Foreign investment in air transportation services and auxialiary activities, including the operation of airports, is limited to 49% pursuant to the sectoral law, as well as pursuant to the 2020 Finance Law. Until 2019, foreign shareholding in all Algerian companies were limited to 49% of its voting capital. In 2020, the supplementary finance law for 2020, published in the Official Gazette on 4 June 2020, repealed the previouslly applied 51/49 rule that prevented foreigners from acquisition majority-ownership in Algeria companies, except for distribution activities and strategic sectors in which the 51/49 remain applicable.
"CHAPTER I - GENERAL PROVISIONS [...]
Section 2 -General Principles [...]
Art. 8 - The construction and commissioning of aerodromes are the responsibility of the State. They may be granted to natural persons of Algerian nationality or to legal persons governed by Algerian law under the conditions set by this law.
Art. 9 - Public air transport and aerial work services are provided by one or more national air transport companies.
[...]
Art. 10 - The operation of a public air transport service may also be the subject of a concession for the benefit of natural persons of Algerian nationality and legal persons governed by Algerian law.
[...]
Art. 14 - The aircraft registered in a foreign State may only be used for the exercise in Algeria of public air transport activity by virtue of the agreements or conventions concluded between Algeria and the State of registration of the aircraft or a provisional authorization granted by the authority responsible for civil aviation.
[...]
CHAPTER II - AIRCRAFT [...]
Art. 22 - An aircraft may only be registered if it is the exclusive property of a natural person of Algerian nationality or belonging to a legal person governed by Algerian law. In the latter case, the following must have Algerian nationality:
- in partnerships, general partners or limited partners;
- in limited liability companies, the owners of the majority of shares;
- in joint-stock companies, the owners of the majority of the capital and, as the case may be, the chief executive officer and the majority of the members of the board of directors or the management board and the majority of the members of the supervisory board;
[...]
CHAPTER IV - AIRPORTS, AERODROMES AND HELISTATIONS [...]
Art. 43 - Apart from the State, only natural persons of Algerian nationality or legal persons governed by Algerian law, the majority of whose capital is held by natural persons of Algerian nationality, may create and/or operate an aerodrome, an airport or a heliport open to public air traffic. [...]" (Law n° 98-06 of 3 Rabie El Aouel 1419 corresponding to June 27, 1998, amended and supplemented, laying down the general rules relating to civil aviation [google translation])
-----------------------
"Section 4 - Miscellaneous [...]
Art. 49. — Excluding product purchase and resale activities and those of a strategic nature, falling within the sectors defined in Article 50 below, which remain subject to participation by resident national shareholders of up to 51 %, any other activity of production of goods and services is open to foreign investment without the obligation of association with a local party.
Art. 50. — The following sectors are considered strategic:
— The exploitation of the national mining domain, as well as any underground or surface resource relating to an extractive activity on the surface or underground, excluding quarries of non-mineral products;
— Upstream of the energy sector and any other activity governed by the law on hydrocarbons, as well as the operation of the network for the distribution and transmission of electrical energy by cable and gaseous or liquid hydrocarbons by overhead or underground pipes;
— Industries initiated or related to military industries under the Ministry of National Defence;
— Railways, ports and airports;
— Pharmaceutical industries, with the exception of investments related to the manufacture of essential innovative products, with high added value, requiring complex and protected technology, intended for the local market and for export.
The terms of application of this measure are specified, as necessary, by regulation.
[...]
Art. 52. — Any transfer of shares by foreign parties to other foreign parties, of the share capital of an entity governed by Algerian law carrying out one of the strategic activities defined in article 51 of this law, is subject to authorization from the Government. [...]" (Law n° 20-07 of 12 Chaoual 1441 corresponding to June 4, 2020 on the supplementary finance law for 2020)
-----------------------
"Article 1. — Pursuant to the provisions of Article 50, as amended, of Law No. 20-07 of Chaoual 12, 1441 corresponding to June 4, 2020 referred to above, the purpose of this decree is to establish the list of activities with a strategic nature falling within the sectors of energy and mining, the pharmaceutical industry and transport, subject to a participation of resident national shareholders of up to 51%.
[...]
Art. 3. — The list of activities of a strategic nature relating to the sectors referred to in Article 1 above, is set out in the appendix attached to this decree.[...]" (Executive Decree No. 21-145 of 5 Ramadhan 1442 corresponding to April 17, 2021 setting the list of activities of a strategic nature)
Law n° 98-06 of 3 Rabie El Aouel 1419 corresponding to June 27, 1998, amended and supplemented, laying down the general rules relating to civil aviation [google translation]
Law No. 20-07 of Chaoual 12, 1441 corresponding to June 4, 2020 on the supplementary finance law for 2020
Executive Decree No. 21-145 of Ramadhan 5, 1442 corresponding to April 17, 2021 setting the list of activities of a strategic nature
[<a href="https://www.enna.dz/telechargement/textes_legislatifs/Lois/loi-98-06.pdf">Law</a>],[<a href="https://www.joradp.dz/FTP/JO-FRANCAIS/2020/F2020033.pdf">Law</a>],[<a href="https://www.commerce.gov.dz/reglementation/decret-executif-n-deg-21-145-du-17-avril-2021-jo-n-deg-30-du-22-avril-2021">Decree</a>]