General Country Information

Official Name: People’s Democratic Republic of Algeria
Capital City: Algiers
Official Languages: Arabic (official), Tamazight (official), French (widely used)
Currency: Algerian Dinar (DZD)
Government Type: Presidential Republic

Geographical Location:

• Continent: Africa
• Neighboring Countries: Tunisia (northeast), Libya (east), Niger (southeast), Mali (southwest), Mauritania (southwest), Western Sahara (west), Morocco (northwest)
• Major Cities: Algiers, Oran, Constantine, Annaba, Blida

Brief History and Political Overview:

Algeria gained independence from France in 1962 after a brutal and prolonged war of liberation. The country has experienced political instability, including a civil war in the 1990s. Algeria’s government is a presidential republic with a strong central government. The current President is Abdelmadjid Tebboune, elected in December 2019. Significant historical events include the War of Independence (1954-1962) and the Black Decade civil war (1991-2002).

Religions and Cultural Highlights:

• Religion: Islam is the predominant religion, with the majority of Algerians being Sunni Muslims.
• Cultural Highlights: Algeria has a rich cultural heritage influenced by Arab, Berber, and French cultures. Traditional music, dance, and festivals such as the Timgad International Music Festival are integral to Algerian culture.

Economy

GDP: $168.1 billion (2023 estimate, World Bank)

Major Industries:

• Oil and gas (mainstay of the economy)
• Mining
• Agriculture (dates, wheat, barley, citrus)
• Manufacturing (steel, electronics, petrochemicals)
• Services (banking, telecommunications, tourism)

Key Economic Indicators:

• GDP Growth Rate: (2023)  4.1% – Worldbank
• Inflation Rate: 6.2% (2023)
• Poverty Levels: Approximately 23% of the population lives below the poverty line
• Investment Climate: Improving but challenges remain, including bureaucracy and regulatory issues

Trade Statistics:

• Main Export Partners: Italy, France, Spain, United States, Turkey
• Main Import Partners: China, France, Italy, Germany, Spain
• Major Goods Traded:
  • Exports: Crude oil, natural gas, petroleum products
  • Imports: Machinery, foodstuffs, consumer goods, vehicles

Currency and Exchange Rates:

• Algerian Dinar (DZD): As of July 2024, the exchange rate is approximately 1 USD = 140 DZD

Population

Total Population: 44.18 million (2023, United Nations)
Population Growth Rate: 1.2% (2023)
Age Distribution:

• 0-14 years: 29.3%
• 15-64 years: 64.8%
• 65 years and over: 5.9%

Urban vs. Rural Population Distribution:

• Urban: 73%
• Rural: 27%

Major Ethnic Groups and Population Diversity:

• Arab-Berber: 99%
• Other: 1%

Education Levels and Literacy Rates:

• Literacy Rate: 81.4%
• Education Levels: Primary education is compulsory and free. Higher education is also free.

Workforce

Labor Force Size and Composition:

• Total Labor Force: 12.1 million (2023, World Bank)
• By Sector:
  • Agriculture: 12%
  • Industry: 31%
  • Services: 57%

Unemployment Rate: 11.4% (2023, World Bank)
Workforce Skills and Education: High literacy rates and a growing number of university graduates, especially in engineering and technical fields
Labor Laws and Worker Rights: Algeria has comprehensive labor laws that provide protections for workers, including minimum wage regulations, working hours, and safety standards. The right to form unions is recognized.
Migration Trends:

• Inward Migration: Limited, mainly from neighboring countries
• Outward Migration: Significant, primarily to France and other European countries

Natural Resources

Major Natural Resources:

• Petroleum
• Natural Gas
• Iron Ore
• Phosphates
• Uranium
• Lead
• Zinc

Top Minerals:

• Petroleum and Natural Gas: Algeria is a major producer of hydrocarbons.
• Iron Ore: Significant deposits, particularly in the southern region.
• Phosphates: Extensive reserves, especially in the eastern part of the country.

Annual Production Volumes for Key Minerals:

• Crude Oil: Approximately 1.2 million barrels per day
• Natural Gas: Around 82 billion cubic meters per year

Mining and Natural Resources Laws and Regulations

Key Laws Governing Mining and Natural Resource Utilization:

• Hydrocarbon Law: Regulates the exploration and production of oil and gas. [https://www.trade.gov/market-intelligence/algeria-hydrocarbon-laws}
• Mining Law: Sets the framework for the exploration and exploitation of mineral resources. [https://investmentpolicy.unctad.org/investment-policy-monitor/measures/2543/algeria-mining-law-adopted]
• Environmental : [https://portal.cor.europa.eu/divisionpowers/Pages/Algeria-Environment-and-fight-against-climate-change-.aspx]

Regulatory Bodies and Their Roles:

• Ministry of Energy and Mining: Oversees the energy and mining sectors.
• Sonatrach: State-owned oil company responsible for hydrocarbon exploration and production.
• Algerian National Agency for the Valorization of Hydrocarbon Resources (ALNAFT): Manages the country’s hydrocarbon resources

Recent Changes in Legislation:

• 2019 Hydrocarbon Law: Introduced to attract foreign investment by providing more favorable terms and reducing bureaucracy. [https://www.state.gov/reports/2023-investment-climate-statements/algeria]

New Investment Code – 28 Jul 2022

Published in the official journal on 28 July 2022, the new investment law aims to (i) lay down the rules governing investment, (ii) to define the rights and obligations of investors and the incentive schemes applicable to investments. It applies to natural persons or legal entities, national or foreign residents or non-residents.

The provisions of this Law are intended to encourage investment with the aim to (i) develop priority sectors of high added value; (ii) ensure sustainable and balanced territorial development; develop local natural resources and raw materials; (iii) foster technology transfer and develop innovation and the knowledge economy; (iv) generalize the use of new technologies; (v) boost the creation of sustainable jobs and promote the competence of human resources; and (vi) strengthen and improve the competitiveness of the domestic economy and its export capacity.

This law establishes the principles of freedom to invest and transparency and equality in the processing of investments. It governs investments made through (i) the acquisition of material or intangible assets, directly involved in the production of goods and services, as part of the creation of new activities, the extension of production capacity and/or the redevelopment of the production tool; (ii) shareholding in the capital of a company in the form of contributions in cash or in kind; and (iii) the relocation of activities from abroad.