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Exporting To Algeria
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.
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
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.
Growth potential
Algeria has no foreign debt and an estimated USD 185 billion in reserves. Economic growth averages about 3-4%.
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.
Intellectual property
Trademarks, designs, patents and copyright are the principal forms of IP protection available to companies and individuals.
Tax and customs considerations
The National Agency of Investment Development lists all tax requirements in Algeria.
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. It is expected to come into force in January 2016.
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.
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 UKTI team will be more than happy to offer you background security briefing.
Travel advice
If you’re travelling to Algeria for business, check the Foreign and Commonwealth Office (FCO) travel advice beforehand.