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Algeria is looking to develop its tourism sector as it aims to ease dependence on hydrocarbons revenues by pursuing more sustainable sources of growth, capitalising on attractions such as its extensive desert and a coastline that stretches more than 1200 km. The National Tourism Development Plan is targeting an increase in sector revenues, from the current annual average of €344m to €480m by 2015. Tourism is also being developed as a year-round business to evolve around five niches: Saharan, business, seaside, cultural and wellness. Almost 1.5m tourists visited Algeria during the first half of 2012, and a total of 3m are expected by the end of the year. With the rise in foreign visitor numbers and increased investment in hospitality, the country seems to be on track to deliver an attractive and competitive sector. This chapter contains interviews with Mohamed Benmeradi, Minister of Tourism; and Karim Cherif, President, National Federation of Algerian Hôteliers, and Managing Director, Eden Hotels.

On the back of significant growth over the last decade, Algeria continues to witness an increase in local agricultural production owing to efforts to modernise the sector and boost investment. Growth in the sector rose from 8.5% in 2010 to 10.6% in 2011 and there are encouraging signs that increased support from the government will aid development. By virtue of the 2010-14 Public Investment Programme, a total of AD1trn (€9.9bn) will be allocated to raise local production and guarantee food security, specifically to boost output of key crops, develop rural land, and strengthen human resources and technical support. While the country is still dependent on imports to ensure food-sufficiency, the government is committed to plans to intensify production and reduce the food import bill. This chapter contains interviews with Rachid Benaissa, Minister for Agriculture and Rural Development; and Mohamed Laid Benamor, General Manager, Amor Benamor.

Since the liberalisation of the telecommunications sector in 2000, Algeria has become one of the highest teledensity markets on the continent. With a mobile penetration rate nearing 100% and a fixed-line segment at 8% and growing, the sector is on a steady rise with numerous growth opportunities. The mobile market accounts for most of the growth, with a turnover of AD222bn (€2.13bn) in 2010. The success of the mobile telephony industry gave the sector its largest revenue share yet, growing 17% from €3.75bn in 2010 to €4.4bn in 2011. Indeed, as the total mobile penetration rate approaches 100% and demand for both fixed and mobile services continues to rise, the telecommunications sector is poised to experience significant expansion in the coming years. But despite its considerable population size, internet usage in Algeria remains low. However, growth indicators are encouraging, as subscribers grew to 1m in 2012 from 900,000 in 2010. Given the significant room for expansion, a sense of cooperation, rather than competition, prevails among industry players in the sector. This chapter contains an interview with Nasser Marafih, CEO, Qtel.

As part of the 2010-14 National Development Plan, Algeria intends to reduce its dependency on oil and gas by nurturing the development of local non-hydrocarbons industries. The government is now pushing ahead with large-scale infrastructure projects to facilitate the movement of goods and passengers and improve logistics, leading to heightened demand for construction materials. Industrial development zones have been established under the umbrella of the National Development Master Plan 2025, and in 2011 there were a total of 77 such zones. The sector is likely to see strong growth ahead, and there are signs that the government’s strategy is boosting the development of value-added and niche segments. The retail sector is benefitting from rising income levels supported by economic growth and strong hydrocarbons receipts. However, around 40% of Algerians still prefer to do their shopping in the more informal markets. Mall development is set to expand beyond the capital, however, land availability, particularly in urban areas, has proven to be an issue for developers. The growth in internet users bodes well for the development of online retailing. This chapter contains an interview with Chérif Rahmani, Minister of Industry, Small and Medium-Sized Enterprises (SMEs), and Investment Promotion.

With an extensive array of public works projects stretching across sectors as varied as transport, tourism, construction materials and culture, opportunities are numerous for further exploitation in Algeria’s construction sector. Roads are a priority, and special efforts have been made to develop urban rail systems as an additional measure to help ease congestion. Projecting an estimated value of $21.7bn in 2012, the construction industry will continue to be a primary driver of growth for the medium to long term. In real estate, development remains largely positive, driven by significant government and private sector investments to increase housing availability and realise several major real estate projects. Efforts are also being made to attract foreign investment by offering tax exemptions, new payment methods for raw materials and revisions to the commercial code, among other incentives. This chapter contains an interview with Robert Card, President and CEO, SNC-Lavalin Group.

Although underdeveloped by both international and regional standards, Algeria’s insurance market has seen rapid growth in recent years. Publicly owned insurance firms dominate the sector and held a market share of 70.2% in the first quarter of 2012. Accounting for 91.4% of the total in 2011, property and casualty products make up the majority of premiums, while the life market share stood at 7.6%. Motor insurance is still the most popular product, accounting for almost 50% of premiums. The sector has recently seen a number of important developments, such as the compulsory separation of life and non-life businesses, which came into force in 2011 and which the government hopes will boost the life segment in the long term. The segment remains small, with just 1% market share in 2011. However, this is expected to grow rapidly. This chapter contains an interview with Jean-Laurent Granier, CEO Mediterranean-Latin American region, Axa Assurances.