How Algeria Can Reach $50 Billion in Non-Hydrocarbon Exports: A Strategic Roadmap

By Riad Beladi | Edited by James Taylor
Riad Beladi is a senior analyst at the ISN Group. He has collaborated with the California Department of Agriculture and worked with multiple international retailers, each with an annual turnover exceeding $160 billion. His expertise lies in market analysis, consumer behaviour, and identifying key retail and agricultural trends.

As Algeria seeks to diversify its economy and reduce dependency on oil and gas, a strategic roadmap focused on five high-potential sectors—tourism, agriculture, food manufacturing, textiles, and services—can help the country achieve a sustainable annual export value of $50 billion. Below is a breakdown of how this ambitious yet achievable goal can be met.

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1. Tourism & Diaspora Engagement: Potential Export Value – $10 Billion/Year

With an estimated 10 million Algerians living abroad, tourism can serve as a powerful export channel if each diaspora member is encouraged to visit Algeria once or twice a year.

• Estimated Spend: If each visitor spends an average of $500–$600 per trip and exchanges their currency officially (in banks or licensed exchange bureaux at competitive rates close to black market rates), this could generate:

  • $500 × 10 million visitors = $5 billion (1 trip)

  • $1,000 × 10 million visitors = $10 billion (2 trips)

• Key Conditions for Success:

  • Exchange rates must be aligned with the informal market to encourage legal currency exchange.

  • Visa-free or simplified entry for dual nationals and families.

  • Investments in hospitality, internal transport, and tourism infrastructure.

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2. Agricultural Exports: Potential Export Value – $2–3 Billion/Year

Algeria is rapidly expanding its fruit and vegetable production, especially in the south, where large tracts of arable land are being developed.

• Goal: Reach $2 billion in fresh produce exports within 3 years, with an eye toward:

  • Europe and Gulf markets.

  • Efficient logistics (cold chain, air freight, reefer containers).

  • Branding of Algerian citrus, dates, tomatoes, and potatoes.

• Requirements:

  • Investment in certification (Global GAP, organic, etc.).

  • Reliable export corridors via ports and border crossings.

  • Contract farming and aggregation models to standardise quality.

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3. Finished Food Products: Potential Export Value – $5–7 Billion/Year

With low production costs, Algeria can become a competitive packaged food producer for international markets, especially Europe and Africa.

• Export Potential: Pasta, couscous, tomato paste, canned goods, confectionery, and snacks.

• Key Success Factors:

  • Understanding European supermarket procurement systems, including:

    • Private label manufacturing.

    • Certification (IFS, BRC, ISO).

    • Logistic partners & category management practices.

  • Trade agreements with African markets (AfCFTA).

  • Export incentives for SMEs in the agro-industrial sector.

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4. Textiles & Clothing Manufacturing: Potential Export Value – $2 Billion/Year

Algerian wholesale buyers regularly travel to Turkey and China for textiles. With the right policy and industrial zones, Algeria can:

• Localise clothing production.

• Attract buyers from Libya, Mali, Niger, Tunisia, and other African markets for bulk shopping.

• Model: Create textile clusters in Oran, Tlemcen, and Sétif, similar to Gaziantep (Turkey) or Guangzhou (China).

• Support Mechanisms:

  • Easy customs clearance.

  • Direct flights and logistics services for foreign buyers.

  • Duty-free zones or trading hubs for B2B clients.

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5. Service Exports (Logistics, Ports, Call Centres): Potential Export Value – $10–15 Billion/Year

Algeria’s strategic location on the Mediterranean positions it to become a transit, logistics, and service hub for Europe, Africa, and the Middle East.

• Key Focus Areas:

  • Develop a deep-sea port (El Hamdania or similar) for container transshipment.

  • Build international-standard airports for cargo and passenger handling.

  • Call centres and BPO services for French-, Arabic-, and English-speaking European companies.

  • Data centres and IT hubs for outsourced services.

• Long-Term Potential:

  • Compete with Morocco and Egypt in service exports.

  • Transit & logistics services can generate $5–8 billion.

  • Call centres and IT services can add $2–3 billion in earnings.

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6. Natural Resources (Excluding Oil & Gas): Potential Export Value – $5–10 Billion/Year

Beyond hydrocarbons, Algeria possesses rich reserves of iron ore, phosphate, zinc, gold, and rare earth elements.

• Action Plan:

  • Fast-track mining licences and foreign partnerships.

  • Build refining and processing plants domestically.

  • Invest in sustainable extraction technologies.

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Final Export Target Overview

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Algeria has the natural assets, demographic power, and geographical location to become an economic powerhouse beyond oil and gas. With the right policies, investment in export-oriented sectors, and reforms in logistics, banking, and trade facilitation, Algeria can match or even exceed its hydrocarbon export revenues through a diversified, sustainable, and inclusive model.