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As part of government efforts to diversify the economy, large investments are being made in regional areas outside of the major population centres of Algiers and Oran. As the recipient of one of the largest of these public disbursements, with a package valued at an estimated €4bn over five years, the province (or wilaya) of Béjaïa is set to undergo considerable development. Major transportation infrastructure projects, including new roads, railways and the expansion of the Béjaïa port, promise to secure the province’s position as a trade hub. New industrial facilities are being established to supply the construction efforts, and to take advantage of improved transport links. This chapter contains an interview with Djelloul Achour, General Manager, Entreprise Portuaire Béjaïa.

With $286bn allocated to major infrastructure developments, the government has devised a five-year plan for improving connections, including road networks, ports, urban mass transport and rail lines. Three major highway projects are either under way or in planning, including the East-West Highway, the Hauts Plateau Highway and the North-South Highway. The government is also expanding capacity at existing ports, as well as constructing new ones, and is set to invest more funds in urban transport options. Besides the existing tramline and metro in Algiers, 2013 marked the launch of new tram systems in both Oran and Constantine. A total of 14 other cities currently have above-ground mass transit systems in the planning stage, with the government set to invest a total of $6bn. This chapter contains an interview with Takao Omori, CEO, Portek International.

As the world’s 15th-largest oil producer and ninth-largest producer of natural gas, Algeria largely relies on its significant hydrocarbons reserves and strong export markets in Europe and the US to drive its economy. In 2012 the country produced almost 1.7m barrels per day of oil and 81.5bn cu metres of natural gas. State-owned Sonatrach controls around 80% of the upstream segment; however, foreign firms have long had a presence in Algeria and there continues to be major interest from international oil companies. In recognition of the country’s heavy reliance on oil and gas for power, efforts are being made to develop other sources of energy such as solar power and shale gas deposits. In early 2013 a series of changes were made to the Hydrocarbons Law, which promise to further attract foreign investors. This chapter contains interviews with Youcef Yousfi, Minister of Energy and Mines; and Touffik Fredj, President & CEO for North-west Africa, General Electric.

Having weathered the global economic crisis relatively easily and avoided most of the political turmoil that affected its neighbours during the Arab Spring, Algeria has continued along a steady path of economic growth and social development. In 2012 the country’s GDP reached AD15.84trn (€145.73bn), a 3.3% increase over the previous year. Algeria’s considerable oil and gas reserves, accounting for more than 60% of government revenues, have provided the authorities with sufficient fiscal flexibility to embark on major spending projects in nearly all sectors and subsidise key products such as fuel and food. Despite the economic growth, the expanding population and rising consumption are driving up unemployment and inflation. This chapter contains interviews with Karim Djoudi, Minister of Finance; Mustapha Benbada, Minister of Trade; Mohamed Seghir Babes, President, National Economic and Social Council; Réda Hamiani, President, Algerian Business Leaders’ Forum; and a viewpoint with Christine Lagarde, Managing Director, IMF.