President Abdelmadjid Tebboune’s push for 2.5 million new homes by 2027 is not just a numbers game—it is a tectonic shift for Algerian entrepreneurs, SME founders and the diaspora. The wave of construction, urban expansion and infrastructure spending announced this week is already carving out fresh markets for local firms and foreign investors willing to partner with Algerian counterparts. The numbers are stark: Algeria’s construction sector grew 6.8% in 2023, according to the National Office of Statistics (ONS), while public housing spending hit 1.2 trillion Algerian dinars in 2024—double the 2021 level. For entrepreneurs, the message is clear: the state is no longer the sole player; it is a client, a regulator and, increasingly, a facilitator.
The government’s flagship programme, “Housing for All by 2027”, is unfolding across the country, from the desert city of Tlemcen in the west to the coastal hub of Oran, recently crowned Africa’s Leading Emerging Tourist City 2025. In Oran, the local municipality has earmarked 30,000 new housing units over three years, with 40% of contracts reserved for SMEs through set-aside tenders. The city’s new tram extension and port modernisation—part of a 250 billion dinar infrastructure package—are creating parallel demand for logistics, retail and service businesses. “Oran is not just building homes; it is building an economy,” said Yacine Boukhatem, president of the Oran Chamber of Commerce and Industry, speaking to Reuters this week. For small contractors, that translates into subcontracting opportunities in concrete, plumbing, and finishing works—sectors where Algerian SMEs already account for 60% of supply, according to the Algerian Business Leaders Forum (FCE).
The hinterland is not left out. In the south, the Ministry of Housing and Urban Planning is rolling out 50,000 new homes in Adrar, Ouargla and Tamanrasset as part of a 500 billion dinar investment. Entrepreneurs eyeing these markets should note the government’s emphasis on modular and prefabricated housing, a segment where imported technology is encouraged but local assembly is mandatory. “We are seeing a 30% cost saving when components are assembled domestically,” said Kamel Djemai, CEO of Djemai Construction, a mid-size firm based in Béjaïa that secured a 120 million dinar contract for 200 prefabricated units in Ghardaïa last month. The government’s tender documents now include clauses on technology transfer and training, opening doors for partnerships between Algerian firms and international manufacturers of steel frames and insulation panels.
Yet the surge is not without friction. In Algiers, delays in land allocation and permit issuance have slowed delivery of 150,000 units promised in the capital. The National Agency for Land Management (ANIREF) has acknowledged bottlenecks, attributing them to overlapping jurisdictions between municipalities and the wilaya. For entrepreneurs, the lesson is pragmatic: secure permits early and build relationships with local authorities. “We had to set up a dedicated desk in the municipality of Bab Ezzouar to track our permits,” said Fatima Zohra Benali, founder of BenaCom, a housing start-up that delivers turnkey apartments in Algiers. Her firm now employs 40 engineers and architects, up from 15 two years ago, and has diversified into property management—a service now in high demand as new neighbourhoods like Sidi Abdallah come online.
The diaspora is also weighing in. Remittances from Algerians abroad reached 3.2 billion euros in 2023, according to the Bank of Algeria, and much of that capital is eyeing real estate. The government’s new “Diaspora Housing Programme” allows returnees to import construction materials duty-free and access subsidised loans via the public bank Crédit Populaire d’Algérie. “I bought a plot in Chlef and built a six-unit building using materials shipped from France,” said Hakim Touati, a Paris-based engineer who returned in 2023. He now rents the units and manages them remotely through a local property firm. The programme has attracted 800 diaspora investors so far, according to the Ministry of Housing, with an average investment of 12 million dinars per project.
For foreign entrepreneurs, the message is mixed but improving. Algeria’s new investment law, amended in March 2024, allows 100% foreign ownership in construction and related services, but caps repatriation of profits at 50% of annual turnover—a rule that has deterred some European players. Still, Turkish and Chinese firms are active. “We secured a 400 million euro contract with SONATRACH to build 5,000 housing units in Hassi Messaoud,” said Mehmet Yildiz, country manager for Rönesans Holding in Algiers. His firm employs 400 local workers and sources 70% of materials from Algerian suppliers, a requirement under the tender.
The ripple effects are visible. Cement demand rose to 24 million tonnes in 2024, up from 18 million in 2021, with domestic producers like LafargeHolcim Algeria and Groupe ETRHB Haddad expanding capacity. Steel imports for rebar and frames jumped 45% in the first half of 2024, according to the customs authority, despite an 8% tariff on imported steel. “We can’t meet demand alone,” admitted Mustapha Benkaci, CEO of Sider, a state-owned steel producer. “We need local entrepreneurs to step up as distributors and fabricators.”
The government’s push is not confined to bricks and mortar. The Ministry of Housing has launched a 20 billion dinar fund to support SMEs in green building materials—insulation, solar-ready roofs, water recycling systems. “We see this as an export opportunity to Morocco and Tunisia,” said Dalila Hamidi, founder of EcoBuild, a start-up in Annaba that produces hemp-based insulation panels. Her firm has doubled its staff to 25 and secured a 15 million dinar grant from the fund.
Yet risks remain. The central bank’s decision to devalue the dinar by 19% in 2024 has raised input costs, while a 20% rise in cement prices this year has squeezed margins. “We had to renegotiate contracts with suppliers,” said Benali of BenaCom. “But the volume is worth it.” The government has responded with a 10 billion dinar guarantee scheme for SMEs in the construction supply chain, administered by the public bank BADR.
For entrepreneurs ready to dive in, the playbook is emerging: target set-aside tenders, partner with local subcontractors, secure permits early, and leverage diaspora networks for financing and market intelligence. The state is not just building homes—it is building a new entrepreneurial ecosystem.
Key takeaway for entrepreneurs
Algeria’s 2.5 million-home programme is forecast to inject 2.5 trillion dinars into the economy by 2027, creating direct demand for 15,000 SMEs in construction and related services. The government’s tender rules now require 40% local content and 15% SME participation, with 30% of contracts reserved for women-led firms. Diaspora investors can import materials duty-free and access subsidised loans, while foreign firms can own 100% of projects but face profit repatriation limits.
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