Skip to content Skip to Search
Skip navigation

Algeria’s UK ambassador: ‘We must modernise our economy’

By Alicia Buller
Hydrocarbons account for 93 percent of Algeria's exports and draw international investment APP via Reuters Connect
Hydrocarbons account for 93 percent of Algeria's exports and draw international investment, but the country is keen to expand its economy
  • Economy relies on oil and gas
  • Ambassador says reform needed
  • Agriculture and tourism are targets

Weeks after presidential elections in which the incumbent, Abdelmadjid Tebboune, was re-elected, Algeria has set its sights on systemically modernising its economy, having seen what it says are positive results from introducing investment reforms and enabling 100 percent foreign ownership in some sectors.

“We hope the economy will continue to grow with more reforms … we want to make it the most attractive country in the region,” Nourredine Yazid, Algeria’s ambassador to the UK, said at a roundtable discussion in London on Thursday, organised by the Arab British Chamber of Commerce.

In 2022 the north African state introduced a revised investment law which offers a range of incentives for international investors and aims to promote “transparency and equality” for both domestic and international participants.

The legalisation, officially known as Law 22-18, accompanied the easing of the “49 percent-51 percent rule”, which required majority shareholding by Algerian local partners.

These legal amendments have formed the backbone of national efforts to modernise and diversify Algeria’s economy away from near-total hydrocarbon dependence. 

Algeria is Africa’s largest gas exporter and number three oil producer. Hydrocarbons comprise 93 percent of its total exports, according to the World Bank. 

Nourredine Yazid, Algeria’s ambassador to the UK
Nourredine Yazid, Algeria’s ambassador to the UK

The International Monetary Fund said Algeria’s economy grew by 4.2 percent to $245 billion in 2023, as a result of a rebound in hydrocarbon production and strong performance in other sectors. The IMF expects growth to remain strong at 4 percent in 2024, supported in part by large fiscal spending.

Algeria was one of only four countries worldwide that moved across the threshold from a lower-middle income to upper-middle income classification, the World Bank announced in July.


Yet despite these steps forward, Yazid admitted that Algeria has work to do to strengthen its political, economic and financial systems.

“We want to speed up reform and complete all the procedures but unfortunately, like many countries, we have a lot of bureaucracy,” Yazid said. “We are in a transition from a government-run country to a more privatised country. There are more changes coming in the next few months.” 

He suggested Algeria would be focusing heavily on reforming its banking sector, among other measures.


President Tebboune has previously said he would focus on reforming the economy and finance. Algeria’s CPA bank (Credit Populaire d’Algerie) said in January that it would offer 30 percent of its capital for private investment. 

‘One-stop’ support

Yazid said the Investment Law in 2022 laid the groundwork for the establishment of the Algerian Agency for Investment Promotion (AAPI), a “one-stop shop” that aims to support domestic and international investors. 

Eni of Italy and TotalEnergies of France are both investors in upstream oil and gas. Citibank and HSBC also have branches in Algiers. In the auto sector, Stellantis is increasing production while JAC, Geely and Chery of China have said they will manufacture cars. Both Renault and Hyundai have also resumed operations in the country. 

The AAPI, now under the direct rule of prime minister Abdelmalek Sellal, has a wide-ranging remit, including supporting investors with finding and buying land and helping to arbitrate disputes. It also facilitates tax breaks of between two and 10 years depending on the sector and type of investment.

“Algeria wants to attract domestic and foreign investment for multiple industries and we can only do this through continuous transformation of our political, social and economic stability,” Yazid said.

The major industries Algeria is looking to develop include agriculture, tourism, logistics, banking, technology, green energy, railways, mining and steel.


Farms and fancy hotels

Yazid said the Algerian government has earmarked agricultural areas of around 48 million hectares, most of which is in the deep south of the country. 

“We are in the process of irrigating large strips of land so they become arable and can produce Arab seeds, sunflower and soya beans and so on,” he said.

In April Qatari food company Baladna and the Algerian Ministry of Agriculture and Rural Development signed a $3.5 billion deal to develop the world’s largest integrated dairy farming and production project in the south of the country. The ambassador said Algeria is keen to attract more international investment into meat, dairy and vegetable production.

Yazid also highlighted the tourism sector as being ripe for growth. He said that the government has already reserved 58,000 hectares for tourism development, along the coast and in the highlands. 

“But our approach is not mass tourism,” he said. “We don’t want to build huge complexes. We are more in favour of the boutique hotel approach.”

Latest articles

Gulf airlines, Gulf airlines conflict, Gulf conflict risk, Gulf flights cancelled rerouted

Conflict risk leads Gulf airlines to cancel regional routes

Gulf airlines are among airlines that have cancelled and rerouted flights across the Middle East as the conflict between Iran and Israel escalates. They are avoiding Iranian airspace and many have cancelled routes entirely following a major missile attack by Iran against Israel on Tuesday. Immediately after the attacks about 80 flights operated by carriers […]

Taaleem's schools offer 'exclusive educational experiences' including access to high-tech equipment profits

Dubai school operator Taaleem increases profit by 55%

Dubai school operator Taaleem has reported revenue of AED945.2 million ($257.3 million) for its 2023-24 financial year – a 15.5 percent year-on-year increase. More student enrolments and the opening of new schools helped Taaleem to increase net profit before tax by 55 percent, to AED182 million, in the financial year ending August. Taaleem’s shares were […]

Shein IPO

Mubadala-backed Shein courts investors before London IPO

Chinese fashion retailer Shein, which is backed by the Abu Dhabi sovereign wealth fund Mubadala, is courting European investors before an initial public offering on the London Stock Exchange. Shein is due to hold informal meetings to answer questions and test the investment appetite of major investors in the coming weeks, before its planned IPO […]

Workers stand on a scaffold in Dubai. Building a high rise in the UAE can be as much as two thirds cheaper than in other major cities

Apartments in UAE among cheapest to build in the world

Building a standard residential high-rise in Dubai or Abu Dhabi is up to two-thirds cheaper than in other major global cities, thanks to land, labour and raw materials all costing much less. Land is up to three times cheaper in the UAE compared with the prices paid in New York, London, Hong Kong and Singapore […]