Metallogenic analysis of various geological environments show that they
are potential for the discovery of following mineralization :
- Precious metals: gold, silver;
- Precious and semi-precious: diamond, topaz, beryl …
- Basic metals: zinc, lead, copper;
- Ferrous and non-ferrous metals: iron, manganese …
- platinum group elements (PGE): platinum, palladium, iridium;
- Precious metals: tantalum, niobium, beryllium;
- Rare Earth (REE);
- Industrial minerals: phosphate, barite, bentonite, diatomaceous earth
Availability of important natural resources:
- 18th largest oil producer ;
- 12th largest oil exporter ;
- 15th place in world oil proven reserves;
- 3rd producer and 5th exporter of gas;
- 3rd supplier of natural gas in the European Union;
- 7th place in the world in terms of proven gas resources;
- 4th total energy supplier to the European Union;
- 4th economic power in the Arab world as the Arab Organization for Investment Guarantee;
- 2nd largest holder of foreign exchange reserves after Saudi Arabia;
- 3rd largest holder of gold reserves in the MENA region after Saudi Arabia and Lebanon;
- The less indebted of the 20 countries in the MENA region;
- Solar potential: – 3000 hours of sunshine per year;
- Other mineral resources: phosphate, zinc, iron, gold, uranium, tungsten, kaolin, silicon … etc.
Ambitious policies of development and sectorial strategies:
- The new industrial revival policy highlighting 12 strategic sectors, namely the steel and metal working, hydraulic binders, electrical and household appliances, industrial chemistry, mechanics and automotive, pharmaceutical production, aerospace, construction and ship repair, advanced technology, food processing, textiles and clothing, leather and timber products, wood and furniture industry as well as outsourcing ;
- The Master Plan for Tourism Development ;
- Agricultural and Rural Renewal Programme ;
- A Renewable Energy Program (solar, thermal and wind) for the production of 22 000Mw by 2030;
- Development Plan of the Fishing and Aquaculture Activities by 2025.
Access to regional markets :
- Geostrategic position allowing proximity to the European, African and Arab markets ;
- 7 border markets (Tunisia – Libya – Niger – Mali – Morocco – Western Sahara – Mauritania);
- Membership in the agreement of the Arab Free Trade Area ;
- Signature in perspective of the Association Agreement with the European Union ;
- Membership in perspective in the World Trade Organization.
Functional and modern infrastructure in conformity with international standards:
- Roads: 112039 km of roads and highways (40th network World, 3rd in Africa) including 29 573 km of national roads ;
- Airports: 36 airports, including 16 international ;
- Railways: 3973 km of km of railways of which a tiny part is electrified. In 2016/2017 horizon, the length of the rail network will be 6000 km ;
- Ports: 45 maritime infrastructure including 11 commercial ports, two oil ports, 31 fishing ports, one (01) marina and 2,200 maritime traffic lights;
- One (01) Metro in Algiers with a length of 9.5 km with three extensions with a total length of 9.4 Km in progress;
- 3 tramways (Algiers, Oran and Constantine), and 04 underway of realization (Ouargla, Sidi Bel Abbes, Sétif).
A qualified, young and competitive labour force:
- 5% of GDP for education;
- 24% of the state operating budget for higher education;
- 86% literacy rate;
- 6% of the Algerian population training age annually;
- 96% of school enrolment;
- 5 million Students, including 35,000 registered in doctoral training and 90000 in technical areas;
- 2 500 000 graduates since 1962, from 97 universities, 10 university centres, 20 national schools, 7normal schools, 12 preparatory schools;
- Almost 643,700 enrolled in vocational education which 200,000 (average) graduates from 1213 establishments (institutes and centres).
Competitive production factors costs:
- Natural gas: 0.21 to 0.40 Euros / therm;
- Electricity: 1 to 4 euro cents / kWh on average.
– Salary: 180-900 Euros (the minimum wage is set at 180 Euros);
– Gasoline super 0.26 Euros / L Gas Oil 0.16 Euros / L.
Incentives for investment:
Important tax incentives up to 10 years of exemption, depending on the location and size of the project.
And other additional benefits:
- Partial or total reimbursement of expenses related to infrastructure works within the framework of derogatory scheme ;
- Reduction in employers’ contribution to social security for the recruitment of young job seekers ;
- The concession of land by mutual agreement, over periods of 33 years renewable and giving rise to the same property rights arising from sales ;
- Discounts on the price of the rental fee on the land and property acquired within the framework of the realization of the investment ;
- Tax exemptions throughout the life of the project for exporting projects ;
- Temporary Exemption for 5 years, of companies benefits tax (IBS), Global Income tax(IRG) and Tax on the turnover and 3%bonus of the interest rate on bank loans granted to investments in certain activities within the steel and metal industrial sectors, the hydraulic binders and Electrical Appliances, Industrial chemistry, mechanics and automotive Pharmaceuticals, aerospace, shipbuilding and repair, advanced technology, food processing, textiles and clothing, leather and derivatives, wood and furniture industry ;
- Exemption from VAT, customs duties, taxes having equivalent effect or any other charge for the equipment needed for investment by industrial companies in the field of research and development ;
- Reduction by 50% of companies benefits tax (IBS) or Global Income tax (IRG) for individuals and legal entities, activating and fiscally domiciled in the wilayas of Illizi, Tindouf, Tamanrasset and Adrar, and this for a period of 05 years from the January 1, 2015 ;
- Support by the Public Treasury Administration to bank interest for investments made by industrial companies for the acquisition of technology and mastery to enhance
Two incentive schemes are provided
Investment projects may benefit from fiscal exemption and reduction according to the location and the impact of the projects on the economic and social development.
A. Realization period:
- Exemption from customs duties on non excluded imported equipments, directly involved in the realization of the investment;
- Exemption from VAT on non exclude goods and services, whether imported or purchased locally, and that are directly involved in the investment realization;
- Exemption from property transfer tax in return for all property acquisitions, realized within the framework of the concerned investment.
B. Exploitation period:
For duration of (3) years for project creating more 100 jobs at the start-up of the activity and after observation of commencement of activity, established by the tax authorities to the diligence of the investor:
- Exemption from company profits tax;
- Exemption from Professional activity tax.
Opportunities for financing through public banks
– Interest rate 3.5% ;
– Bonus of 2% which can range to 4.5% (in tourism projects in the South) ;
– A network of 29 banks and financial institutions, including:
- 14 private and 6 public and 9 financial institutions;
- 7 373 100 billion dinars of credit to the economy.
– The existence of Leasing Companies;
– Availability of investment funds:
- FNI shareholding to 34% in major projects;
- 05 Investment Funds covering the whole territory up to 49% participation in the capital of SMEs.
– Possibilities for the use of financial institutions guarantees: Guarantees Fund Credits Investment “FGAR”.
Opportunities for investment
Partnership portfolio / Private projects: http://www.andi.dz/index.php/en/bourse-de-partenariat?id=398
Public projects: http://www.andi.dz/PRESENTATION%20ALGER%20SITE/Partnership%20Portfolio%20-Ver%20EN-/public/index%20EN%20PUBLIC.html
Foreign Investment Promotion Agency
(+216) 70 241 500
(+216) 71 231 400
Algeria - Guide fiscal de l'investisseur en Algerie - French
Algeria - Guide investir en Algérie-French
Algeria - Mineral potential of ALGERIA
Algeria - Geological infrastructure and mineral ressources