NABC and Algeria
In June 2022, a business delegation from Algeria attended NABC’s flagship conference Africa Works! 2022 Innovation for Resilient Growth. The delegation of members of The Algerian-Netherlands Business Council (CAAN) and the Council of Algerian Economic Renewal (CREA) visited Dutch companies that are active in agriculture and in waste-management, as well as the Port of Rotterdam. The company visits were followed by a matchmaking session between Algerian and Dutch companies.
In November 2021, the NABC participated alongside several of its member companies in the Netherlands Pavilion at the Logistica trade fair in Algiers to which the Netherlands were welcomed as the fair’s ‘country of honour’.
Further, to renew cooperation with the Algerian-Netherlands Business Council (CAAN), in operation since 2015, NABC’s country expert visited Algeria in June 2019. CAAN is an independent body which is closely cooperating with NABC. The launch of the official hub was organized within the frame of a two-day visits focusing on developing business opportunities for Dutch companies in Algeria.
NABC and CAAN renewed their cooperation agreement in 2019, after the leadership of CAAN had changed significantly in the aftermath of the Hirak-revolution in Algeria. The new CAAN leadership visited the Netherlands in August 2019, to sign the MoU agreement during the Algeria Round Table at the NABC offices in the Hague. During this Round Table Mr. Abdellah Aidaoui, the Secretary-General of CAAN, showcased business opportunities in Algeria while Mr. Alwin Oud, the President of CAAN and an only permanently based Dutch entrepreneur present in the country shared his story.
In October 2019, CAAN and NABC cooperated with the Dutch embassy in Algiers and jointly set up a Holland Pavilion during the Sipsa Filaha agricultural Trade Fair.
Investment climate
Algeria is the largest country and fourth largest economy in Africa, and despite being a state enterprise-dominated market, it offers some of the most compelling opportunities for long-term growth on the continent. Many foreign companies operating in Algeria report double-digit annual profits, underscoring the country’s potential as a profitable and resilient market. Promising sectors include agriculture, tourism, ICT, manufacturing, construction, healthcare, and above all, energy (both fossil fuels and rapidly expanding renewables).
The energy sector, anchored by the national hydrocarbons company Sonatrach, remains the backbone of the economy, accounting for more than 95% of export revenues and around 30% of GDP. At the same time, the Algerian government has placed diversification at the heart of its development agenda, prioritising foreign direct investment (FDI) and local production growth. This approach is already yielding results: non-hydrocarbon exports tripled between 2017 and 2023, reaching US $5.1 billion. Key projects in mining, rail, agri-food, and renewable energy are creating new opportunities for international partnerships and job creation.
Algeria’s investment climate is gradually improving as the government pushes for economic diversification beyond hydrocarbons. New sectors such as fertilisers, steel, and cement are driving this growth. At the same time, Algeria has modernised trade infrastructure, with the launch of the Algerian Port Community System in 2021 to streamline cargo clearance. The 2022 Investment Law also introduced tax incentives, customs waivers, and simplified procedures, backed by the Algerian Investment Promotion Agency (AAPI), which now operates a digital one-stop shop for investors.
Foreign direct investment (FDI) has shown encouraging signs of recovery, rising from US $254 million in 2022 to US $1.2 billion in 2023, though still modest relative to GDP. UNCTAD figures point to inflows of US $1.9 billion in 2022, with further growth expected. Investment opportunities are concentrated in energy (both hydrocarbons and renewables), agriculture, automotive assembly (with companies like Renault and Fiat), and agri-food processing. Large-scale projects include China’s US $36 billion deal to build 6,000 km of railway linked to the Gâra-Djebilet iron ore mine, as well as the Bled El Hadba phosphate complex, a US $7 billion megaproject with China expected to start operations in 2027.
International partners have been stepping up financial and technical support. The World Bank reports that non-hydrocarbon GDP grew by 4.8% in 2024, while inflation fell to 4.0%, highlighting a more stable macroeconomic environment. In June 2025, the IMF noted Algeria’s strong near-term outlook but warned of persistent fiscal vulnerabilities, with the budget deficit reaching 13.9% of GDP in 2024. The Fund recommended fiscal restructuring, exchange rate flexibility, and governance improvements. Additionally, the Islamic Development Bank pledged US $3 billion in loans for Algerian projects over the next three years.
Opportunities in Algeria
Algeria offers a wide range of investment opportunities across strategic and emerging sectors. Agriculture is a priority area, with significant government support to increase productivity and reduce food imports (World Bank). The country is also investing heavily in (sea)port development and maritime logistics, supported by new trade infrastructure such as the Algerian Port Community System. Large infrastructure projects including the Trans-Sahara Highway, linking Algeria to West Africa, and participation in the African Continental Free Trade Area (AfCFTA) are enhancing Algeria’s role as a regional trade hub.
Opportunities also exist in the energy sector, where Algeria is not only a major global gas exporter but is also making strides in renewable energy and the circular economy. Recent agreements with international partners highlight Algeria’s ambition to become a key player in solar and green hydrogen projects. Other growing industries include manufacturing, ICT, construction, and healthcare, all supported by a government agenda to diversify the economy.
With a young, highly educated, and growing population, Algeria represents a dynamic consumer base and skilled labor pool. The country is classified as an upper-middle-income economy, and its relatively high level of social development creates a stable foundation for long-term business expansion.
Challenges in Algeria
Despite these opportunities, Algeria continues to face challenges that foreign investors must navigate. Unemployment, particularly among youth, remains a concern, though the government has introduced entrepreneurship and start-up programs to address this issue (IMF).
Regulatory and market access issues are another hurdle. Although the restrictive “51/49 rule” has been lifted in most sectors since 2019, it still applies to strategic industries such as hydrocarbons, mining, defense, and pharmaceuticals (Lex Africa). Some protectionist policies, including import restrictions and tariffs, remain in place to encourage domestic production (Trade.gov).
Businesses also report practical challenges related to bureaucracy, customs procedures, and currency exchange requirements, which can slow down supply chains and raise operational costs. In addition, frequent changes to laws and uneven implementation can increase perceptions of commercial risk for foreign investors.
That said, Algeria has made significant progress in improving its business climate. Reforms under the 2022 Investment Law include tax exemptions, customs waivers, and guarantees to support export-oriented projects. The creation of the Algerian Investment Promotion Agency (AAPI) with a digital one-stop shop is streamlining investor services. Supported by financing from institutions such as the Islamic Development Bank and technical engagement from the World Bank, Algeria is steadily moving toward a more attractive and predictable investment environment.
Diplomatic relations
The Netherlands
Embassy
The Netherlands is represented in Algeria by Ambassador Anneke Luwema, who took office in 2024. There is also a Dutch agricultural counselor stationed in Algiers.
More information (French): Click here.
Algeria
Embassy
Algeria is represented in The Hague by Ambassador Ms. Salima Abdelhak, who took up office in December 2021.
More information (French): www.embalgeria.nl
Presence of Dutch companies
There are 69 Dutch companies active in Algeria at the moment. The country is interested in working more closely with the Netherlands on economic matters, and welcomes new businesses.
Webinars
June 16th, 2020. Doing Business in Algeria. The recording is available on our YouTube channel.