BY: Hana Saada
Algiers, August 21, 2023 – Algeria’s efforts to enhance its business environment are yielding impressive results as a surge of foreign companies, including major global players, display keen interest in investing in the Algerian market. The country’s new investment law, combined with streamlined access to economic land through recent legislative provisions, is proving to be a magnet for international investors, according to statements by Omar Rekkache , Director General of the Algerian Agency for the Promotion of Investment (AAPI).
Serving as a unified and simplified window of support for domestic and foreign investors, AAPI is set to introduce a groundbreaking “partnership grant” via its digital platform. This initiative aims to facilitate interactions between Algerian and foreign investors, further solidifying Algeria’s status as an investment-friendly destination.
With remarkable enthusiasm, almost 100 foreign enterprises, including several prominent multinational corporations, have conveyed their intent to embark on investment ventures within the Algerian market. Rekkache underlined that numerous major companies are awaiting the implementation of the forthcoming law on economic land, a development that signals a significant uptick in Algeria’s investment prospects.
Thriving Investment Landscape
As part of its mandate, AAPI has successfully recorded a total of 66 new investment projects. These encompass 41 partnerships between local and foreign entities and 25 direct foreign projects, collectively valued at over 834 billion dinars. These projects have the potential to generate nearly 9,000 job opportunities, contributing to Algeria’s economic growth.
Since commencing operations in November 2022, AAPI has facilitated the registration of 3,120 projects through decentralized one-stop shops and the one-stop shop for major projects and foreign investments. The cumulative value of these projects surpasses 1,731 billion dinars. Rekkache projected that by early 2024, around 10,000 projects are expected to be registered, largely driven by the forthcoming law on economic land.
Diverse Investment Avenues
Of the registered projects, 3,054 (representing 97.8%) are spearheaded by local investors, boasting a combined worth of 896 billion dinars. These projects hold the potential to generate over 70,000 jobs, fortifying Algeria’s workforce and economic dynamism. Among the standout achievements, 17 megaprojects have been recorded by AAPI, signifying the substantial scale of investment ambitions in the country.
Turkey and China emerge as frontrunners in foreign investment intentions, with 25 and 11 projects respectively. In terms of sectoral distribution, industry dominates with 1,595 projects valued at over 1,330 billion dinars. The building sector, public works, hydraulics, transport, agriculture, services, tourism, and health follow suit, collectively shaping Algeria’s diversified investment landscape.
Rekkache anticipates a transformative surge in investment activity post the promulgation of the economic land law, estimating that the average number of monthly investment projects registered with AAPI will escalate to 1,000, as opposed to the current 350.
Economic Diplomacy: A Catalyst for Growth
Rekkache accentuated the pivotal role played by Algerian economic diplomacy in attracting foreign investments to the local market. Algerian embassies, through targeted efforts, have been instrumental in disseminating information about investment opportunities and the advantages offered by the new investment code.
In conclusion, Algeria’s efforts to foster a conducive investment climate have yielded impressive dividends. The nation’s proactive approach, bolstered by strategic legislative and policy measures, is driving heightened interest from foreign investors. With the impending launch of the partnership grant, Algeria’s investment landscape is poised for a transformative period of growth and diversification.
