مجلة إيليزا للبحوث والدراسات
Volume 10, Numéro 1, Pages 288-301
2025-12-15
The Constitutional And Legal Factors That Determine The 51/49 Rule, And Its Effect On Foreign Direct Investment Flows.
Authors : Zeggai Hafida . Hitala Maamar .
Abstract
Rule 51/49 is an economic law passed in Algeria under the 2009 Supplementary Finance Act, the purpose of which is to regulate foreign investment in the country. The regulation stipulates that Algerian partner, whether from the public or private sector, must hold a majority stake of 51% of the capital in any investment project involving a partnership with a foreign investor, while the foreign investor's stake is limited to 49%. The introduction of this regulation was driven by the objective of safeguarding the national economy and ensuring economic sovereignty, with a particular focus on maintaining control over investment projects in vital and strategic sectors such as energy, hydrocarbons, mining, transport, and pharmaceuticals.
Keywords
rule 51/49; foreign investment; strategic sectors.
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