Algeria’s Digital Economy Law: What Tech Companies Need to Know in 2026

Introduction

Algeria’s regulatory environment for technology businesses has undergone significant transformation since 2020 — driven by a government committed to reducing hydrocarbon dependency, a rapidly growing youth population demanding digital services, a post-pandemic acceleration of digital adoption, and a strategic awareness that the rules governing digital markets will shape economic winners and losers for decades.

The pace of change has accelerated: the 2030 Digital Transformation Strategy (“Pour une Algerie Numerique”) launched in May 2025 outlines 25 strategic objectives across five axes, with over 500 digital projects programmed for 2025-2026. Targets include training 500,000 ICT specialists, reducing tech talent emigration by 40%, and boosting the digital sector’s GDP contribution to 20% by 2030.

For technology companies — Algerian startups, multinational corporations, and foreign investors considering Algeria — navigating this regulatory environment is both a compliance obligation and a strategic opportunity.

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The Regulatory Architecture: Key Institutions

Understanding who regulates what in Algeria’s digital economy is the first step toward compliance.

ARPCE (Autorite de Regulation de la Poste et des Communications Electroniques): The primary telecommunications and electronic communications regulator. ARPCE oversees telecom licensing, spectrum management, electronic commerce registration, product certification (homologation), and increasingly, platform regulation.

Bank of Algeria: Financial regulator with authority over payment services, foreign exchange, banking licensing, and — critically — the fintech regulatory framework. Instruction 06-2025 (August 2025) established Algeria’s first structured framework for electronic payment service providers.

ANPDP (Autorite Nationale de Protection des Donnees Personnelles): The data protection authority established under Law 18-07 (as amended by Law 25-11). Responsible for receiving data breach notifications, handling individual complaints, conducting investigations, and issuing sanctions for non-compliance.

Ministry of Knowledge Economy, Startups and Micro-enterprises: Responsible for the startup ecosystem — the labeling system, support programs, and the Algerian Startup Fund. Primary interface for technology companies seeking startup status and associated incentives.

AAPI (Algerian Agency for Investment Promotion): Manages foreign direct investment promotion and facilitation, including the digital platform launched in 2024 that streamlines investment procedure registration.

Competition Council: Algeria has extended competition law to digital markets, with the Council empowered to investigate and sanction anti-competitive practices by digital platforms and ICT companies.

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The E-Commerce Law Framework

Algeria’s Law on Electronic Commerce (2018) established foundational requirements for online businesses:

Registration requirement: All businesses engaged in e-commerce must register with the national trade registry (CNRC) and obtain an electronic commerce registration. This applies to both Algerian-resident operators and, in principle, foreign operators serving Algerian consumers.

.DZ domain requirement: E-commerce operators must operate customer-facing websites under the .dz country-code top-level domain, hosted on physical infrastructure located within Algeria. This requirement was strengthened in June 2024 by the Law on Written and Electronic Press (adding the same requirement for online media) and in December 2024 by the Law on Audiovisual Activity (requiring online audiovisual services to use .dz domains and local hosting).

Data localization: Customer data generated by e-commerce activities, including transaction records, is subject to Algeria’s data localization requirements under Law 18-07. Customer data cannot be stored exclusively on servers located outside Algeria without specific legal authorization.

Prohibited commerce categories: The e-commerce law prohibits online sale of tobacco, alcoholic beverages, medicines, gambling services, and gaming services.

Practical implication: Foreign e-commerce operators seeking to serve Algerian consumers must evaluate whether to establish a compliant local presence (Algerian registered entity, .dz domain, local hosting) or operate in regulatory gray territory. As enforcement capacity develops, the cost-benefit calculation increasingly favors formal compliance.

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ICT Sector Investment Rules

Algeria’s investment law reforms have fundamentally changed the landscape for foreign technology companies:

Liberalized foreign ownership: The notorious “51/49 rule” — which required Algerian majority ownership in all business ventures with foreign participation — was abolished for non-strategic sectors starting with the 2020 Finance Law and reinforced by the 2022 Investment Law. Technology and ICT services are not classified as strategic, meaning foreign technology companies can now establish wholly-owned subsidiaries in Algeria. Strategic sectors retaining the restriction include energy, mining, defense, transportation infrastructure, and pharmaceuticals.

Investment incentive regimes: Technology companies may access two regimes:

• General regime: Customs duty exemptions on imported equipment, VAT exemptions during investment phase, income tax reductions for initial operating years
• Exceptional regime: Enhanced incentives for investments in specific priority sectors or regions, negotiated case-by-case with AAPI

Startup incentives: Companies obtaining the national startup label gain significant advantages: income tax exemptions, simplified administrative procedures, access to public tender preferences, access to the Algerian Startup Fund’s equity and quasi-equity financing, zero IP filing fees for patents and trademarks via INAPI, and R&D tax deductions of up to 30% for companies co-developing projects with labeled startups.

Stock market access: In 2026, Algeria opened stock market access to labeled startups with fee waivers through 2028, covering fundraising operations capped at 500 million DZD.

Digital services VAT: The 2025 fiscal law clarified VAT treatment of digital services provided by non-resident suppliers to Algerian consumers, requiring non-resident digital service providers to register for and collect Algerian VAT on B2C supplies. This affects streaming services, SaaS providers, and platform operators serving Algerian users.

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The Fintech Regulatory Framework

The Bank of Algeria’s Instruction 06-2025 (August 2025) represents a landmark moment for Algeria’s fintech ecosystem — the country’s first clear regulatory framework for Payment Service Providers (PSPs).

Digital wallet tier system: The regulation introduces three levels balancing accessibility with oversight:

• Level 1: Balances up to ~$740 with basic identification
• Level 2: Up to ~$3,700 with proof of income and official ID
• Level 3: Up to ~$7,400 with stricter checks including video verification

Key restrictions: All services must be conducted exclusively in Algerian dinars. PSP operations are restricted to national territory.

Mobile payment rollout: Algeria is connecting 15 banks through a QR code-based mobile payment system, with electronic payments via smartphones launched in early 2025. An instant payment system is also in development for faster transaction processing.

For fintech companies, Instruction 06-2025 provides a pathway to legitimacy and regulatory clarity that was previously absent.

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Foreign Currency and Payment Regulations

For technology companies generating international revenue or paying foreign suppliers, Algeria’s foreign exchange regime is a significant operational consideration.

Bank of Algeria regulations require that Algerian resident entities convert foreign currency receipts into Algerian dinars within specified timeframes. Payment to foreign suppliers requires Bank of Algeria authorization above certain thresholds. Inward investment in foreign currency must be declared and properly documented.

Practical advice: Establishing a banking relationship with one of Algeria’s major banks (BEA, BADR, BNA, BDL) early — with explicit documentation of the foreign currency dimensions of your business model — simplifies ongoing compliance.

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The Practical Compliance Checklist for Tech Companies

For technology companies establishing or expanding operations in Algeria:

1. Register with CNRC (commercial registry)
2. Register with ARPCE for electronic commerce activities
3. Obtain .dz domain and local hosting for customer-facing services
4. Implement Law 18-07/25-11 data protection compliance (privacy notices, consent management, DPO designation, DPIA for high-risk processing)
5. Obtain Bank of Algeria authorization for payment service activities (if applicable)
6. Apply for startup label (if qualifying as innovative startup) for incentive access
7. Declare foreign investment with AAPI (for foreign-owned entities)
8. Register for VAT (for digital services suppliers with Algerian B2C revenue)
9. Implement cybersecurity controls and breach notification procedures
10. Ensure employment contracts comply with Algerian labor code

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Sources

• Algeria 2030 Digital Transformation Strategy — We Are Tech Africa
• 500+ Digital Projects Programmed 2025-2026 — AL24 News
• Algeria Investment Law Reform — Norton Rose Fulbright
• Algeria First Fintech Regulation — Startup Researcher
• Algeria Startup Mechanisms 2025 — Leancubator
• Algeria Stock Market Access for Startups — Ecofin Agency
• DPA Digital Digest — Algeria 2025
• Algeria E-Commerce — US Commercial Service
• 2025 Investment Climate Statement: Algeria — US State Dept
• Algeria Data Protection Law 18-07 — CookieYes
• Doing Business in Algeria — Lex Africa