The new Algerian investment law has entered into effect, as Algeria hopes that this law will contribute to liberalizing the economy in front of local and foreign investors. The new text of the law will remain in force for 10 years without any change, in a way that protects and serves investment and investors.
The new law stipulates the transformation of the National Agency for Investment Support (governmental) into the Algerian Agency for the Promotion of Investment and grants it the role of promoter and escort for investments. It was also decided to create a single window with national jurisdiction, directed to major projects and foreign investments.
Among the highlights of the new text, which has long drawn criticism from foreign partners, is related to expanding the scope of guaranteeing the transfer of invested amounts, and the proceeds resulting from them to non-resident (foreign) investors. As foreign companies operating in Algeria face problems every year regarding the transfer of profits, and the lack of clarity on how to implement the applicable regulatory texts.
The law also stipulated the imposition of the maximum penalties on anyone who obstructs, in one way or another, investment operations, whatever their position and the nature of their responsibility. For decades, the business and investment climate has been a rich material for criticism of public opinion, local businessmen, and foreign companies alike. Due to the complex and heavy administrative procedures, which caused a reluctance among investors, and led to Algeria ranked 157th in the Doing Business 2020 report, out of 190 countries.
Source (Anadolu Agency, Edited)
