The Algerian stock market regulator, COSOB, has provided explanations regarding a ministerial decision made on October 11, 2026, which outlines sectors eligible for research and innovation activities. This decision, published in the Official Gazette on November 4, 2026, aims to encourage innovation and entrepreneurship in Algeria. According to COSOB, the decision highlights the role of alternative financing mechanisms supervised by the commission.
COSOB has developed a regulatory framework to activate alternative financing and investment mechanisms, including collective investment schemes with venture capital, venture capital investment companies, and crowdfunding through platforms approved by the commission. These mechanisms allow economic institutions to direct investments towards startups and innovative projects. The regulatory framework is based on regulations number 23-01 and 24-02, dated April 12, 2023, and October 23, 2024, respectively.
The ministerial decision requires Algerian economic institutions with an annual turnover of at least two billion dinars to allocate a minimum of 1% of their taxable profit to fund research and development or innovation activities. This funding can be used for in-house research or through open innovation programs with startups, accelerators, and incubators. The decision also allows institutions to finance incubators, accelerators, and digital manufacturing laboratories.
The decision provides various options for institutions to invest in innovation, including purchasing technological solutions from startups or accelerators, acquiring products and services with an "innovative project" label, and entering into open innovation contracts. Institutions can also invest directly in the capital of startups and accelerators, buy their shares on the stock exchange, or contribute to venture capital funds.
COSOB emphasizes its readiness to support economic institutions willing to benefit from alternative financing and investment mechanisms. The commission provides guidance and assistance in its area of expertise, particularly regarding requirements and regulatory procedures. This support aims to help institutions navigate the new regulatory framework and make the most of the available financing options.
The ministerial decision also covers the acquisition of exploitation rights for protected technologies, including patents registered with the National Institute of Industrial Property or internationally, and copyrights registered with the National Office for Copyright and Related Rights. By providing a clear framework for innovation funding, the Algerian government aims to promote entrepreneurship and economic growth.
The new regulatory framework and ministerial decision are expected to have a positive impact on Algeria's innovation ecosystem. By providing alternative financing options and encouraging investment in startups and innovative projects, the government hopes to stimulate economic growth and development. COSOB's clarification and guidance will be crucial in ensuring a smooth implementation of the new regulations.
Key points
- COSOB has developed a regulatory framework to activate alternative financing and investment mechanisms for innovation and entrepreneurship.
- The ministerial decision requires Algerian economic institutions to allocate a minimum of 1% of their taxable profit to fund research and development or innovation activities.
- The decision provides various options for institutions to invest in innovation, including purchasing technological solutions, acquiring products and services with an "innovative project" label, and entering into open innovation contracts.
