The Algerian investment climate has changed significantly this year, with sweeping government reforms curbing imports and benefiting local businesses through encouraging foreign capital inflows. One of the most significant amendments requires all future investment from abroad to partner with an Algerian shareholder, limiting foreign ownership to a maximum of 49 percent. Foreign direct investment projects must also be approved by the National Board of Investment, while capital increases for partnerships must come from domestic services. New regulations require foreign traders established since July 28 to have a minimum of 30 percent local participation in their capital. Another piece of legislation obliges all import related payments to be backed up with a letter of credit. Reacting to heavy domestic and foreign criticism due to increasing bureaucracy and associated costs, the Algerian Association of Banks and Financial Establishments has stated that by late August exemptions would be made with regards to imports
