There is strong interest on the part of Algerians for partnerships in the information and communications technology sector, and consumers are increasingly tech-savvy.
Foreign banks may now provide banking services to state-owned enterprises. The privatization process has all but stopped, however, due to both a general lack of interest among foreign investors and a lack of confidence among government leaders in past privatization and foreign-investment efforts. Bank privatization is on hold indefinitely due to world financial shocks.
For security reasons, business travelers and companies should continue to exercise vigilance and consult the Embassy and the Department of State's travel advisories for updated information, located at http://travel.state.gov/travel/warnings_consular.html
Starting a business in Algeria has been streamlined to some degree in recent years, but remains a lengthy, bureaucratic and often difficult process. A new, restrictive investment policy announced by the prime minister in August 2008, if fully implemented, will require an Algerian majority stake in any investment. The Algerian tax law was also modified in August 2008 to require companies to re-invest within four years the value of any tax incentives received or face a 30-percent penalty.
Repatriation of profits is encumbered by numerous restrictions and reporting
requirements. A 2007 law allows for the repatriation of income from services without pre-approval by the central bank, but repatriation of income from the sale of goods remains limited. Franchising legislation that could ease the process and invite a broader range of franchises remains pending.
It is estimated that over 50 percent of Algeria’s economy is informal.
Counterfeit goods remain a problem, but government seizures are increasingly effective. Algeria’s licensing of generic pharmaceuticals and lack of clear coordination between the ministry of health and the patent and trademark office exacerbates the uncertain landscape for the registration and sale of brand-name products. Human resources are difficult to recruit, manage and retain in Algeria, both at the skilled and unskilled levels, even as unemployment remains high. Most Algerians speak French and Arabic and lack English-language skills.
For More Info
http://www.export.gov/algeria/eg_dz_020531.asp
