Privatisation is legally established by the edict n°01-04 of 20 August 2001 regarding the organisation, management and
privatisation of public economic businesses.

According to the edict 01-04, privatisation designates any transaction, translated by a transfer, to individuals or legal
entities under private law, other than public businesses, which own:    

• All or part of the businesses’ share capital held directly or indirectly by the Stateor individuals or legal entities under public law, through cession of shares, company shares or subscription of a capital increase;  
  
• Assets forming an autonomous operating unit of businesses belonging to the State.
  

The privatisation of public economic businesses (EPE) constitutes a primary axis of reforms made by the State to accelerate the process of opening the Algerian economy.
 
The EPE are joint stock companies in which the State (or any other legal entity under public law) directly or indirectly holds the majority of the share capital.
 
The EPEs are governed by common law.
 
The EPEs concerning all sectors of economic activity are eligible for privatisation.