While Algeria's industrial might is often synonymous with its vast oil fields pumping over 1.22 million barrels daily, a closer look reveals an economy quietly and ambitiously transforming its wealth into a diverse and modern industrial landscape.
Key Takeaways
- Algeria's crude oil production reached 1.22 million barrels per day in 2022
- Proven oil reserves in Algeria stood at 12.2 billion barrels as of 2021
- Natural gas production in Algeria was 98.2 billion cubic meters in 2022
- Phosphate rock production reached 1.8 million tons in 2022 from Djebel Onk mines
- Iron ore output from Gara Djebilet deposit targeted at 50 million tons per year by 2030
- Asferco steel complex in Bechar produces 2.5 million tons of direct reduced iron annually
- Cement production capacity expanded to 25 million tons per year with 12 plants
- Steel production at El Hadjar complex was 0.7 million tons in 2022
- Fertilizer output from Bejaia and Arzew plants totaled 6.2 million tons ammonia/urea in 2023
- Construction sector grew 5.2% in 2022 contributing 8% to GDP
- Public infrastructure investments totaled $15 billion in 2023 for roads and housing
- Highway network expanded to 1,500 km with East-West highway completion
- Industrial production index rose 4.5% in 2022 driven by hydrocarbons and manufacturing
- Industry contributes 35% to Algeria's GDP in 2023 estimates
- Industrial employment totals 1.2 million workers representing 15% of workforce
Algeria's thriving economy centers on substantial oil and gas production and exports.
Construction
- Construction sector grew 5.2% in 2022 contributing 8% to GDP
- Public infrastructure investments totaled $15 billion in 2023 for roads and housing
- Highway network expanded to 1,500 km with East-West highway completion
- Housing construction delivered 500,000 units under AADL program by 2023
- Cement consumption reached 22 million tons driven by construction boom in 2022
- Port of Algiers expansion added 1.5 million TEU capacity in 2023
- Railway network modernization 2,000 km electrified lines by 2025 target
- Airport upgrades at 20 regional airports cost $2 billion including Houari Boumediene
- Dam construction added 5 new reservoirs with 1 billion m³ capacity in 2022-2023
- Building permits issued for 120,000 new dwellings in urban areas in 2023
- Renewable energy projects construction: 1 GW solar PV parks under EPC contracts
- Industrial zones development: 50 new parks covering 10,000 hectares by 2027
- Water desalination plants 12 operational producing 2.2 million m³/day
- Bridge construction: 300 new structures including 1 km long over Oued El Harrach
- Urban metro systems: Algiers metro line extended 10 km to airport in 2023
- Stadium construction for CAN 2025: 7 new venues capacity 100,000 seats total
- Sewage treatment plants 50 built treating 1.5 million m³/day wastewater
- Power grid expansion: 5,000 km new HV lines commissioned in 2022
- Hotel construction boom: 200 new 4-5 star hotels 30,000 rooms by 2030
- Quarry development for aggregates supplied 120 million tons to construction sites
Construction Interpretation
Algeria’s economic blueprint is reading less like a government white paper and more like a contractor’s fever dream, as the nation furiously pours concrete and ambition into everything from highways and homes to stadiums and solar farms in a bid to build its way into the future.
General Industry
- Industrial production index rose 4.5% in 2022 driven by hydrocarbons and manufacturing
- Industry contributes 35% to Algeria's GDP in 2023 estimates
- Industrial employment totals 1.2 million workers representing 15% of workforce
- Manufacturing value added per capita $1,200 in 2022 PPP terms
- Number of industrial enterprises: 25,000 registered with ANPME in 2023
- FDI in industry reached $1.5 billion in 2022 mainly hydrocarbons and manufacturing
- Industrial exports excluding hydrocarbons $5.2 billion in 2023 growth 12%
- Energy intensity of industry 0.25 toe per $1,000 GDP improved 5% since 2019
- R&D expenditure in industry 0.8% of industrial GDP allocated $300 million
- Women employment in industry 25% of total industrial workforce 300,000 females
- Industrial SMEs 95% of enterprises contributing 40% output value
- Vocational training centers for industry: 250 training 50,000 apprentices yearly
- Industrial accidents rate 2.5 per 1,000 workers improved safety standards
- Digitalization: 40% factories adopted Industry 4.0 tech by 2023 survey
- CO2 emissions from industry 120 million tons annually 70% from hydrocarbons
- Productivity growth in industry 3.2% average 2018-2023
- Public industrial investments $10 billion in 2023-2025 plan
- Export processing zones: 8 zones hosting 500 firms $2 billion exports
- Industrial water consumption 1.2 billion m³/year 20% recycled
- Energy consumption in industry 25 million toe 60% natural gas
- Patent filings from industry 1,200 annually average 2020-2023
- Cluster development: 15 industrial clusters like automotive in Setif
- Youth employment in industry 40% under 30 years old 480,000 jobs
- Industrial turnover total $120 billion in 2022 nominal terms
General Industry Interpretation
Algeria’s industrial sector is striding forward with impressive growth and diversification, yet it still walks with one foot firmly planted in hydrocarbons and the other navigating the tricky terrain of productivity, digital adoption, and sustainability.
Hydrocarbons
- Algeria's crude oil production reached 1.22 million barrels per day in 2022
- Proven oil reserves in Algeria stood at 12.2 billion barrels as of 2021
- Natural gas production in Algeria was 98.2 billion cubic meters in 2022
- Algeria exported 52 billion cubic meters of natural gas in 2023 primarily to Europe
- Sonatrach, the state-owned oil company, accounts for 90% of Algeria's hydrocarbon exports
- Algeria's liquefied natural gas (LNG) production capacity is 25 million tons per year from Arzew and Skikda plants
- Inpex Corporation invested $2.5 billion in the In Amenas gas field in southeastern Algeria
- Hassi Messaoud oil field produces over 600,000 barrels per day, representing 60% of national output
- Algeria's refining capacity is 1.2 million barrels per day across five refineries including Skikda and Arzew
- Petrochemical production from hydrocarbons reached 4.5 million tons annually in 2022
- Gas pipeline Transmed exports 13.5 billion cubic meters yearly to Italy via Tunisia
- Medgaz pipeline delivers 8-10 billion cubic meters of gas annually to Spain
- Algeria discovered 1 trillion cubic meters of new gas reserves in 2023 at Zemoul el Kbar field
- Upstream hydrocarbon investments totaled $4.8 billion in 2022 under the new hydrocarbon law
- Algeria's oil and gas sector contributes 25% to GDP and 95% of export revenues
- Condensate production averaged 180,000 barrels per day in 2023
- Hassi R'Mel gas field holds 85 billion cubic meters of reserves and produces 130 million cubic meters daily
- Algeria ranks 10th globally in natural gas reserves with 4.5 trillion cubic meters proven
- TotalEnergies operates the Timimoun gas field with peak production of 28 million cubic meters per day
- Gassi Touil oil field development cost $2 billion and produces 100,000 bpd
- Algeria's flaring rate for associated gas was reduced to 8% in 2022 from 12% in 2019
- Offshore exploration blocks awarded to 20 international companies in 2023 bidding round
- Sonatrach's R&D budget for hydrocarbons was $150 million in 2022
- Algeria produced 1.1 million tons of LPG from gas processing in 2022
- Tin Fouyé Tabankort (TFT) oil field ramped up to 40,000 bpd in 2023 by Eni and Sonatrach
- Algeria's hydrocarbon law 20-08 introduced 51/49 JV rule allowing 100% foreign ownership in some cases
- Gas exports via pipeline to Europe constituted 70% of total gas exports in 2022
- Algeria's daily gas consumption domestically is 90 million cubic meters
- New Touat gas project to produce 9.8 billion cubic meters annually starting 2024
- Algeria's oil exports averaged 700,000 bpd in 2023 mainly to Europe and Asia
Hydrocarbons Interpretation
Algeria’s hydrocarbon sector remains its formidable, if slightly needy, economic heartbeat, pumping out enough oil and gas to keep the lights on at home and Europe’s radiators warm while it cautiously invites outsiders to help find more.
Manufacturing
- Cement production capacity expanded to 25 million tons per year with 12 plants
- Steel production at El Hadjar complex was 0.7 million tons in 2022
- Fertilizer output from Bejaia and Arzew plants totaled 6.2 million tons ammonia/urea in 2023
- Automotive assembly in Algeria produced 120,000 vehicles in 2022 mainly Renault and Hyundai
- Pharmaceutical manufacturing output value $1.2 billion with 85% local production goal
- Textile and apparel industry employs 150,000 workers producing 50 million garments yearly
- Food processing sector contributes 12% to industrial GDP processing 4 million tons agri products
- Paper and cardboard production 450,000 tons from three mills in 2022
- Electrical equipment manufacturing grew 15% to $800 million turnover in 2023
- Plastic products output 1.5 million tons from 200 factories using petrochemical feedstock
- Mechanical engineering sector produced 20,000 tons of machinery parts in 2022
- Leather goods manufacturing exports $150 million mainly shoes to Europe
- Glass production 350,000 tons flat and container glass from four plants
- Aluminum smelting planned at 1 million tons capacity in Bechar by 2030
- Shipbuilding at Oran yard delivered 5 vessels totaling 50,000 DWT in 2023
- Tobacco manufacturing by SNTA produced 8 billion cigarettes annually
- Detergent and soap production 400,000 tons from Unilever and local firms
- Furniture manufacturing output value $500 million with 500 workshops
- Paints and varnishes production 120,000 tons serving construction boom
- Rubber products including tires output 80,000 tons for local auto industry
- Electronics assembly started with 1 million smartphones produced in 2023
- Ceramic tiles production 45 million m² from 20 factories in 2022
- Sugar refining capacity 1.2 million tons but local production 350,000 tons
- Olive oil processing yielded 180,000 tons extra virgin in 2022/23 campaign
Manufacturing Interpretation
Algeria is industriously building the bones, muscle, and finishing touches of a modern economy—from the steel skeletons of construction to the smartphones in our pockets—though it must still reconcile its massive cement output with importing most of its sugar.
Mining
- Phosphate rock production reached 1.8 million tons in 2022 from Djebel Onk mines
- Iron ore output from Gara Djebilet deposit targeted at 50 million tons per year by 2030
- Asferco steel complex in Bechar produces 2.5 million tons of direct reduced iron annually
- Zinc production from Oued Amizour mine was 45,000 tons in 2022
- Gold exploration in the Hoggar region identified 180 tons of reserves
- Salt production totaled 450,000 tons from Saharan salt flats in 2023
- Marble quarrying output was 1.2 million cubic meters from 15 provinces in 2022
- Barite production reached 120,000 tons primarily for oil drilling from M'zi mine
- Algeria holds 2.2 billion tons of proven iron ore reserves mainly in Gara Djebilet
- Kaolin clay extraction was 300,000 tons used in ceramics and paper industries
- Gypsum production from quarries supplied 800,000 tons for cement in 2022
- Lead and zinc concentrates from El Abed mine totaled 20,000 tons
- Algeria's mining code 2014 revised to attract FDI with 30 production sharing contracts signed
- Tala Hamza iron mine to produce 5 million tons concentrate annually by 2025
- Onk phosphate mine has reserves of 1.7 billion tons with annual output potential 10 Mt
- Mercury production historically from Ismael mine but now minimal at 10 tons/year
- Feldspar mining output 150,000 tons for glass and ceramics industry
- Construction aggregates production exceeded 100 million tons in 2022 from 200 quarries
- Rare earth elements exploration in Tindouf basin potential 500,000 tons reserves
- Coal production negligible at 5,000 tons from Ketten mine for local use
- Bentonite clay output 80,000 tons for drilling fluids export
- Algeria plans 12 new mining projects with $5 billion investment by 2027
- Silver by-product from lead-zinc mines totals 50 tons annually
- Dimension stone exports including granite reached $50 million in 2022
Mining Interpretation
Algeria is strategically transforming its vast mineral wealth from desert deposits into industrial might, moving beyond hydrocarbons to build a diversified mining sector that could reshape its economic foundations by the decade's end.
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