The Algerian construction industry is anticipated to grow by 4.1% in real terms in 2025, fuelled by investment in oil and gas projects, ease in inflation rates, higher Foreign direct investment (FDI), and growth in the residential sector. According to the United Nations Conference on Trade and Development (UNCTAD), the overall FDI in Algeria grew by 18% reaching DZD202.9 billion ($1.4 billion) in 2024. In June 2025, the National Development Equipment Fund (CNED) reported that it is investing DZD6.7 trillion ($47 billion) across 50 megaprojects in the country. Of the total 33 projects belong to the public works and transport sector, including expressways, rail, tram, metro, and dams, while 11 projects to desalination projects, and the remaining six projects are across housing, new cities, and urban planning. In April 2025, the Algerian Investment Promotion Agency (AIPA), reported that it has approved 743 projects since the start of 2025, which involve a combined valuation of DZD936.6 billion ($6.6 billion).
Over the remainder of the forecast period, the construction industry is expected to grow at an annual average rate of 4.2% between 2026 and 2029, supported by investment in the energy, infrastructure and oil and gas projects in line with the government plans to invest DZD7 trillion ($50 billion) in the hydrocarbons sector by 2027; with 71% of the funds going towards exploration and production, 18% towards petrochemical projects, 5% towards gas liquefaction, and the rest towards the expansion of the oil and gas pipeline network. In line with this, in June 2025, state-owned energy service provider Sonatrach received bids for the construction of DZD454.1 billion ($3.2 billion) an oil hydrocracking train unit and associated facilities as a part of the DZD1.1 trillion ($8 billion) Skikda refinery expansion project.
Over the remainder of the forecast period, the construction industry is expected to grow at an annual average rate of 4.2% between 2026 and 2029, supported by investment in the energy, infrastructure and oil and gas projects in line with the government plans to invest DZD7 trillion ($50 billion) in the hydrocarbons sector by 2027; with 71% of the funds going towards exploration and production, 18% towards petrochemical projects, 5% towards gas liquefaction, and the rest towards the expansion of the oil and gas pipeline network. In line with this, in June 2025, state-owned energy service provider Sonatrach received bids for the construction of DZD454.1 billion ($3.2 billion) an oil hydrocracking train unit and associated facilities as a part of the DZD1.1 trillion ($8 billion) Skikda refinery expansion project.
The Construction in Algeria - Key Trends and Opportunities to 2029 (H2 2025) report provides detailed market analysis, information, and insights into the Algerian construction industry, including:
- The Algerian construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Algerian construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Algeria. It provides:
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Algeria, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
