سفارة الجزائر بنيودلهي
Ambassade d'Algérie à New Delhi
अल्जीरियाई दूतावास, नई दिल्ली
Embassy of Algeria in New Delhi
الجمهورية الجزائرية الديمقراطية الشعبية
République Algérienne Démocratique et Populaire
पीपुल्स डेमोक्रेटिक रिपब्लिक, अल्जीरिया
People's Democratic Republic of Algeria
Business Opportunities


Best Investments and Trade Prospects


• Hydrocarbons - Oil and Gas 

• Energy and renewable energy

• Phosphate, fertilizers & minerals

• Information and Communication Technology

• Public Works and Infrastructure Development

• Tourism facilities

• Healthcare

• Agricultural Sector

• Guarantees and advantages offered to investors

1.Oil and Gas – Hydrocarbons


The hydrocarbons sector is dominated by state-owned hydrocarbons company Sonatrach. Crude oil extraction capacity is around 1.42 million barrels per day, though currently running at roughly 1.2 million due to OPEC quotas. One-sixth of the total oil output is consumed at home, with the rest exported as crude, LPG or refined oil products.

 Algeria is the leading natural gas producer in Africa, the second largest natural gas supplier to Europe outside of the region and one of the top three oil producers in Africa.

 Oil and natural gas export revenues accounted for approximately USD 63.8 billion last year. 

 The Algerian government enacted new contractual and fiscal provision in 2013 and 2014 in order to attract more foreign investment to new projects, particularly toward unconventional assessments. 

 Algeria is estimated to hold the third largest amount of shale gas resources in the world : 707 trillion ft3 and 5.7 billion bbls of technically recoverable shale gas and oil resources, respectively.The Algerian government is engaged in building two mega LNG plants, due for completion by 2015. When these projects come on stream, Algeria will increase its production by 50% and will have the capacity to export 85 billion cubic meters/ year compared to the present 60 billion cubic meters. 

 Because existing upstream and midstream infrastructures aging and inadequate to meet Algeria's near- term production goals, new investments have been put in solar and alternative energies and shale gas, and the construction of a fourth undersea gas pipeline to Europe is on the eve of starting.


 The law 05-07 April 28, 2005 which details the rate of tax on oil revenues is going to be amended. The major change is that, now on, the rate of taxes will be calculated on the basis of the profits made and not on the turnover. New rates of taxation will be implemented, function to the difficulties and the risks taken by the operators. The possibility will also be opened for the State to seek payments in nature. The same, the 1986 Act will also be amended through the introduction of better conditions for the investors, mainly the reduction of the royalties and of the levels of the super-profits taxation.

 However, these amendments will not be of a retroactive effect, and Sonatrach will benefit from the monopoly of hydrocarbons transportation on the Algerian territory. The Sonatrach national park piping installed by the company is estimated 18,000 miles.

 Sonatrach is presently working on a USD 80 billion investment program aiming especially at developing the petrochemical industry. The other major areas of investment include upstream exploration and development, hydrocarbons transportation facilities programs, hygiene and safety, shale gas drillings, and expansion of the solar-energy capture and distribution capacities.

 Among the distribution projects the most important are:

 The GALSI Project, which consists on the construction of a gas pipeline over approximately 1470 km, starting in Hassi-R'Mel to reach Roma (Italy), with an offshore section connecting the Algerian coast to Italy via Sardinia. With an initial capacity of 8 billion m3/year, the pipeline is expected to serve Italy, the South of France and the European countries to the North of the Alps and;

The 4200 km length TSGP project, 2310 km of which on the Algerian territory, which will connect the terminal departure of Warri (Nigeria) to the arrival terminal on the Algerian coast and will allow to transport a volume of natural gas estimated between 18 and 20 billion m3/year.

Indian companies can also consider a participation in new development projects:

 The construction of 4 new refineries of 5 million tons/year each in Biskra, Tiaret, Ghardaia and Hassi Messaoud and;

A 4.5 million tons /year fuel oil conversion project in Skikda

As long as shale gas is concerned, the reserves are estimated at 600 trillion m3, with a recovery rate of 20%. The State is assessing the exact potential in different regions of the country. A first pilot studies of exploration/exploitation have been realized in June, with the support of Italian oil giant Eni and the Royal Dutch Shell. A second is being prepared for November. 

 2.Power Sector and Renewable Energy


 Sonelgaz, the country's public utility in charge of electricity generation and distribution, is pursuing a large-scale investment program to almost double electricity generation capacity in the next four years. The company has already made notable strides, as capacity increased by about one-third from 2011 to 2013. Electricity generation capacity reached 15.2 gigawatts (GW) at the end of 2013, up from 12.9 GW at the end of 2012 and 11.4 GW at the end of 2011. Sonelgaz has brought additional capacity online to keep up with demand needs. In the past, Sonelgaz has imposed rationing to balance electricity supply and demand. In 2012, the government enforced power cuts that provoked public protest in the summer months.

 During the Five years Program 2015-2019, Sonelgaz will invest $ 39 billion in the gas and electricity transport and distribution. This amount has to be added to the $ 45 billion investment in electricity generation. A mega complex of gas turbine, whose construction has started at Aïn Yagout (wilaya of Batna) for about 3 billion, requires the creation of tens of small and medium-sized companies producing over 10,000 components, with a rate of integration of 80% and above.

 At the end of 2014, the company will produce 200 megawatts from solar, a figure called to reach 400 megawatts at the end of 2015. 

 Endowed with significant resources of renewable energies and particularly solar and wind energies, for which the country has several sites among the most promising in world, Algeria has long delayed the use of more pollutant energies, like shale gas and shale oil, or the nuclear energy. Its governmental energy strategy is based on an uneasy arbitrage between energy resources’ exploitation, environment and sustainable development. 

 In this context, the building of a nuclear plant has been postponed to 2029, while the country reiterated its preference to increasing the share of renewable energy in its total supply to 30% by 2020 with a target of 22 GW of new capacity.

 Sonelgaz plans also to produce 3,000 megawatts of renewable energy, including wind power, by 2024.


 Algeria's power demand peaks during the summer months, and demand has reached 12.5 GW in the summer of 2014. Algeria's peak demand is expected to grow to 20 GW by 2017. As a result, Sonelgaz plans to add more than 12 GW of generating capacity by 2017-18. It plans also to commission a 12-turbine, 10 MW wind farm at Adrar this year, which is a pilot project for a wind capacity program that plans to bring online 639 MW by 2023.

 Sonelgaz has disclosed its plans to expand the generation of electricity over the next 10 years. Besides expanding the capacities for power stations working with natural gas, the largest energy distribution company in Africa announced its pathway for more renewable energy. 

 Until 2022, Sonelgaz intends to add 4.2 GW of renewable energy to the existing capacities. Of this, photovoltaics are expected to comprise 1.22 GW, CSP, 2.5 GW, and wind, 516 MW. The majority of the new projects are scheduled to come into operation from 2016 onwards. 

 To financially support the new green power projects, State has created a Renewable energy fund (FNER).



Algeria is a relatively minor exporter of phosphate and rock phosphate, accounting for 1.8 million tons in 2009. But plans are being implemented in order to reach 12 million in 2015 and 18 million by 2020. The public firm Pherphos has engaged partnerships with Indian, Australian and Pakistani companies for the building of three platforms of phosphate fertilizer plants, in the north-eastern part of Algeria (Tebessa), targeting an output in the range of 1-2 million tons of diammonium phosphate each. The site contains more than two billion tons of reserves. With the extreme south country's deposits, the total rock phosphate reserves of Algeria are evaluated between 4 to 6 billion tons.

 Presently, the mineral commodity exports include base metals (about USD 206 million), iron and steel (USD 197 million), industrial minerals (about USD 52 million), and precious minerals (about USD 4 million).

 About 28,000 people are employed in the mining sector, of which slightly less than one-half was in the private sector. Aggregate and stone production companies accounted for more than 60% of the mining sector workforce; clay production companies, 12%; phosphate production companies, 6%; and iron ore production companies, 5%.

 About 950 nonfuel mineral operations are active in Algeria, of which nearly 70% are aggregates, construction sand, or crushed stone operations. Private sector companies dominate the aggregate, common clay, gypsum, and sand sectors. Large- and medium-sized public-sector enterprises dominated the ranks of barite, bentonite, cement, natural gas, petroleum, and phosphate rock producers. The joint ventures of private and state-owned companies dominated the gold production sector, the helium production sector, and the steel production sector (Mittal Steel Annaba). About 450 exploration permits are in effect. Notable exploration and development and redevelopment contracts under negotiation include about twenty foreign companies.


 Several significant changes in production were posted recently. Mineral commodities with notable production increases include aggregate and crushed stone, barite, cement, dolomite, feldspar, iron ore, phosphate rock, salt, construction sand, steel, gypsum, pozzolan, quartzite, silica sand, silver, and zinc.

 Through the External Industrial Activities Sonatrach Holding, the downstream activity is also in charge of the management of a series of non-hydrocarbons projects:

 Zinc and lead mine exploitation project in the wilayas of Sétif and Tlemcen

Gold bearing prospects exploitation project in the wilaya of Tamanrasset

 An aluminium production complex in Beni Saf in the wilaya of Ain Temouchent

 Lead and massive zinc exploration in the wilaya of Sétif

Copper and gold mines exploitation in the wilaya of Ain Temouchent

Uranium project in the wilaya of Tamanrasset.

Gold mines exploitation in the wilaya of Tamanrasset

The giant iron deposit exploitation project of Gara Djebilet in the wilaya of Tindouf 

Some minerals, such as high-grade iron ore, phosphate, mercury, and zinc, have been exported since the early 1970s. Two state mining and prospecting corporation are looking for Indian partners, Ferphos, which had three production units and a port complex at Annaba, and Erem that specializes in conducting mineral researches.

 Since 2000, the government is proposing to foreign investors to develop mineral deposits held by the public mining companies. With Algeria’s proximity to Europe, its major minerals customer, the country’s base and precious metals are of interest to foreign investors. Recently, the government has signed a deal with an Emirati firm to set up an aluminum plant with a capacity of 1 million tons per year.

 4.Information & Communications Technology


 Government administrations, public services, banks, insurance and finance institutions are modernizing and digitizing their record-keeping with the assistance of Indian companies.

 Home Internet penetration rates remain below 15%, but business Internet usage is estimated at over 45%.

 Mobile phones (GSM) are commonplace, and Algeria is looking toward fourth-generation technology. Other services, such as GPS-based technology, also show potential.


 Since 2009, Algérie-Telecom, Algeria's state-owned phone company is developing a major 5-year USD 6 billion infrastructure development plan.

 Several key government ministries and public institutions have started the process of modernizing and digitizing their records, including the tax authority. These are large undertakings, requiring various consultative and solutions-based services.

 Government agencies are also providing increasing amounts of information on the Web and need Web-based information management services.

 Wi-Fi is expanding among government and business end-users and Business-to-business opportunities for ICT strategies and solutions are increasing.

 The e-Algeria 2013 Strategy is a Government program that aims to provide e-government and e- business solutions and nearly 300 on-line services for Internet users in Algeria.

 Indian companies can capitalize on the successful launch by an Indian launcher of the second Algerian satellite. The drafting of the cahier of charge of a USD 13 billion satellite network project aiming at answering the needs of ail the sectors of activity using satellite resources is in its final stages.

 5.Public Works and Infrastructure Development


 The previous five-year development plan helped the construction sector meet Algeria’s building needs. Public housing is a key part of this spending, with approximately 912,000 new houses built under the previous plan but demand continues to exceed supply. The new five-year plan (2015-2019) aims to build 1.6 million housing units, while encouraging higher quality construction. This includes the construction of several new cities, including at Hassi Messaoud, the center of Algeria’s oil and gas industry. As well as housing, the plan envisages construction of new education and healthcare facilities. There is also a demand for purpose built office space, especially in Algiers where many businesses work out of converted apartments. With tourism on the rise, developers are bringing forward projects for mid-range and business orientated hotels.

 The retail sector also offers real potential with the opening of Algeria’s largest shopping mall offering 31,000 square meters of commercial and retail space. This is part of the development of a new business district in the Bab Ezzouar area of Algiers.

 Another important urban development is the USD 8 billion makeover of the waterfront in Algiers, including the building of the world’s third largest mosque.


 The current five-year plan (covering 2010-14) allocates up to USD 150 billion for investments in transport and other infrastructure projects, such as roadways, rail systems, airport upgrades, public housing, hospital construction, water treatment, transportation, and electrification. A good example of the work envisaged under these plans is the East-West Highway running from the Tunisian to the Moroccan borders. 

 Indian firms are finding access to subcontracts offered through targeted bidding tenders, but they could do better in putting their ambitions at higher levels. They cannot continue to be sub-contractors of Western bidders.

 Moreover, 2,500 other kilometers of new road will be constructed and 8,000 kilometers of available roads rehabilitated. These developments are part of a long-term plan which targets to expand the road infrastructure to 112,696 kilometers.

 In addition, Algeria is building 14 new airports to improve on the capacity of both local and international airports, and 4 new ports to increase maritime transport for fishing. It is also allocating funds for the rehabilitation of old ports and the renovation of existing docks. It will be completing and/or renovating 20 fishing ports and building new ports in Algiers and Tenes to reduce the mounting pressure on the capital’s port.

 The government announced its intention to issue a global tender for the USD 6 billion new city of Hassi Messaoud project. Foreign firms have been invited to bid. The construction will take 96 months to complete. The new city project will contain more than 18,000 housing units, both individual and group residences. It will hold 32 nurseries and kindergartens, 22 elementary schools, six high schools, a Petroleum Institute, a research and development institute, sports fields, a health center, and a hospital with 240 beds.

 Other opportunities relate to water treatment and reclamation, remote sensing and safety systems for dams and hydroelectric projects, electric power generation projects, renewable energy projects including wind and solar, modernization/expansion of mining operations, development of asphalt bitumen, given the Government's concern about dwindling bitumen in country, and civil engineering techniques & technology to realize road construction in arid and desert climat.es. The latter is particularly sought after for the upcoming 1,300 km high plateau East-West Highway project, which includes 23 connector roads linking it to the already open coastal East-West Highway.

 The transportation sector has a USD 66 billion budget for projects for the five-year program 2010-2014. Civil aviation air traffic management and training, port improvement, and communications solutions offer good opportunities for Indian firms. The construction of a new container terminal in the Djendjen harbor also represents an interesting opportunity for Indian investors, as well as the construction of the two techno-cities of Bouinan and Sidi Abdallah.

 USD 1.58 billion have been allocated to the National Rail Transport Company (SNTF) for investments by 2015. The money will be used in the renovation and development of the undercarriage on two axes: the rehabilitation and modernization of existing equipment and the purchase of new equipment. The company will acquire 30 new diesel-electric locomotives and 17 passenger vehicles of different types, such as trams, electric cars and wagon beds for nocturnal trips. The new three-year program provides for the acquisition of 8 railcars in 2014 and nine others in 2015. The passenger experience will be further strengthened by the planned purchase of twenty mainline EMUs thirty cars and berths for overnight trains.

 For cargo, the country plans to buy electric locomotives and 380 dual voltage wagons with a capacity of 60 tons for dry bulk cargoes. This wagon will be able to operate on electrified lines and be used to transport ore, phosphates, and fertilizers.

 As for fleet maintenance of locomotives, the company is also looking for a foreign partnership to take advantage of technical assistance in the matter.

 The SNTF passenger traffic will reach 84 million per year in 2015, an increase of 160% over the current flow, and cargo would increase up to 13 million tons, a growth of 190%.

 6.Tourism commodities 


 Following 2 years of tourism boom, Algeria has announced the construction of 763 hotels in 48 different locations throughout the country. The project will double the number of available hotel rooms and will cost USD 5 billion.

 Most of the projects will be located on the coastal and desert provinces. The ministry of tourism has agreed with some international companies, such as Sheraton, Marriott International, and Golden Tulip, to start the project plan, since foreign investment would be an important part of the construction and financing of the project. A set of hotels will include three five-star enterprises, a Sheraton in Annaba and two Mariott in Constantine and Tlemcen, will be received.

 Algeria counted more than 3 million visitors in 2013, mostly Europeans. In the first half of 2012 the number reached 1.4 million and the long-term target is 10 million tourists by 2030.

 The new program aims to increase the hosting capacity by adding a further 86,000 beds, as well as creating 36,000 new jobs. Many of these investment projects are already underway, particularly in areas with significant tourism potential.


 The 2009 Supplementary Finance Act introduced nine economic, financial, and tax measures in order to boost the tourism sector within the framework of a "'2030 tourism development master plan", which emphasizes tourism as an activity with the aim to build facilities and create new job opportunities. These measures include reducing VAT from 17% to 7% for expenses related to tourism, hotels, spas, restaurants, travel, and tourist transport.

 There are currently 207 zones of tourist expansion available to investors on an area of 56,000 hectares.

 7 high-quality tourism centers will be realized, and divided into regional poles. The law provides investors with a 50% reduction in the center and 80% in the south for the cost of land concession for projects in the tourism field. Investors also receive a bonus from 3% to 4.5% for tourism projects and a reduced rate on customs duties for equipment acquisitions and furnishings. Lastly, investment in the tourism sector is facilitated through partnerships with six public banks. 



 The healthcare sector is among the most attractive market for Indian companies. The demand for medical equipment and disposals is considerable and depends largely on imported goods.

 The living standard of the population is improving. There has been an increased incidence in reporting of hypertension, diabetes, respiratory and cardiovascular diseases, and allergies.

 Algerians are increasingly conscious of cutting-edge medical services, such as laser corrective eye surgeries, panoramic dental radiology, and plastic surgery.

 Algerian imports of pharmaceutical products have maintained an upward trend for the first nine months of 2014. They totaled 1.85 billion USD .

 The volume of imports grew even more, 48%, and reached 22,700 tons. The total procurement of medicines for human consumption increased by 29%, and the quantity of imported products by 42% year-on-year.

 The coverage of the population needs by drugs produced locally will reach 70% by 2016. The present level of coverage is around 53%.

 Indian technology and products are usually perceived as high quality and price-competitive.

 To overcome the many shortcomings of the domestic market and better organize the sector, the Algerian Ministry of Health has set up new pharmaceutical supply establishments, designed to ensure the full and sustained availability of drugs.


 In an attempt to reduce the drugs bill, the Algerian government allocated to USD 250 million to the public pharmaceutical group “SAIDAL” to double its production in the coming five years. The Government aims to cover 70% of its medicine needs by 2016.

 Construction of 200 new public hospitals and private clinics throughout Algeria over the next decade will increase demand for medical equipment and supplies, as well as medical construction services.

Algerians increasingly turn to private clinics for outpatient care. Opportunities are growing for the design and management of such facilities as well as cutting-edge diagnostics and treatment equipment.

8.Agricultural Sector


 Algeria’s agricultural sector, which contributes about 8% of gross domestic product (GDP) but employs 14% of the workforce is unable to meet the food needs of the country's population. As a result, some 45% of its food is imported. The primary crops are wheat, barley and potatoes. Farmers also have had success growing dates for export. Cultivation is concentrated in the fertile coastal plain of the Tell Atlas region, which represents just a slice of Algeria's total territory. Altogether, only about 3% of Algerian territory is arable. Even in the Tell, rainfall variability has a significant impact on production. Government efforts to stimulate farming in the less-arable steppe and desert regions have met with limited success. However, herdsmen maintain livestock, specifically goats, cattle, and sheep, in the High Plateaus region.

 Arable land represents about 8 million hectares, of which 51% is dedicated to field crops, mostly cereals and pulses, 6% to arboriculture, and 3% to industrial crops. With the number of dams, being doubled about 11% of this arable land is now irrigated. However, Algeria's agriculture remains rainfall dependent, thus leaving the country still reliant on imports to fulfill demand for some food needs.

 About 70% of agricultural farms are of small sizes, i.e., less than 10 hectares, and 80% of the farms are individuals.

 More than 7,500,000 acres are devoted to the cultivation of cereal grains. The Tell is the grain-growing land. The productivity was increased substantially by the sinking of artesian wells in districts which only required water to make them fertile. Of the crops raised, wheat, barley and oats are the principal cereals. A great variety of vegetables and of fruits, especially citrus products, is exported.

 A considerable amount of cotton was grown at the time of the American Civil War in the United States, but the industry declined afterwards. In the early years of the 20th century efforts to extend the cultivation of the plant were renewed. A small amount of cotton is also grown in the southern oases. Large quantities of vegetable horse-hair, an excellent fiber, are made from the leaves of the dwarf palm. The olive, both for its fruit and oil, and tobacco are cultivated with great success.

 Algeria also exports figs, dates, esparto grass and cork. It is the largest oat market in Africa. Algeria is the first beans producer in the world, the 5th for the figs, the 6th for the date, the 8th for apricot, the 9th for artichoke and the 10th for almonds.

 Algeria’s fishing industry does not take full advantage of the Mediterranean coast, in part because fishing is generally done from small family-owned boats instead of large commercial fishing trawlers. However, the government is attempting to boost the relatively small catch—slightly more than 125,000 metric tons in 2005—by modernizing fishing ports, permitting foreigners to fish in Algerian waters, and subsidizing fishing-related projects.[Fishing is a flourishing but still minor industry. Fish caught are principally sardines, bonito, mackerel smelt and sprats. Fresh fish are exported to France, dried and preserved fish to Spain and Italy. Coral fisheries are found along the coast from Bona to Tunisia borders. The annual catch averages around 142,000 tons, 54% sardines.


 As a result of its geographic proximity to Europe and the lack of direct shipping lines between the Indian and North Africa, Indian exporters face stiff competition from EU suppliers. The transshipment of Indian exports through Europe significantly increases shipping costs.

Algeria, nevertheless, can become a market with good potential for Indian suppliers. Algeria buys for USD 80 to 110 million of Indian meat every year.

Algeria imports about 4.5 million metric tons of wheat every year. There is room for importation from India.

Algerian customs consider that about USD 120 million of Indian processed food enter Algerian market after being repackaged in the Middle-East. The Government wishes to stop this situation in facilitating more direct India-Algerian partnerships.

9.Guarantees and advantages offered to investors

 Guarantees offered

 The guarantees offered to foreign investors are of a classic nature. On the one hand, equal salaries are guaranteed since foreign investors have the same status as local investors with respect to privatization; and texts do not set any limit to foreign investors’ participation. On the other hand, they benefit from the 29 guarantees provided by the Code on Investments for privatization transactions. The said guarantees are as follows:

 Free transfer of capital and of their products;

Full protection against expropriation; and

Possibility of recourse to international arbitration in case of disputes.

Negotiated Advantages:

Buyers who are committed to rehabilitate or modernize a company, maintain all or part of the jobs, and keep the company running, can benefit from specific advantages that are negotiated on a case-by-case basis.

Payment Modalities

 In principle, buyers must pay cash. However, the Government can decide to grant to certain buyers, under certain conditions, the option of paying by instalments.

Ownership Transfer

 The conditions to be complied with for ownership transfer are stipulated in a Schedule of Specific Conditions that is a full component of the cession contract in which the rights and obligations of the seller and of the buyer are prescribed.

Contact Info

2/2, Shanti Niketan, New Delhi-110 021

Phone : (0091) 24117585 / 24118586 / 24117588

Fax : (0091) 24117590

E-mail : contact@algerianembassy.co.in

Website : www.algerianembassy.co.in