Mechanisms for Stimulating and Exploiting Economic Real Estate in Algeria under Laws No 22-18 and 23-17

Mechanisms for Stimulating and Exploiting Economic Real Estate in Algeria under Laws No 22-18 and 23-17 آليات تحفيز واستغالل العقار االقتصادي في الجزائر بموجب القانونين 18/22 و17/23 HOUIDEG Atmane * SMATI Cherifa University Of Eloued (Algeria) University Of Eloued (Algeria) International legal developments and their International legal developments and their impact on Algerian legislation impact on Algerian legislation atmane [email protected] [email protected] Da te of Submission 18-05-2026 Date of Final Acceptance 04-08-2026 Date of Publication September 2026 Abstract: The aim of this research paper is to demonstrate that real estate forms the basis of any investment activity. Successive legislation in this field has sought to regulate and manage the Economic Real Estate portfolio in line with the state’s desire and policy to develop the utilisation of this important and strategic asset, The most recent of these are Laws No 22-18 on investment and Laws No 23-17, which sets out the conditions and procedures for granting Economic Real Estate belonging to the state’s private assets for the purpose of carrying out investment projects. This is followed by implementing decrees which define investors’ rights and obligations, and the guarantees and incentives accompanying these investments for both domestic and foreign investors, within the framework of protection and under the supervision of the institutional framework governing investment, alongside a strategic vision for the prospects of future investment development. Keywords: Economic Real Estate; Guarantees and Incentive Schemes; Investment Law No 22- 18; Law No 23-17. ملخص: الهدف من هذه الورقة البحثية هو تبيان أن أساس أي نشاط استثماري هو العقار، وقد سعت التشريعات المتعاقبة في هذا الإطار لتنظيم وتسيير حافظة العقار االقتصادي لتتماش ى مع رغبة وسياسة الدولة الرامية لتطوير استغالل هذا العقار المهم واالستراتيجي، آخرها ما تضمنه القانون 18/22 المتعلق باالستثمار والقانون 17/23 المحدد لشروط وكيفيات منح العقار االقتصادي التابع لألمالك الخاصة للدولة الموجه إلنجاز مشاريع استثمارية. وما تبعهما من مراسيم تنفيذية ومن خالل تحديد حقوق المستثمرين والتزاماتهم، وما يتخلل هذه االستثمارات من ضمانات وتحفيزات للمستثمر الوطني واالجنبي على حد سواء ضمن قواعد الحماية وتحت رقابة الإطار المؤسساتي المسير لالستثمار، مع رؤية استراتيجية آلفاق تطوير االستثمارات المتوقعة مستقبال. الكلمات المفتاحية: العقار االقتصادي؛ الضمانات واالنظمة التحفيزية؛ قان ون االستثمار 18/22؛ القانون . 17/23 * Corresponding Author: HOUIDEG Atmane

There is no doubt that the economic and political transformations Algeria has undergone have influenced investment policy, which has seen numerous changes since the late 1980s and early 1990s; This has resulted in a vast body of legislation that has embodied this transformation, particularly in the field of Economic Real Estate management, which is a key factor given the significant role it plays in economic and social development, and its strategic role in facilitating and safeguarding investment. It has therefore become imperative to provide it with strict protection and to surround it with a set of firm guarantees that facilitate its fulfilment of the function for which it was established. The preservation of Economic Real Estate is specified in the Master Plan for Urban Planning and Development (PDAU) for the establishment of industrial, productive, tourist and agricultural facilities. The State has intervened to regulate the location and allocation of such properties, given their national significance and important economic role, by organising and managing these areas and determining their locations. It should be noted that, within the framework of regional development plans, Economic Real Estate is allocated within the land belonging to the State’s private property and designated for the completion of investment projects, in addition to land belonging to the private property of local authorities. In all cases, these property areas must be prepared to accommodate the activities for which they are intended. One of the fundamental challenges to the utilisation of Economic Real Estate is legislative inflation and the succession of numerous Laws, reflecting the legislator’s attempt to establish a legal framework governing these plots. However, the results have been counterproductive: most investors to whom properties were allocated have either left them unused for many years due to their procrastination and negligence, or have diverted them to other activities. This is on the one hand, whilst on the other hand there are administrative obstacles and complex, lengthy and bureaucratic procedures. Consequently, Law No 22-18 and the subsequent regulatory decrees were introduced. Most legal scholars agreed that these would provide solutions to resolve the issues at hand and facilitate access to these schemes, given the guarantees and incentives they offer to both domestic and foreign investors. This is particularly due to its provisions on the principles of freedom and equality, the encouragement of investment, the simplification of procedures, and the implementation of numerous safeguards—both material and means of oversight over the managing bodies, in addition to Law No 23-17, which set out the methods and procedures for granting Economic Real Estate, and the subsequent implementing decrees. This leads us to the question: How has the legislator organised the mechanisms for the management and exploitation of Economic Real Estate, particularly in light of the guarantees and incentives provided for in Law No 22-18 and Law No 23-17, along with the accompanying regulatory decrees? To address this problematic, this study employs a descriptive methodology to delineate the legal framework governing investment in Algeria. This is achieved by detailing the legal realities and procedures involved in granting investments and investment real estate. Furthermore, an analytical methodology is utilized as the cornerstone for examining legal texts, evaluating the extent to which they realize the principles of legal certainty through the application of Law No. 18-22 and Law No. 17-23 And To answer this question we have divided our research into two sections. In the first, we will address the mechanisms for stimulating investment in Algeria under Law No 22-18, and in the second, we will examine the mechanisms for the exploitation of Economic Real Estate and the incentives established under Law No 23-17.

The Algerian legislature has adopted a new institutional framework for the management and exploitation of commercial property to streamline the procedures for granting investment licences and to monitor and oversee their implementation; this is what we shall address in the first section. In the second section, we shall examine the incentive schemes under Investment Law No 22-18. The foundation of development is investment, given its role in injecting capital and revitalising the national economy. The guarantees and incentives - particularly those designed to attract investment - provided by the legal and institutional framework governing investment form the cornerstone of any reforms. A) subtitle: The Institutional Framework Responsible for Investment under Law No 22-18: The investment process requires bodies to work on attracting investors, both domestically and abroad, as well as facilitating and monitoring investment procedures and examining the granting of concessions; all this within the framework of the state’s ongoing efforts to bolster the public treasury and achieve the country’s economic and social development through infrastructure. These bodies are set out in Article 16 of Law No 22-18 on investment, in addition to secondary bodies, all of which share the same objective.

also prepares an annual evaluation report to be submitted to the President of the Republic, whilst the composition and functioning of the Council are to be determined by regulation. It is also worth noting that the legislator provided, under Article 11 of this Law, for the establishment of a committee under the President of the Republic called the “Supreme National Committee for Investment-Related Appeals”. The text states that the “Committee” is tasked with ruling on appeals lodged by investors,7 , whereby such appeals must be submitted within a period not exceeding two months from the date of notification of the decision subject to appeal, and it must rule on these appeals within one month from the date of notification; furthermore, the investor may, in addition to this, lodge a judicial appeal in this regard.8

investors, and bring the administration closer to the public, decentralised one-stop shops have been established at the level of each province. Article 18 of Law No 22-18 provides for the establishment of single decentralised service points, which serve as the sole point of contact for local investors and are responsible for assisting and supporting investors in completing investment-related procedures.16 With the aim of bringing the administration closer to the public, the Agency has established single windows to exercise their local jurisdiction, in addition to those responsible for major projects and foreign investments17 which includes both the single window for major projects and foreign investments, as well as the decentralised single windows representing the bodies and departments directly responsible for implementing procedures related to the following: Implementation of investment projects. - Issuing decisions, licences and all documents relating to the conduct of activities associated with - the investment project. Acquisition of property for investment purposes. - Monitoring the obligations undertaken by the investor.18 -

What can be observed from this text and its predecessors is that the legislator did not address international agreements, despite the fact that Algeria has signed numerous such agreements.22 2- Guaranteeing the Protection of Investors’ Property: In addition to the real estate granted under the specific schemes mentioned above, Article 10 of Law No 22-18 states that the State may exercise the right of expropriation in return for fair and equitable compensation, and this may only be done by the administration and in the cases provided for by Law .23 It is worth noting that the legislator had previously decided, under Law No 16-09 on the promotion of investment, specifically Article 23 thereof, which stipulates that, in addition to the rules governing expropriation and seizure—which are considered the most serious administrative acts affecting the private property of individuals by depriving the owner of his property or part thereof, even though this is only carried out in return for fair and equitable compensation— a measure which, on the one hand, provides for the acquisition of real estate, particularly in strategic locations, whilst on the other hand opens the door to the expropriation of these investors themselves, thereby threatening their legal security and the stability of their legal status. The legislator has further stipulated, pursuant to Article 13 of Law No 22-18, that any amendment or revision to the Law shall not apply to completed investments unless the investor so requests.24 3-Guarantees by Investment Region and Sector: Article 26 of the same Law stipulates that investment in certain activities in particular grants the investor, in addition to tax, quasi-tax and customs incentives, other benefits listed in Article 27 of the same Law . These sectors are mining and quarrying, investment in the agricultural sector, the tourism sector, the food and pharmaceutical industries, as well as investment in renewable energy, the knowledge economy, and information and communication technology. As for the Zones for Economic Development25 scheme, the legislator has distinguished between investment locations in terms of exemptions from fees and taxes during the construction and operational phases. These zones are: - Locations in the High Plateaus, the South and the Greater South. - Locations whose development requires special support from the state. - Locations possessing exploitable natural resources.26 As for structural investments capable of generating wealth and creating jobs, and which have the potential to enhance the attractiveness of regions for development, they must meet the conditions set out in Executive Decree 22-302, such as the number of jobs created by the investment reaching 500 or more.27

established under Law No 23-17 : Law No 23-17 was enacted as part of efforts to develop the investment climate in Algeria, with a view to raising the economic level and stimulating, encouraging and attracting investors, particularly foreign ones. The most significant incentives are the mechanisms for granting Economic Real Estate through the enactment of this Law, which sets out the conditions and procedures for granting concessions on state-owned property. Subsequently, executive decrees were issued to regulate the granting process through concession contracts, with a view to optimising the use of this sector and promoting its development by streamlining the procedures for granting such concessions, giventhis is the cornerstone for the establishment of investment projects.

To this end, we have divided this section of the study into two parts. In the first, we examined the mechanisms for granting investment property under Law No 23-17, whilst in the second, we addressed the provisions of the concession contract for investment property. A) subtitle Mechanisms for granting investment property under Law No 23-17 : : By regulating and improving the overall economic policy through the enactment of Law No 23-17, the legislature has sought to enable investors to acquire state-owned Economic Real Estate designated for investment, through concession contracts that are convertible into transfers of such properties.

entrusted to three specialised public agencies responsible for the industrial sector (33 ), the tourism sector (34 ), and the cultural sector.35 This development involves connecting the sites to various networks, as well as preparing the land and roads. These agencies also oversee the management of the real estate stock allocated to this sector prior to the enactment of this Law, where a database is established at the Algerian Investment Promotion Agency (AAPI) (AAPI) to catalogue all designated real estate assets offered for concession, subject to verification of their legal status. If the properties were granted for use within the framework of investment and were subsequently reclaimed as part of clearance operations, these properties must be definitively cleared, free from any dispute, and included among the properties available for allocation by the Algerian Agency for Real Estate Promotion,36 In addition to verifying their ownership and their status as state-owned property, as well as their status in relation to urban planning and development schemes.37 Article 2 of Law No 23-17 lists the developed land belonging to the State’s private property, which falls into three categories: - Properties belonging to the State’s private property: These are the properties specified in Decree 08-04 which are developed and fall within activity zones and industrial zones, as well as land located within new cities and belonging to for tourism expansion zones and tourist sites, in addition to developed land belonging to technology parks.38 Another category of property is residual real estate assets: these are properties belonging to public institutions that have been dissolved and surplus real estate assets. -Privately owned commercial property: Among the new provisions adopted under the new Law No 23-17 is the inclusion of privately owned properties, where concessions may be granted and investment projects carried out on them. This is carried out through expropriation in accordance with the approved economic policy, subject to the conditions set out in Article 13 of Executive Decree 23-486,39 . However, this procedure is not applied where no suitable property is available within the State’s private property portfolio, in accordance with Article 8 of Law No 23-17,40 The State may acquire any property owned by private individuals provided that it is suitable for an investment project; ownership is then transferred under an administrative contract concluded by the State Property Directorate, after which it is granted to private investors within the framework of planned projects. This acquisition falls within the compulsory procedures under which property is acquired, but this procedure differs in terms of procedures and conditions from Expropriation for Public Utility.41 It is based on the principle of public interest and is guaranteed by a Law that clarifies its procedures and conditions, granting the person whose property is expropriated fair and equitable compensation that satisfies them; otherwise, they may challenge the decision in court.42 Furthermore, the acquisition of property in this manner differs from the procedure of seizure, as it is temporary in nature. Given that this form has not been precisely defined and the legislator has not clarified the method of expropriation, grant and compensation, nor the conditions governing all of this - but has merely mentioned them briefly in the aforementioned texts - it is initially observed that this is a procedure that undermines the principle of legal certainty for owners, as the Algerian Constitution guarantees property rights under the Constitution.

- Economic Real Estate acquired through the right of pre-emption: The provisions on pre-emption are governed by the Civil Code (43 ), and the State intervenes to acquire economic real estate belonging to private individuals in the event of their disposal of such property in any form, even by way of a gift, as stated in Article 17 of Executive Decree 23-486. Article 18 of the same decree states that the real estate covered by this measure comprises all economic real estate from which private individuals have benefited in any of the forms previously stipulated, and these properties must be located within the defined boundaries of industrial zones, business parks, tourism development zones and tourist sites, as well as properties situated within technology parks and the vicinity of new towns.44 This measure is implemented, pursuant to Article 19 of Executive Decree 23-486, by the Algerian Investment Promotion Agency (AAPI) (AAPI) on behalf of the State. Notaries are periodically notified of every transfer of such properties. It should also be noted in this aspect of the legal framework that there is a lack of clarity regarding the procedures followed for pre-emption under this provision, the deadlines set for each procedure, and the absence of a clear role for the notary in this process. Does their role end with the mere notification? Or does he complete the transfer process?

Once the investor has completed a form providing a description of the investment project - including a detailed description of the project, the type of activity, the location, and the required floor space, as well as the project’s financing arrangements, total cost, value of the contribution, and loan amounts - and if the project is accepted by the agency, the applicant confirms their selection and pays the registration fee for their application in exchange for a issued by the online portal.51 B) subtitle Provisions of the concession contract relating to the property granted under Law : No 23-17: The concession contract relating to the property granted under Law No 23-17 establishes rights and obligations for the contracting parties.

requirements of the public interest and the management of public facilities through decisions it issues in this regard.56 The granting authority also has the right to terminate the investment contract in the event that the investor breaches the terms or conditions of the contract, in accordance with Article 17 of the same Executive Decree 23-487. 2- Obligations of the Investor and the Granting Authority The concession contract sets out obligations as well as rights for both the investor and the granting authority, which are listed below: - Obligations of the Investor The investor’s obligations stem from their desire to demonstrate their intention to complete and ensure the success of their project, and these obligations are limited to the following: - Adherence to Deadlines and Timelines for completing the project in accordance with the terms and conditions relating to the project, except in cases of force majeure. -The investor must not Altering the Designated Use of the property covered by the investment contract, as this is subject to authorisation from the Algerian Investment Promotion Agency (AAPI) (AAPI); maintaining the investor’s intended economic use promotes stability and paves the way for further investment.57 -In addition to the above, the investor undertakes not to Transfer the Right granted to them to invest in the property. - An annual rental fee must be paid.58 - The investor must submit reports every six months during the project implementation period, detailing the progress of the project. - Notify the Algerian agency that the construction phase of the investment project has been completed and that the project has entered the operational phase.59

accommodate investment projects, particularly given Algeria’s availability of raw materials and labour. These texts have only served to increase the confusion, compounded by Pervasive Bureaucracy which has paralysed this vital sector, despite the clear political will, particularly with regard to the concession system. Nevertheless, it has occasionally proved effective in accommodating certain investment projects, which have often contributed significantly to reducing unemployment and establishing successful ventures; however, its scope remains limited in the absence of supporting legislation and legal certainty that encourages both foreign and domestic investment, a situation which the legislator sought to remedy through Law No 22-18 and Law No 23-17 and their regulatory provisions. We have finally arrived at a set of conclusions, which we summarise as follows: - Investment requires bodies that work to attract investors from within the country or abroad to facilitate and monitor investment procedures, consider the granting of concessions, and achieve the country’s economic and social development through the necessary infrastructure. - Laws No 22-18 and 23-17 introduced a series of reforms, safeguards and incentives for domestic and foreign investors, in the context of freedom of investment and equality among investors, whilst supporting investments carried out in regions of national and strategic importance. - The Algerian Investment Promotion Agency (AAPI) (AAPI) has been authorised as the body responsible for reviewing investment dossiers and granting economic land concessions, which ensures the smooth and consistent handling of procedures and decisions, particularly with the adoption of digitalisation, whilst also granting economic land concessions to investors who have prepared the necessary infrastructure. - The property shall be transferred to the investor upon confirmation of the project’s completion, and contracts to this effect shall be concluded between the granting authority and the investor. We finally arrive at the following set of recommendations: - Implementing oversight mechanisms and enshrining them in Law through specialised legal and financial On-site Monitoring Committees to monitor the progress of works and oversee the investor at every stage of the investment, whilst addressing any concerns that may arise at the highest levels. - Work to Reclaiming Properties, including those that have been relinquished, in the event of non-performance of contracts or Investors’ Delay in Fulfilling Obligations, and incorporate them into the property portfolio available for planned projects. - Effectively promoting the use of the digital platform to reduce travel, save time, and gradually phase out traditional paper-based processes, thereby streamlining procedures and facilitating access to investment property in general and industrial property in particular. - Applying the principles of legal certainty and the legitimacy of legal texts, and repealing provisions that conflict with the country’s higher interests, particularly in relation to openness to foreign investment, especially the Assignment of Real Estate, which conflicts with Article 13 of the Algerian Constitution, which stipulates that no part of the national territory may under any circumstances be ceded or relinquished. - Supporting successful projects whilst granting the right to amend contracts in favour of the investor or their successor, whether regarding the granting of property or the provision of guarantees and concessions.

Citations: 1-Article 18 of Decree No. 01-03, dated 20 August 2001, on the development of investment, Official Gazette No. 47, published in 2001. 2-See also Executive Decree No. 22-297, dated 8 September 2022, defining the composition and functioning of the National Investment Council (CNI), Official Gazette No. 60, published in 2022. 3- Tizir Youssef, The Legal Framework for Freedom of Investment in Algerian Legislation, Master’s thesis in Law No, University of Algiers, 2011, p. 38. And Article 2 of Executive Decree No. 22-297, cited above. 4-Articles 3 and 4 of Executive Decree No. 22-297, cited above

29-Law No No. 23-17, dated 15 November 2023, which sets out the conditions and procedures for the allocation of state-owned commercial property for the purpose of carrying out investment projects, Official Gazette, Issue No. 73, 2023. 30-Mohamed Al-Amin Salakh, Lectures on the Valuation of Industrial and Tourist Real Estate, University of Hama Lakhdar, El Oued, academic year 2024-2025, p. 64. 31-Article 4 of Law No 23-17, cited above. 32-Article 4 of Law No 23-17, cited above. 33-Executive Decree 23-488, dated 28 December 2023, establishing the National Agency for Industrial Property and regulating its organisation and operation, Official Gazette No. 85, dated 2023. 34-Executive Decree 23-489, dated 28 December 2023, establishing the National Agency for Tourism Property and regulating its organisation and operation, Official Gazette No. 85, published in 2023. 35 -Executive Decree No. 23-490, dated 28 December 2023, establishing the National Agency for Cultural Property and regulating its organisation and operation, Official Gazette No. 85, published in 2023. 36-These properties are placed at the disposal of the Algerian Agency for the Promotion of Investment through a handover report signed in the presence of the Director of the State Property Directorate and the Provincial Director of the Agency’s One-Stop Shop; see Article 3 of Executive Decree 23-286 dated 28 December 2023, which defines the components of economic property. 37-Mohamed Al-Amin Salakh, op. cit., p. 65. See Article 7 of Law No 23-17, cited above.

53-Article 14 of Law No 23-17, cited above; this does not include granted property, as it remains the property of the State until the concession contract is converted into a transfer, at which point the property becomes the property of the investor; see Executive Decree 23-487. 54- See Articles 17 and 20 of the aforementioned Law No 23-17. 55- See Tarek Khannouch and Imad al-Din Barakat, op. cit., p. 664, and Article 24 of Law No 90- 30, dated 1 December 1990, concerning national property, Official Gazette, No. 52, published in 1990.