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:
Code | Wording |
104207 | Pharmaceutical product manufacturing |
104226 | Medical devices manufacturing |
308002 | Wholesale of pharmaceutical products |
308009 | Wholesale of medical devices |
602120 | Contractual research company |
602121 | Pharmaceutical establishment for the exploitation of pharmaceutical products registration decisions |
602122 | Pharmaceutical establishment for processing of medical devices approval decisions |
607016 | Society for the promotion and medical and scientific information on pharmaceutical products |
List of activities related to the energy and mining sector:
Code | Wording |
102202 | Extraction of liquid and gaseous hydrocarbons |
102205 | Transport of liquid hydrocarbons and condensate by pipeline |
103101 | Extraction and preparation of iron ore |
103102 | Extraction and preparation of Bauxite |
103103 | Extraction and preparation of non-ferrous base metal ores |
103104 | Extraction and preparation of ores for ferroalloys |
103105 | Extraction and preparation of precious metal ores |
103106 | Extraction and preparation of various metal ores |
103107 | Extraction and preparation of uranium ores and radioactive ores |
103108 | Extraction and preparation of pyrite, sulphur production |
103109 | Extraction and preparation of various mineral products |
103201 | Extraction of coal |
103202 | Quarrying of freestone for construction and industry |
103207 | Extraction and preparation of various quarry products not intended for construction materials |
103208 | Extraction and preparation of potash salt |
103209 | Extraction and preparation of salts including salt marshes |
103210 | Extraction and preparation of phosphates |
List of activities related to the transport sector:
Code | Wording |
604201 | Rail passenger transport |
604202 | Rail freight transport |
604301 | air passenger transport |
604302 | Air freight transport |
604303 | Air transport service |
604304 | Air service for agriculture |
604401 | Maritime passenger transport |
604402 | Maritime transport of goods |
604403 | Cabotage maritime |
604406 | Urban maritime transport |
604602 | Handling |
604606 | Management of land transport infrastructure |
604607 | Port service company |
604608 | Airport services |
604633 | Ship consignee |
604634 | Consignee of cargo |
604635 | Maritime broker |
604637 | Operation of a light aviation service |
604641 | Air charter and freight |
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