Algeria Public Procurement Guide for Foreign Companies (2026)

Algeria’s public procurement market represents a significant opportunity for foreign companies — the country’s infrastructure investment plan, energy sector development, and ongoing industrialization create substantial demand for international expertise and equipment. But the rules for foreign participation are specific, and understanding them before bidding saves considerable time and prevents costly mistakes.

This guide covers what foreign companies need to know, based on Algeria’s current legal framework: Law n° 23-12 of August 5, 2023 — the country’s first standalone public procurement law.

The legal framework: Law 23-12 and its key principles

Algeria’s public procurement is now governed by Law n° 23-12 of August 5, 2023, published in Official Journal n° 51. This law replaced the previous Presidential Decree n° 15-247 of 2015 as the primary reference, though the earlier decree remains applicable on a transitional basis for markets launched before the law’s entry into force (article 112).

The law establishes three fundamental principles: free access to public contracts, equal treatment of candidates, and transparency of procedures (article 3). These principles apply to foreign companies as they do to Algerian ones — with specific obligations layered on top.

Can foreign companies bid on Algerian public tenders?

Yes — foreign companies can participate in Algerian public procurement, including through:

• Direct bidding as a standalone foreign operator
• Joint ventures (groupement momentané d’entreprises / GME) with an Algerian company, in solidary or joint form (article 55 of Law 23-12)
• Subcontracting arrangements where a foreign company acts as subcontractor to an Algerian prime

However, foreign participation is subject to specific rules that do not apply to Algerian companies.

The national preference margin: 25%

This is the single most important rule for foreign bidders to understand.

Algerian legislation grants a 25% national preference margin to products of Algerian origin and to companies of Algerian law whose capital is majority-held by Algerian nationals. In practice, this means that when evaluating competing offers, the contracting authority applies a 25% price adjustment disadvantage to foreign bids before comparing them to Algerian bids on price.

Concrete example: if an Algerian company bids 100, and a foreign company bids 110, the foreign company’s evaluated price becomes 137.5 after the 25% adjustment — making the foreign bid appear 37.5% more expensive in the evaluation, even if the actual price difference was only 10%.

This margin does not apply in all cases — notably not in international open tenders where the nature of the procurement requires international competition. Check the specific tender documents for whether the national preference margin applies.

Subcontracting obligations for foreign companies

When a foreign company is awarded an Algerian public contract, it is subject to a mandatory local subcontracting requirement: at least 30% of the contract value must be subcontracted to Algerian companies (article 82, paragraph 2 of Law 23-12), unless the contracting authority grants an exemption justified by the unavailability of local capacity.

Additionally, foreign prime contractors are required to source locally available products from the Algerian market rather than importing them, when those products exist locally and meet the technical specifications required.

Investment obligation for foreign winners

Foreign companies awarded contracts through international open tenders face an additional requirement beyond subcontracting: an obligation to invest in Algeria in partnership with an Algerian company, in the same field of activity (article 83 of Law 23-12, building on Law n° 16-09 of August 3, 2016 on investment promotion).

This investment commitment is covered by a financial guarantee (article 86 of Law 23-12) that can take the form of a bank guarantee or financial provision, at a rate that varies with the contract value. The guarantee covers the risk that the foreign company fails to fulfill its investment obligation.

How to find Algerian public tenders

Algerian public tenders are published through multiple mandatory channels (article 46 of Law 23-12):

• The BOMOP (Bulletin Officiel des Marchés de l’Opérateur Public) — the official public procurement bulletin
• Licensed national press (print and digital)
• The national public procurement electronic portal (marches-publics.gov.dz)
• The contracting authority’s own website, in some cases

For international tenders specifically (appels d’offres nationaux et internationaux / AOIO), the publication is broader by definition — these are the tenders where foreign company participation is most clearly invited.

Monitoring all these sources manually is time-consuming. Platforms like Optimtenders aggregate the full publication flow and filter by sector, wilaya, and tender type — including international open tenders where foreign bidders are eligible.

What is an « entreprise de droit algérien »?

Understanding this distinction matters because the national preference margin depends on it. An Algerian-law company (entreprise de droit algérien) is defined as a company incorporated under Algerian law, registered in the Algerian commercial register (registre de commerce), and whose capital is majority-held by Algerian nationals. A foreign subsidiary incorporated in Algeria qualifies as an Algerian-law company by this definition — which has practical implications for structuring participation.

Key documents foreign companies need

The submission file structure is the same for foreign companies as for Algerian ones — three separate sealed envelopes (candidacy file, technical offer, financial offer) — but with specific additions:

• Declaration of candidacy (standard model, signed and stamped)
• Declaration of probity (mandatory under article 66 of Law 23-12)
• Equivalent of Algerian fiscal and social security attestations from the country of origin (translated and legalized as required by the tender documents)
• Commitment to invest (for international open tenders — article 83)
• Local subcontracting plan showing how the 30% local subcontracting obligation will be met

Practical recommendations for first-time foreign bidders

Start with sectors where Algeria actively seeks foreign expertise. Energy, large infrastructure, specialized industrial equipment, advanced IT systems — these are areas where the national preference margin matters less because Algerian alternatives may be limited or the tender is structured as an international open.

Consider a GME structure with an Algerian partner. Partnering with an established Algerian company covers the subcontracting obligation, provides local knowledge of the contracting authority, and simplifies the administrative file. It also potentially positions the joint entity as an Algerian-law company depending on capital structure.

Monitor attribution notices (avis d’attribution) before bidding. These public announcements reveal what similar contracts have been awarded for, to whom, and at what price — intelligence that is directly useful for calibrating your financial offer.

Verify tender-by-tender whether the national preference margin applies. The cahier des charges specifies this — do not assume it applies or doesn’t apply without checking the specific document.

Frequently asked questions

Can a foreign company bid directly without an Algerian partner?
Yes, in international open tenders (AOIO). The 30% local subcontracting obligation must still be met, and the 25% national preference margin applies in the financial evaluation unless the tender specifies otherwise.

Does a foreign subsidiary incorporated in Algeria count as an Algerian company?
Potentially yes — if it is registered in the Algerian commercial register (registre de commerce) and its capital is majority-held by Algerian nationals. A foreign subsidiary majority-held by a foreign parent does not qualify as an Algerian-law company for national preference purposes.

What sectors publish the most international tenders in Algeria?
Historically: energy (hydrocarbons, electricity), large public works and infrastructure, specialized industrial equipment, and telecommunications. These sectors have a higher proportion of international open tenders compared to services or standard supplies.

Where can I find international tenders specifically?
In the BOMOP, on marches-publics.gov.dz, and in the national press. International tenders are identifiable by the label « appel d’offres national et international ouvert » (AOIO) in the announcement.

Sources

• Law n° 23-12 of August 5, 2023 establishing general rules for public procurement, Official Journal of the People’s Democratic Republic of Algeria n° 51 of August 6, 2023, articles 3, 38, 43, 44, 46, 55, 66, 82, 83, 86, 112 (full text consulted via FAOLEX).
• Presidential Decree n° 15-247 of September 16, 2015 — transitionally applicable under article 112 of Law 23-12, including provisions on the 25% national preference margin (article 23 of the decree).
• Law n° 16-09 of August 3, 2016 on investment promotion — basis for the foreign investment obligation.
• Samir Hamouda Avocats & Associés, « Un nouveau code des marchés publics », September 2025 — legal analysis on the definition of Algerian-law companies.
• OECD / Ministry of Finance, Guide des marchés publics, 2021 edition — reference on the distinction between Algerian and foreign companies.

For the full tender submission process, see our guide how to respond to an Algerian public tender. For monitoring tender results in your sector, see our article on how to track attribution notices as competitive intelligence.

Looking to monitor Algerian public tenders in your sector without manually tracking multiple sources? Optimtenders aggregates the full Algerian tender publication flow — including international open tenders — and sends alerts by sector and region.

Note before publication: the 25% national preference margin figure comes from Presidential Decree n° 15-247, article 23 — this provision is transitionally applicable under article 112 of Law 23-12, but I have not found a confirmation that Law 23-12 itself explicitly restates this exact percentage. The legal analysis from Samir Hamouda Avocats confirms the principle is maintained; if a new implementing regulation has changed the rate since August 2023, this figure should be updated. The 30% local subcontracting obligation for foreign companies is directly from article 82 of Law 23-12 — confirmed.