- Date. 21/11/23
- Author. Rym Loucif
- Category. Articles
Following the recent Investment Law No. 22-18 of 24 July 2022 (“Law 22-18”) and its implementing regulations, a long-awaited new law on land allocation was published in the Official Gazette of 16 November 2023.
With the aim of promoting and facilitating investment, Law No. 23-17 of 15 November 2023 (the “Law 23-17”) establishes the terms and conditions for the granting of state-owned land for investment projects.
As a reminder, Law 22-18 stipulates that investments in economic activities related to the production of goods and services, undertaken by either national or foreign individuals/entities, whether residing within the country or abroad, are now eligible to benefit from state-owned land.
The Algerian Investment Promotion Agency (AAPI) plays a key role in the management of economic land, acting on behalf of the State.
The concession of economic land is granted by the AAPI, according to standard specifications set by regulatory means.
The concession’s duration is 33 years (renewable).
The concession grants the beneficiary the right to obtain a building permit and also allows them to establish a mortgage.
An annual rental fee is payable by the concessionaire from the date the investment becomes operational, as confirmed by the AAPI.
The conversion of the concession into a sale is possible under certain conditions, with a market value set at the time of concession granting, and in return for a State right of pre-emption on future sales.
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