Beneficial Ownership Transparency and New Framework for External Financing

Two significant texts have recently been published in Algeria, with direct implications for investors. They strengthen beneficial ownership transparency requirements and clarify the conditions under which external financing may be used for projects of national interest.

Key Points:

Decree 26-163 replaces the 2023 framework on beneficial ownership and extends it to legal arrangements, including trusts established outside Algeria.

Legal entities must declare their beneficial owners to the CNRC; for legal arrangements, this declaration is made by obliged entities.

The beneficial owner is identified based on a 20% threshold of capital or voting rights, or, failing that, on effective control over the entity. If no beneficial owner can be identified under these criteria, the legal representative is deemed to be the beneficial owner.

The Order of 17 February 2026 sets out the procedures for recourse to external financing for projects of national interest.

Such recourse is subject to the prior authorisationof the Council of Ministers, after approval of the project by the lender.

The Ministry of Finance centralisesthe search for financing, the identification of lenders and the conduct of negotiations.

The ministries and institutions concerned remain responsible for project maturity, the quality of studies and proper project implementation.

For more details, please find below our newsletter.

We remain available to assist interested investors in assessing and implementing these new regulations.