Embassy of the People's Democratic Republic of Algeria in Jakarta

:: Economy and Trade ::

Incentive Principles And Schemes

In which activities ?
Production of goods or services as well as licensed or concession investments.

Which types of investments ?
· Creation
· Expending
· Rehabilitation or restructuring
· Participation in company's capital as in kind or cash contribution
· Resumption of activities within the framework of partial or total privatization
· Joint venture/partnership

Investment facilities ?
Investment is submitted to a mere declaration(1) :
The services of the Decentralized Operational Departments which are at the investors disposal for their projects implementation (advantages(2) granting, search for land, partners and accomplishment of all administrative procedures in one site).

Incentives to investment
The presidential order n° 01-03 related to investment development provides different advantages(3) according to the nature of the investment project and its localization:
· The General Scheme : a full complement of competitive investment incentives.
· The Exceptional Scheme for:

* Areas whose development requires a particular State contribution (defined by the Investment National Council) : granting customs and fiscal advantages with a possible total or partial coverage of infrastructure expenditures
* Projects presenting a particular interest for the national economy : contractual conditions defined between investors and the Algerian government.

Investment protection
The presidential order of August 20th and the Algerian trade right stipulate the durability of the following guarantees:
· intangibility of granted advantages
· income and capital transfer
· equal treatment of all investors
· International, bi or multinational conventions and agreements related to investments incitment and protection
· Opportunity to recourse to international arbitration for non resident investors in case of dispute.

(1) Application forms available at the Decentralized Main Operational Departments
(2) Obtaining an answer to the advantages application within 30 days
(3) During the implementation period for the general scheme and the implementation and operational periods for the exceptional scheme.


Embassy of Algeria in Jakarta copyright 2002