ISLAMABAD – Algeria is cementing its position as one of Africa’s leading economies with strategic reforms, rich natural resources, and growing foreign investment driving its ascent. With Gross Domestic Product (GDP) of around $270 billion in 2024, Algeria now ranks as the third-largest economy on the continent, according to the Algerian Embassy in Islamabad.
The country’s economy is expected to grow by 3.8% in 2024 and 3.5% in 2025, buoyed by strong hydrocarbon exports and expansive public spending programs. Algeria’s economic resilience is underpinned by its substantial foreign currency reserves, estimated at $70 billion.
A major player in the global energy market, Algeria boasts proven reserves of 4.5 trillion cubic meters of natural gas and 12 billion barrels of oil. It continues to collaborate with international energy giants including Eni, Chevron, and ExxonMobil to expand its production and infrastructure.
The agricultural sector also plays a key role in the national economy, with production valued at $38 billion and meeting over 75% of domestic consumption. Foreign investors—particularly from Qatar, Italy, and Saudi Arabia—are increasingly targeting agricultural development in the fertile Sahara region.
To boost investor confidence, Algeria has enacted a new investment law offering significant incentives such as tax and customs exemptions for periods ranging from 3 to 10 years. This initiative aims to attract both local and international companies across various sectors.
In terms of infrastructure, Algeria has made major strides with investments in highways, rail networks, airports, and seaports. One of the country’s flagship projects is the Trans-Saharan Gas Pipeline—a 5,000-kilometer link connecting Algeria to Nigeria—designed to enhance regional energy cooperation.
As a member of the African Continental Free Trade Area (AfCFTA), Algeria is deepening its economic ties with neighboring countries and promoting regional trade. The government continues to host economic conferences and trade exhibitions to foster partnerships and encourage cross-border collaboration.
