ALGERIA: GROWING POTENTIAL
• ALGERIA is the second largest country in Africa, the Arab world, and the Mediterranean Basin.
• ALGERIA has one of the largest natural gas in the world and oil reserves.
• Strong revenues from hydrocarbon exports have brought Algeria relative macroeconomic stability.
• Per capita GDP 584 billion of International dollars in 2015
• GDP is $238 billion in 2015
• In 2013, Algeria bought US$58.3 billion worth of imported products.
• Algeria’s main imports are industrial supplies, construction products, foodstuffs, machinery, transportation products, textile &furniture and consumer goods. Algeria's main exports are petroleum, natural gas, and petroleum products.
• Algeria's economy has seen significant reforms in recent years.
• Continuous improvements to the economy of Algeria are being made by the government, which has had a positiveDynamic growth in Algeria‘s construction sector
The construction industry is among the fastest growing sectors in Algeria. Indeed, the creation of new housing is one of the country‘s greatest challenges.
Algeria, a middle-income economy, is heavily dependent on its hydrocarbons industry. Oil and natural gas are the major growth drivers, accounting for 30.0% of GDP, 60.0% of budget revenues and over 95.0% of the export earnings in 2013. The government has actively pursued a policy of diversification, and imposed restrictions on imports and the involvement of foreign enterprises, with the aim of reducing its dependence on oil. The five-year development plans are being implemented to encourage investments in non-oil and gas industrial activities in order to bolster the private sector, attract foreign investments.
Algeria's construction sector saw relatively healthy growth in 2015, and with an uptick in GDPgrowth forecast in 2016 it is expected this trend to continue moving forward...
As part of the 2010–2014 five-year plan, a number of health projects were proposed, resulting in the establishment of 1,500 health facilities, which includes the construction of 1,000 health centers, 172 hospitals, 377 clinics, 45 specialized health complexes and 70 specialized institutions for disabled persons.
Construction industry value is expected to grow by, on average, just under 5% a year between 2015 and2024, increasing from USD22.8bn to USD47.4bn by the end of the current forecast period.
The government continues to address the housing shortage, committing to the construction of 1mn new housing units by 2019.
The imports of construction materials in Algeria witnessed an increase in 2015 by 15.6 per cent valued at US$3.65bn, stated the National Statistics and Data Processing Centre (CNIS)
The increased need for infrastructure was one of the main reasons for the increase in construction materials imports. Leading importers of products from Algeria include Spain, Italy, France, Britain, The Netherlands and USA. Some of the leading product suppliers in Algeria include China, Spain, Italy, Germany and the USA. The key trends and developments in Algeria's infrastructure sector are:
• Construction industry value is expected to grow by, on average, just under 5% a year between 2015 and 2024, increasing from USD22.8bn to USD47.4bn by the end of the current forecast period.
• Government spending is set to increase, with total capital investment forecast to increase from 35.8% of GDP in 2015 to just under 40% of GDP by 2024.
• The government continues to address the housing shortage, committing to the construction of 1mn new housing units by 2019.
• Algeria continues to pursue development of nuclear energy, signing an agreement with Russia which covers design, construction and the operation of nuclear power plants as well as the potential exploration and operation of uranium deposits.
• Construction has commenced on a 1,000 km long east to west highway which will connect Batna and Khenchela - work will be carried out by public and private Algerian firms.