Algeria plans major investments for economic diversification

Algeria aims to maintain public investment while reducing its reliance on oil and gas revenues. The government forecasts a 4.2 percent growth rate in 2027 and plans to allocate 3689.93 billion dinars (27.5 billion dollars) to structural projects in mining, phosphates, and transportation and energy infrastructure.

Key projects focus on mining and phosphates

Mining and railway projects are central to the investment strategy. The Gara Djebilet iron ore deposit development is a major project, with a total estimated cost of 963 billion dinars, while the Blad El Hadba phosphate project requires 717.749 billion dinars. These projects aim to increase the mining sector's contribution to the national economy.

Mining sector needs growth to reach its potential

Despite the country's rich natural resources, the mining sector currently accounts for about 1 percent of Algeria's gross domestic product (GDP). In June 2025, a law was passed allowing foreign companies to own up to 80 percent of mining projects, aiming to attract investment and develop the sector beyond hydrocarbons.

Transportation and energy infrastructure get significant funding

Transportation and energy infrastructure are also key parts of the investment plan. The railway line from Algiers to Tamanrasset is expected to cost 1910 billion dinars, with 360 billion dinars from the state budget and 321.6 billion dinars from the African Development Bank (AfDB). Additional funds will support road development and energy connections in the South.

Budget includes revenues and expenditures for 2027

The 2027 Finance Law project outlines budgetary revenues of 9251.1 billion dinars, with 6598.8 billion coming from non-petroleum tax revenues. Petroleum revenue forecasts assume a price of 60 dollars per barrel, while economic projections use 70 dollars. Expenditures are estimated at 17,882.65 billion dinars, covering social programs and economic support.

Growth expectations and long-term economic goals

The government expects a 4.2 percent growth rate in 2027, following an estimated 4.3 percent in 2026. Non-hydrocarbon activities are projected to grow by 4.8 percent in 2026. President Abdelmadjid Tebboune previously stated that Algeria's GDP will exceed 400 billion dollars by the end of 2027.