les cahiers du mecas
Volume 22, Numéro 1, Pages 468-481
2026-06-02
Foreign Direct Investment And Its Role In Reducing The Unemployment Rate In Algeria: Analytic Study
Authors : Dib Lamia . Allem Fatima .
Abstract
This study aims to analyze the state of foreign direct investment (FDI) in Algeria during the period 1996–2020, by examining the evolution of its flows, sectoral and geographic distribution, and evaluating Algeria’s position within the Arab investment landscape. The study relied on descriptive and analytical approaches, based on official data and reports. The study found that FDI flows in Algeria experienced notable growth; however, they were characterized by fluctuations and instability due to both internal and external factors, most notably oil price volatility, legislative instability, and challenges related to the business climate. The results also revealed that these investments are heavily concentrated in the hydrocarbons sector, despite some efforts toward sectoral diversification. European countries dominate the largest share of investments, while the contribution of Arab countries remains limited. The study emphasizes that improving Algeria’s attractiveness for foreign investment requires strengthening economic reforms, simplifying administrative procedures, providing a stable legal environment, and diversifying the economy to reduce reliance on the hydrocarbons sector.
Keywords
Foreign Direct Investment ; Algeria ; Investment Flows ; Sectoral Distribution ; Investment Climate
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