Algeria has unveiled a new initiative to allow startups to raise funds on the Algiers Stock Exchange without paying initial public offering fees, a move aimed at widening access to equity financing and supporting the country’s entrepreneurship ecosystem.
The measure, announced on February 1 by the Stock Market Regulatory Authority (COSOB), the Algiers Stock Exchange operator (SGBV), and Algeria Clearing, will run until 2028. It applies to startups formally recognized as “labeled” under the national startup framework and seeking to list on the “Growth” segment, a market compartment designed for high-potential companies.
Under the scheme, eligible startups will be fully exempt from fees associated with regulatory approval of offering documents, stock market admission, and the administration, custody, and management of securities. The exemption covers fundraising operations capped at five hundred million Algerian dinars (around three point eight five million U.S. dollars) and applies to all transactions initiated between 2026 and 2028.
Authorities said the initiative is intended to remove key entry barriers that often discourage young companies from seeking market-based financing. Algeria currently counts more than seven thousand eight hundred startups registered on the official startup.dz platform, of which approximately two thousand three hundred hold the official “start-up” label.
“The fee waiver is designed to make it easier for innovative companies to access the capital markets,” a COSOB official said. “By reducing upfront costs, we hope to channel more startups toward equity financing and help build a dynamic ecosystem for entrepreneurship and innovation.”
The initiative comes amid a broader policy push to diversify Algeria’s economy, historically reliant on hydrocarbons, and to promote private-sector-led growth. While the Algiers Stock Exchange remains small, with only eight listed securities at the end of the first half of 2025, the government aims to use targeted incentives to attract new participants and expand market activity.
So far, Moustachir, a local startup, is the only Algerian company to have gone public. Listed in 2024, the company has set revenue targets exceeding fifty-five million dinars for 2025 and projects earnings of more than one hundred eighty-seven million dinars by 2028. Moustachir has also expanded into several Middle Eastern markets, including Oman and the United Arab Emirates, demonstrating the potential for Algerian startups to scale internationally.
Experts said the fee waiver could encourage more young firms to consider the stock market as a viable financing option, which could strengthen corporate governance and transparency standards. “Startups often face difficulties raising equity due to high transaction costs and regulatory complexity,” said a local financial analyst. “This measure addresses one of the key bottlenecks and may catalyze more vibrant market activity.”
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The government has linked the initiative to broader efforts to nurture innovation, attract private investment, and create employment opportunities. By easing access to capital, authorities aim to stimulate economic growth outside the hydrocarbon sector and support technology-driven enterprises that can compete in regional and global markets.
Algeria’s move mirrors similar policies in other African and Middle Eastern markets, where governments have sought to incentivize early-stage companies to list publicly and tap institutional and retail investors. Officials in Algiers said the policy would be closely monitored, with potential adjustments depending on market uptake and startup performance.
With the fee waivers in place through 2028, the Algiers Stock Exchange could see a gradual increase in listings from young, innovative companies, helping to expand the market’s scale and diversify Algeria’s sources of capital. The measure is also expected to signal a commitment by authorities to support the private sector and strengthen the country’s entrepreneurial ecosystem.
