Demand of Construction in Algeria Industry : Technology, Applications, Growth and Status 2017

Albany, New York, June 14, 2017 : Timetric’s Construction in Algeria – Key Trends and Opportunities to 2021 report provides detailed market analysis, information and insights into the Algerian construction industry, including:

The Algerian construction industry's growth prospects by market, project type and construction activity

Analysis of equipment, material and service costs for each project type in Algeria

Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Algerian construction industry

Profiles of the leading operators in the Algerian construction industry

Summary

In real terms, the Algerian construction industry posted positive growth during the review period (2012–2016). Growth was supported by large-scale investments through the five-year plan 2010–2014, under which the government allocated DZD20.7 trillion (US$278.3 billion) to develop various projects in the transport, housing, energy and education sectors.

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The industry is expected to expand over the forecast period (2017–2021), albeit at a relatively slow pace. The industry’s expansion over this period is expected to be mainly supported by government investments under the ongoing Five-Year Investment Plan 2015–2019, under which the government will invest DZD21.6 trillion (US$215.0 billion) in construction projects until 2019, with particular emphasis on transport, hospital and water infrastructure.

The industry’s output value in real terms recorded a compound annual growth rate (CAGR) of 5.99% during the review period, and is expected to post a forecast-period CAGR of 5.22%.

The Algerian economy is heavily dependent on revenues from oil exports, as it one of Africa’s main oil producers. However, the collapse of oil prices in mid-2014 has weighed on the country’s economic performance. As prices remain low, the government aims to diversify the economy by reducing its dependence on oil. This is expected to drive private and foreign investments in the country’s non-oil sectors over the forecast period, including construction.

Scope

This report provides a comprehensive analysis of the construction industry in Algeria. It provides:

Historical (2012-2016) and forecast (2017-2021) valuations of the construction industry in Algeria using construction output and value-add methods
Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by project type
Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
Analysis of key construction industry issues, including regulation, cost management, funding and pricing
Detailed profiles of the leading construction companies in Algeria

Reasons To Buy

Identify and evaluate market opportunities using Timetric's standardized valuation and forecasting methodologies.
Assess market growth potential at a micro-level with over 600 time-series data forecasts.
Understand the latest industry and market trends.
Formulate and validate strategy using Timetric's critical and actionable insight.
Assess business risks, including cost, regulatory and competitive pressures.
Evaluate competitive risk and success factors.

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Key Highlights

Efficiently developed transport infrastructure is vital for the economic growth of Algeria. Accordingly, with an aim to enhance regional connectivity, the Ministry of Transport announced plans to construct a 173km railway line between Laghouat and Ghardia in March 2016. This project is part of the government’s plan to develop a 425.0km railway line from Laghouat to Hassi Messaoud. The project is expected to commence in 2018 and complete in 2021.
To ease congestion and overseas trade, in February 2017 the government approved the development of a deep-water port in El Hamdania, 80km to the west of Algiers. The project includes the construction of a 20.0m draft facility and 23 berths. On completion, the port is expected to have an annual handling capacity of 6.3 million TEUs.
In March 2017, Sonatrach Group, the country’s state-owned energy company, announced plans to invest over DZD5.7 trillion (US$50.0 billion) in oil exploration-related infrastructure during 2017–2021. The company plans to drill an average of 100 new wells every year until 2021.
To meet growing demand for housing in Constantine, North-Eastern Algeria, the City Council of Constantine announced plans to develop a major residential complex in November 2015. The project involves a total investment of DZD158.1 billion (US$1.6 billion), and includes the construction of 20,000 residential units, access roads and parking facilities. The project is scheduled to complete in 2020.
The government has announced plans to achieve 22.0GW in renewable energy generation by 2030, and is looking to take advantage of growth potential in the solar sector and generate 13.5GW of the total target energy from solar resources.

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