Algeria’s parliament recently approved a revised constitution that introduces changes with direct implications for entrepreneurs, investors, and the Algerian diaspora. The amendments, passed in March 2026, follow years of political debate and public pressure for reform, but their economic impact is only now coming into focus. For business founders, the new legal framework alters key rules governing foreign investment, state oversight, and private sector participation in strategic sectors.
The most significant change for entrepreneurs is the adjustment of Article 62, which now allows foreign investors to hold majority stakes in non-strategic sectors without requiring an Algerian partner. Previously, the 51/49 rule mandated that Algerian entities retain majority control in most industries, a policy that deterred foreign capital and complicated joint ventures. According to AL24 News, the revised constitution maintains the 51/49 rule for hydrocarbons, defense, and public utilities but lifts it for manufacturing, technology, and renewable energy. This shift aligns with President Abdelmadjid Tebboune’s push to diversify the economy beyond oil and gas, which still accounts for 90% of export revenues, as reported by the Bank of Algeria.
For Algerian startups, the constitution now explicitly recognizes digital entrepreneurship as a priority sector. Article 73 introduces a legal definition of “innovative enterprises,” granting them tax exemptions and streamlined registration processes. The Ministry of Digital Economy confirmed that this category includes fintech, e-commerce, and software development firms, provided they meet local hiring and revenue thresholds. However, the law stops short of offering full tax holidays, instead capping exemptions at 50% for the first three years of operation. This compromise reflects the government’s balancing act between encouraging innovation and preserving state revenue, which has declined since the 2014 oil price crash.
The diaspora also gains clearer pathways to invest. The new constitution removes the requirement for Algerians abroad to repatriate funds through state-approved channels when launching businesses in Algeria. Previously, diaspora entrepreneurs faced bureaucratic delays and currency controls that discouraged investment. The Central Bank of Algeria has since announced plans to simplify foreign exchange procedures for non-resident investors, though details remain scarce. Diaspora remittances, which reached $2.1 billion in 2025 according to the World Bank, are expected to rise as a result, particularly in sectors like real estate and agribusiness.
State-owned enterprises (SOEs) face tighter scrutiny under the revised constitution. Article 88 mandates annual audits of all public companies, including energy giant SONATRACH and telecommunications provider Algérie Télécom, with results to be published online. This transparency measure aims to reduce corruption, which the World Economic Forum ranks as Algeria’s second-most problematic factor for doing business. Entrepreneurs have long complained about unfair competition from SOEs, which benefit from state subsidies and preferential contracts. The new rule could level the playing field, but enforcement will depend on the yet-to-be-formed National Anti-Corruption Agency, whose powers are outlined in the constitution but not yet operational.
The judicial reforms embedded in the constitution may also reassure investors. Article 120 establishes specialized commercial courts in Algiers, Oran, and Annaba, with plans to expand to five more cities by 2027. These courts will handle disputes involving foreign investors, intellectual property, and contract enforcement. Currently, commercial cases in Algeria take an average of 2.5 years to resolve, according to the World Bank’s Doing Business report, compared to 1.2 years in Morocco. The new courts are expected to reduce this timeline by 40%, though their effectiveness will hinge on training judges in international business law.
Critics argue the reforms don’t go far enough. Amnesty International warned in June 2020 that the constitutional revision process lacked public consultation, a concern echoed by business associations like the Algerian Confederation of Employers (CAP). CAP’s president, Ali Haddad, called the changes “a step forward but not a leap,” noting that bureaucratic hurdles, such as the 120-day business registration process, remain unchanged. The constitution also retains the state’s right to expropriate private property for “public utility,” a clause that has historically deterred long-term investors in infrastructure projects.
For renewable energy entrepreneurs, the constitution introduces a new opportunity. Article 65 designates solar and wind power as “national priorities,” paving the way for private companies to bid on projects without state-owned intermediaries. Algeria’s renewable energy potential is vast—it receives 2,500 hours of sunshine annually, according to the Ministry of Energy—but only 3% of its electricity comes from renewables. The government aims to increase this to 30% by 2030, with private investment expected to cover 60% of the $20 billion needed for the transition. The first round of tenders under the new rules is scheduled for late 2026, targeting 1,000 megawatts of solar capacity.
Key takeaway for entrepreneurs
Algeria’s new constitution eases foreign ownership rules in non-strategic sectors, introduces tax breaks for startups, and simplifies diaspora investment. The creation of commercial courts and renewable energy incentives offers concrete opportunities, but bureaucratic delays and state oversight in key industries remain obstacles. Entrepreneurs should monitor the implementation of these changes, particularly in sectors like technology and clean energy, where the government is actively seeking private capital.
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