Algeria’s market of 33 million inhabitants, energy wealth, and growing demands for modern infrastructure have generated immense interest from governments and companies around the world. A modern legislative framework, Algeria’s continued progress in the WTO accession process, and the 2005 ratification of an EU Association Agreement that will gradually lower trade barriers over 12 years all indicate that the Algerian market is willing and ready to accept foreign investment across most sectors.
There are practical obstacles to investing in Algeria, most notably the lack of a modernized banking sector and a large, “legacy” bureaucracy which presides over a broader patchwork of business and investment rules and regulations. The government of Algeria has begun work to privatize the Algerian Popular Credit bank, the first of three public banks scheduled for privatization. This is but a first step to reforming the banking and financial industry to make it conform to international standards, which will facilitate the establishment of businesses in Algeria. The government maintains a sizable bureaucracy, however, which means that it can still take significant time and energy to set up a business in Algeria, even for seasoned multinationals.
This Investment Climate Statement provides a general outline of the most recent developments in Algeria’s investment codes, and highlights some of the major policies, events, and statistics that would be of interest to the U.S. business and investment community.
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