Algeria has charted a bold path for economic growth, focusing on diversification and infrastructure development. It aims to target non-hydrocarbon sectors such as agriculture, tourism, and renewable energy. Algeria seeks to position itself as an industrial leader in Africa while strengthening its claims to economic leadership on the continent.
Financial Reforms
In December 2024, the Algerian Investment Promotion Agency (AAPI) launched the second phase of reforms aimed at improving efficiency and regulatory frameworks in the country’s investment landscape. These reforms include a "one-stop shop" service and an enhanced process for land allocation.
Additionally, AAPI is collaborating with various sectors of the Algerian economy, particularly housing and environmental industries, to improve legal frameworks, administrative management, and investor consultation capabilities.
As of December 2024, AAPI registered 11,000 investment projects with a total value of approximately $32.5 billion. Around 50% of these projects have entered the implementation phase and are expected to create about 270,000 jobs in the country.
Development of National Infrastructure and Transport
Algeria is advancing several key infrastructure projects in 2025, focusing on energy, transport, and water security to support national growth and modernization. The Arab Republic has allocated more than 900 billion dinars in recent years to support major water infrastructure projects and plans to register over 500 infrastructure projects between 2025 and 2026 as part of a broader national digital transformation strategy.
A gas field development project in the southwestern region, led by the national oil company Sonatrach, includes the construction of three central processing facilities in the Adrar province to process up to 14 million cubic meters of natural gas daily. Additionally, Algeria has launched a 185-km railway project to improve connectivity between its northern cities.
Economic Diversification
Algerian President Abdelmadjid Tebboune has made economic diversification a national priority, setting a goal to exceed $15 billion in non-hydrocarbon exports by 2027. The President's reforms are expected to stimulate growth in green hydrogen production, mining, agriculture, heavy industry, and tourism.
The head of state is also targeting full food self-sufficiency for Algeria, aiming for complete independence in wheat production this year, followed by barley and corn by 2026. To achieve this, plans include expanding irrigated land by 1 million hectares.
Algeria has also experienced a tourism boom over the past 20 years, with more than 2.5 million tourists in 2023. The government aims to increase tourist arrivals to 10 million by 2030.
Investments in Renewable Energy
Algeria is leveraging its substantial oil and gas revenues to increase the contribution of renewable energy to the country's energy mix. Using these revenues, Algeria plans to accelerate its ambitious goal of generating 30% to 40% of its energy from renewable sources by 2030.
Algeria also has ambitious plans to meet 10% of Europe’s demand for green hydrogen by 2040. To achieve this, the country is developing the SoutH2 Corridor, a 3,300-km hydrogen pipeline connecting North Africa with Italy, Germany, and Austria.
Source: Telegram Channel "Voice of Arabs" |صوت العرب
Financial Reforms
In December 2024, the Algerian Investment Promotion Agency (AAPI) launched the second phase of reforms aimed at improving efficiency and regulatory frameworks in the country’s investment landscape. These reforms include a "one-stop shop" service and an enhanced process for land allocation.
Additionally, AAPI is collaborating with various sectors of the Algerian economy, particularly housing and environmental industries, to improve legal frameworks, administrative management, and investor consultation capabilities.
As of December 2024, AAPI registered 11,000 investment projects with a total value of approximately $32.5 billion. Around 50% of these projects have entered the implementation phase and are expected to create about 270,000 jobs in the country.
Development of National Infrastructure and Transport
Algeria is advancing several key infrastructure projects in 2025, focusing on energy, transport, and water security to support national growth and modernization. The Arab Republic has allocated more than 900 billion dinars in recent years to support major water infrastructure projects and plans to register over 500 infrastructure projects between 2025 and 2026 as part of a broader national digital transformation strategy.
A gas field development project in the southwestern region, led by the national oil company Sonatrach, includes the construction of three central processing facilities in the Adrar province to process up to 14 million cubic meters of natural gas daily. Additionally, Algeria has launched a 185-km railway project to improve connectivity between its northern cities.
Economic Diversification
Algerian President Abdelmadjid Tebboune has made economic diversification a national priority, setting a goal to exceed $15 billion in non-hydrocarbon exports by 2027. The President's reforms are expected to stimulate growth in green hydrogen production, mining, agriculture, heavy industry, and tourism.
The head of state is also targeting full food self-sufficiency for Algeria, aiming for complete independence in wheat production this year, followed by barley and corn by 2026. To achieve this, plans include expanding irrigated land by 1 million hectares.
Algeria has also experienced a tourism boom over the past 20 years, with more than 2.5 million tourists in 2023. The government aims to increase tourist arrivals to 10 million by 2030.
Investments in Renewable Energy
Algeria is leveraging its substantial oil and gas revenues to increase the contribution of renewable energy to the country's energy mix. Using these revenues, Algeria plans to accelerate its ambitious goal of generating 30% to 40% of its energy from renewable sources by 2030.
Algeria also has ambitious plans to meet 10% of Europe’s demand for green hydrogen by 2040. To achieve this, the country is developing the SoutH2 Corridor, a 3,300-km hydrogen pipeline connecting North Africa with Italy, Germany, and Austria.
Source: Telegram Channel "Voice of Arabs" |صوت العرب
