Description
Algeria remains a lucrative but challenging market for many U.S. businesses. Economic growth has been primarily driven by oil and natural gas, accounting for 96% of exports, 40-45% of GDP and 60% of budget revenues. The drop in oil prices, while affecting Algeria’s main revenue stream, has spurred the Algerian Government (GoA) to attempt to lower the country’s sizable import bill through a policy of diversification that involves more local private-sector participation in the economic process. With its most recently announced public spending initiative, the 2015-2019 USD 262 billion investment plan, the GoA has targeted non-hydrocarbon sector investments, attracting greater foreign direct investment, and lessening the high unemployment rate of Algeria’s younger generation. Private sector contacts also acknowledge the growing imperative to both open up and diversify the economy and are nearly unanimous in saying that multiple sectors potentially offer substantial opportunities for long-term growth for U.S. firms that choose to invest in Algeria. Sectors targeted for robust investment include agriculture, tourism, information and communications technology, construction infrastructure, and health.
