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Draft executive decree establishing a list of activities of a strategic nature

which remain subject to the participation of national resident shareholding up to 51%

07/04/2021

The Algerian government has examined, last Wednesday 24th march, during its meeting, chaired by the Prime Minister Abdelaziz Djerad, a draft executive decree establishing a list of activities of a strategic nature and which, therefore, remain subject to the participation of national resident shareholding up to 51%, in accordance with the provisions of Article 50 of the Supplementary Finance Law for 2020.
 
This draft decree intends to remove the practical difficulties relating to the identification of certain activities of a strategic nature but seems to stance others difficulties a priori insofar as by providing for the possibility of updating the list of said activities by interministerial decree of the trade Minister and the  concerned minister , the draft decree opens up some areas of uncertainties that could thwart the necessary clarity initiative pursued by the executive.
 
Indeed, article 1 of the draft decree provides that: “in accordance with the provisions of article 50 as amended by law No. 20-07 of June 4th, 2020, referred to above, the purpose of this decree is to set out the list of activities of a strategic nature relating to the energy and mining sectors, the pharmaceutical industry, and the transport sector which are subject to the 51-49% national resident shareholding rule.”
 
Thus, it appears that some activities related (i) to the sector of the exploitation of the national mining domain, as well as any underground or surface resource relating to an extractive activity on the surface or underground, excluding quarries and sand pits and (ii) the sector of industries initiated or related to military industries under the responsibility of the National Defense Ministry seem to be excluded from this draft decree, even though they are also qualified as strategic.
 
It should be noted that this draft decree defines the activities falling within the above-mentioned strategic sectors, based on the nomenclature of economic activities subject to registration in the trade register.
 
Thus, according to this draft decree, the following activities should be considered as strategic:
 
List of activities related to the pharmaceutical industry sector:
 

CodeWording
104207Pharmaceutical product manufacturing
104226Medical devices manufacturing
308002Wholesale of pharmaceutical products
308009Wholesale of medical devices
602120Contractual research company
602121Pharmaceutical establishment for the exploitation of pharmaceutical products registration decisions
602122Pharmaceutical establishment for processing of medical devices approval decisions
607016Society for the promotion and medical and scientific information on pharmaceutical products

 
List of activities related to the energy and mining sector:
 

CodeWording
102202Extraction of liquid and gaseous hydrocarbons
102205Transport of liquid hydrocarbons and condensate by pipeline
103101Extraction and preparation of iron ore
103102Extraction and preparation of Bauxite
103103Extraction and preparation of non-ferrous base metal ores
103104Extraction and preparation of ores for ferroalloys
103105Extraction and preparation of precious metal ores
103106Extraction and preparation of various metal ores
103107Extraction and preparation of uranium ores and radioactive ores
103108Extraction and preparation of pyrite, sulphur production
103109Extraction and preparation of various mineral products
103201Extraction of coal
103202Quarrying of freestone for construction and industry
103207Extraction and preparation of various quarry products not intended for construction materials
103208Extraction and preparation of potash salt
103209Extraction and preparation of salts including salt marshes
103210Extraction and preparation of phosphates

 
List of activities related to the transport sector:
 

CodeWording
604201Rail passenger transport
604202Rail freight transport
604301air passenger transport
604302Air freight transport
604303Air transport service
604304Air service for agriculture
604401Maritime passenger transport
604402Maritime transport of goods
604403Cabotage maritime
604406Urban maritime transport
604602Handling 
604606Management of land transport infrastructure
604607Port service company
604608Airport services
604633Ship consignee
604634Consignee of cargo
604635Maritime broker
604637Operation of a light aviation service
604641Air charter and freight