The Stages of Establishing Investment Freedom in Algerian Legislation

Foreign investment, which was undesirable in the 1970s in most developing and some developed countries, has now become one of the key features of the modern era. The economic landscape has shifted significantly, with international economic relations evolving rapidly due to globalization, which has reduced the influence of political borders as barriers to the movement of capital, goods, and services. Countries are now in fierce competition to attract private foreign investments due to fundamental shifts in prevailing political concepts and the growing need for external financing, at a time when global savings rates and financing sources are declining.

In response to this, Algeria, like many other nations, has worked to attract foreign investments by establishing a set of fundamental principles designed to encourage and facilitate foreign capital inflows while protecting the legal relationships that arise between the state and foreign investors. One of the most notable principles in this regard is investment freedom , which serves as a fundamental factor for investors choosing to operate in a particular country. This principle allows investors to engage in various economic activities that align with their business interests and expected returns, motivating them to move to the host country.

Algeria has introduced several investment laws over successive periods to institutionalize investment freedom , with legal frameworks that have evolved in terms of regulations and objectives, adapting to the specific characteristics of each stage. These stages have been marked by two distinct periods:

• 1.     The marginalization of the principle of investment freedom , particularly during the

• 2.     The formal recognition of investment freedom , which emerged during the economic

post-independence era when Algeria adopted a socialist economic model.

reforms associated with a liberal economic orientation.

This    contrast leads us to the following key research question:

What are the main stages that Algerian legislation has gone through, from marginalizing the principle of investment freedom to its full legal recognition?

To answer this question, our study is divided into two main sections:

• •      Section One: The phase of marginalizing investment freedom in Algeria (pre-reform

period).

• •      Section Two: The phase of establishing investment freedom in Algeria (reform period).

First Axis: The Phase of Marginalizing the Principle of Investment Freedom (Pre-Reform Period)

An examination of the investment laws issued after independence reveals that they lacked a clear, goal-oriented strategy. Instead, they consisted of scattered and contradictory legal provisions, as the fundamentals of investment and the factors contributing to its success conflicted with the exclusion of the private sector. During this period, the state maintained control over all economic activities and sectors, which were considered state-owned and not open to competition. Strategic and vital sectors were monopolized, preventing private investment. Consequently, there was a disconnect from the principle of investment freedom due to the policies adopted from the 1960s until the late 1980s.

First Section: Investment Laws of the 1990s (Socialist Approach)

During this period, Algeria enacted Investment Law No. 63-277 and Law No. 66-284, both of which reinforced the socialist policies adopted by the Algerian state post-independence. These laws were based on the belief that anything foreign posed a potential threat to the nation’s internal stability. Consequently, applying the principle of investment freedom in Algeria was difficult.

First Subsection: Marginalization of Investment Freedom under Law No. 63-277 on Investment

Immediately after independence, Algeria faced a legal vacuum, which led to the temporary application of French legislation, except for provisions conflicting with national sovereignty, as per Law No. 31/12/1962. The Algerian state then embarked on economic, social, and political reforms to address the major imbalances left by the French colonial regime. Among the most notable laws enacted during this period was Law No. 63-277, issued on July 26, 1963 , followed by Law No. 66-284, issued on September 15, 1966 .

The issuance of Law No. 63-277 was primarily driven by Algeria’s urgent need for foreign capital, its limited internal resources, and the scarcity of local investment funds. This law granted investment freedom to both foreign natural and legal persons , in accordance with economic agreements between states . However, the acceptance of foreign investors was contingent upon their alignment with the objectives of the Algerian state, particularly in sectors critical to the national economy and essential for achieving a socialist economic model.

This law consisted of 30 articles divided into six chapters , focusing primarily on four key guarantees for foreign investors:

• 1.     Freedom of investment for both foreign individuals and legal entities.

• 2.     Freedom of movement and residence for employees and managers of enterprises.

• 3.     Equality before the law , particularly regarding taxation.

• 4.    Protection against expropriation.

Upon reviewing Chapter Four of this law , it is evident that the Algerian legislator restricted public investment to the creation of national companies or mixed-economy companies with contributions from national or foreign capital. This approach aimed to create the necessary conditions for achieving a socialist economy in sectors crucial to the national economy. The law also defined the organization, operation, and supervision of mixed-economy companies, while ensuring that the state retained the right to purchase shares held by foreign or national investors at any time .

However, analyzing the provisions of this law reveals contradictions . While there was a strong desire to attract capital and promote economic openness, the state simultaneously leaned toward socialism. This contradiction is evident in:

• •      Article 23 , which emphasized state intervention in investments.

• •      Article 24 , which allowed the state or its affiliated institutions to acquire shares in

private companies whenever necessary.

• •      The limitation on capital transfer abroad , which was restricted to 50% of profits , as

the state required these funds for its own economic needs.

Thus, investment freedom under Law No. 63-277 was not absolute ; rather, it was subject to specific conditions and constraints. These included compliance with public order, adherence to investment regulations, and obtaining approval from the National Investment Committee . This law attempted to balance the guarantees, incentives, and rights granted to foreign investors with state intervention in investment activities , all while lacking a clear strategic vision regarding the role of national capital in economic development.

Second Subsection: Marginalization of Investment Freedom under Law No. 66-284 on Investments

Law No. 66-284 introduced several principles governing private capital, whether national or foreign. One of the most significant principles was that private investments could not be carried out freely in Algeria . Article 2 stipulated that the initiative for investment projects in vital sectors of the national economy belonged exclusively to the state and its affiliated institutions . Private investors were allowed to invest in other sectors only after obtaining prior authorization from administrative authorities .

Both national and foreign private capital could invest in non-vital sectors only with prior approval from administrative authorities. This was reinforced by Article 4 , which explicitly stated:

"Algerian and foreign natural and legal persons may establish industrial enterprises, provided they obtain the prior authorization specified in Articles 20 to 27 of this ordinance."

The provisions of this law were particularly restrictive for foreign investors , as it prohibited them from freely choosing the sectors in which to invest . This restriction reflected the state's continued apprehension toward foreign investments , particularly in strategic sectors, which remained under state control .

The legislator's intention was to limit private capital involvement in critical economic sectors , considering that allowing foreign investments with extensive benefits and incentives could jeopardize long-term state control . Consequently, the law maintained a system of prior approval for foreign investments in non-strategic sectors while preserving the state’s right to reclaim these investments whenever national economic interests required .

Furthermore, foreign capital transfers abroad were heavily restricted , with a limit of only 15% of the foreign contribution amount , as stipulated in Article 15 .

Like previous laws, this legislation failed due to its harsh restrictions on foreign investors. Algeria strongly adhered to the socialist model during this period, in which the state maintained dominance over key economic sectors. The contradiction between encouraging investment and state intervention further deterred both private and foreign investors. The severe limitations on investment freedom, coupled with nationalization policies that targeted key economic sectors, significantly reduced investor confidence.

Additionally, legal disputes were subject to Algerian courts , a provision that clashed with foreign investors’ expectations . Many foreign investors feared that national courts would favor state interests , making them reluctant to engage in long-term investments in Algeria.

Second Section: Investment Laws of the 1980s

This period was marked by the enactment of Law No. 82-11 and Law No. 86-13 , both of which reflected Algeria’s continued restrictive stance on investment freedom .

First Subsection: Law No. 82-11 on National Economic Investment

This law imposed multiple restrictions on private investment . Article 2 set limits on the size of national private investments , specifying that project costs could not exceed 30 million Algerian dinars . Additionally, private investors were prohibited from engaging in multiple activities , whether directly or indirectly .

The legislator not only restricted private investment to marginal sectors and imposed financial limitations , but also introduced a mandatory approval process before launching any investment project. Article 13 stated:

"No investment project, whether for establishment or expansion, may be undertaken under this law without prior mandatory approval granted in accordance with the prescribed conditions and procedures."

This law primarily targeted national private economic investment rather than foreign investment. Consequently, Law No. 82-13 was later enacted to regulate the establishment and operation of mixed-economy companies . However, this law also included significant restrictions on investment freedom .

For the first time, it introduced a new principle :

Foreign investments could only be carried out within mixed-economy companies.

The process of establishing these companies was lengthy and complex , further discouraging investment. Additionally, Article 22 imposed a foreign ownership cap of 49% , ensuring that the Algerian side retained a majority stake of 51% in any joint venture.

These restrictive measures further discouraged foreign investors and reinforced the state’s dominance over the economy , maintaining a socialist-inspired investment model that prioritized public sector control over private capital participation .

However, during that period, private investors were still apprehensive about the nationalization process. Additionally, they tended to engage in commercial activities that generated quick profits, which rendered this law ineffective, serving merely as an incentive for the initial awakening of the Algerian private sector.

Section Two: Law No. 86-13 on the Establishment and Management of Mixed Economic Companies

This law introduced a set of provisions aimed at easing the obligations imposed by Law No. 8213 on foreign investors. It repealed Article 6, which previously required prior authorization from the supervisory authority for the conclusion of protocol agreements between socialist enterprises and foreign partners. The new amendments also granted additional management powers by abolishing Article 13, which had given the Algerian party the right to direct and oversee joint investment activities.

Furthermore, this amendment allowed foreign investors to transfer a portion of their undistributed profits, convertible portions of wages for foreign employees in joint ventures, proceeds from the sale of shares in the event of a company sale or dissolution, and compensation in case of nationalization.

The Algerian government’s approach to adopting a partnership system through mixed economic companies became more flexible and transparent. This time, the legislature sought to increase the inflow of foreign capital into the country by introducing relatively greater incentives compared to the previous law. For example, foreign partners entering into agreements with Algerian public enterprises based on a protocol agreement were granted the ability to participate in defining the company’s objectives, operational domains, obligations, and duties of the parties throughout the company's duration.

However, despite the amendments introduced through Law No. 86-13, there was still no real institutionalization of investment freedom. This was mainly due to the dual nature of the government’s official discourse at the time: publicly, it emphasized the importance of the private sector in national development, while privately, it harbored suspicions about the patriotism of the private sector and remained wary of foreign investment.

Chapter Two: Institutionalizing Investment Freedom in Algeria (The Reform Era)

Following the failure of the socialist economic model to drive national development, the Algerian legislature initiated a series of profound reforms in the early 1990s to transition towards a market economy. The 1990s and early 2000s marked the shift from a centrally planned economy to a free-market system through the enactment of various laws recognizing investment freedom, aimed at attracting foreign investment, as outlined below:

Section One: Laws Promoting Investment Freedom in the 1990s

This period was characterized by the enactment of several laws that sought to institutionalize and recognize investment freedom. The legislature went even further by enshrining this principle in the Algerian Constitution of 1996.

Subsection One: Law No. 90-10 on Currency and Credit (April 14, 1990)

The initial steps towards institutionalizing this principle were reflected in early indicators and measures, including the liberalization of foreign trade. This was exemplified by Law No. 90-10 on Currency and Credit, issued on April 14, 1990, which became one of the most significant legislative reforms of this period. It served as a foundational step toward freeing the economy from state-imposed constraints.

This law represented a shift in the Algerian legislature’s approach, moving away from subordinating economic development to sovereignty concerns and prioritizing economic factors over political considerations. It also marked the beginning of financial sector revitalization (including banks and financial institutions), which had previously been a state-controlled strategic sector. The law granted significant autonomy to Algeria’s banking system by increasing the operational freedom of commercial banks and centralizing monetary authority within the Bank of Algeria and the Monetary and Credit Council.

Moreover, this law signaled the beginning of Algeria’s transition from a centrally planned economy to a free-market system by opening up investment opportunities for non-residents. For the first time, it explicitly recognized the right of foreign investors to transfer capital into Algeria to finance economic activities not exclusively reserved for the state, its subsidiaries, or any other legally designated entity. This was codified in Article 183, which states:

"Non-residents are authorized to transfer capital into Algeria to finance economic activities that are not explicitly designated for the state, its subsidiaries, or any other legally defined entity."

Despite its significance, Law No. 90-10 on Currency and Credit faced criticism for being primarily a regulatory framework for banking and financial transactions rather than an independent investment law. It only addressed investment issues tangentially, which limited its effectiveness in fostering investment in Algeria. For example, it did not include crucial provisions for attracting foreign capital, such as specific incentives or facilitations beyond the ability to transfer capital and profits.

Additionally, Regulation No. 91/03, issued by the Bank of Algeria, specified conditions for conducting and financing the importation of goods into Algeria.

Subsection Two: Legislative Decree No. 93-12 on Investment Promotion

This decree is considered one of the most effective investment laws in Algeria compared to previous legislation. Its significance lies in its focus on encouraging both domestic and foreign private investment in sectors dedicated to goods and services production, excluding those explicitly reserved for the state, its subsidiaries, or other designated entities by law.

The law represented a major leap forward in opening up to foreign investment by introducing a set of tax, customs, and fiscal incentives aimed at attracting capital. Comprising 50 articles spread across seven chapters, it formally and explicitly institutionalized investment freedom in Algeria for the first time. This was part of a broader strategy to liberalize the national economy, shift towards a market-based system, and transition from an anti-investment policy to one that actively welcomed private capital—both domestic and foreign.

Investment freedom was explicitly enshrined in Article 3 of Legislative Decree No. 93-12, which states:

"Investments are carried out freely, subject to the legislation and regulations governing regulated activities. Before implementation, these investments must be declared to the agency mentioned below."

This provision clearly illustrates the Algerian legislature’s commitment to institutionalizing investment freedom. Several measures reinforced this commitment, including the elimination of restrictions previously imposed on private domestic and foreign investors. One of the most significant reforms was the abolition of the prior administrative authorization requirement, replacing it with a simple declaration system as the only general condition for investment freedom. This reform stripped the administration of its authority to intervene in investment procedures or grant approvals.

The prior authorization requirement had been one of the main barriers discouraging investors from engaging in countries that upheld such mechanisms, as it contradicted the principle of investment freedom.

In addition to ensuring equal treatment for both local and foreign investors (Article 37), the law guarantees the freedom to transfer invested capital and repatriate it abroad, even if these transfers exceed the original capital (Article 12). It also provides for the possibility of international commercial arbitration to resolve disputes (Article 41). Any dispute between a foreign investor and the Algerian state, whether initiated by the investor or resulting from an action taken by the state against them, is referred to the competent courts unless there is a bilateral or multilateral agreement concluded by Algeria concerning conciliation or arbitration, or a special agreement stipulating an arbitration clause or allowing the parties to agree on conciliation through private arbitration.

Additionally, new administrative bodies have been established to simplify procedures and remove obstacles, including the National Agency for Investment Promotion, Support, and Monitoring (APSI) (Article 07).

Investments have also been granted various incentives depending on the system to which they belong. A distinction has been made between several systems: the general system, the special zones system, and the free zones system. Unlike pre-reform laws, this classification aligns with a capitalist approach and keeps pace with global developments aimed at activating free zones worldwide to boost the global economy. The law defines the conditions and procedures for designating free zones, determining their boundaries, privileges, and management. Notably, a free zone was established in Bellara, Jijel, for the iron and steel industry.

All these measures reflect the Algerian legislator’s commitment, through Decree 93/12, to promoting investment freedom by implementing the most effective incentives and advantages to attract and entice foreign investors and their capital, alongside national investors, to stimulate economic development.

However, several factors contributed to the failure of Legislative Decree 93/12, including security, economic, legal, and administrative reasons. The security situation in Algeria at the time negatively impacted both domestic and foreign investment, leading to investor hesitation and reluctance to commit to projects in Algeria. Other contributing factors included weak infrastructure, the absence of basic export structures, the spread of the informal economy, poor financial infrastructure, and weak funding banks. Additionally, bureaucracy and the single-window system centralized investment processes within the National Agency for Investment Promotion and Support, ultimately delaying economic projects and hindering investment-related interests.

Subsection Three: Investment Freedom under the 1996 Constitution

To reinforce the liberal approach and enhance economic freedom, the Algerian constitutional legislator affirmed in Article 37 of the 1996 Constitution: “Freedom of trade and industry is guaranteed and exercised within the framework of the law.” Although this provision is indirect, it carries clear implications for Algeria’s new economic orientations, which are based on free industry, trade, investment, and the encouragement of individual and collective initiatives across various fields. This, in turn, fosters an environment conducive to unrestricted investment.

This principle aims to open the private sector to engage freely in commercial activities. Several specific freedoms stem from this overarching freedom, primarily the principle of investment freedom. The 1996 Constitution was the first to constitutionally enshrine this principle, reinforcing its legal recognition. However, the state has not entirely withdrawn from the economic sphere but has transitioned from an interventionist role to a regulatory one, allowing for greater economic freedom.

The constitutional recognition of investment freedom highlights its importance in attracting foreign capital for economic development. It ensures legal protection for investments and obliges public authorities not to impose obstacles to foreign projects. The constitutionalization of this principle also marks a shift away from the state’s long-standing monopoly under previous constitutions.

section Two: Laws Upholding Investment Freedom in the Post-1990s Period

From the 1990s to the present, Algeria has enacted several investment-related laws, including Law 01-03 and Law 16-09, in addition to the 2016 Constitution, the 2020 Constitution, and, most recently, Investment Law 22-18. These laws collectively integrate various internationally recognized principles and guarantees in the investment sector to attract foreign investors, with one of the most notable principles being investment freedom.

Subsection One: Ordinance 01-03 on Investment Development

To address the shortcomings identified during implementation, the legislator repealed Legislative Decree No. 93/12 through Ordinance 01/03 on investment development. This move was particularly motivated by the adoption of the 1996 Algerian Constitution, which established a fundamental rule in Article 37 affirming that freedom of trade and industry is guaranteed.

Article 4 of Ordinance 01-03 explicitly affirms investment freedom, aligning with Article 4 of Legislative Decree 93/12 and reinforcing Article 183 of the Monetary and Credit Law issued on April 14, 1990. This law states: "Investments are carried out with complete freedom, subject to legislation and regulations governing regulated activities and environmental protection. These investments shall, by law, benefit from the protections and guarantees provided in applicable laws and regulations."

Investments that benefit from advantages before being completed are subject to an investment declaration with the National Agency.

This ordinance provided a new boost by reinforcing incentives and encouraging further investments. It contained 36 articles distributed across six sections, focusing on fundamental principles such as subjecting all national private, public, and foreign investments directly to the provisions of the Investment Law. Under Legislative Decree 93/12, national private and public investments were indirectly subject to the Investment Law through regulations. This ordinance eliminated any distinction between investments within Algeria, whether national or foreign, private or mixed.

Additionally, it did not restrict investment to specific economic sectors, nor did it grant the state the right to intervene in certain vital sectors of the national economy. Unlike the previous Legislative Decree 93/12, this law contained no explicit provisions reserving sectors for the state, indicating a broader opening of investment opportunities.

Ordinance 01/03 further reinforced the principle of investment freedom by expanding its scope and decentralizing the one-stop-shop system to simplify and facilitate investment procedures. Article 23 states: "A one-stop-shop shall be established within the agency, bringing together the administrations and entities involved in investment..." The legislator's intent with this system was to encourage investors, particularly to attract foreign direct investment. Consequently, the law introduced various mechanisms to facilitate the establishment and execution of investment projects in Algeria with full freedom.

However, despite these improvements, the law still suffered from deficiencies similar to previous laws. Its implementation was slow, with the establishment of the National Agency for Investment Development taking nearly a year. The regulations regarding the transfer of investment profits were delayed until July 2005. Additionally, requirements such as mandatory registration with the National Agency for Investment Development (ANDI), prior review by the National Investment Council (CNI), restrictions on foreign exchange and capital movements, and the compulsory partnership rule for foreign investments introduced by the Supplementary Finance Law of 2009, all posed constraints that limited investment freedom.

Subsection Two: Investment Freedom under the 2016 Constitution

Given these obstacles hindering the establishment of an attractive investment climate— particularly for foreign investors —it became necessary to amend the highest legal authority in the country. This was done by constitutionally reinforcing the guarantee of investment freedom. The Algerian legislator redefined this principle with precise and explicit language in the constitutional amendment of 2016. Article 43 states:

"Investment and trade freedom are recognized and exercised within the framework of the law. The state works to improve the business climate and encourages the prosperity of enterprises without discrimination, in service of national economic development. The state regulates the market, and the law protects consumer rights. The law prohibits monopolies and unfair competition."

A notable change in this amendment was the replacement of the term "industry" with "investment" and "guaranteed freedom" with "recognized freedom." This reflects the state's commitment to further advancing the market economy within a framework of guaranteed and recognized freedom under the law.

Moreover, Article 43 expanded the scope of this freedom to all economic activities, incorporating the key legal principles governing them. The state is responsible for regulating business activities in the market by ensuring free competition while protecting consumers. Thus, investment and trade freedom inherently include competition freedom, which is an integral part of the constitutional principle. Consequently, the state must improve the business environment to foster investment.

Subsection Three: Law 16-09 on Investment Promotion

In response to the severe economic challenges caused by declining revenues and growth due to the global drop in oil prices—where crude oil lost approximately 50% of its value within six months starting in mid-2014—Algeria found itself compelled to consume a large portion of its foreign currency reserves. This raised concerns about potential external debt unless economic diversification efforts were accelerated. To address this, the government introduced Law 16-09 on August 3, 2016, aimed at attracting foreign capital as a supplement to limited domestic investments, thereby creating liquidity and enhancing economic competitiveness and flexibility.

The law contains 39 articles divided into seven chapters, introducing significant and substantive reforms to attract foreign capital by providing more facilities and reducing investment constraints and bureaucratic barriers. Some of the key reforms include:

• •      Eliminating certain outdated provisions that were no longer effective or relevant to

Algeria’s evolving economic environment, particularly those limiting foreign capital’s role.

• •      Removing the mandatory requirement for internal financing.

• •      Excluding the 51/49% ownership rule from the Investment Law itself, instead regulating

it through annual Finance Laws.

Additionally, Law 16-09 restructured the system of investment incentives in Algeria, as outlined in Article 07. These incentives were categorized into three levels:

• 1.     General Advantages available to all eligible investments, including tax and customs

• 2.     Additional Advantages for priority sectors or job-creating activities, such as industry,

• 3.     Exceptional Advantages for investments deemed strategically significant to the national

exemptions and VAT exemptions. These were further subdivided based on investment location:

o     Highlands and Sahara investments o     Northern region investments

agriculture, and tourism.

economy.

General advantages are granted automatically without requiring approval from the National Investment Council. However, for projects exceeding 5 billion dinars , approval from the council is mandatory.

The law also introduced 10-year tax exemptions for investments in the southern regions, where land was made available at symbolic prices . Articles 12 and 13 specify numerous fiscal, tax, and customs exemptions, including:

• •     A 10-year exemption from property tax during the investment's construction phase.

• •     A 3-year exemption from corporate profits tax and the professional activity tax

during the initial operational phase.

• •     A 50% reduction in annual fees determined by state property services during the

operational phase.

However, despite the numerous advantages and new incentives, including the establishment of the principle of investment freedom, introduced by this law in an attempt to effectively protect investors and attract them to invest in the country, it has proven insufficient due to the low recorded investment results. Additionally, it contains a set of restrictions that have negatively impacted investors.

Subsection Four: Investment Freedom Under the 2020 Constitution

The current 2020 Constitution does not differ from its predecessor regarding the recognition of the principle of investment freedom. This is reaffirmed in Article 61, which states: "Freedom of investment and entrepreneurship is guaranteed and exercised within the framework of the law." This article provides explicit recognition of the principle of investment freedom, which has become one of the fundamental and essential principles. It is impossible to discuss the pillars of investment in host countries without acknowledging that investment freedom is the cornerstone of all subsequent components.

Subsection Five : Law 22-18 on Investment

The Algerian legislator, through the new investment law, reaffirmed the principle of investment freedom and considered it one of the established principles of this law. It granted every investor, whether natural or legal, local or foreign, the freedom to choose the investment they deem appropriate, while ensuring compliance with the relevant legislation and regulations. This was emphasized in the first paragraph of Article 3, which states:

_"This law establishes the following principles:

• •      Investment freedom: Every natural or legal person, whether national or foreign, resident

or non-resident, who wishes to invest is free to choose their investment, provided it complies with the applicable legislation and regulations."_

Conclusion

In conclusion, investment freedom in Algeria has gone through several legislative phases. In the period following independence until the 1980s, this principle was marginalized, and the Algerian state dominated the economic sector, relying on a monopoly policy due to the adoption of a socialist system. However, it gradually abandoned this approach through economic reforms introduced by the state, which were reflected in subsequent legislation aimed at opening the economic sphere. This could not have been achieved without recognizing the principle of investment freedom, particularly after its constitutional acknowledgment, which directly influenced the country's economic transition, notably by opening all sectors to investment.

Nevertheless, despite the establishment of this freedom, the Algerian legislator has restricted numerous activities, preventing unrestricted investment in all sectors. Additionally, the well-known bureaucratic nature of the Algerian administration burdens investors and exacerbates their difficulties, discouraging many from taking the risk of investing in Algeria. This remains the case despite the guarantees provided and enshrined in various laws, which have proven to be ineffective.

Results:

• 1.    The continuous amendments to laws in Algeria's legislative policy create a sense of

• 2.    Law 16-09 on investment promotion introduced several amendments, guarantees, and

• 3.    Despite the efforts made by the Algerian state to encourage investment within its

• 4.    The public sector still dominates key investments, leaving limited opportunities for the

legislative instability, which is one of the main factors affecting investment attraction.

incentives aimed at consolidating the principle of investment freedom in Algeria. However, these remain insufficient and contain certain shortcomings.

territory, the volume of registered investments has not met expectations, as confirmed by experts and specialists in the field.

private sector due to restrictive measures and a traditional administrative system.

Recommendations:

• 1.    Open investment in certain sectors currently restricted to foreign investors to attract a

• 2.    Improve the legal environment to attract investments by ensuring effective protection for

• 3.    Eliminate bureaucratic obstacles, excessive procedures, and administrative complexities

• 4.    Develop a strong economy by reducing dependence on the hydrocarbons sector and

• 5.    Appoint a team of economic and legal experts to provide consultation and improve

larger number of investors.

investors and avoiding frequent legal changes and instability.

to create a more favorable investment climate.

promoting investments in non-oil sectors.

investment legislation.