First researcher:

Definition and elements of investment.

Investment means the language of demand for the value of money that is the product of
investment. The term investment does not deviate from the general rule that each term has
both a linguistic and a descriptive meaning. If we look at the terminological meaning of
investment, definitions vary between what is economic because it is considered an economic
process. The first requirement, and what's legal because the jurist is interested in organizing this
operation.

The first is the economic definition of investment.

Who defined it as "a necessary process that requires the effective intervention and
revitalization of an economic operator in order to create capital in the sense of investor wealth."
"There are those who have defined it as" the employment of contracts for any time in any asset,
property, property or gait held in order to preserve or develop the money, whether by periodic
profits or by increases at the end of the term. " "But we must distinguish between the definition
that economists have taken up in the economic sense. (Section 01), Definition by Financial
Management (Section 02)

Section I: Investment in an economic sense is often intended to acquire physical assets, and
therefore economists view the employment of funds as a contribution to production, and
therefore rely on the element of contribution to define the economy process, neglecting the
other elements underlying the process.

Section II: Investment in financial management; investment in financial management;

investment in financial management; investment in financial management; investment;
investment; investment; investment; investment; investment; investment; investment;
investment; investment.

The second requirement: the legal definition of investment,

although the investment process is a purely economic one; the jurist, however, has tried to find
a definition of investment, because he is considering regulating it; because the latter has legal
and economic aspects; it has been difficult to find a definition; and the definitions developed by
different States, although they are interested in organizing a single process, are different
because of each State's perception of investment, different interest in it and different States.

Developing countries, including socialist-oriented States, do not devote a significant role to

foreign investment in economic development, including liberal States, which are now most of
the developing countries that promote foreign investment, develop regulations and contain a
definition of foreign investment. One of these countries is Algeria, which looks at investment at
different stages of the national economy, from the market economy to the market economy.
However, before referring to the Algerian legislature's position on this process, it is essential to
know what the international position is and how the definition of this term has been addressed
at the international level.

Section I: The definition of investment at the international level. International conventions have
tried to give a definition of investment, but they have taken care of the definition of foreign
investment.

First: Definition of investment in comprehensive international conventions

One of the most important international conventions dealing with investment is the Washington
Treaty of 1965, which established the International Centre for the Resolution of International
Disputes between States and Nationals of Other States in the Area of Investment. This treaty
dealt with investment but did not define it, with a view to ensuring flexibility for this term, since
the text extends to several types of investments, and thus this Convention deliberately leaves
the definition process to arbitral tribunals to define depending on the cases before them.

Therefore, the Convention deliberately left the definition process to the arbitral tribunals to
define depending on the cases before them. In this context, we also have the definition given by
the Seoul International Treaty, which established the International Investment Agency and
defined investment through article 12 and considered that the investment process includes
investment. "Valid investments to secure property rights and medium- or long-term loans made
by co-owners of a particular project and the direct investment images identified by the
Governing Council... "This Article therefore does not define investments but classifies them as: -
Direct and indirect investments - direct contributions other than contributions

Second: The definition of investment in regional international conventions

aimed at removing obstacles to the free movement of means of production, including capital,
such as the regulation of the Organization for Economic Cooperation and Development (OECD)
on the liberalization of capital movements. These conventions adopt the idea that economic
development requires the free movement of goods, means of production and capital. This
cannot be achieved if there is no movement of investment.

Tender or contribution

- there is a relationship between an investor and a company engaged in economic activity

- the investor is able to influence the management of the company, and we find that these
agreements concern themselves with the definition of direct investment.
Three:The definition of investment in bilateral agreements,

including the definition and example of investment between France and many developing
countries, which gives a broad meaning to investment and which states that it covers funds and
rights of any nature and generally consists of transfers, real estate, rights in kind, stocks, bonds
and debt.

While this definition takes into account the contribution, it does not require that the
contribution be medium or long-term or that the proceeds be derived from the exploitation of
the project or not, and the concept of investment is therefore very broad. These conventions
show that they are not really interested in a definition of investment, which is, of course,
because the task of creating definitions of legal terms is not one of their tasks.

Section II: The definition of investment in Algerian legislation has varied in the period from
independence to the present day. This is, of course, due to the volatility of Algerian economic
thinking between pro - investment thinking and the opposite.

First :The definition of investment in the targeted economy

adopted by Algeria was the first Investment Act in 1963, which essentially included the
investment objectives of establishing private and public guarantees for productive investments
in Algeria and the rights and duties associated with them.

Subsequently, Act No. 66-284, containing the Investment Act, was promulgated, which defined
the role, status, forms and guarantees of capital in economic development. But it also failed
because it aimed to reconcile two opposing considerations, namely, seeking to attract capital
and ensuring that there was broad scope for State intervention in economic activity.
Subsequently, in 1998, the Law on the Incorporation of Mixed Companies was enacted and
amended in 1986 by Act No. 86-13 with a view to granting more guarantees to foreign investors.
In the series of legislation passed by the Algerian legislature from 1963 to 1986, he was trying to
establish the general principles of investment and completely neglected the idea of determining
the legal meaning of this process.

Second: The definition of investment in the market economy

showed that, at the beginning of the 1990s, Algeria was oriented towards the free economy
and opened it to foreign investment in all its forms. In this regard, it promulgated a series of
successive laws and regulations, the first of which was Act No. 90-10 on currency and loans,
which included a set of provisions governing national and foreign investment. According to
Presidential Decree No. 90/420, on the ratification of the Agreement on Promotion and
Guarantee of Investment among the States of the Maghreb signed in Algiers on the date of
23/07/1990, the investment is defined as "a citizen who owns capital and invests it in one of the
countries of the Arab Maghreb Union."

Law No. 10-90 remained deficient until the issuance of Legislative Decree No. 93-12 related to
investment promotion that abolished the law related to mixed companies and canceled some of
the conflicting texts of Law 90-10 related to cash and loan, such as Articles 181-182-183-184 and
186

This decree remained in effect until the year 2001, when it was canceled according to the
decree 01-03 related to the development of investment, which is considered the political and
economic turning point that Algeria has experienced in recent years.

And with the issuance of Law 03/01 related to the development of investment, the second
article dealt with the definition of investment with its text: “In the concept of this matter,
investment means the following:

1- Acquisition of assets as part of the development of new activities, expansion of production

capabilities, rehabilitation, or restructuring

2- Contribution to the capital of an institution in the form of cash or in-kind contributions,

3- Restoring activities within the framework of partial or total privatization

Accordingly, according to the Algerian legislator, investment is the development of new

activities and production capabilities through assets or cash or in-kind contributions to the
capital of the institution, as well as the restoration of activities within the framework of partial
or total privatization, and this is within the framework of the so-called concession for the
completion of projects and economic activities producing goods And services.

The third requirement: the elements of investment

The various types of investment process do not occur without the availability of a set of pillars
that are the mainstay of this process

first: Contribution

This contribution may be cash or in kind, and it can also be material or intangible. Here, the type
of contribution varies according to the type of investment, according to what will be shown, and
it should be noted that the investor can be a natural or legal person, private or public.
The second: intention to obtain a profit

The primary purpose of investing is to make profits, so removing this element takes us out of
the process

The third: the risk element

Contributing capital to an investment process in order to achieve profits is not always

successful, and this purpose is not always achieved as it is actually possible to obtain profits, but
it is also possible for the investor to achieve a degree of loss and therefore risk is necessary in
investment.

The fourth : the element of time

The investor does not achieve profits immediately, but rather he must wait for a certain period
of time, because the production path to which the risk value is related to in the investment
process needs time and this is what distinguishes investment from selling, as the sale process
achieves profit or loss immediately While investing takes time.

However, what must be noted is that the supply that takes a period of time and therefore in this
case the sale process is very similar to the investment process, or the opposite may happen in
the case of the investor who rushes to obtain the expected benefits that he will get from selling
a project in advance, such as Contracts related to a specific technology.

The second topic: types of investment

There are several types of investment due to the different criteria adopted in classifying
investments. If we look at the investment project management side, we find that they are
classified into direct and indirect investments, and if we look at the nationality and residence of
the investor, we find that they are classified into national and other foreign investments, in
addition to To the presence of industrial and other commercial investments, which of course
depends on the nature of the investment activity.

The first requirement: direct investment and indirect investment

The most important thing that distinguishes direct investment from indirect investment is the
idea of actual control over the company or the investment project.

The first branch: direct investment

Direct investment is the type of investment that the investor controls in the company, and this
control is determined by the amount of his contribution to the company's capital, and this
amount we find that it varies according to the different laws and regulations in different
countries. Some countries consider that investment is direct if the investor owns The majority of
the company's capital or investment, and it can be by owning the largest amount of
shareholding.

The second branch: indirect investment

As for indirect investment, it is that in which the investor does not appear at all in the conduct
of the affairs of the investment or the company, that is, that person who does not have
authority and control over the company, although he contributes to the establishment of the
investment, but the percentage of his contribution does not allow him to control and control.

And from indirect investments, we find what is in the form of loans, for example those loans
that are granted to countries with the purpose of helping them to acquire goods and services, or
provided in the form of banking facilities to cover the deficit in foreign exchange. An example is
also the international borrowings that the borrower converts into local currencies to cover
Management burden.

A or in the form of underwriting through fixed-interest bonds or shares without controlling

investment projects. This is what is called portfolio investment, and it is the case in which the
capital importing country issues bonds with specific values and interest rates under which the
subscriber receives an annual interest and a value The bond when maturity is due,

The state may also put forward the most important companies or projects that it wants to
establish in which foreigners who receive returns from the subscription will subscribe.

The second requirement: national investment and foreign investment

We distinguish between national investment and foreign investment by relying on two basic
criteria that complement each other, namely the nationality criterion and the residency
criterion.

The first branch: national investment

National investment is that which is made by a person who has the nationality of the country in
which the investor is invested for his money, meaning that the capital is not transferred abroad

The second branch: foreign investment

Foreign investment means the transfer of capital from one country to another, and it is in most
cases that it takes place in relations between the North and the South, as the capital is
transferred from the industrialized countries to the developing countries and thus it includes
the external component corresponding to the internal component in the national investment

By referring to the text of Article 31 of Ordinance 01/03 related to investment development, we

find that it raised the concept of a resident investor and a non-resident investor and relied on
the currency standard that the investor uses to accomplish his investment to distinguish
between them. With in-kind contributions that were acquired locally,

The non-resident investor is every natural or legal person who realizes his investments in a
freely convertible currency that is officially priced by the Algerian Central Bank or by means of
imported in-kind contributions.

Also, Law No. 10-90 related to cash and loans issued Regulation No. 90-03 related to the
conditions for transferring capital to Algeria. In it, the concept of a resident was defined as every
natural or legal person, Algerian or foreign, who has been the main center of his economic
interests in Algeria two years ago. the least

The third requirement: industrial investment and commercial investment

The first branch: industrial investment

Industrial investment is that which is mainly based on the idea of concentration in the country in
which the investment is sought. Therefore, this investment is of great importance for countries
receiving capital because it increases their production capacity, for example Algeria, as we find
that it is one of the countries that depends and encourages industrial investments in a large
way. Related to the hydrocarbon sector are all industrial investments.

The second branch: commercial investment

Commercial investment is based on export and therefore does not consist in entering the
production center in the future country, and therefore we find that commercial investment
serves the balance of payments of capital-exporting countries.

Conclusion

Through this study, we came to the conclusion that the Algerian legislator, despite the
fluctuations that he was suffering from in his attempt to define the concept of investment,
eventually reached to define it through the order 01-03 related to the development of
investment, and this after his explicit adoption of the market economy system in accordance
with Article 37 of the Constitution, of course, in order to keep pace with developments taking
place in the world and in order to achieve his goal of joining the World Trade Organization.
 Research on investment law in
Algeria

Presente par :

Belhadj taher souhaib