The construction industry in North Africa: Algeria

Algeria is enjoying a period of relative stability. According to World Bank estimates, real GDP grew by 3% in 2014 compared to 2.8% in 2013, while further 3.3% growth is expected this year followed by 3.5% per year in 2016-2017.

This positive trend will also benefit the construction sector, for which the agency BMI has forecast 5% average annual growth between 2015 and 2024, with an increase in values from $22.8 billion to $47.4 billion.

The major growth driver is the government's new five-year development plan (2015-2019), which will entail investments of $262 billion in public infrastructure.

The new social housing programmes will involve the construction of more than a million new homes by the end of 2019. According to the Minister of the Habitat, A. Tebboune, the estimated housing demand of around 720,000 units will be met by the end of 2018. In the 2010-2014 five-year plan, 2,140,480 out of the total 2,223,403 planned housing units have been started and 1,096,794 have been delivered.

Further $5 billion of investments have also been allocated for the remodelling or new construction of hospitals and rehabilitation centres. Construction work has begun on five hospitals, including the Satawali civil hospital in Algiers (awarded to the consortium made up of Rizzani de Eccher and the San Raffaele Hospital in Milan), and the Tlemcen hospital (awarded to United Kingdom International Hospital Group). Calls for tender for a further five healthcare facilities are expected to be made by the end of the year.

Growth in the building sector has in turn fuelled an increase in imports of construction materials, which have risen from $3.43 billion in 2013 to $3.65 billion in 2014 (+6.4%) (source: Algerian customs). Ceramic imports reached a value of $81.68 million in 2014, more than 56% up on 2013.

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