Weekly trends
Infrastructure and transport: state-led expansion
President Abdelmadjid Tebboune inaugurated the Western Mining Railway, a heavy-haul line designed to transport iron ore from Gara Djebilet to Béchar. The project, part of the government’s 2020-2024 public investment plan, aims to reduce road congestion and lower transport costs for mining companies. No private sector participation was announced.
The Algiers Metro, operational since 2011, remains state-managed. No new extensions were announced this week.
Energy and industry: output increases, new discoveries
The AOA ammonia-urea complex in Arzew expanded capacity by 50%. The plant, operated by Asmidal (a Sonatrach subsidiary), now produces 1.2 million tonnes of urea annually. Algeria exported 1.1 million tonnes of urea in 2023, primarily to Brazil, India, and Turkey. The expansion aligns with the government’s 2023-2027 industrial strategy, which targets $5 billion in non-hydrocarbon exports by 2027.
Algeria’s oil and gas sector accounted for 93% of export revenues in 2023, down from 96% in 2022. Non-hydrocarbon exports reached $4.2 billion in 2023, up 12% year-on-year.
Food security and climate: forest fires, demographic shifts
The Ministry of Agriculture launched a $150 million reforestation programme, funded by the African Development Bank. The project aims to restore 100,000 hectares of degraded land by 2027. No private sector involvement was mentioned.
Morocco, Algeria, and Tunisia face declining fertility rates, according to a report by HESPRESS English. Algeria’s fertility rate fell from 3.2 children per woman in 2000 to 2.4 in 2023. The working-age population (15-64) is projected to grow by 1.2% annually until 2030, then decline. The government’s 2024 budget allocated $2.3 billion to youth employment programmes, up 8% from 2023.
Legal and regulatory environment: restrictions persist
No amendments to the 2022 Company Law were announced. The law requires foreign investors to partner with Algerian nationals, who must hold at least 51% of shares in most sectors. Exceptions exist for renewable energy and technology startups, where foreign ownership can reach 100%.
Youth and education: English expansion, logistical hurdles
The education system faces a 30% dropout rate by age 15, according to UNICEF. The Ministry of Higher Education reported 1.5 million university students in 2023, with 40% enrolled in STEM fields. No data was provided on graduate employment rates.
Trade and tourism: Türkiye ties, hospitality growth
Algeria’s tourism sector contributed 2.5% to GDP in 2023, up from 1.8% in 2022. The government aims to increase this to 5% by 2030. QGIRCO, a Qatari investment fund, announced plans to open a $300 million mixed-use development in Algiers, including a five-star hotel and retail space. The project is scheduled for completion in 2026.
Security and regional dynamics: persistent threats, diplomatic tensions
Algeria maintained its stance against normalising relations with Israel, citing Palestinian statehood as a precondition. The Israel-Hamas war has not directly affected Algerian trade or energy exports. Relations with Morocco remain strained over the Western Sahara dispute. No new diplomatic or economic measures were announced.
Week’s highlights
Key takeaway for entrepreneurs
💡 Starting a business in Algeria? GlobalStart guides you step by step: procedures, real costs, company forms (SARL, EURL, SPA) and CNRC registration.