# ![](media/image1.jpeg){width="0.7395833333333334in" height="0.78125in"}  Doing Business in Algeria: A Country Commercial Guide for U.S. Companies

# INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2007. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

-   [Chapter 1: Doing Business in Algeria](#ch1)

-   [Chapter 2: Political and Economic Environment](#ch2)

-   [Chapter 3: Selling U.S. Products and Services](#ch3)

-   [Chapter 4: Leading Sectors for U.S. Export and Investment](#ch4)

-   [Chapter 5: Trade Regulations and Standards](#ch5)

-   [Chapter 6: Investment Climate](#chapter-6-investment-climate)

-   [Chapter 7: Trade and Project Financing](#ch7)

-   [Chapter 8: Business Travel](#ch8)

-   [Chapter 9: Contacts, Market Research and Trade
    Events](#chapter-9-contacts-market-research-and-trade-events)

-   [Chapter 10: Guide to Our Services](#ch10)

#   {#section .unnumbered}

# [[]{#ch1 .anchor}**Return to table of contents**](#doing-business-in-algeria-a-country-commercial-guide-for-u.s.-companies)

# Chapter 1: Doing Business in Algeria 

-   [Market Overview](#market-overview-return-to-top)

-   [Market Challenges](#market-challenges-return-to-top)

-   [Market Opportunities](#market-opportunities-return-to-top)

-   [Market Entry Strategy](#market-entry-strategy-return-to-top)

## Market Overview [**Return to top**](#ch1)

Algeria is an interesting and active market for U.S. exporters and
investors, particularly in the oil and gas sector. Slow economic reforms
and an antiquated banking system have left other sectors underdeveloped,
even as the country's political situation remains stable and its
security situation has improved in comparison to the first half of the
decade.

Algerians have increasingly greater access to credit, fueling demand for
consumer goods such as automobiles. However, new government tax policies
are beginning to restrict such import-driven sectors. The country's
agricultural production is far below demand, and Algeria continues to
import large volumes of bulk agricultural products and packaged
foodstuffs.

There is strong interest on the part of Algerians for partnerships in
the information and communications technology sector, and consumers are
increasingly tech-savvy.

Foreign banks may now provide banking services to state-owned
enterprises. The privatization process has all but stopped, however, due
to both a general lack of interest among foreign investors and a lack of
confidence among government leaders in past privatization and
foreign-investment efforts. Bank privatization is on hold indefinitely
due to world financial shocks.

For security reasons, business travelers and companies should continue
to exercise vigilance and consult the Embassy and the Department of
State\'s travel advisories for updated information, located at
[[http://travel.state.gov/travel/warnings_consular.html]{.underline}](http://travel.state.gov/travel/warnings_consular.html)

## Market Challenges [**Return to top**](#ch1) 

Starting a business in Algeria has been streamlined to some degree in
recent years, but remains a lengthy, bureaucratic and often difficult
process. A new, restrictive investment policy announced by the prime
minister in August 2008, if fully implemented, will require an Algerian
majority stake in any investment. The Algerian tax law was also modified
in August 2008 to require companies to re-invest within four years the
value of any tax incentives received or face a 30-percent penalty.

Repatriation of profits is encumbered by numerous restrictions and
reporting requirements. A 2007 law allows for the repatriation of income
from services without pre-approval by the central bank, but repatriation
of income from the sale of goods remains limited. Franchising
legislation that could ease the process and invite a broader range of
franchises remains pending.

It is estimated that over 50 percent of Algeria's economy is informal.
Counterfeit goods remain a problem, but government seizures are
increasingly effective.

Algeria's licensing of generic pharmaceuticals and lack of clear
coordination between the ministry of health and the patent and trademark
office exacerbates the uncertain landscape for the registration and sale
of brand-name products.

Human resources are difficult to recruit, manage and retain in Algeria,
both at the skilled and unskilled levels, even as unemployment remains
high. Most Algerians speak French and Arabic and lack English-language
skills.

## Market Opportunities [**Return to top**](#ch1)

The most promising sectors for U.S. business and investment include:

-   oil & gas -- hydrocarbons

-   infrastructure, civil engineering and construction

-   telecommunications and information technology

-   healthcare construction, equipment and services

-   power generation

-   water resources equipment

-   consumer goods

-   agricultural and food products

## Market Entry Strategy [**Return to top**](#ch1)

Partnerships and joint ventures are viable forms of market entry.
Companies should also consider the benefits of establishing a local
office through direct visits. Many foreign firms continue to explore the
Algerian market through representational offices.

U.S. firms are encouraged to consult with local attorneys or consultants
on specific strategies. Relationships are important to finding a partner
in Algeria. The Commercial Section at the U.S. Embassy in Algiers
provides a matching service for U.S. firms wishing to export and for
Algerian firms wishing to import.

Agents and consulting firms can lobby and act on behalf of an American
company, and watch for rapidly changing technical requirements during a
tender process, but their activities are restricted for military and
security contracts.

In general, it is easier to sell goods in Algeria than it is to market
services.

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# Chapter 2: Political and Economic Environment

For information on the political and economic environment of the
country, please see the Department of State Background Notes:
<http://www.state.gov/r/pa/ei/bgn/>

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# Chapter 3: Selling U.S. Products and Services 

-   [Using an Agent or
    Distributor](#using-an-agent-or-distributor-return-to-top)

-   [Establishing an Office](#establishing-an-office-return-to-top)

-   [Franchising](#franchising-return-to-top)

-   [Direct Marketing](#direct-marketing-return-to-top)

-   [Joint Ventures/Licensing](#joint-ventureslicensing-return-to-top)

-   [Selling to the
    Government](#selling-to-the-government-return-to-top)

-   [Distribution and Sales
    Channels](#distribution-and-sales-channels-return-to-top)

-   [Selling
    Factors/Techniques](#selling-factorstechniques-return-to-top)

-   [Electronic Commerce](#electronic-commerce-return-to-top)

-   [Trade Promotion and
    Advertising](#trade-promotion-and-advertising-return-to-top)

-   [Pricing](#pricing-return-to-top)

-   [Sales Service/Customer
    Support](#sales-servicecustomer-support-return-to-top)

-   [Protecting Your Intellectual
    Property](#protecting-your-intellectual-property-return-to-top)

-   [Due Diligence](#due-diligence-return-to-top)

-   [Local Professional
    Services](#local-professional-services-return-to-top)

-   [Web Resources](#web-resources-return-to-top)

## Using an Agent or Distributor [**Return to top**](#ch3)

Foreign manufacturers and exporters are represented in the market either
through their own branch offices or through authorized agents and
distributors.

The Commercial Service (CS) at the U.S. Embassy in Algiers offers
several services to help identify agents, distributors or potential
partners on a cost recovery basis. The International Partner Search
(IPS) is initiated through a district office of the Department of
Commerce. CS Algeria also operates a "Gold Key Service" that provides
U.S. business representatives a series of one-on-one meetings with
potential partners, agents or distributors. For the address and phone
number of the nearest Department of Commerce domestic office, call
1-800-U.S.A-TRADE (1-800-872-8723) or visit www.export.gov.

Many foreign firms use Algerian agents, consultants or contracted
representatives as a means to test, enter or maintain a basic presence
in the market. Agents may provide a full range of services for companies
selling products, but are not allowed to enter into negotiations
directly on some government contracts (see below).

Although it is legal for an American corporation to be an independent
distributor, local agents and distributors are commonly used to assist
U.S. firms with documentation in French, and with local laws and
practices. U.S. firms often use regional distribution centers in Europe
or the Middle East, but Algerian purchasers of foreign-made equipment
increasingly want to buy directly from the United States to avoid making
purchases in Euros.

## Establishing an Office [**Return to top**](#ch3)

It is advisable for U.S. companies to hire well-established local legal
representation and other consultative services to assist in establishing
an office in Algeria. Red tape, particularly related to registration and
visas, can be considerable. U.S. firms should also consider security
arrangements as an integral element of opening an office in Algeria.

There are three basic organization types for establishing a presence in
Algeria; the liaison office, the branch, and the permanent
establishment. The repeal of a state monopoly on trade has made the
liaison office, once the only viable form of presence for foreign firms
in Algeria, far less attractive because of extensive limitations placed
on the functions and income such organizations are permitted by law.

A branch office may be opened to allow the parent company to conduct
commercial activity in Algeria. The branch is considered a resident
Algerian entity without full legal authority. Drawbacks to this form
include foreign exchange controls and the inability for the branch to
sign contracts with the parent company.

The permanent establishment is a tax entity allowing for a full but
temporary presence associated with a particular contract to be performed
in Algeria. This form is more nimble and allows for substantial
repatriation of revenues. However, due to the temporary nature of this
business form, a number of tax benefits are not available.

A business entity can also be incorporated as a joint stock company
(JSC), a limited liability company (LLC), a private limited company
under sole ownership (PLCSO), a limited partnership (LP), a limited
partnership with shares (LPS), or an undeclared partnership. Groups and
consortia are also used by foreign companies when partnering with other
foreign companies or with local firms.

## Franchising [**Return to top**](#ch3)

Franchising by foreign companies is not widespread in Algeria, largely
because of strict foreign exchange controls that generally do not allow
the repatriation of revenues from the sale of goods. Restrictions on the
repatriation of revenues for services were loosened in 2007, and the
Algerian government has been considering a franchise law to allow for
greater use of this investment vehicle.

Several European companies operate what appear to be franchise stores in
the fast food and retail sectors, and international hotel names are
licensed in Algeria. European companies manage their franchises in
Algeria through the invoicing of goods imported by the franchisee,
rather than through the payment of royalties or other franchise fees.

## Direct Marketing [**Return to top**](#ch3)

Direct marketing in Algeria, such as sales through catalogs, television
programs or flyers, is still in its infancy. Credit cards are rarely
used in Algeria, although there is a small but growing debit card and
ATM system. Even in urban areas, a lack of clarity regarding addresses
and street names, as well as postal regulations and the inability to
make purchases on the Internet, leave this sector significantly
underdeveloped.

## Joint Ventures/Licensing [**Return to top**](#ch3)

Algerian companies are increasingly interested in joint venture
opportunities with U.S. partners as a way to modernize their factories
or license technology. This includes state-owned enterprises, and is
required for oil and gas development. Many internationally branded
products and services are manufactured, bottled, assembled or provided
in Algeria.

Algerian companies may lease foreign-made equipment, but the regulations
are somewhat unclear and the leasing industry remains underdeveloped.
Private firms are showing increasing interest in leasing, particularly
construction equipment, and banks are beginning to offer credit options
for leasing.

## Selling to the Government [**Return to top**](#ch3)

Algerian government institutions, including ministries, agencies and
local governments, buy foreign-made goods and services by way of
competitive or restricted tenders. For most security-related tenders,
foreign bidders must deal directly with the client agency without the
use of local agents, but tender requests and documents may be obtained
through local representatives. Although the law on public tender does
not require the state-owned companies to purchase goods and services
through tenders, many do.

Algeria has taken steps to improve the transparency of its contracting
process. Most government contracts are awarded through a two-step tender
process: first, technical bids are reviewed to ensure compliance with
tender requirements and to evaluate competing specifications, and then
financial bids are reviewed. Competitors are sometimes short-listed
after the technical offers are opened, and sometimes companies are
pre-qualified for large tenders, particularly in oil and gas
development. Lowest bids are not always accepted, as government agencies
place heavy emphasis on technology and know-how transfer, local
investment, and the diversification of suppliers. Military and
security-related contracts are usually tendered on a restricted basis,
whereby the agency will ask a number of specific companies to bid on a
request for proposal.

Recent government tenders have highlighted the need for careful
adherence to specific tender guidelines. The government makes little use
of counter-trade policies or of policies to encourage local production
or employment. Although Algeria is a member of the Arab League, there is
no known instance in which U.S. firms have been disadvantaged by
Algeria's endorsement of the League's anti-Israel boycott.

## Distribution and Sales Channels [**Return to top**](#ch3)

Algeria has a fairly well-developed distribution system with mostly
wholesale and retail outlets. State-owned marketing firms mainly sell
wholesale imported foodstuffs, pharmaceuticals, and industrial supplies
and equipment. Private wholesalers are increasingly active in these
sectors as well. Private businesses almost exclusively control the
retail trade.

Algeria's current road network extends 100,000 kilometers, 26,000 km of
which comprise secondary roads and highways and 23,000 km of which
comprise provincial roads. A major east-west highway is still under
construction, and long-range plans involve a second, parallel highway,
with more than a dozen north-south connector highways feeding the system
from Algeria's port cities. Nonetheless, mountainous terrain,
congestion, traffic accidents and security checkpoints hamper road
transportation.

Algeria has 36 airports open for civil air traffic: 16 international and
20 domestic. The national carrier, Air Algerie, serves 37 destinations
in Europe, Africa and the Middle East. A number of international
airlines serve Algeria from major hubs, but there are no direct flights
between Algeria and the U.S. Three international express mail delivery
services operate in Algeria: UPS, DHL and FedEx.

Algeria has 13 multipurpose ports and 2 hydrocarbons terminals. The
railway network covers mainly northern Algeria. It includes 4,200
kilometers of tracks, 3,060 of which are standard gauge and 1,140 narrow
gauge.

## Selling Factors/Techniques [**Return to top**](#ch3)

The Algerian market is generally characterized as price-sensitive.
European and Asian brands have gained considerable market share, but
quality U.S. products are valued by discerning consumers with higher
incomes. Demand for U.S. goods by wholesalers and retailers has
increased due to the declining value of the dollar relative to the Euro.

Sales promotional material and technical documentation should be in
French and/or Arabic. Algerian managers, both private and parastatal,
are very keen on technology and know-how transfer. Religious and
cultural sensitivity should be considered when approaching the Algerian
market. Because Algeria is a Muslim country, pork products are
prohibited. Alcohol and other Western products are available, but sales
are restricted during periods of religious observation.

## Electronic Commerce [**Return to top**](#ch3)

Under current law, Algerian citizens may not purchase items online from
abroad. Businesses, however, may purchase items online from abroad for
internal use.

## Trade Promotion and Advertising [**Return to top**](#ch3)

The largest trade event during the year is the Algiers International
Trade Fair, encompassing all sectors in a single, high profile,
multinational event usually held in June. Exhibitors are located in
national pavilions. For booth and sponsorship opportunities, please
contact the Commercial Section at the U.S. Embassy in Algiers.

Regional and sector-specific trade events are also increasing in
Algeria's largest cities. Firms are encouraged to contact the Algerian
regulatory body for their sector to obtain information about trade
events, as well as the U.S.ABC at
[www.us-algeria.org](http://www.us-algeria.org/), the American Chamber
of Commerce in Algeria at
[www.amcham-algeria.org](http://www.amcham-algeria.org/) and the World
Trade Center Association Algeria at
[www.wtcalgeria.com](http://www.wtcalgeria.com/).

Newspaper, television and radio advertising are increasingly effective
at the consumer level, and for business-to-business marketing.

## Pricing [**Return to top**](#ch3)

Pricing has traditionally been the most important consideration in
government tenders, although technical offers are being more carefully
scrutinized and ministries are trying to tie technology transfers to
tender bids.

While some consumers look for quality, the market remains very price
sensitive. Tariffs are generally not excessive, but European exporters
benefit from Algeria's participation in the EU Association which exempts
their products from duties. American products are competitive when
quality and leading technology are major considerations.

## Sales Service/Customer Support [**Return to top**](#ch3)

Suppliers of capital goods to the Algerian market are required to
provide sales service and customer support. Free sales service is
usually required for a period of one year. Suppliers may enter into
agreements thereafter to provide customers remunerated sales service,
which is referred to as "technical assistance" in Algeria.

Foreign suppliers provide customer support via liaison offices in
Algeria. These offices are prohibited from engaging in commercial
activities and thus cannot import or distribute equipment and spare
parts. These items must be imported by the Algerian end-users either
directly or through distributors.

Sales service for consumer goods is a relatively new development in
Algeria. Recent legislation makes it compulsory for distributors of
foreign products to provide a six- to eighteen-month warranty, depending
on the type of goods, to stock parts in Algeria or provide after-sales
service to customers.

## Protecting Your Intellectual Property [**Return to top**](#ch3)

While the legal framework for intellectual property rights (IPR) has
improved, it remains weak and the enforcement of these rules is still
generally inadequate. Counterfeiting is common, especially in cosmetics,
clothing and shoes, electric appliances, automotive aftermarket
products, computer hardware components and software, some consumer and
food products (such as shampoo and baby formula), and medicine.

American firms do find recourse against counterfeit goods through the
courts, but this requires diligence on the part of the claimant,
experienced local legal representation and clear documentation in order
to have counterfeits seized and destroyed.

## Due Diligence [**Return to top**](#ch3)

It is important to conduct due diligence research regarding any
potential agent or partner, or when conducting a transaction for money.
The Commercial Section at the U.S. Embassy in Algiers can provide
business facilitation services to assist in due diligence through the
International Company Profile service. Call 1-800-U.S.A-TRADE, or visit
[www.buyusa.gov/algeria](http://www.buyusa.gov/algeria) for additional
information.

## Local Professional Services [**Return to top**](#ch3)

A lawyer with experience in Algeria should be retained as soon as you
decide to establish an Algerian business entity. The U.S. Embassy in
Algiers maintains a list of local lawyers practicing in Algeria:
<http://algiers.usembassy.gov/list_of_local_attorneys.html>

Algeria has two major categories of legal practitioners:

An \"*avocat*\" is a lawyer who may render legal advice on all matters,
draft agreements and contracts, handle commercial disputes and
collection cases, and plead and defend civil and criminal cases before
the Algerian courts to which they are admitted.

An Algerian \"*notaire*\" is a public official appointed by the Ministry
of Justice. [A *notaire* is not the equivalent of a public notary in the
United States]{.underline}. Their functions include the preparation and
recording of notarial acts (e.g., wills, deeds, acts of incorporation,
marriage, contracts), the administration and settlements of estates
(excluding litigation in court) and serving as the repository of wills.
They are not lawyers, but very specialized members of the legal
profession. They may not litigate in courts.

## Web Resources [**Return to top**](#ch3)

-   U.S. Commercial Service in Algeria:
    [www.buyusa.gov/algeria/en](http://www.buyusa.gov/algeria/en)

-   U.S. Embassy:
    [algiers**.**usembassy**.**gov](http://algiers.usembassy.gov/)

-   American Chamber of Commerce:
    [www.amcham-algeria.org](http://www.amcham-algeria.org/)

-   U.S. Algeria Business Council:
    [www.us-algeria.org](http://www.us-algeria.org/)

-   Algerian Chamber of Commerce and Industry:
    [www.caci.com.dz](http://www.caci.com.dz/)

-   World Trade Center Algeria:
    [www.wtcalgeria.com](http://www.wtcalgeria.com/)

-   Intellectual Property Rights: [www.inapi.org](http://www.inapi.org/)

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# Chapter 4: Leading Sectors for U.S. Export and Investment 

**Best Prospects and Commercial Sectors**

-   [Oil and Gas -
    Hydrocarbons](#oil-and-gas-hydrocarbons-return-to-top)

-   [Information and Communications
    Technology](#information-communications-technology-return-to-top)

-   [Public Works and Infrastructure
    Development](#public-works-and-infrastructure-development-return-to-top)

-   [Healthcare](#healthcare-return-to-top)

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-   [Agricultural Sector](#agricultural-sector-return-to-top)

## Oil and Gas -- Hydrocarbons [**Return to top**](#ch4)

# Overview:

-   Algeria is one of the world's top ten producers of both oil and
    natural gas.

-   A 43-block bid round was launched in mid-2008 that may result in
    extensive exploration and production, particularly in natural gas.
    Opportunities in oil and gas services will expand as a result, as 71
    companies were pre-qualified to bid on the blocks as operators or
    investors.

-   Existing upstream and midstream infrastructure is aging and
    inadequate to meet Algeria's near-term production goals. We expect
    new investment in these areas, particularly as two new undersea gas
    pipelines to Europe are constructed.

-   By law, the national oil company Sonatrach must hold a 51-percent
    shareholder position in all oil and gas projects. Tenders for
    investments and for project contracts may be offered competitively
    or by invitation.

-   Liquefied natural gas (LNG) is a growing export product for Algeria,
    with new facilities under construction.

-   Downstream opportunities remain limited, due largely to
    consumer-level fuel price caps, but changes to the law in 2008 broke
    the state monopoly on the delivery of refined products.

### Best Products/Services [**Return to top**](#ch4)

-   Seismic and other exploration and development services

-   Drilling equipment

-   Facility construction equipment and services

-   Catering services

-   Temporary structures

### Opportunities [**Return to top**](#ch4)

-   When the seventh and most recent oil and gas bid round is completed,
    opportunities to support exploration and development will be
    extensive.

-   Algeria should increase its investment in gas production and
    delivery capacity to meet long-term contract obligations.
    Opportunities in materials, equipment and support services should
    expand.

### Resources [**Return to top**](#ch4)

-   Ministry of Energy website:
    [www.mem-algeria.org](http://www.mem-algeria.org/)

-   Sonatrach website:
    [www.sonatrach-dz.com](http://www.sonatrach-dz.com/)

-   Commercial Specialist Kamel Achab: +213-770-082093;
    kamel.achab@mail.doc.gov

## Information & Communications Technology [**Return to top**](#ch4)

# Overview:

-   Algerians are increasingly tech-savvy and interested in technology
    and know-how transfer in the ICT sector. Government ministries are
    interested in modernization and digitization of record-keeping.

-   Home Internet penetration rates remain below 10 percent, but
    Internet usage, through businesses and Internet cafes, is estimated
    at over 40 percent.

-   Mobile phones (GSM) are commonplace, and Algeria is looking toward
    fourth-generation technology.

-   Other services, such as GPS-based technology, also show potential.

### Best Products/Services [**Return to top**](#ch4)

-   Mobile phones and accessories

-   Mobile phone add-on services

-   Business-to-business information management and strategies

-   Internet connectivity and backbone equipment and services

-   GPS-related technology and services

### Opportunities [**Return to top**](#ch4)

-   Several key government ministries have started the process of
    modernizing and digitizing their records, including the tax
    authority. These are large undertakings, requiring various
    consultative and solutions-based services.

-   Government agencies are also providing increasing amounts of
    information on the Web, and need Web-based information management
    services.

-   Business-to-business opportunities for ICT strategies and solutions
    will increase.

-   WiFi is still in its infancy, but is a highly-desired technology.

### Resources [**Return to top**](#ch4)

-   ARPT: [www.arpt.dz](http://www.arpt.dz/)

-   Algerie Telecom:
    [www.algerietelecom.dz](http://www.algerietelecom.dz/)

-   Commercial Specialist Faiza Gamoura: +213-770-082274;
    faiza.gamoura@mail.doc.gov

## Public Works and Infrastructure Development [**Return to top**](#ch4)

# Overview:

-   The government's massive infrastructure development project is set
    to conclude in 2009, but will likely be extended in certain sectors.

-   The government has simultaneously focused on roadways, rail systems,
    airport upgrades, public housing, hospital construction, water
    transportation and electrification.

-   U.S. firms have not capitalized on these opportunities, in part due
    to an emphasis on low pricing by the Algerian government and due to
    the opaque and slow bureaucracy.

-   In some sectors the government has signaled a renewed interest in
    quality, and U.S. firms are finding access to subcontracts offered
    through targeted bidding tenders.

### Best Products/Services [**Return to top**](#ch4)

-   Construction machinery and equipment

-   Civil engineering services

-   Portable power generation systems for construction sites

-   Localized power generation systems for isolated communities

-   Water transportation products and equipment

### Opportunities [**Return to top**](#ch4)

-   The government will likely extend or re-launch its public works
    project.

-   Sub-contracts for construction services are most profitable for U.S.
    firms.

-   Technology and services related to potable water transport will be
    in demand.

-   Opportunities will expand for portable and large-scale power
    generation.

### Resources [**Return to top**](#ch4)

-   Ministry of Public Works: [www.mtp-dz.com](http://www.mtp-dz.com/)

-   Ministry of Finance:
    [www.finances-algeria.org](http://www.finances-algeria.org/)

-   Ministry of Mines and Energy:
    [www.mem-algeria.org](http://www.mem-algeria.org/)

-   Sonatrach: [www.sonatrach-dz.com](http://www.sonatrach-dz.com/)

-   Commercial Specialist Kamel Achab: +213-770-082093;
    kamel.achab@mail.doc.gov

## Healthcare [**Return to top**](#ch4)

# Overview:

-   The healthcare sector continues to be an attractive, if challenging,
    market. The demand for pharmaceuticals and medical equipment is
    considerable and depends largely on imported goods.

-   The living standard of the population is improving, albeit extremely
    slowly. Simultaneously, there has been an increased incidence in
    reporting of hypertension, respiratory and cardiovascular diseases,
    and allergies.

-   The pharmaceutical sector is developing, and the market is very
    competitive. Government favoritism for generics and local production
    has limited market access for international brand name drugs. Patent
    and trademark enforcement is uneven and unreliable.

-   Construction of new public hospitals and private clinics will cause
    an increase in the demand for medical equipment and supplies.

-   Algerians are increasingly conscious of cutting-edge medical
    services, such as laser corrective eye surgeries, panoramic dental
    radiology, and cosmetic surgery.

-   U.S. technology and products are often perceived as high quality,
    and the strong Euro makes U.S. products price-competitive.

### Best Products/Services [**Return to top**](#ch4)

-   Pharmaceuticals, including generics

-   Medical equipment and supplies, including diagnostics

-   Hospital and outpatient clinic design and construction services

-   Hospital and medical office administration software and solutions

-   Low-intensity cosmetic surgery

### Opportunities [**Return to top**](#ch4)

-   The government continues to build public hospitals that will need to
    be outfitted.

-   Algerians increasingly turn to private clinics for outpatient care.
    Opportunities will increase for the design and management of such
    facilities, as well as cutting-edge diagnostic and treatment
    equipment.

-   Cosmetic surgery is not yet common, but consumer interest could
    boom.

### Resources [**Return to top**](#ch4)

-   Healthcare sector links: [www.ands.dz](http://www.ands.dz/)

-   Comm. Specialist Faiza Gamoura: +213-770-082274;
    <faiza.gamoura@mail.doc.gov>

## Agricultural Sector [**Return to top**](#ch4)

# Overview:

-   Algeria's agriculture sector is still developing and does not meet
    all its food demands in all sectors.

-   Algeria relies heavily on imports.

-   The main agricultural products Algeria exports are dates, grapes and
    wine, olives and olive oil, and vegetables.

-   The European Union continues to be Algeria's major trading partner.
    About 55 percent of its total imports come from Europe, particularly
    France. The strong Euro has resulted in Algerian wholesalers and
    retailers looking elsewhere to source products, but a lack of direct
    shipping to Algeria has limited the growth of U.S. exports.

-   Major agricultural products imported from the United States are bulk
    commodities, including corn, oils, soybean meals, dry dairy, and
    wheat. Packaged and specialty products are finding increasing market
    share.

-   While much of the agriculture sector has been privatized, the
    government continues to exert intense control over the industry
    through price supports, subsidies and fixed consumer prices.

### Best Products/Services [**Return to top**](#ch4)

-   Grain and Feed (wheat, barley, and corn)

-   Vegetable oil and other oilseeds products (soybean, sunflower seed,
    rapeseed, soybean meal and cotton)

-   Dairy products (non-fat dry milk, whole milk powder, butter oil,
    butter, cheddar cheese)

-   Specialty products (salsa, sauces, salad dressings, vinaigrettes,
    prunes, dried fruits, pulses)

-   Turkey poults, genetics

### Opportunities [**Return to top**](#ch4)

-   Algeria will continue to import bulk products. Accordingly, if U.S.
    exporters can overcome the price challenge against European
    exporters, they could easily gain market share.

```{=html}
<!-- -->
```
-   Algeria is looking for partners to develop its fishing industry for
    domestic consumption and export.

### Resources [**Return to top**](#ch4)

-   U.S. Wheat Associations:
    [www.**uswheat.org**](http://www.uswheat.org/)

-   USDA Office Algiers: +213-770-08-2112; <agalgiers@usda.gov>

[Return to table of
contents](#doing-business-in-algeria-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch5 .anchor}Return to table of
contents](#doing-business-in-algeria-a-country-commercial-guide-for-u.s.-companies)

# Chapter 5: Trade Regulations and Standards

-   [Import Tariffs](#import-tariffs-return-to-top)

-   [Trade Barriers](#trade-barriers-return-to-top)

-   [Import Requirements and
    Documentation](#import-requirements-and-documentation-return-to-top)

-   [U.S. Export Controls](#u.s.-export-controls-return-to-top)

-   [Temporary Entry](#temporary-entry-return-to-top)

-   [Labeling and Marking
    Requirements](#labeling-and-marking-requirements-return-to-top)

-   [Prohibited and Restricted
    Imports](#prohibited-and-restricted-imports-return-to-top)

-   [Customs Regulations and Contact
    Information](#customs-contact-information-return-to-top)

-   [Standards](#standards-return-to-top)

-   [Trade Agreements](#trade-agreements-return-to-top)

-   [Web Resources](#web-resources-return-to-top-1)

## Import Tariffs [**Return to top**](#ch5)

Specific information on import tariff rates can be found (in French) at:
<http://www.douane.gov.dz/cnis/tarif/sections.asp>.

## Trade Barriers [**Return to top**](#ch5)

Algeria applies a value-added tax (VAT) to all sales in the country. The
VAT rates are 7 percent and 17 percent, depending on the product.
Staples such as bread or milk are not subject to VAT. The reduced rate
of 7 percent is applied to most non-luxury goods.

## Import Requirements and Documentation [**Return to top**](#ch5)

The only imports subject to restriction are firearms, explosives, and
narcotics. Pork products are prohibited for religious reasons. The
government insists that imports meet specific testing, labeling, or
certification requirements. Pharmaceuticals marketed in their country of
origin may be freely imported.

The Ministry of Health requires distributors to obtain authorizations to
sell imported drugs. Drugs must have been marketed in their country of
origin, as well as in a third country, before they may be imported.

When food products arrive in Algeria they must have at least 80 percent
of their shelf life remaining. While specific regulations exist for a
few products, in general all products must be in conformity with the
standards defined in the Codex Alimentarius.

## U.S. Export Controls [**Return to top**](#ch5)

Please visit <http://www.export.gov/exportcontrols.html> for information
about products that are subject to U.S. export controls.

Products and technologies frequently used in industrial processes may be
subject to export controls, including pre- and post-license checks by
the Department of Commerce.

## Temporary Entry [**Return to top**](#ch5)

Equipment and machinery brought into Algeria temporarily for the purpose
of a specific project or exhibition are exempt from payment of customs
duties and taxes. To obtain waivers, importers must fill out a customs
form and present it to the authorities when the goods are re-exported.
In January 1998, Algeria ratified the Istanbul Convention related to
Temporary Entry through presidential decree No 98-03.

## Labeling and Marking Requirements [**Return to top**](#ch5)

Algerian government regulations stipulate that imported products,
particularly consumer goods, must be labeled in Arabic. This regulation
is strictly enforced. Though not required, it is also helpful to label
products in French.

## Prohibited and Restricted Imports [**Return to top**](#ch5)

-   Phytosanitary and sanitary control regulations are in place. As a
    rule, animal and plant products that risk propagating diseases to
    persons or animals cannot be imported. In these matters, Algeria
    adheres, like the E.U., to the principle of "precaution."
    Prospective importers may, however, be given waivers by Algeria's
    national veterinary and plant protection services, depending on the
    situation in the country of intended origin.

-   Meat of U.S. origin is prohibited because of allegedly high hormone
    content.

-   Certain imports are subject to prior authorization by some
    ministries. For example, the Ministry of Health must clear medical
    products, the Ministry of Defense and National Security Directorate
    must clear hunting weapons, and the Ministry of Information must
    clear books and magazines.

-   In December 2000, the Ministry of Agriculture enacted a decree
    prohibiting the importation, distribution, or sale of seeds that are
    genetically modified organisms.

-   The only imports subject to restriction are firearms, explosives,
    narcotics, and for religious reasons, pork products.

-   In 2005 the Algerian government placed a ban on the importation of
    vehicles over three years old.

## Customs Contact Information [**Return to top**](#ch5)

Information on Algerian customs requirements can be found (in French) at
<http://www.douane.gov.dz/>.

## Standards [**Return to top**](#ch5)

-   [Overview](#overview-return-to-top)

-   [Standards Organizations](#standards-organizations-return-to-top)

-   [Conformity Assessment](#conformity-assessment-return-to-top)

-   [Product Certification](#product-certification-return-to-top)

-   [Accreditation](#accreditation-return-to-top)

-   [Publication of Technical
    Regulations](#publication-of-technical-regulations-return-to-top)

-   [Labeling and Marking](#labeling-and-marking-return-to-top)

-   [Standards Contact
    Information](#standards-contact-information-return-to-top)

### Overview [**Return to top**](#standards-return-to-top)

Executive Decree no. 98-69 established the Algerian Institute for
Normalization (IANOR) as the appropriate government body handling
standardization issues. IANOR has since worked toward the goal of
assisting Algeria's economic sector to cope with globalization and
international standards.

### Standards Organizations [**Return to top**](#standards-return-to-top)

The Agence Algérienne de l'Accréditation (ALGERAC) falls under the
authority of the ministry of industry. ALGERAC is the only Algerian
accreditation organism. It ensures that the national regulations
concerning accreditation of the laboratories and the organization of
certification inspections meet international norms.

The Algerian Institute of Normalization (IANOR) body is in charge of
elaborating, publishing and distributing all relevant data on Algerian
norms. It is also responsible for providing conformity certifications to
Algerian norms, issuing quality labels and delivering appropriate
authorizations to use brands according to the applicable regulations.

The Algerian National Institute of Industrial Property (INAPI) is
responsible for industrial and intellectual property rights protections.
This entity handles mainly the deposit and registration of Patents,
Trademarks & Copyrights.

### Conformity Assessment [**Return to top**](#standards-return-to-top)

Multiple authorities regulate the conformity of imported products.

For cosmetic and hygiene related products, a \"compulsory declaration"
is required. The formula must be submitted to a poison center, which
will in turn seal the formula. Should the production be completed
abroad, the exact details of the relevant poison center handling the
tests must be forwarded to the appropriate Algerian authorities.

For other imported products, the following documents should be presented
to the customs service upon entry; customs documents, banking
documentation (invoice, banking domiciliation), if required, the
specific authorization from police services, and if required, the health
and safety authorization for selected products. Customs will either
provide an admission certificate or a non-admission certificate.

###  Product Certification [**Return to top**](#standards-return-to-top)

IANOR establishes and publishes norms applicable in Algeria, and if a
norm does not exist or if a disagreement must be settled, then the ISO
norm will prevail.

###  Accreditation [**Return to top**](#standards-return-to-top)

ALGERAC is the only Algerian accreditation organism. It ensures that the
national regulations concerning accreditation of the laboratories and
the organization of certification inspections meet international norms.

###  Publication of Technical Regulations [**Return to top**](#standards-return-to-top)

Technical regulations are all published in editions of the Official
Gazette of the Republic of Algeria (Journal Officiel). These regulations
are available online in French at <http://www.joradp.dz/HFR/Index.htm>.

###  Labeling and Marking [**Return to top**](#standards-return-to-top)

Algerian government regulations stipulate that imported products,
particularly consumer goods, must be labeled in Arabic. This regulation
is strictly enforced. Though not required, it is helpful to also label
products in French.

###  Standards Contact Information [**Return to top**](#standards-return-to-top)

**ALGERAC (Agence Algérienne de l'Accréditation)**

Tel: +213 017 03 33 25

E-mail: <boudalgerac@hotmail.com>

**IANOR : Algerian Institute of Normalization**

[www.ianor.org](http://www.ianor.org/)

5 et 7 rue Abou Hammou Moussa\
BP 104 RP Alger Algérie\
Tel: +213 21 63 05 89\
E-mail: <cinfo@ianor.org>

**INAPI (Algerian National Institute of the Industrial Property)**

[www.inapi.org](http://www.inapi.org/)

42 Rue Larbi Ben M'Hidi

Tel: + 213 21 73 57 74

## Trade Agreements [**Return to top**](#ch5)

There are currently no bilateral trade agreements between the U.S. and
Algeria. In 2001, the two countries signed a Trade and Investment
Framework Agreement (TIFA) that creates a platform for discussions on
trade provisions. Algeria ratified an EU association agreement in
September 2005. Algeria continues to work towards accession into the
WTO, and has ratified a number of bilateral trade agreements.

## Web Resources [**Return to top**](#ch5)

-   Specific Algerian import tariff rates (in French):
    <http://www.douane.gov.dz/cnis/tarif/sections.asp>.

-   Products subject to U.S. export controls:
    <http://www.export.gov/exportcontrols.html>

-   Algerian customs requirements (in French):
    <http://www.douane.gov.dz/>.

-   The Official Gazette of the Republic of Algeria (Journal Officiel)
    <http://www.joradp.dz/HFR/Index.htm>.

-   Department of State's Bureau of Economic and Business Affairs:
    <http://www.state.gov/e/eb/tpp/>.

-   Efforts towards Algeria's WTO accession:
    <http://www.wto.org/english/thewto_e/acc_e/acc_e.htm>.

[Return to table of
contents](#doing-business-in-algeria-a-country-commercial-guide-for-u.s.-companies)

[Return to table of
contents](#doing-business-in-algeria-a-country-commercial-guide-for-u.s.-companies)

# Chapter 6: Investment Climate

-   Summary

-   [Openness to Foreign
    Investment](#openness-to-foreign-investment-return-to-top)

-   [Conversion and Transfer
    Policies](#conversion-and-transfer-policies-return-to-top)

-   [Expropriation and
    Compensation](#expropriation-and-compensation-return-to-top)

-   [Dispute Settlement](#dispute-settlement-return-to-top)

-   [Performance Requirements and
    Incentives](#performance-requirements-and-incentives-return-to-top)

-   [Right to Private Ownership and
    Establishment](#right-to-private-ownership-and-establishment-return-to-top)

-   [Protection of Property
    Rights](#protection-of-property-rights-return-to-top)

-   [Transparency of Regulatory
    System](#transparency-of-regulatory-system-return-to-top)

-   [Efficient Capital Markets and Portfolio
    Investment](#efficient-capital-markets-portfolio-investment-return-to-top)

-   [Political Violence](#political-violence-return-to-top)

-   [Corruption](#corruption-return-to-top)

-   [Bilateral Investment
    Agreements](#bilateral-investment-agreements-return-to-top)

-   [OPIC and Other Investment Insurance
    Programs](#opic-other-investment-insurance-programs-return-to-top)

-   [Labor](#labor-return-to-top)

-   [Foreign-Trade Zones/Free
    Ports](#foreign-trade-zonesfree-ports-return-to-top)

-   [Foreign Direct Investment Statistics](#fdi)

-   [Web Resources](#web-resources-return-to-top-2)

## Summary [**Return to top**](#chapter-6-investment-climate)

Algeria's population of 36 million, its energy wealth, and growing
demand for modern infrastructure and consumer products have generated
broad interest in this market from companies around the world. But an
often difficult business regulatory environment, symbolized by Algeria's
failure to date to join the WTO or to modernize its banking sector, has
prevented significant foreign investment outside the energy sector.

Statements in mid-2008 by the president and prime minister blaming
foreign investors for Algeria's "failed" economic reform measures and
suggestions that future foreign investment will require a majority
Algerian stakeholder signal a renewed government effort at economic
nationalism. This trend began in 2006 with amendments to the
hydrocarbons laws that backtracked from market liberalization and
required the national oil company Sonatrach to be a majority partner in
all oil and gas projects, and imposed a windfall profits tax on oil
production.

Financial sector reform is incremental at best, and the world financial
crisis resulted in the indefinite suspension of the privatization of the
state-owned bank Credit Populaire d'Algerie (CPA). In fact,
privatization in general has stalled across all sectors.

## Openness to Foreign Investment [**Return to top**](#chapter-6-investment-climate)

While Algerian officials are quick to seek technology and know-how
transfer, they have been pursuing efforts to secure greater returns for
Algerian interests since the 2006 amendments to the hydrocarbons law
required majority state partnership in all oil and gas projects and
imposed a heavy windfall profits tax on oil profits when prices are
above \$30 per barrel.

At least one American company successfully purchased the majority share
of an industrial plant in early 2008, but statements from the president
and prime minister since then indicate that future foreign investment in
any sector will require majority Algerian partnership. In July 2008 the
president publicly expressed anger over what he perceived to be massive
profits expropriated to foreign capitals reaped from investments in
Algeria. Since that speech, the tax law has been amended to require
companies to re-invest within four years the equivalent value of any tax
benefits they obtain as incentives to locate in Algeria.

Three agencies have mandates to encourage and manage investment in
Algeria. The National Agency for Investment Development (ANDI)
([www.andi.dz](http://www.andi.dz/)) is responsible for facilitating
investments and granting tax exemptions. The National Investment Council
(CNI) was created to define investment strategies and priorities, and
approve special investment incentives by sector. The Ministry for
Industry and Investment Promotion ([www.mipi.dz](http://www.mipi.dz/))
maintains an office for investment policy and one for promotion of
privatization. The privatization process in Algeria has all but stopped,
however, due in part to a lack of interest by foreign firms, and to a
lack of confidence by the government in the process.

## Conversion and Transfer Policies [**Return to top**](#chapter-6-investment-climate)

The Algerian dinar is considered fully convertible for all commercial
transactions. The Bank of Algeria (Banque d'Algérie, the nation\'s
central bank) manages Algeria's foreign reserves, controls foreign
exchange, and delegates most of these controls to the banks themselves.
Legally registered economic operators may have access to foreign
currency to make payments, subject to bank domiciliation, without any
pre-authorization. The same transfer procedures apply to both goods and
services, including insurance, transportation, maintenance, technical
assistance, and even training contracts related to imported or exported
goods.

Algerian exporters outside of the hydrocarbon sector must repatriate
their receipts and can convert only 50 percent into hard currency,
receiving the other half in local currency. Hydrocarbon export
remuneration, by law, is remitted 100 percent in Algerian dinars to
local accounts.

Foreign investors are allowed to repatriate their profits, even if
revenues exceed the original amount invested. Foreign investors can
repatriate dividends, profits and real net income out of their assets
transfer or through liquidation. In certain cases, due to the
inefficiency of the banking system and the heavy bureaucracy, it may
take longer to obtain official permission from the central bank to make
transfers/payments, or for the local bank to proceed with the transfer.

## Expropriation and Compensation [**Return to top**](#chapter-6-investment-climate)

The government of Algeria has not engaged in expropriation actions
against U.S. or other foreign firms.

## Dispute Settlement [**Return to top**](#chapter-6-investment-climate)

Algeria is a signatory to the convention of the Paris-based
International Center for the Settlement of Investment Disputes
(<http://www.worldbank.org/icsid>). Algeria ratified its accession
(<http://arbiter.wipo.int/arbitration>) to the New York Convention on
Arbitration and is a member of the Multilateral Investment Guarantee
Agency ([http://www.miga.org](http://www.miga.org/)). The code of civil
procedure allows both private and public sector companies full recourse
to international arbitration. Algeria permits the inclusion of
international arbitration clauses in contracts.

An American oil company exercised the dispute settlement mechanism in
its contracts with the state oil company to contest the implementation
of a windfall profits tax imposed long after the company began doing
business in Algeria. The process for negotiation prior to conciliation
and then binding arbitration was very slow, and the government entity
failed to respond for extended periods of time. The process to get to
arbitration will likely take almost one year.

## Performance Requirements and Incentives [**Return to top**](#chapter-6-investment-climate)

Algeria does not impose general performance requirements on foreign
investments. However, the national energy company Sonatrach must be a
majority shareholder in any venture in the hydrocarbons sector.
Furthermore, statements made by the president and prime minister in
mid-2008 suggest that future foreign investments in Algeria in any
sector will require Algerian majority partnership.

The investment code provides a number of incentives for investment in
Algeria, primarily related to VAT and other tax exemptions for periods
of time that are dependent on the type of investment made and the nature
of the package agreed two between the investor and the National Agency
for Investment Development (ANDI). Changes to ANDI's mandate may be
changed, however, as the President referred to the agency's results as a
"failure" for Algeria in his July 2008 remarks.

## Right to Private Ownership and Establishment [**Return to top**](#chapter-6-investment-climate)

Foreign entities have largely equal rights to establish and own business
enterprises in Algeria, and engage in most forms of remunerative
activity within the framework of the requirements for Sonatrach
participation in hydrocarbons ventures. Private enterprises have equal
status with public enterprises and compete on an equal basis with
respect to access to markets, credit, and business operations.

## Protection of Property Rights [**Return to top**](#chapter-6-investment-climate)

Secured interests in property are generally recognized and enforceable,
but court proceedings can be lengthy and results unpredictable. Most
real property in Algeria remains in government hands, and tumult over
the years has resulted in conflicting claims for real estate title,
making the purchase and financing of real estate difficult.

As part of Algeria\'s negotiations for WTO accession, the government
adopted new laws in July 2003 on copyright and related rights,
trademarks, patent and integrated circuits. Implementation has been
inconsistent, and enforcement remains spotty. Nonetheless, the Customs
service has stepped-up the fight against counterfeit products.

## Transparency of Regulatory System [**Return to top**](#chapter-6-investment-climate)

Algeria's regulatory system is largely transparent, even if
decision-making authority remains opaque. Each ministry defines the
rules for doing business in the sectors it manages, and regulatory
bodies are established to administer them. Challenges arise in managing
the bureaucracy because authority is generally vested at the top of
every organization, and access to decision-makers is often limited.
Further, the bureaucracy is slow and protocol-oriented, such that even
minor deficiencies in paperwork can lead to significant delays and
frustration. In some cases, authority over a matter may rest within
multiple ministries, adding additional bureaucratic steps and the
likelihood of inaction in the face of a problem or unusual circumstance.

## Efficient Capital Markets & Portfolio Investment [**Return to top**](#chapter-6-investment-climate)

After ten years, the Algerian stock exchange remains nascent, with only
three companies listed. Long-term treasury bonds were listed on the
stock market in 2008, but trading seems to have declined sharply due to
the increased number of fees required to trade the bonds. Shorter yield
bonds continue to be managed through bond dealers.

To absorb excess liquidity, some stated-owned companies have launched
corporate bonds to finance their development projects. More recently,
Sonatrach projects are also being financed through a bank investment
pool, rather than bond markets. The pool is guaranteed by the federal
government. Other public sector entities may follow suit.

## Political Violence [**Return to top**](#chapter-6-investment-climate)

Political violence has declined since the brutal acts of terror that
took place in the 1990s. The government's efforts to reduce the
terrorist threat through military engagement and societal reconciliation
achieved results. Algeria has mostly defeated terrorism as a strategic
threat to the country, but U.S. firms should be intimately aware of the
security risks they face when visiting Algeria.

Algerian terrorists aligned themselves with the Al Qaeda group in 2007.
Since late 2006, there have been a series of suicide bombings against
mostly government installations, but also against several foreign
targets, including within the Algiers metropolitan area.

The U.S. Embassy in Algiers maintains a high level of security, and
security preparation must be considered when doing business in Algeria.
Visitors should read the State Department's Consular Information Sheets
and Travel Advisory before traveling to Algeria, at
[http://travel.state.gov](http://travel.state.gov/).

## Corruption [**Return to top**](#chapter-6-investment-climate)

Corruption is not as blatant a problem in Algeria as it is in many
countries, and foreign companies generally do not complain of being
asked to pay bribes or that contracts were lost because of corruption.
Algerian citizens believe that corruption is a problem in the upper
reaches of government, however, and anecdotal evidence suggests that
bribes are used to manage the vast Algerian bureaucracy, or to avoid the
reach of government.

The Algerian government adopted an anti-corruption bill in 2006. The law
reinforced existing legislation to bring Algeria into compliance with
the U.N. Convention against Corruption, which Algeria ratified August
25, 2004. The law was designed to promote transparency in government and
public procurement, introduced new crimes such as illicit enrichment,
and reinforced existing penal sanctions. A national anti-corruption body
under the direction of the presidency has not yet been established.

Algeria is not a financial center and financial transactions are tightly
regulated. However, it is estimated that half of the country's economic
transactions are done within the informal sector, effectively escaping
the purview of state auditors. The government adopted anti-money
laundering legislation in 2005 and established a financial intelligence
unit to monitor suspicious financial transactions and refer violations
of the law to prosecutorial magistrates.

## Bilateral Investment Agreements [**Return to top**](#chapter-6-investment-climate)

The United States and Algeria signed a Trade and Investment Framework
agreement (TIFA) in 2001 to create a forum for involved discussion. TIFA
council meetings were held in 2001 and 2004.

Algeria executed a European Union association agreement in 2005. The
agreement provides for the gradual removal of import duties on EU
industrial products over twelve years, and removed duties immediately on
2,000 other products.

Algeria signed bilateral investment agreements for the protection and
promotion of investments with the following countries in the indicated
years: Belgium/Luxembourg (1991), Italy (1991), France (1993), Romania
(1994), Spain (1994), China (1996), Germany (1996), Jordan (1996), Mali
(1996), Vietnam (1996), Egypt (1997), Bulgaria (1998), Mozambique
(1998), Niger (1998), Turkey (1998), Denmark (1999), Yemen (1999), Czech
Republic (2000), Greece (2000), and Malaysia (2000). There is no
bilateral investment treaty between Algeria and the United States.

Algeria has also signed bilateral treaties to prevent double taxation
with the following nations: United Kingdom (1981), France (1982),
Tunisia (1985), Libyan Arab Jamahirya (1988), Morocco (1990), Belgium
(1991), Italy (1991), Romania (1994), Turkey (1994), Syrian Arab
Republic (1997), Bulgaria (1998), Canada (1999), Mali (1999), Vietnam
(1999), Bahrain (2000), Oman (2000), Poland (2000), Ethiopia (2002),
Lebanon (2002), Spain (2002), and Yemen (2002). There is no double
taxation treaty between Algeria and the United States.

In 1990, Algeria signed both investment protection and double taxation
agreements with the Arab Maghreb Union (UMA) countries (Libya, Morocco,
Mauritania and Tunisia).

## OPIC & Other Investment Insurance Programs [**Return to top**](#chapter-6-investment-climate)

The U.S. Overseas Private Investment Corporation (OPIC)
([http://www.opic.gov](http://www.opic.gov/)), the U.S. Export-Import
Bank (Ex-Im) ([http://www.exim.gov](http://www.exim.gov/)), and the U.S.
Trade and Development Agency (USTDA)
([http://www.ustda.gov](http://www.ustda.gov/)) support projects in
Algeria.

A \$250-million water desalination project in Algiers was completed in
2008 with OPIC support, and Ex-Im supported the U.S. content of a power
project in Skikda in 2003.

## Labor [**Return to top**](#chapter-6-investment-climate)

Algeria's labor force consists of roughly 10 million people out of a
total population of some 36 million. According to the National Office of
Statistics, over 70 percent of the population is under age 30. The
monthly minimum wage is DA 12,000 (\$200). The official unemployment
rate is near 13 percent, but international organizations speculate it is
much higher, perhaps as high as 25 percent.

Algeria's labor code sets minimum work standards, including a minimum
work age (16 years), a 40-hour workweek and rates for overtime pay.
Employers pay 26 percent of gross salaries in social security taxes,
including provisions for both retirement and health/accident insurance.

U.S. companies are able to hire trained technical staff. However,
recruiting and retention have become more difficult, as well-educated
and trained Algerians are increasingly being lured to higher salaries
offered in the Gulf region. English speakers remain difficult to find.
Arabic is the official language, and French is the most common language
of business.

There are no restrictions on the number of expatriate supervisory
personnel a company may establish. Entry visas for foreign workers must
be requested through the Ministry of Employment and Social Solidarity
([http://www.massn.gov.dz](http://www.massn.gov.dz/)). Foreign workers
must then obtain work permits from the ministry of labor
([http://www.mtss.gov.dz](http://www.mtss.gov.dz/)) and a residency card
from the local police office in the district where they will be working.
The employer is responsible for submitting all tax payments for
individual workers to the proper local tax collection authorities.

Algerian regulations allow foreigners to repatriate 50 percent of their
salaries.

## Foreign-Trade Zones/Free Ports [**Return to top**](#chapter-6-investment-climate)

[]{#fdi .anchor}There are currently no free trade zones in Algeria.

## Foreign Direct Investment Statistics [**Return to top**](#chapter-6-investment-climate)

The latest data available from the Central Bank shows foreign inflow to
Algeria was \$1.8 billion for 2006. The CIA Factbook estimates the total
FDI stock to be \$10.6 billion.

## Web Resources [**Return to top**](#chapter-6-investment-climate)

**Algerian government:**

-   Algerian Embassy in Washington, D.C.: <http://www.algeria-us.org/>

-   Bank of Algeria (central bank): <http://www.bank-of-algeria.dz/>

-   Ministry of Employment and Social Solidarity:
    <http://www.massn.gov.dz/>

-   Ministry of Energy and Mines: <http://www.mem-algeria.org/>

-   Ministry of Finance: <http://finances-algeria.org/>

-   Ministry of Labor and Social Security: <http://www.mtss.gov.dz/>

-   Ministry of Industry and Investment Promotion: <http://www.mipi.dz/>

-   National Investment Development Agency: <http://www.andi.dz/>

-   Sonatrach: <http://www.sonatrach-dz.com/>

**United States Government:**

-   U.S. Department of State travel information:
    <http://travel.state.gov/>

-   U.S. Embassy in Algiers: <http://algiers.usembassy.gov/>

-   U.S. Department of Commerce: <http://www.export.gov/>

-   Export Import Bank: <http://www.exim.gov/>

-   Overseas Private Investment Corporation (OPIC):
    <http://www.opic.gov/>

-   U.S. Trade and Development Agency: <http://www.ustda.gov/>

**Non-Governmental:**

-   Business Software Alliance (BSA): <http://www.bsa.org/>

-   U.S.-Algeria Business Council: <http://www.us-algeria.org/>

**International:**

-   E.U. Association Agreement:
    <http://europa.eu.int/comm/external_relations/euromed/med_ass_agreemnts.htm>

-   European Free Trade Association (EFTA): <http://www.efta.int/>

-   International Monetary Fund (IMF): <http://www.imf.org/>

-   Multilateral Investment Guarantee Agency: <http://www.miga.org/>

-   World Bank: <http://www.worldbank.org/>

#### Conventions:

-   New York Convention on the Recognition and Enforcement of Foreign
    Arbitral Awards
    <http://arbiter.wipo.int/arbitration/ny-convention/index.html>

-   Paris-based International Center for the Settlement of Investment
    Disputes: <http://www.worldbank.org/icsid/>

[Return to top](#chapter-6-investment-climate)

[[]{#ch7 .anchor}Return to table of
contents](#doing-business-in-algeria-a-country-commercial-guide-for-u.s.-companies)

# Chapter 7: Trade and Project Financing 

-   [How Do I Get Paid (Methods of
    Payment)](#how-do-i-get-paid-methods-of-payment-return-to-top)

-   [How Does the Banking System
    Operate](#how-does-the-banking-system-operate-return-to-top)

-   [Foreign-Exchange
    Controls](#foreign-exchange-controls-return-to-top)

-   [U.S. Banks and Local Correspondent
    Banks](#u.s.-banks-and-local-correspondent-banks-return-to-top)

-   [Project Financing](#project-financing-return-to-top)

-   [Web Resources](#web-resources-return-to-top-3)

## How Do I Get Paid (Methods of Payment) [**Return to top**](#ch7)

Most common payment terms are used in Algeria with the exception of
payment in advance. Payments for goods are subject to producing an
invoice with a bank domiciliation and customs clearing documents.

## How Does the Banking System Operate [**Return to top**](#ch7)

Six state-owned banks still dominate 95 percent of the commercial
market, but numerous private banks now operate in Algeria as well.
Western Union services (international money transfers) are also
available.

The Khalifa Bank collapse in 2002 shook government confidence in the
private banking sector, in spite of the flaws in state-owned banks. As a
result, banking reform has progressed incrementally at best. In the wake
of the global financial crises of 2007-08, the privatization of the
flagship state-owned bank Credit Populaire d'Algerie (CPA) was put on
hold indefinitely.

Barriers on outward transfers and an antiquated domestic transfer system
pose challenges for investment. Though the central bank is working on
creating a system that would permit payments by check and credit cards,
this system is still very new and not many vendors have fully embraced
this new system. Neither checks nor credit cards are common. ATMs are
installed at some locations for limited-use disbursements, and only with
cards issued by the local bank, not international credit cards. Algeria
remains a cash-based society.

## Foreign-Exchange Controls [**Return to top**](#ch7)

The government tightly controls foreign exchange, and the central bank
severely restricts the repatriation of currency from payments. A company
(outside of the hydrocarbons sector) may only receive up to 50 percent
of its export earnings in U.S. dollars; it must receive the rest in
local currency. Companies in the hydrocarbons sector must receive 100
percent of export revenue in local currency (dinar).

With few exceptions, the GOA prohibits Algerians from holding financial
assets abroad. It does make foreign exchange available to Algerians for
the importation of goods provided they have the dinar equivalent of the
hard currency cost of the imports.

The Algerian dinar is convertible for current accounts for businesses.
Individuals are entitled to own overseas accounts and transfer funds,
but the Bank of Algeria cannot convert payments.

## U.S. Banks and Local Correspondent Banks [**Return to top**](#ch7)

Citigroup, N.A. (Citibank)

07 Avenue Larbi Allik

Hydra, Alger 16035

+213 (21) 54 78 21

Public banks maintain correspondent banking relationships with several
U.S. banks.

[Relationships with Banque Extérieure d'Algérie]{.underline}

Bank of New York

BankAmerica International

Bankers Trust

Chase Manhattan Bank

Chemical Bank

Citibank

First Chicago

[Relationships with Crédit Populaire d\'Algérie]{.underline}

Citibank

Arab American Bank

Chemical Bank

Mellon Bank

[Relationships with Banque Nationale d\'Algérie]{.underline}

American Express Bank

Bank of America

Bank of New York

Bankers Trust

Chase Manhattan Bank

Citibank

CoBank Denver

First-Interstate Bank of California

Mellon Bank

Pittsburgh national Bank

United Bank for Africa

[Relationships with Banque de Development Local]{.underline}

Citibank

Crédit Lyonnais NY

Rabo Bank

United Bank for Africa

## Project Financing [**Return to top**](#ch7)

Project financing has significantly slowed in Algeria in recent years,
and for the most part, major infrastructure, civil engineering and
construction projects are fully funded by the government. The World Bank
has no new projects planned, but the International Finance Corporation
(IFC) continues to provide project financing in Algeria
([www.ifc.org](http://www.ifc.org/)).

  

### Other Development Institutions:

The Overseas Private Investment Corporation (OPIC) is a source of
project finance guarantees in Algeria (
[www.opic.gov](http://www.opic.gov/) ).

## Web Resources [**Return to top**](#ch7)

-   Export-Import Bank of the United States:
    [http://www.exim.gov](http://www.exim.gov/)

-   Country Limitation Schedule:
    <http://www.exim.gov/tools/country/country_limits.html>

-   International Finance Corporation:
    [www.ifc.org](http://www.ifc.org/)

-   OPIC: [http://www.opic.gov](http://www.opic.gov/)

-   Trade and Development Agency: <http://www.tda.gov/>

-   Small Business Administration Office of International Trade:
    <http://www.sba.gov/oit/>

-   USDA Commodity Credit Corporation:
    <http://www.fsa.usda.gov/ccc/default.htm>

-   World Bank: [www.worldbank.org/dz](http://www.worldbank.org/dz)

[Return to table of
contents](#doing-business-in-algeria-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch8 .anchor}Return to table of
contents](#doing-business-in-algeria-a-country-commercial-guide-for-u.s.-companies)

# Chapter 8: Business Travel

-   [Business Customs](#business-customs-return-to-top)

-   [Travel Advisory](#travel-advisory-return-to-top)

-   [Visa Requirements](#visa-requirements-return-to-top)

-   [Telecommunications](#telecommunications-return-to-top)

-   [Transportation](#transportation-return-to-top)

-   [Language](#language-return-to-top)

-   [Health](#health-return-to-top)

-   [Local Time, Business Hours and
    Holidays](#local-time-business-hours-and-holidays-return-to-top)

-   [Temporary Entry of Materials and Personal
    Belongings](#temporary-entry-of-materials-and-personal-belongings-return-to-top)

-   [Web Resources](#web-resources-return-to-top-4)

## Business Customs [**Return to top**](#ch8)

Algeria has a unique business culture that results from many factors,
including the country's location at the crossroads of Africa and of the
Mediterranean basin; its ethnic diversity of Arabs and Berbers; a
130-year history of French colonization; a guerrilla war for
independence; and a decade-long struggle with terrorism.

Algerians attach great importance to titles and hierarchy. Requests,
invitations, and proposals should be addressed to the head of an
organization. Personal contact is essential, and heads of Algerian
organizations expect meetings with counterparts.

## Travel Advisory [**Return to top**](#ch8)

Please see the Department of State's Travel Advisory Web site at
<http://travel.state.gov/travel/warnings_consular.html> for the latest
information.

## Visa Requirements [**Return to top**](#ch8)

U.S. citizens need a visa to enter Algeria. Travelers should clearly
stipulate the intended date of entry and planned duration of stay on
their applications. A letter of invitation from an Algerian business or
government agency is usually required.

Please visit the Web site of the Embassy of Algeria in Washington, D.C.
at <http://www.algeria-us.org/>. Visa information is available under the
heading "Consular Section." Approval of visas and the return of
passports may take several weeks.

## Telecommunications [**Return to top**](#ch8)

Algeria's telecommunications are mostly modern, but outdated
infrastructure and bureaucracy makes negotiating for service difficult.
GSM technology has made mobile phones commonplace. Most hotels and
private businesses have high-speed Internet, but the government largely
does not.

## Transportation [**Return to top**](#ch8)

A number of international airlines serve Algeria, though there are no
direct flights between Algeria and the U.S. Algeria has one national
airline, Air Algerie, providing domestic service.

There is railway passenger service between the major northern cities and
bus services to many of the smaller cities and towns.

Good paved roads cover the northern region and connect some oases, but
congestion and security checkpoints impede overland travel. Rental cars
are available but expensive. Parking is also an issue in urban areas,
and many companies hire a car and driver for daily meetings of
executives.

## Language [**Return to top**](#ch8)

Arabic is the official language of Algeria. French is widely spoken in
business and government circles, but English is rare. Good interpreters
are in high demand and are expensive, so plan ahead to secure
interpretation for business meetings.

## Health [**Return to top**](#ch8)

No vaccinations are required for entry. Typhoid, tetanus, polio, cholera
and rabies inoculations are strongly recommended. Tap water is
considered potable in Algiers but we recommend that bottled water be
used. For additional information see the World Health Organization
website at: <http://www.who.int/countries/dza/en/>.

## Local Time, Business Hours, and Holidays [**Return to top**](#ch8)

The workweek in Algeria is Saturday to Wednesday, 09:00 a.m. to 05:00
p.m.

Algeria is in the GMT +1 time zone, five hours ahead of Eastern Standard
Time, and in the same time zone as Central European Time. Algeria does
not observe daylight savings during the summer, at which point it is one
hour behind Central European Time.

Holidays in 2008 are as follows:

New Year's Day January 1

Awal Moharem \* January 10

Achoura \* January 19

Mawlid Ennabbaoui \* March 20

Labor Day May 1

Independence Day July 5

Aid El Fitr \* October 2/3

Revolutionary Day November 1

Aid El Adha \* December 9/10

(\*) Precise date subject to lunar sighting/government declaration

## Temporary Entry of Materials and Personal Belongings [**Return to top**](#ch8)

Algerian customs authorities encourage the use of an ATA (Admission
Temporaire/Temporary Admission) Carnet for the temporary admission of
professional equipment, commercial samples, and/or goods for exhibitions
and fair purposes. ATA Carnet Headquarters, located at the U.S. Council
for International Business, 1212 Avenue of the Americas, New York, NY
10036, issues and guarantees the ATA Carnet in the United States. For
additional information call (212) 354-4480, send an e-mail to
atacarnet@uscib.org , or visit uscib.org for details.

## Web Resources [**Return to top**](#ch8)

-   Embassy of Algeria in Washington, D.C.:
    <http://www.algeria-us.org/>.

-   State Department Visa : <http://travel.state.gov/visa/index.html>

-   United States Visas.gov: <http://www.unitedstatesvisas.gov/>

-   U.S. Center for International Business:
    [www.uscib.org](http://www.uscib.org/)

-   U.S. Embassy Algiers: <http://algiers.usembassy.gov/>

-   World Health Organization: <http://www.who.int/countries/dza/en/>

[Return to table of
contents](#doing-business-in-algeria-a-country-commercial-guide-for-u.s.-companies)

[Return to table of
contents](#doing-business-in-algeria-a-country-commercial-guide-for-u.s.-companies)

# Chapter 9: Contacts, Market Research, and Trade Events

-   [Contacts](#contacts-return-to-top)

-   [Market Research](#market-research-return-to-top)

-   [Trade Events](#trade-events-return-to-top)

## Contacts [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

-   U.S. Embassy Foreign Commercial Service
    <http://algiers.usembassy.gov/commercial_service.html>

-   American Chamber of Commerce Algeria

> <http://www.amcham-algeria.org/>

-   U.S. -- Algeria Business Council

> <http://www.us-algeria.org/>

-   World Trade Center Association Algeria

> [http://www.wtcalgeria.com](http://www.wtcalgeria.com/)

## Market Research [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

To view market research reports produced by the U.S. Commercial Service,
please go to
[http://www.export.gov/marketresearch.html](http://www.export.gov/marketresearch.html )
and click on Country and Industry Market Reports. Please note that these
reports are only available to U.S. citizens and U.S. companies.
Registration to the site is required, but free of charge.

Additional investment guides for Algeria have been produced by several
Embassies and Organizations. Some of these include the French Embassy,
the Canadian Embassy, the Oxford Group and KPMG.

See also the American Chamber of Commerce:
[http://www.amcham-algeria.org](http://www.amcham-algeria.org/) .

## Trade Events [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

**The U.S. Embassy -- U.S. Commercial Service**

The USA Pavilion at the Algiers International Trade Fair provides a
high-visibility venue to showcase your commitment to the Algerian
market. Usually held in June, the Trade Fair hosts over 600,000
visitors, giving exhibitors an opportunity to make lasting impact on
consumers, and providing exposure to high-ranking government officials,
media, potential partners, and decision makers in order to better
position their companies in the Algerian market.

The Commercial Section at the Embassy in Algiers can provide information
on registering your company.
<http://algiers.usembassy.gov/commercial_service.html>

**The U.S. -- Algeria Business Council**

For information on events, please see:
[www.us-algeria.org](http://www.us-algeria.org/)

**The American Chamber of Commerce Algeria**

For information on events, please see:
[http://www.amcham-algeria.org](http://www.amcham-algeria.org/)

**The World Trade Center Group**

For information on events, please see:
[www.wtcalgeria.com](http://www.wtcalgeria.com/)

**SAFEX -- Algerian Society for Fairs and Exports**

For information on events, please see:
[www.safex.com.dz](http://www.safex.com.dz/)

**U.S. Department of Commerce**

For more trade events, please visit:
<http://www.export.gov/tradeevents.html>

[Return to table of
contents](#doing-business-in-algeria-a-country-commercial-guide-for-u.s.-companies)

[[]{#ch10 .anchor}Return to table of
contents](#doing-business-in-algeria-a-country-commercial-guide-for-u.s.-companies)

# Chapter 10: Guide to Our Services

The U.S. Commercial Service offers customized solutions to help your
business enter and succeed in markets worldwide. Our global network of
trade specialists will work one-on-one with you through every step of
the exporting process, helping you to:

-   Target the best markets with our world-class research

-   Promote your products and services to qualified buyers

-   Meet the best distributors and agents for your products and services

-   Overcome potential challenges or trade barriers

For more information on the services the U.S. Commercial Service offers
U.S. businesses, please click on the link below.

<http://www.buyusa.gov/algeria/en/>

[Return to table of
contents](#doing-business-in-algeria-a-country-commercial-guide-for-u.s.-companies)

U.S. exporters seeking general export information/assistance or
country-specific commercial information should consult with their
nearest **Export Assistance Center** or the **U.S. Department of
Commerce\'s Trade Information Center** at **(800) U.S.A-TRADE**, or go
to the following website: [http://www.export.gov]()\
\
To the best of our knowledge, the information contained in this report
is accurate as of the date published. However, **The Department of
Commerce** does not take responsibility for actions readers may take
based on the information contained herein. Readers should always conduct
their own due diligence before entering into business ventures or other
commercial arrangements. **The Department of Commerce** can assist
companies in these endeavors.