Doing business in Algeria: Algeria trade and export guide
Updated 9 October 2015
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This publication is available at https://www.gov.uk/government/publications/exporting-to-algeria/exporting-to-algeria
Brexit
Learn about changes for UK exporters to Algeria if the UK leaves the EU without a deal.
Managing risk
Find out how UK companies can control risks when doing business in Algeria.
Export opportunities and advice
Find more export advice and explore opportunities overseas on great.gov.uk.
1. Algeria export overview
Algeria is a stable country politically. President Bouteflika was re-elected in 2014 for a further five years. It is the biggest country by area in Africa with a population of 38 million.
Contact a Department for International Trade (DIT) Algeria export adviser for a free consultation if you’re interested in exporting to Algeria.
Contact UK Export Finance (UKEF) about trade finance and insurance cover for UK companies. You can also check the current UKEF cover position for Algeria.
Many UK businesses operate from Algeria, including well-known companies like BP, Unilever, HSBC, Glaxo Smith Kline, AstraZeneca, Biwater, Jaguar Land Rover, Shell, DLA Piper and Hermes amongst many others. Other multinationals such as Anadarko and GE manage their Algerian operations from the UK.
Benefits for UK businesses exporting to Algeria include:
- only two and a half hours by direct flight from London
- political and social stability
- a young population (an estimated 70% are under 30)
- a stable nation, with a desire to work with the UK
2. Challenges doing business in Algeria
Historically Algeria has been seen as a challenging market to enter. However, hurdles are often similar to those experienced elsewhere.
- bureaucracy inherited from a history of francophone and eastern bloc influences
- the 51/49 investment law
- the ongoing process to join the World Trade Organization (WTO)
- some corruption, however, scores fairly well on the corruption index
You should ensure you take the necessary steps to comply with the requirements of the UK Bribery Act.
3. Growth potential
Algeria has no foreign debt and an estimated USD 185 billion in reserves. Economic growth averages about 3-4%.
4. UK and Algeria trade
In 2013 the UK export trade was worth £529 million. This is second only to Egypt in north Africa and is the UK’s fourth largest market in Africa.
The main UK exports to Algeria in 2013 were:
- transport equipment (£88 million)
- specialised machinery (£73 million)
- road vehicles (£48 million)
- power machinery (£43 million)
- iron and steel (£42 million)
- chemicals (£42 million)
5. Opportunities for UK businesses in Algeria
Department for International Trade (DIT) provides free international export sales leads from its worldwide network. Search for export opportunities.
The Algerian government publishes tenders on the Baosem website. The National Agency of Investment Development lists current projects and contact details.
5.1 Energy
The government announced long-term energy plans, which includes a Renewable Energy Strategy with an investment of USD 100 billion by 2030. It should produce one third of all domestic energy from renewable sources.
There are many opportunities for UK companies in many areas, including:
- renewable energy
- oil and gas
- technology
Contact jacqui.mullen2@fco.gov.uk for more information on the opportunities in the energy sector.
5.2 Infrastructure
The government has announced a USD 262 billion 5 year infrastructure programme which will see state resources devoted to new builds and at least 80 new projects offering partnerships.
Contact lilia.lamara@fco.gov.uk for more information on the opportunities in the infrastructure sector.
5.3 Education and training
The English language is a primary focus for the Algerian government. English language training is in regular demand from companies and this provides excellent opportunities for UK companies.
Contact jacqui.mullen2@fco.gov.uk for more information on the opportunities in the education and training sector.
5.4 Agriculture
Algeria has a vast agricultural sector. Investment in agriculture is one of the 4 pillars of the USD 262 billion ‘Five Year Plan’.
There are opportunities for UK companies in many aspects of the agriculture sector.
Contact DIT Algeria for more information on the opportunities in the agriculture sector.
5.5 Defence and security
The Ministry of Defence has the largest devolved budget in the Algerian government. With challenging scenarios on all borders, there is a constant interest in defence systems and security provision.
Contact Export Control Organisation (ECO) to check your goods you are meeting legal requirements for export.
Contact lilia.lamara@fco.gov.uk for more information on the opportunities in the defence and security sector.
6. Start-up considerations
Foreign companies wishing to set up in Algeria will be expected to comply with the regulations under the 51/49 rule for joint ventures. The law states that a foreign investor must have an Algerian partner and the foreign party can only hold a maximum of 49% of the company. This has not prevented several successful joint ventures.
The National Agency of Investment Development has a full breakdown of regulations.
Contact the Department for International Trade (DIT) team in Algeria to help find tax and legal advisers before entering into agreements.
7. Legal considerations
Contact the Department for International Trade (DIT) team in Algeria for more information and advice on the legal considerations in Algeria.
7.1 Intellectual property
Trademarks, designs, patents and copyright are the principal forms of IP protection available to companies and individuals.
Contact the Department for International Trade (DIT) team in Algeria for more information on intellectual property protection in Algeria.
8. Tax and customs considerations
The National Agency of Investment Development lists all tax requirements in Algeria.
8.1 Double Taxation Agreement
In February 2015 HMG and the Ministry of Finances in Algiers signed a Double Taxation Agreement. It is currently in the parliamentary procedural process and is expected to come into force in January 2016.
9. Business behaviour
Algeria is a country where the personal touch and personal contact, matters. Prospective exporters should visit Algeria and take their time to understand the nature of the system.
10. Entry requirements
You need a visa to enter Algeria, which can be obtained in around three weeks from the Algerian Embassy in London. On arrival in Algiers, the Department for International Trade (DIT) team will be more than happy to offer you background security briefing.
10.1 Travel advice
If you’re travelling to Algeria for business, check the Foreign and Commonwealth Office (FCO) travel advice beforehand.
11. Contact
Contact DIT team in Algeria for more information and advice on opportunities for doing business in Algeria.