Foreign investment and industrial expansion
Algeria laid the foundation for a third tire plant. The state-owned National Company for Rubber and Tire Industries (SNIC) will operate the facility. Total investment: 25 billion DZD (180 million USD). Expected output: 1.2 million tires per year, targeting domestic and African markets.
Germany signed a hydrogen cooperation agreement with Algeria. The deal includes feasibility studies for green hydrogen production in the Sahara. Germany aims to import 10 million tons of hydrogen annually by 2030. Algeria’s solar potential: 3,000 hours of sunshine per year.
Energy sector: bids, deals, and European demand
Sonatrach signed a 1 billion USD oil deal with an unnamed international partner. The agreement includes exploration and production in the Berkine Basin. Algeria’s proven oil reserves: 12.2 billion barrels. Gas reserves: 2.4 trillion cubic meters.
Europe increased shale gas imports from Algeria. In 2023, Algeria supplied 13% of Europe’s gas imports, up from 8% in 2021. Shale gas production began in 2022 at the Ahnet field. Estimated recoverable reserves: 20 trillion cubic meters.
Business registry and investor sentiment
The Algerian government launched a campaign to improve investor attractiveness. Measures include a one-stop shop for business registration, tax exemptions for export-oriented industries, and faster customs clearance. Business registration time dropped from 23 days in 2020 to 8 days in 2024.
Investor skepticism persists. Foreign direct investment (FDI) in Algeria reached 1.3 billion USD in 2023, below the 2 billion USD target. Main obstacles cited in a 2024 survey: bureaucracy (62% of respondents), currency restrictions (58%), and legal uncertainty (45%).
Transport and logistics: strategic partnerships
Algeria and Mauritania agreed to accelerate the construction of a 1,200-kilometer road linking Tindouf to Nouakchott. Estimated cost: 1.5 billion USD. The project includes a railway line for phosphate and iron ore transport. Mauritania’s iron ore exports: 12 million tons in 2023.
Algeria and Oman signed transport agreements covering maritime, air, and land connectivity. Oman will open a direct shipping route between Sohar and Algiers. Algeria’s port capacity: 60 million tons per year. Current utilization: 75%.
Diplomacy: France, Western Sahara, and regional ties
France recognized Morocco’s autonomy plan for Western Sahara. Algeria recalled its ambassador to Paris for consultations. Algeria supports the Polisario Front’s demand for a self-determination referendum. Trade between Algeria and France: 8.5 billion USD in 2023.
Algeria’s diaspora in France: 2.5 million people. Remittances to Algeria from France: 1.8 billion USD in 2023, the highest among European countries.
Housing: policies, failures, and progress
A pilot affordable housing project in Oran reported progress. The project, launched in 2021, delivered 5,000 units at an average cost of 3 million DZD (22,000 USD) per unit. Target buyers: low-income families earning less than 60,000 DZD (430 USD) per month.
The government announced a new housing program for 2025-2029. Target: 1 million units. Budget: 500 billion DZD (3.6 billion USD). Priority: rental housing for young professionals.
Tourism and cultural promotion
The 15th International Symphonic Music Festival opened in Algiers. Budget: 100 million DZD (720,000 USD). Participants: 12 orchestras from Europe, Africa, and the Middle East. The Oran Arab Film Festival featured 40 films from 15 countries. Algeria’s film industry production: 15 feature films in 2023, up from 8 in 2020.
Jules Verne, a French travel agency, added Algeria to its Africa portfolio. Packages include visits to Roman ruins in Timgad, the Casbah of Algiers, and the M’Zab Valley. Algeria’s UNESCO World Heritage Sites: 7.
Sports and economic spillovers
Boxer Imane Khelif won gold at the 2024 Olympics. The victory sparked debates on gender eligibility in sports. Algeria’s sports ministry announced a 500 million DZD (3.6 million USD) fund to support women’s sports. Target: 100,000 female athletes by 2026.
Balance of the week
Key takeaway for entrepreneurs
Algeria’s industrial and energy sectors offer opportunities for partnerships in manufacturing, renewables, and hydrocarbons. Bureaucracy and currency restrictions remain obstacles. The government’s focus on housing and tourism creates demand for construction, hospitality, and logistics services. Diaspora investors should monitor transport and energy agreements for cross-border trade potential.
💡 Starting a business in Algeria? GlobalStart guides you step by step: procedures, real costs, company forms (SARL, EURL, SPA) and CNRC registration.