Algeria - Country Commercial Guide
Market Opportunities

Overview of best prospect sectors, major infrastructure projects, significant government procurements and business opportunities.

Last published date: 2021-10-11

Despite the challenges, Algeria offers U.S. exporters significant opportunities, primarily in government-controlled sectors, especially for companies with the resources to undertake extended and slow-paced business development efforts.  Within this context, the most promising areas for U.S. trade and investment include:

  • Oil and Gas –In December 2020, the government passed a new law to attract additional foreign investment in exploration and production over the next decade.  To support these efforts, the national oil company estimates that it will work with numerous smaller companies in reservoir management, well selection and completion, drilling, gas processing, site management, and digital monitoring.
  • Power - By the end of the decade, Algeria hopes to add more than 18,500 megawatts of additional capacity to its power grid by hybridizing existing diesel and gas turbines, adding renewable energy to its generation mix, and constructing seven new combined cycle power plants. It will also build a new smart grid and metering system, along with more than 30,000 km of transmission systems.
  • Defense - With an annual defense budget of more than $10 billion, Algeria is Africa’s most prominent defense market, and it depends on foreign suppliers, namely Russia, for most of its equipment. Despite Algerians’ dislike of U.S. end-use monitoring requirements, opportunities for American companies exist in military communications, surveillance electronics, drones, and ground vehicles.
  • Information and Communications Technologies (ICT) – Motivated by the fact that it lags other African countries in ICT infrastructure, the government will make significant investments in its national ICT infrastructure.  Pending investments present opportunities for U.S exporters of servers, data centers, integrated cloud computing solutions, and fiber optic cable.
  • Infrastructure– Having invested billions in the last decade in new expressways, airport terminals, mass transit systems, and water desalination plants, the government will spend approximately $41 billion through 2025 to complete and maintain this infrastructure.  American companies are poised to compete for project management and advisory services contracts related to the technically complex aspects of these civil infrastructure projects, especially considering the recent market exit of Algeria’s two largest national engineering, procurement, and construction companies.