Algeria's Public Industrial Sector Achieves 562.9 Billion Dinars (~$4.2 billion) in Revenue for 2025
Image: Algerie Eco
Takeaway
International investors should monitor Algeria's diversification efforts, particularly in sectors like fertilizers, construction materials, and household appliances, as these present growth opportunities. Companies in the European Union should assess the potential impact of the Carbon Border Adjustment Mechanism on their trade relations with Algeria, especially concerning carbon-intensive products.
The Algerian public industrial and commercial sector generated a total turnover of 562.9 billion dinars (~$4.2 billion) in 2025. This figure highlights the sector's significant role in the national economy and its contribution to boosting exports outside of the hydrocarbon industry. The announcement was made by the Minister of Industry, Yahia Bachir, during a plenary session at the People's National Assembly (APN) dedicated to oral questions on Thursday, February 12, 2026.
This performance aligns with Algeria's broader economic strategy to diversify away from its reliance on hydrocarbons. The Algerian government is actively encouraging diversification to tackle budget deficits resulting from fluctuations in oil and gas prices. In the first nine months of 2025, non-hydrocarbon exports reached $4.3 billion, a 26% increase compared to the same period in 2024. The government is targeting $5 billion in non-hydrocarbon exports by the end of 2025, supported by 80 contracts signed at international trade shows.
Key sectors driving this growth include fertilizers and chemical products, which generated $1.5 billion in exports, marking a 9% year-on-year increase. Construction materials and ceramics followed with $560 million, an 11% increase. The electrical and household appliance industries experienced a remarkable 36% growth. The mining sector expanded by 14%, and agri-food exports grew by 13%. Cement production, a significant component of the industrial sector, reached 12.7 million tons in 2005, with public cement plants producing over 10 million tons.
The rise in non-hydrocarbon exports benefits various international partners, with exports to Europe increasing by 21%. Spain, Italy, and Brazil are among the top importers, recording additional trade volumes of $205 million, $162 million, and $156 million, respectively. The diversification also aims to position Algeria as a manufacturing and energy hub in North Africa.
Looking ahead, Algeria aims to sustain this momentum through international promotion initiatives, with a finalized exhibition program for 2026 and programs for 2027 and 2028 in preparation. The government's focus remains on increasing productivity, attracting more foreign direct investment (FDI), and greening industrial processes to ensure long-term economic resilience. Watch for potential impacts from the EU's Carbon Border Adjustment Mechanism (CBAM) on carbon-intensive exports like fertilizers and cement.