Algeria has launched a $7 billion plan to expand its refining and petrochemical capacity from 2026 onward, according to Energies Media. The programme, unveiled by Sonatrach CEO Rachid Hachichi in December 2025, targets three existing refineries—Arzew, Skikda and Algiers—and two new petrochemical complexes in Hassi Messaoud and Béjaïa. The goal is to lift refining capacity from 26 million tonnes per year to 38 million tonnes by 2030 and to produce an additional 2.5 million tonnes of petrochemicals annually.
The investment is split into $4.2 billion for refining upgrades and $2.8 billion for petrochemicals. Sonatrach will finance 60 % of the total, with the remaining 40 % coming from international partners. Italian energy group Eni and French firm TotalEnergies have already signed memoranda of understanding for the Béjaïa complex, which will focus on polypropylene and polyethylene production.
For local entrepreneurs, the plan creates immediate opportunities. Sonatrach has committed to sourcing 30 % of the required goods and services from Algerian suppliers. The Hassi Messaoud complex alone will need 12 000 tonnes of steel structures, 500 km of piping and 200 km of electrical cables—all earmarked for domestic manufacturers. The Ministry of Industry has set up a fast-track registration portal for SMEs wishing to bid on these contracts; over 800 companies had registered by March 2026.
The petrochemical push also aims to reduce Algeria’s import bill. In 2025, the country spent $3.2 billion on refined products and $1.8 billion on plastics and fertilisers. By substituting these imports with local output, the government expects to save $2.5 billion annually by 2030. Entrepreneurs in downstream sectors—packaging, automotive parts, construction materials—will benefit from cheaper, more reliable feedstock.
Regulatory changes accompany the investment. In January 2026, the Council of Ministers approved a new hydrocarbons law that simplifies licensing for private companies in midstream and downstream activities. The law allows 100 % foreign ownership in petrochemical projects and offers tax holidays of up to 10 years for investments exceeding $50 million. The Algerian Investment Promotion Agency (AAPI) reports that 47 foreign firms have applied for licences since the law came into force.
Infrastructure upgrades are part of the package. The Béjaïa port will be expanded to handle larger petrochemical tankers, and a new rail spur will connect the Hassi Messaoud complex to the national network. The Ministry of Transport has launched tenders for both projects; local construction firms are eligible to bid, provided they partner with certified international engineering firms.
The plan also addresses energy efficiency. Sonatrach has pledged to reduce the carbon footprint of the new complexes by 30 % compared to existing plants. This opens a niche for Algerian start-ups specialising in green technologies, such as carbon capture and hydrogen-ready burners. The National Agency for the Valorisation of Research (ANVR) has allocated $50 million to fund pilot projects in these areas.
Entrepreneurs in the diaspora are taking notice. The Algerian Business Club, a network of 1 200 expatriate professionals, has organised three matchmaking events in Paris, Dubai and Montreal since January 2026. At the Paris event, 18 Algerian-French joint ventures were formed to supply equipment and technical services to the new complexes. The government has also introduced a “diaspora investment visa” that allows non-resident Algerians to invest up to $1 million without local partnership requirements.
Key takeaway for entrepreneurs
Algeria’s $7 billion petrochemical programme is creating immediate demand for local suppliers in steel, piping, electrical equipment and logistics. The new hydrocarbons law allows full foreign ownership and tax holidays, lowering entry barriers for both domestic and diaspora investors. Downstream industries will gain access to cheaper feedstock, improving margins for manufacturers in packaging, automotive and construction.
💡 Starting a business in Algeria? GlobalStart guides you step by step: procedures, real costs, company forms (SARL, EURL, SPA) and CNRC registration.