Algeria may pass law to ban foreign firms with links to Israel

In Algeria, a bloc of lawmakers has introduced a draft law aimed at imposing a sweeping ban on all economic dealings between Algerian companies and foreign firms with ties to Israel.  

“The prohibition of transactions, products, and brands funding crimes of the Zionist entity has already garnered the necessary support to advance through parliament,” said Abdel-Salam Bachagha, an MP from the Islamist Movement of Society for Peace (MSP).  

While no Israeli companies currently operate in Algeria, the proposed law seeks to introduce strict regulations to close legal loopholes, preventing Israeli products or partnerships from gaining any foothold within the Algerian market.  

The draft law extends beyond products on shelves, explicitly forbidding all financial and economic transactions with Israel or any associated companies, brands, or individuals. It also aims to block foreign companies that support or partner with Israel from operating in Algeria.  

Carrefour and AXA, are the only two companies operating in Algeria that are listed by the Boycott, Divestment, Sanctions (BDS) movement over proven ties to Israeli businesses.

BDS, a Palestinian-led initiative advocating for boycotts of companies complicit in Israel’s occupation, includes the French retailer and the insurance giant on its primary target list for alleged links to entities involved in illegal Israeli settlements.  

Despite this draft’s ambitions–already garnering wide support over social media–Algeria’s financial laws, which mandate at least 51% Algerian ownership in joint ventures with foreign firms, complicate the situation.

AXA operates in Algeria through a joint venture with the state-owned Fonds National d’Investissement (FNI). Similarly, Carrefour Algeria is run by Hyper Distribution Algérie (HDA), a subsidiary of the Algeria-Saudi Investment Company (Asicom), jointly owned by the Algerian and Saudi governments.  

Requests for comment from these companies on the draft law went unanswered at the time of publication.  

With these companies operating under state-owned ventures, passing the law may prove challenging in a parliament largely dominated by pro-government parties. So far, only around 60 MPs, primarily from the opposition MSP, have voiced support for the draft.  

Still, the proposal has tapped into public sentiment amid the ongoing Israeli genocide that killed over 43,000 people in the Gaza Strip.

In April, Algeria’s first KFC location was forced to close just two days after its grand opening after some protesters blocked the building entry chanting pro-Palestinian slogans.

According to the French daily Le Monde, the store reopened shortly after but removed its logo while continuing to serve KFC’s signature menu.  

In January, the BDS movement added KFC’s sister company, Pizza Hut, to its “organic boycott target” list, citing the brands’ supposed complicity in “Israel’s genocide and apartheid against Palestinians.”  

MP Bachagha noted that the draft law was inspired by the recent success of boycott campaigns in Jordan, where 34 locations of Carrefour closed due to public pressure.  

The proposed legislation also includes heavy penalties for violators, including prison sentences of 10 to 20 years and asset confiscation for direct or mediated transactions with Israeli agents or settlers.  

Anti-normalisation law amid Israel’s war on Gaza

For years, lawmakers across the region have debated anti-normalisation laws that would criminalise dealings with Israeli people and organisations. The ongoing Israeli war on Gaza has pushed such initiatives to the forefront of parliaments in the Global South.  

Last year, Tunisia came close to passing a version of the anti-normalisation decree, supported by both the majority and opposition. However, the vote was postponed by a presidential order.

Despite strong public enthusiasm for criminalising normalisation, some activists warn of potential misuse of these laws to silence dissent.  

“The Algerian state, like many others in the region, has exploited the Gaza war and pro-Palestinian rhetoric as a cover for continuing its repression of activists and journalists”, Ihsane El-Kadi, an Algerian journalist, told The New Arab following his release on 1 November.  

Algeria’s stance on Palestine is among the most vocal in North Africa, yet it remains constrained by its repressive policies. Despite the government’s public support for the Palestinian cause, it has refused to lift a protest ban imposed after the Hirak uprising, blocking pro-Palestinian marches alongside other demonstrations.