Discover Algeria

Algeria is an important and strategic market with special assets and attractive investment opportunities.

Algeria is also a favourable and risk-free economic stability for business with excellent macroeconomic data.

Investment in Algeria may have a young and skilled workforce as well as competitive and advantageous costs of production factors.

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LABOUR FORCE: 

It means the working-age population whose profile is consistent with the definition adopted by the International Labour Organization (ILO), which refers to the sum of all persons of working age who are employed and those who are unemployed. 

Algeria recorded an annual average of 9,749,783 workers during the period ranging from 1990 to 2019. The employment rate recorded between the first and the last year is 90%. The highest value (12,303,926) was recorded in 2019 and the lowest value (6,477,684) was recorded in 1990. Based on the available data, the total labour force is expected to reach 13,182,143 by 2025. 

LABOUR FORCE BY PRODUCTION SECTOR: 

PRIMARY SECTOR (AGRICULTURE): 

The number of people working in the field of agriculture is expressed as a percentage of the total workforce. People who live off hunting, fishing and foresters are also included.

Algeria recorded an annual average employment rate of 17.29%, for the period ranging from 1991 to 2019. The rate’s change between the first and last years is 59%. The highest value (23.95%) was recorded in 1991 and the lowest value (9.86%) was recorded in 2019. Based on the available data, the rate is expected to reach 9.15% in 2025.

SECONDARY SECTOR (INDUSTRY): 

The number of jobs in this sector includes people working in the industrial sector. It is expressed as a percentage of the total labour force.

Algeria recorded an annual average employment rate of 27.5% for the period 1991-2019. The rate’s change between the first and last year is 21%. The highest value (30.99%) was recorded in 2015 and the lowest value (24.69%) was recorded in 2003. Based on the available data, the rate is expected to reach 30.61% by 2025.

TERTIARY SECTOR SERVICES: 

The number of jobs in this sector includes people working in the service sector. It is expressed as a percentage of the total labour force. Services include wholesale and retail sales, catering and hotel trade, transport, warehousing, communications, finance, insurance, and community, social, and personal services.

Algeria recorded an annual average of 55.21% for the period 1991-2019. The rate’s change between the first and last year is 17%. The highest value (59.41%) was recorded in 2019 and the lowest value (50.65%) was recorded in 1991. Based on the available data, the employment rate should reach 60.24%, in 2025.

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Algeria allows investors to benefit, under its investment incentive policy, from several tax and special taxation advantages, depending on the location and the scale of the project, which can be up to 10 years of exemption from VAT, customs duties, corporate income tax (IBS), business activity tax (TAP) and property tax.

 

Additional benefits are also granted such as:

 

  • Partial or total refund of expenditure relating to infrastructure works under the zone exemption arrangements.
  • Reducing employer social security contributions for the recruitment of young job seekers.
  • Concession of land under forward agreement contract, over periods of 33 years, renewable and resulting in the same real rights arising from the assignments.
  • Reduction in the rental fee on land and property acquired for the purpose of making the relevant investment.
  • Tax and special taxation exemptions throughout the lifespan of the exporter projects.
  • Temporary exemption for 5 years from corporate income tax (IBS), income tax (IRG) and business activity tax (TAP) + 3% interest rate subsidy on bank loans granted for investments in certain activities in the steel and metallurgical industrial sectors, in hydraulic, electrical and household binders, industrial chemistry, mechanics and motor vehicles, pharmaceuticals, aeronautics, shipbuilding and repairs, advanced technologies, agri-food industry, textiles and clothing, leather and derived products, wood and furniture industry.
  • VAT exemption / customs duties or any other taxation on equipment necessary for investments made by industrial sector’s companies in the field of research and development.
  • 50% reduction of income tax (IRG) or corporate income tax (IBS) for natural persons and legal entities, operating and fiscally domiciled in the provinces of Illizi, Tindouf, Adrar and Tamanrasset for 5 years from 1 January 2015.
  • Public treasury shall take over bank interest on investments made by companies in the industrial sector, intended for the acquisition and proficiency in technology to strength the industrial integration rate of their products and competitiveness.

  • Reduction of social security contributions for recruitment of young job seekers: in the North (from 56% to 80%), in the High plateaus and the South (from 72% to 90%).

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Recourse to international arbitration was introduced by the provisions of Decree 93-09 of April 25th, 1993, amending and supplementing the Code of Civil Procedure, following the reforms undertaken by the authorities in the early 1990s to move from planned economy to market economy. Therefore, Algeria has established the relevant legal framework for the settlement of disputes between Algerian companies and foreign companies.



Law No. 08-09 of February 25th, 2008 on the Code of Civil and Administrative Procedure has come to amend the said legal framework profoundly on international arbitration. Thus, the amendments made under this law are substantial, as they relate to the definition of international arbitration, the law applicable to proceedings and introductory cases.



The mechanisms adopted reflect the genuine will of the Government to reassure foreign partners and enable them to assert their rights in the framework of the policy of promoting investment and trade with foreign partners.



Moreover, Law 16-09 of August 3rd, 2016, on the promotion of investments, clearly refers to international arbitration for the settlement of any dispute between the foreign investor and the Algerian State which might result from the investor’s action or from a measure taken by the Algerian State against the investor.



At the international level, Algeria has acceded to international conventions on guarantees and international arbitration, including New York Convention of 1958 and New York Convention of June 10th, 1998. Algeria has also ratified the Washington Convention of March 18th, 1965 establishing the Centre for Settlement of Investment Disputes.



Several agreements, bilateral conventions and memorandums of understanding on the promotion and protection of investments have been concluded between Algeria and several countries, allowing recourse to international arbitration between Algerian companies and their foreign partners.



In this respect, the following tables list all bilateral conventions and agreements concluded by Algeria with several countries on the promotion and mutual protection of investments and on non-double taxation.



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