Exporting to Algeria

Algeria has a population of 42.6 million (IMF, 2018) and is the largest country in Africa in terms of landmass. Trade between the UK and Algeria is expanding. In the year to June 2019, the total trade in goods and services between the 2 nations reached £3.2 billion, an increase of 67.8% on the previous year (ONS, 2019).

Desire to work with the UK

The UK brand is strong and popular in Algeria. There are opportunities across all sectors for UK companies looking to do business and invest, and Algerian companies are keen to form mutually beneficial partnerships and joint ventures.

Growth potential

In the year to June 2019 total UK exports to Algeria amounted to £489 million, an increase of 6.5% on the previous year (ONS, 2019). The combination of rising spending power among the Algerian population and a growing demand for UK goods should create more opportunities for UK exporters.

Diversification

The UK is well placed to work with Algeria to help the country fulfil its ambitions of economic diversification, attracting investment and strengthening the competitiveness of its enterprises. This is creating opportunities for UK companies across a range of industries.

Ease of doing business

157th

out of 190 countries (World Bank, 2019)

Currency

Algerian dinar

Business languages

Arabic, French

You’re likely to need a translator

GDP per capita

$4,081

UK is $41,030 (IMF, 2019)

Economic growth

1.4%

(IMF, 2019)

Time zone

GMT + 1

Opportunities for exporters

There are opportunities for UK companies across a broad range of industries. Our trade advisers in Algeria have identified particular opportunities for UK businesses in the following sectors.

Doing business in Algeria

Preparing to export

Tax

The UK and Algeria have signed a double taxation agreement, meaning the same income is not taxed twice.

VAT

If you’re registered for VAT, it may be possible to zero-rate the goods you export to Algeria, provided certain conditions are met.

The standard VAT rate in Algeria is 17%, but a reduced rate of 7% is applied to some goods, products and specific operations.

The National Agency of Investment Development lists all tax requirements in Algeria.

Customs

You are encouraged to use a reputable customs clearance agent familiar with the customs clearance formalities of Algeria.

Regulations

Algeria’s National Agency of Investment Development has a full breakdown of regulations in the country.

Operating in Algeria

Intellectual property

As a first step, we advise you to speak to an intellectual property (IP) lawyer if you think you need patent protection when exporting.

Payment terms

In any transaction involving the import of goods into Algeria, an advance payment cannot exceed 15% of the contract value and depends on the prior approval of the Central Bank of Algeria and the issuance bank guarantee. This payment can be made after the buyer shows the final invoices, the goods have been shipped and a D-10 certificate has been issued by customs.

Joint ventures

Overseas companies operating in strategic sectors who are looking to set up in Algeria must currently comply with the shareholding (‘51/49’) rule for joint ventures. This means a foreign investor must have an Algerian partner and can only hold a maximum of 49% of the company.

Business culture

Personal contact matters in Algeria. Prospective exporters should visit the country and take their time to understand the nature of the system. You are advised to contact our team in Algeria to help find tax and legal advisers before entering into agreements.

Next steps

DIT can advise you on doing business abroad, and help put you in touch with other people who can help such as lawyers and distributors.