Algeria 2026: The Economy of Balance

Algeria is entering a rare phase of consolidation that combines monetary stability, industrial renewal, and geopolitical repositioning. After years of constrained dependence on energy revenues, the state is now converting its surplus into productive leverage — 31 billion USD in hydrocarbon revenues as of September 2025, reinvested in infrastructure and diversification.

Inflation, contained at 2.7 % in August, reflects disciplined price management and targeted import regulation. The goal of 5 billion USD in non-hydrocarbon exports by year-end marks a decisive shift away from rent-based economics. Fiscal stability rests on a clear choice: no external debt, and growth anchored in internal capacity — energy, agriculture, industry, and digital technology. Algeria is entering a decade of equilibrium: financial sovereignty, energy continuity, and pragmatic openness to international investment.

The 2025–2026 trajectory confirms this transition. Growth is expected to reach 3.4 %, supported by manufacturing and public investment. Algeria now ranks 7th most attractive investment destination in Africa, up three places in one year. The 2026 budget sets the fiscal oil price at 60 USD with 17 636 billion DZD in public spending, largely directed toward industry and innovation. The informal economy, estimated at 30 to 35 % of GDP, is being formalized through financial inclusion and entrepreneurship. Low inflation, stable currency, and restored fiscal margins create a predictable environment for industrial partnerships and foreign investors.

The transformation is visible across key sectors. In energy, Algeria recorded 13 oil discoveries this year, signed over 1 billion USD in new contracts, and prepared a 2026 exploration tender. Partnerships with ENI, Midad Energy, ExxonMobil, Chevron, and Petrojet confirm its dual role as energy supplier and industrial operator. In industry, the National Modernization Plan is reshaping production: the revival of the Ouled Moussa steel complex, expansion of Tosyali, the repositioning of Getex, and the success of Alger Textile 2025 show that competitiveness is replacing protectionism.

The agri-food sector is moving toward self-sufficiency. The Kotama Agri Food complex in Jijel anchors the national oilseed strategy, while new export contracts signed in Madrid strengthen Algeria’s footprint in European markets. Import regulation in agriculture and pharmaceuticals reinforces visibility and transparency. In finance, lower interest rates for investment loans and an 8.1 % growth in the insurance market highlight a pro-business stance. The launch of cyber-risk coverage products and the forthcoming Algerian External Bank offices in France mark a new stage in Euro-Mediterranean integration.

The digital transition is equally strategic. The Medusa undersea cable will secure Algeria’s digital sovereignty and link the country directly to European data routes. The rollout of the electronic patient record and regulation of e-commerce reflect an effort to protect users while fostering competitiveness. In tourism, Oran was named Africa’s best emerging destination, and the national hotel renovation program is progressing. The first export of Algerian escargots to Italy may seem anecdotal but symbolizes diversification in motion.

The human capital story supports this trajectory. 100 799 jobs have been created through the unemployment-to-employment program, 50 000 entrepreneurs registered since 2024, and over one million microprojects financed by ANGEM since 2004. Decentralization strengthens local execution: regional governors (walis) now control industrial land allocation and investment facilitation. Simplified taxation and administration build a more credible business climate. The UGTA union warns of AI-related job risks, prompting investment in retraining. Environmental initiatives such as the planting of 1.3 million trees underline the long-term vision.

Algeria is consolidating its position as the industrial and logistics pivot of a productive Maghreb. Fiscal discipline, export-ready industries, and a revitalized labor market make it one of the few African economies combining stability and reform. For European companies, Algeria offers proximity and competitiveness — a strategic base for Africa. For Algerian entrepreneurs, it represents structured, secure access to European markets.

For leaders exploring market entry or bilateral partnerships, Advocaciz / Business Public Affairs structures the institutional and operational bridges between both shores.

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