Outside of hydrocarbons there are opportunities across the board, eg in healthcare, education (particularly English language, technical and vocational training), infrastructure (engineering, design and project management), agriculture, retail, and professional services (finance, accounting, legal).
Doing business in Algeria can be challenging. Bureaucracy means that decision making can be slow and complex. Competition is stiff; companies from other EU countries and from further afield like China and Turkey are already very active. However, Algerians are open to the commercial relations generally speaking, the bilateral relationship are in excellent shape, and companies can rely on HMG support.
Algeria currently ranks 79th in the World Economic Forum’s Global Competitiveness report for 2014-15 (published August 2014). Algeria lies 11th in the macroeconomic environment index, which was cited as the main reason for its overall rise. The report also highlighted ‘improvement in institutions and physical security’
Corruption
In 2014 Algeria was ranked 100th out of 175 in Transparency International’s corruption perception index. Government tendering follows strict guidelines to reduce the risk of corruption in the awarding of contracts. Numerous British businesses report successful business operations in Algeria free of corrupt practices. However, there are still some isolated anecdotal reports of low level corruption. It is important to develop close business relationships with your potential clients but this should not be confused with corruption. A local business partner or agent will be well placed to advise you on normal business practice. [1]
Intellectual Property
Hi-tech manufacturing industry and R&D facilities are virtually nonexistent in Algeria. Intellectual Property Rights (IPR) infringements associated with technology transfer is not an issue currently. IPR abuses may become a problem in the future as Algeria advances and enters the technological age.
Counterfeit consumer products sourced from third countries - particularly China - is a major problem as is piracy of music and films. Black markets trading in counterfeit goods ranging from toiletries, over the counter medicines, branded clothing and household electrical goods exist in almost every area. The Government is active in combating counterfeit goods and has invested heavily in improving Customs controls. The International cooperation department and customs invites foreign companies to work with them in developing their ability to detect counterfeit products. In addition, recently introduced legislation on imported goods requires specific quality and conformity certification. Foreign exporters should contact Algerian Customs and the Ministry of Commerce for advice on the appropriate certification of their goods.
IPR Protection in Algeria
Algerian law adheres to NAFTA and the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). IPR laws in themselves are robust but the difficulty is in lax enforcement. Specialist legal advice on IPR matters is difficult to find. The cumbersome judicial system based on French and Islamic Sharia law is complicated to understand; therefore legal proceedings can be lengthy and expensive.
High level lobbying via the Embassy and industry representative groups such as the Algeria Brand Protection Group has proved to be a more popular and effective route to resolving major disputes.
Paying Taxes
What is the administrative burden of complying with taxes in Algeria—and how much do firms pay in taxes? On average, firms make 27.00 tax payments a year, spend 385.00 hours a year filing, preparing and paying taxes and pay total taxes amounting to 72.70% of profit (see the summary at the end of this chapter for details). Most indicator sets refer to a case scenario in the largest business city of an economy, except for 11 economies for which the data are a population-weighted average of the 2 largest business cities. See the chapter on distance to frontier and ease of doing business ranking at the end of this profile for more details. Globally, Algeria stands at 169 in the ranking of 189 economies on the ease of paying taxes (figure 8.1). The rankings for comparator economies and the regional average ranking provide other useful information for assessing the tax compliance burden for businesses in Algeria.[2]
Copyright Protection
Algeria has signed up to the relevant international IPR and copyright agreements. However, piracy remains a major problem. Pirated films and music recordings are available often on the same day as their official release in Europe and elsewhere.
Read the information provided on our Intellectual Property page.
Organised Crime
There are no specific threats to foreign companies as a result of organised crime.
Read the information provided on our Organised crime page.
[1] UK Government
[2] Making Business Country Report: Algeria
Algeria has signed up to the relevant international IPR and copyright agreements. However, piracy remains a major problem. Pirated films and music recordings are available often on the same day as their official release in Europe and elsewhere.
Read the information provided on our Intellectual Property page.
Organised Crime
There are no specific threats to foreign companies as a result of organised crime.
Read the information provided on our Organised crime page.
[1] UK Government
[2] Making Business Country Report: Algeria
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