A series of multibillion-dollar Gulf investment announcements suggests Algeria is emerging as a more appealing destination for regional capital after lagging behind regional rivals, but economists believe significant challenges remain.
While official data on GCC investment in Algeria is scant, Gulf companies have launched at least $9 billion in projects over the last 18 months, indicating a resurgent interest following years of wealth flowing primarily to Morocco and Egypt.
One of the most significant foreign-backed projects is Qatar’s Baladna, which is investing $3.5 billion with Algeria’s National Investment Fund to build one of the world’s largest integrated dairy projects in the southern province of Adrar. The initiative hopes to lessen the country’s reliance on imported milk powder while increasing domestic food security.
Saudi Arabia has also increased its footprint. Midad Energy has signed a $5.4 billion agreement with Sonatrach to develop the Illizi South gas field, making it one of the kingdom’s largest private-sector investments in Algeria.
The OECD projects that by 2022, investors from the Mena area will account for around 15% of Algeria’s total foreign direct investment stock of $23 billion. This translates to approximately $3.5 billion, albeit it includes countries other than the GCC group comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.
Also Read:
Mohd Firoz Khan On Empowering Business Growth In The UAE: Strategies For Success And Innovation
João A. F. Pessoa’s Vision In Driving Success Across Large-Scale Projects
