Legal Guarantees to Stimulate Foreign Investment in Algeria

Abstract

Algeria is considered among the developing countries that have been able to change its position towards foreign investment after it was distinguished by its strict and restricted positions opposing attempts or desires to encourage foreign investment. Algeria is now in the process of finding the right means to attract and encourage foreign investment. However, the attraction of any country as an investment site depends, from the foreign investor’s viewpoint, on several factors, some of which are related to economics and marketing and others on social and political factors. The objectives targeted by the host country for the foreign investor to achieve rely partially but solely on the characteristics of the investor in addition to the suitability of the investment climate involved in the country in particular and in the foreign investment in general. In this context, Algeria has proceeded to announce several legal texts which include a series of encouraging guarantees and privileges for foreign investment, particularly following its abandonment of the socialist approach and its adoption of the market economy system. This paper aims at investigating the extent of the legal procedures success adopted by the Algerian legislator to engage the foreign investor.