The construction industry in Algeria is expected to expand in real terms from 2016 to 2020, backed by the government’s investments in transport infrastructure, including ship, road, rail and airport, says a new report by Timetric.
Titled ‘Construction in Algeria – Key Trends and Opportunities to 2020‘, the report anticipates that a new five-year investment plan introduced by the authorities in 2015 will drive the growth of the country’s construction industry. The DZD25.9t ($262bn) investment will focus on transport infrastructure, healthcare facilities, housing, education, and energy infrastructure.
To tackle increasing congestion, the Algerian Government has decided to develop new commercial and cargo ports. As part of the plan, the authorities will invest DZD200bn ($2bn) to construct a commercial port in Cherchell and Ténès by 2025.
The output value of the construction industry is projected to decline by 4.68% during 2016-2020 owing to the global oil crisis and reductions in expenditure to reduce the deficit. The Algerian economy is largely dependent on oil and gas, which constitutes two-thirds of its revenue and 95% of its total export revenue, and is thus impacted by plummeting oil prices.
Investment in other sectors, including housing, healthcare, manufacturing, and education is also expected to contribute to the growth of the construction industry in Algeria. The government’s plan to move towards renewable energy and to increase its electricity production capacity will also aid in the expansion of the construction industry, adds the report.