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Building confidence: Efforts to upgrade infrastructure are multiplying the number of projects across all sectors
OBG
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The continuous process of upgrading existing infrastructure is helping Algeria to open up its economy as it diversifies activities away from hydrocarbons, and has delivered a boost to contractors and construction firms, particularly in the private sector. Overall, Algerian authorities are set to invest €222bn between 2009 and 2014, involving construction firms at a variety of levels. Funds will…

Overview

Provincial growth: There is plenty of scope for further development, particularly in agro-industry and food processing
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One aspect of Algeria’s push to diversify national revenue sources away from the hydrocarbons sector is to strengthen activity in regional markets outside of cities like Algiers or Oran, to foster job creation in outlying wilayas (provinces) and cultivate secondary and tertiary industries throughout. While in many cases the initiatives and projects designed to buttress this move and decentralise…

Overview

More modern shoppers: New retail spaces and brands are opening up the market
OBG
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Rising incomes facilitated by Algeria’s economic development, coupled with increasing exposure to international brands and modern outlets, are combining to create the right environment for retail expansion. Although most sales are still channelled through the informal sector and small, family-owned stores, growing examples of successful, large-scale retail shopping developments over the past…

Overview

Opening up: International participation and a more agile legal framework should help the sector realise its potential
OBG
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Although momentum slowed following the global financial crisis that began in 2008, Algeria’s real estate market has remained buoyed by its strong fundamentals. Government-led investment is driving sector growth, not only in the more populated regions of the north, but also through expansion of developments across the country’s central and southern areas. Construction remains an important…

Overview

New horizons: A slowly advancing sector has plenty of room for growth and technological development
OBG
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The Algerian banking industry remains dominated by six state-owned banks, which account for the majority of market share; however, private institutions, all of which are foreign-backed, are growing rapidly. In contrast to Morocco and Tunisia, the sector is characterised by very high levels of liquidity, which makes for a stable financial system but also points to a lack of intermediation that has…

Overview

Going local: A rapidly growing industry is on its way to meeting demand through domestic production
OBG
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After decades of heavily relying on imports to meet Algeria’s food needs, the agriculture sector has made significant strides since 2008 under the Agricultural and Rural Renewal Policy (Politique du Renouveau Agricole et Rural, PRAR). This was launched in 2008 to enhance output of key crops, stimulate rural development, strengthen training and provide technical support. The PRAR has proved successful…

Overview

Accessing care: Investment in infrastructure helps meet demand in line with a shifting disease burden
OBG
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Since the country gained independence in 1962, Algeria’s health indicators have seen a significant improvement. Life expectancy at birth currently stands at 77.3 years for women and 76.6 for men, up from an average 49 years in 1962, and the country has a vaccination coverage of 98%. Nevertheless, chronic illnesses such as cardiovascular diseases and cancer have come to constitute today’s main…

Overview

Sizing up the market: Promoting growth via a stronger financial mandate and greater talent
OBG
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Following several years of steady growth, business in the tourism industry continues to show encouraging signs. Although the number of foreign visitors is progressing only slowly, the pace of investment, particularly in hotel construction, has quickened considerably over the past five years (see Construction chapter). This can be attributed to efforts under the National Tourism Development Plan…

Overview

Strong prospects: The outlook for growth in the market appears promising as reforms set in and more life firms are established
OBG
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As is the case in many emerging markets, the Algerian insurance sector is characterised by both low penetration rates and much room for growth, particularly given the large domestic market and robust outlook for retail segments. The life segment is small and shrank in 2012 following the compulsory separation of life and non-life businesses. Despite this, in 2013 there have been signs that this…

Overview

A foundation for life: Private sector provision is expanding to absorb an increasing number of students
OBG
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Public education in Algeria is free and remains the primary provider of services. In 2010 the government allocated some AD852bn (€7.84bn) to a five-year investment plan, with much of this funding to go towards the construction of new schools. The delivery of new infrastructure is progressing slowly, resulting in continued overcrowding in certain wilayas(provinces) for younger classes. However,…