Algeria is an attractive destination for US investors, the US Department of State said in its report on the world’s investment climat in 2018.
“Algeria is a profitable market because it provides great potential for American companies in the field of investment”.
“Many sectors provide US companies with significant growth opportunities over the long term” the report said, referring to representatives of the US private sector who are active in Algeria.
“Many institutions stated that they have recorded an annual profit ratio”, the report said, adding that there are opportunities in all sectors of the Algerian economy.
“The Algerian government continues its goal of diversifying the economy by focusing on ways to attract foreign direct investments to create jobs and compensate revenues by raising domestic production”, the report said, recalling the new investment law, which provides lucrative tax breaks and other easing procedures for investment.
The US Department of State confirmed that American companies should overcome some challenges such as price competition by French, Chinese and Turkish companies.
If the State of America believes that the 49/51 regulation of foreign investment “poses challenges” to US officials, it considers this action to “particularly hamper” the entry of SMEs into the Algerian market because they do not have the human and financial resources to meet the requirements, while the large companies that provide jobs, knowledge and equipment have “innovative means” to invest in this measure that derives from the Investment Act 2016.
The report, based on the government’s explanations on the issue, said the move was encouraged by the need to “stop capital drain and protect Algerian enterprises while ensuring the local expertise of foreign companies.”
In terms of facilities, the document asserted that the e-portal for the establishment of institutions “is clear and well designed to allow rapid sailing, including nine phases of 7 agencies for the establishment of an institution.”
Turning to the Doing Business report, the report noted that Algeria had improved on two indicators that were evaluated by this category, “Facilitating Electricity Connection and Obtaining Building Permit.”
On the economic side, the Algerian banks are financially sound despite a drop in liquidity, while the non-profitable assets ratio is 5%, which is the benchmark for the emerging markets.
With regard to the transfer of profits that are raised by some American companies, the US State Secretary wrote: “There are few legal obstacles to the transfer of funds”, adding that some of the difficulties that recorded are due to procedures and not restrictions that are imposed by law.