Navigating Algeria’s Investment Landscape: Opportunities and Challenges in Foreign Direct Investment

Abstract

This article explores the evolution of foreign direct investment (FDI) in Algeria, highlighting unique opportunities and significant challenges. Algeria's strategic location, rich natural resources, and proximity to Europe and Africa have made it an attractive destination for investments in energy, manufacturing, and technology, with notable collaborations involving global companies such as BP, TotalEnergies, Renault, and Siemens. However, bureaucratic hurdles, regulatory complexities, and a heavy reliance on hydrocarbons hinder Algeria's investment climate.

The study employs case studies of successful investments to examine the role of government support, public-private partnerships, and technological advancements in shaping the country’s economic trajectory. The findings emphasise that streamlining administrative processes, enhancing infrastructure, and promoting non-hydrocarbon industries are essential for boosting investment and fostering sustainable economic growth.