Construction & Real Estate
From The Report: Algeria 2017
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Major projects in transport and housing are in the pipeline, though a flatter rate of expansion and an increased focus on priority projects are expected due to investment cutbacks. Affordable pricing is of the utmost importance. In late 2017 the government stressed that housing and infrastructure development are key priorities, and the 2018 budget will see an 8% rise from 2017 in funding allocated to social transfers, including social housing. Thriving revenues from hydrocarbons led to a period of widespread residential building in Algeria, with the housing segment leading the construction sector as the largest market in 2011-15, accounting for 41% of the total. Sustained growth is forecast until 2020, driven by an urbanisation expansion rate of 2.7% and a rising population.

This chapter contains interviews with Abdelghani Zalene, Minister of Public Works and Transport; and Rabah Guessoum, CEO, Algerian Industrial Cement Group.

Articles from this Chapter

Overview

Building possibilities: The focus remains on transport infrastructure and housing
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As a key industry for Algeria’s economic development and diversification, the construction sector’s growth forecast remains positive despite the slowdown of the wider economy. There are major projects in transport and housing in the pipeline, though a flatter rate of expansion is expected due to investment cutbacks, and the buoyant curve of the sector’s inflow throughout 2012-16 has begun to dip. With the aim of building on previous advancements, the government launched a €233.7bn…

Interview

Planning ahead: Abdelghani Zalene, Minister of Public Works and Transport, on modernising infrastructure and encouraging investment
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Interview:Abdelghani Zalene How do you expect public spending to evolve in the sectors overseen by your ministry? ABDELGHANI ZALENE: The country’s current economic juncture is conditioned by low oil prices. This shock has been absorbed thanks to infrastructure projects realised through development plans. Our approach is to maintain efforts to rationalise public spending through tighter controls and greater efficiency of state investments. We also aim to improve the organisation of projects…

Interview

Solid foundations: Rabah Guessoum, CEO, Algerian Industrial Cement Group (Groupe Industriel des Ciments d’Algérie, GICA), on meeting growing cement demand
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Interview:Rabah Guessoum What are the ambitions of GICA in terms of growing its production capacity over the coming years? RABAH GUESSOUM: Total production today exceeds 12.5m tonnes of cement per year, which represents 55% of the Algerian market. To meet the growing demand, an ambitious development programme is under way to strengthen production capacities and diversify the product range for cement. With an investment of AD243bn (€2bn), the programme should allow GICA to reach production…

Overview

Stock answers: The government continues to address the housing shortage
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Thriving revenues from hydrocarbons led to a period of widespread residential building in Algeria, with the housing segment leading the construction sector as the largest market in 2011-15, accounting for 41% of the total. Sustained growth is forecast until 2020, driven by an urbanisation expansion rate of 2.7% and a rising population surpassing 40m. The minister of housing and urban development at the time, Abdelmadjid Tebboune, who also served as prime minister, said in early 2017 that…