Algeria
the land ofOpportunities
Invest in Algeria
UNIDO ITPO Tokyo, 2019
M HARHOURA Alaaeddine
Ministry of Industry and Mines

www.mdipi.gov.dz

TACKL
ED.
PO
I
NTS

Introduction
Investment Opportunities
Encouragement Measures
Profitability
Evolution of Sustained Investments
Investment Climate Improvement

ThePresident
The Prime
Minister
The Minster ofIndustry and MinesThe Directorate General of MinesThe Directorate General of MSE

The Directorate General ofInvestment
Promotion
The Nationl Agency
of Investment
Development

The Directorate General of Industrial& TechnologicalDevelopment

The Directorate General of Public
Sector Managment

AgricultureIndustry

Tourism

Renewableenergies

ICT

Crops and livestock
Development of farmlands : irrigated areas & Saharanagriculture
Grain farming & dried vegetables : expected production by
2019 : 69.8 million quintals & 2 million quintals
Fodder crops : to be sown : 80.000 ha
Date palm cultivation : modernization of cultivation
techniques
Olive cultivation : intensive/semi intensive planting (200 &400 plt/ha) ; Intensification & grafting olive trees, 6.4 million ofolive trees
Fruit farming : (13.5 million quitals in 2019) - plantation of 79
million trees/vinesIntegrated farms : likestock breeding, dairy production , redmeat (fattening centers, modern slaughterhouses), white meat
(5.8 million Q/2019), cereals
Beekeeping : honey production 10.000 tons by 2019

Fishing
Tuna fisherydevelopment
Reactivating coral
exploitation
Development ofmarine, continental& Saharanaquaculture.

Forests
Arboriculture
developing & wood parks :+ 1,050,000 ha of forestoriented lands
Rational exploitation andupgrading forest products :Wood, cork, wild honey,aromatic and medicinal
plants. 4.1 million haAgriculture

Industry
Industrie

Tourism

Renewable
Energies

ICT50 industrial zones covering 15,000 ha
Iron and steel industry,
Hydraulic binders,Electronics & home
appliances,
Chemical Industry &Pharmaceutical
Mechanics & carmanufacturing,
Aeronautics,
Shipbuilding(construction/repairing)

Advanced
technologies,
Food industry,
Textile and clothing,
Leather and derived
products,
Wood and furnitureindustry,
Mines & quarries

Agriculture

Industry

Tourisme
Tourism

Renewable
Energies

Real Estate

ICT

HotelsProgramme 311,000 beds

225 tourism expansion zones : 56 mille ha
166 coastal zones (38 mille ha)
36 highland (8 mille ha)
23 zones in the South (9 mille ha)

Rehabilitating and renovating of the existing :111,000 beds
implementing 2,000 new hotels : 200,000 beds
50 hotels
150 hotels
500 Hotels
to800 hotels 0 toIndustry

Agriculture

Tourism

Renewable
Energies
Energies
renouvelables

ICT

Renewable Energies Program
13,575MW

Photovoltaïc Solar

thermal solar energy
3,000 hours ofSunlight

15
MW400
MW

2,000
MW
5,010
MW

Biomass
22,000 MW between 2015-2030, 4,500 MW by 2020.

1,000MWAgriculture

Industry

Subscribers
3G :23,701,023
Subscribers
4G : 10,968,495
Providerse-services :1,182Internet Subscribers (ADSL, 4G LTE fixe,WIMAX, 3G mobile, 4G mobile) : 37,836,425

Tourism

Renewable
Energies

TICICT

Digital economy: e-commerce, web portals, software & smart
applications, geo-localization,
Tech Parcs (R&D innovation & ICT industry, incubators)
Electronic payment : creditcard , mobile & online payment
Database Security Systems
E-Learning & e-logistics platform
Telemedicine
Space Infrastructures
Antennas and satellites
Electronic certification
Postal service upgrading
E-administration
Capacity building (expertise & training)

The nonretroactivity oflaws

Fair and equaltreatment

Administrative,Jurisdictional &/or
Arbitral Appeal

Protection byinternational
conventions

Dividend transfers
Guarantee

Automaticity ofbenefits

Procedures
Simplification

Cumulative benefit ofdifferent support
mechanisms

01

Investments in economic activities for the
production of goods and services (Nationaland / or foreign investments in partnership)

O2 Investments of creation (Greenfield) , extension ofproduction
capacities,
rehabilitation
participations in the capital of a company

or

O3 Goods constituting external contributions in thecontext of relocations & New goods acquired
through international leasing.

TAXATIONFINANCING

 Corporate Tax reduction for SME/ SM Industries located in thehighlands and the South (for production activities)
 Exemption from VAT, customs duties, Corporate Tax & tax on
professional activity (for export activities)
Granting of unpaid loans
Interest rate rebate of 2%
 Establishment of investment funds
 Establishment of guarantee funds


REAL ESTATE Granting of land concessions on the private domain of the State- Duration: 33 years renewable 2 times- Effects: possibility of using the concession title as a real security

SOCIAL SECURITY
CHARGES Reduction of employers' social security contributions (recruitment ofyoung jobseekers)- North of the country: from 56% to 80%- Highlans and South: from 72% to 90%

CommonBenefits

0102
03

Additional
Benefits

Exceptional
Benefits

Investments in the production of goods and services
not excluded, according to location (North - South &Highlands )Privileged (strategic) and / or job-creating activities: tourism,industry and agriculture

Investments of national importanceProjects
implemented in
the North

Projets
implemented inthe South &Highlands

1- Implementation phase:a. exoneration from : customs duties, VAT, transfer duties, Stamp duty and cadastral tax,
b. 90% reduction on the annual rental charges;
2- Operation phase: (for 03 or 05 years)
c. exoneration from : Corporate Benefit tax , professional activity tax;
d. 50 % reduction on the annual rental charges

1. Implementation phase :Benefit (a)reduction on the annual rental charges
1DA/sq.m for 10 year (for highlands & other zones to be developed)
and 15 years (for Wilayas located in the grand South)50 % of the state fee for the same periods of time
2. Operation phase : Benefits (c), (d) and (e) for 10 ans

AGRICULTURE

Crop loan R'fig ;Subsidized loans :Guaranteed devices for bank credits

INDUSTRY5 years exoneration from Corporate Tax, Income tax &professional activities tax
3% bonus of the interest rate on bank loans

TOURISM

3% bonus of the interest rate on bank loans(Project-North) & 4.5 % (project-South) 50% reduction on land concession (HL) & 80%(South)Projects
supported byinvestment
agreement Common benefits Additional benefitsUp to (10) extension, on the benefit duration of « common benefits »exonerations or reduction on custom duties, taxes, charges and all other taxations of fiscal
nature, fundings, aid and financial support ,duty-free purchases of goods and materials used for goods production (benefiting from VAT
exemption).

Construction&hydraulics

Hotelbusiness
TouristComplex

Profitability rate
without benefits

Profitability ratewith benefits

Car-parts &components

Agriculturalcomplex

Pneu
matic
Packaging(many)

Alumintrans

Pharmaceuticals

Brickyard

MedClinics

1093218162117179182316154325262825

29152533NaturalGas
FuelElectricity
Work Froce

0.21 to 0.40€/ thePertol : 0.30 € / L
Diesel : 0.17 € / L
1- 4 euro cents/ kWh

180 to 900 €M wage: 180 €RankRegion

Amount M USD%

1Europe

9,89845.57%

2

Arabe Countries

9,114

41.96%

3

Asia

1,463

6.74%

4

America

593

2.73%

5

Africa

342

1.57%

6

Multi-nationality

286

1.32%

7

Australia

26

0.12%

21,723

100%

Total

Telecom 9%
Services 4%

Tourism 8%

Industry 78%

Construction1%

Japan is Algeria’s 23rd supplier and its 22nd client

687 million Dollars : in 03 years
exporting mainly hydrocarbons : 250 M USD
Importing mainly electronics, appliances, metal & steel products and equipments : 437 M USD

1982 : Joint economic committee
2004 : Technical cooperation agreement
Non double taxation agreement , Encouragement &mutual Investment protection agreement are undernegotiation

48 bilateral agreements and including investments promotion and mutualprotection agreements;
65 bilateral agreements on non-double taxation.
Member of the African Free Zone Trade ZLEC
Member of the Arab free Zone Trade GZALE
European Union Association Agreement• Establishment of an online registration procedure for investments and an online partnership portfolio (by theNational Agency of Investment Development ANDI)•Reduction in administrative timeline for customs clearance, construction license issuing , connection withelectricity, water and telecommunications and for transfer of ownership;•Database Consultation of the National Center of the Trade Registry « CNRC »,•Online publication of construction licence governing regulation in Algeria,•Online publication of electricity connection tariffs and deadlines,•Online payment of electricity, water, telephone fees,•Ongoing implementation of systems and networks for e-commerce generalization•

Ongoing implementation of the Port Single Window, linking customs with the port and all other parties
involved in the export and import process via an electronic data communication platform.

• Infrastructure: Construction of the Rocade Highway (Highland Highway) linking major cities in the interior ofAlgeria (1,500km of roadway and services)• Infrastructure: Services for the Coastal Highway (East-West Highway) linking major cities along theMediterranean coast (highway services, signage, hotels, tourism, gas stations, electricity grids, transportation,toll booths, security)• Water Resources: Renovation of water network, waste water, pumping stations, pipes, desalination andtreatment plants for drinking water• Construction: buildings to respond to the housing shortage, new city of Hassi Messaoud in southern Algeria,
residential developments for middle class family homes, hotels and resorts, airports, and hospitals• Medical Facilities: diagnostic centers, hospitals, trauma units, hospital management expertise• Transportation: New airports, upgrade existing airports, railroad (passenger and freight) line renovation, newtracks covering 4,000 kilometers• Agriculture: launching commercial dairy farms, fertilizers production, seeds production, irrigation systems,
water reclamation for agriculture, Agricultural equipments.
• Energy: new exploration concessions, new tenders for hydrocarbon transformation, renewable energy projects
with emphasis on turbine generation, solar panels and wind farms• Technology: Fiber optic cables, signal repeating stations, radar & surveillance equipment, e-government and elearning platforms, mapping systems, project management training and software, telecommunications andincreased internet connectivity

1) Textile & clothing10) Aeronautics

2) Leather & derived products11) Mechanics & automobiles

3) Wood & furniture industry

12) Digital industry

4) Steel & metallurgical products13) Advanced technologies

5) Hydraulic binders & building materials

14) Ship building & repairing

6) Electrical products & cabling15) Agribusiness (food) industry

7) Electronics & Appliances

16) The transport industry sector8) Pharmaceuticals & Para-pharmaceuticals

17) The sustainable city sector

9) Petrochemistry & industrial chemistry18) The water processing, sanitation &desalination

Opportunities for Algerian Japanese partnership are open, we invite japanese companies to come andsee and seize limitless opportunities, on the basis of mutual benefit, ,We have identified tens of partnership projects, that we believe Japanese companies could be interested
inThe fields are: Petrochemistry & industrial chemistry, Textile & clothing, Pharmaceuticals, Mechanics &automobiles, Ship building & repairing ,electronic and subcontracting,
The detailed project sheets are at your disposal

For more Information please visit :www.mdipi.gov.dz
www.andi.dz

a.harhoura@industrie.gov.dz

213 (0) 21 74 76 44

Algeria ....it’s a lot closer than you think

Thank you for your attention