01 Şubat 2021,Algerian Lift Market is estimated to be 400 million dollar big, Elevator Vizyon Magazine, All What You Are Looking For is On This Site

Algerian Lift Market is estimated to be 400 million dollar big

Algeria is the second biggest country in the Africa, Arabia and Mediterranean Sea. Algeria, having one of the biggest reserves of natural gasses and petroleum has a strong income from petroleum and natural gasses. And this income brings Algeria macroeconomic stability relatively.

Construction sector in Algeria is one of the fastest growing sectors in the country, thus, one of the main problems in the country is the shortage of housing.

Algeria, being a middle-class income country is highly dependent on petroleum and gas economy. Petroleum and natural gasses, being an impetus for the country, consist of %30 of GNPPC and %60 of budget income and %95 of export income. Algerian government are actively following a diversification policy. Algeria government, which are aiding the private sector in order to reduce the high amounts of import and the dependency of petrol of the economy, is now promoting industrial activities other than petroleum and natural gasses in order to lure foreign investors to the country.

Algeria’s construction sector is growing in a much healthier sense in consideration to past years. The country’s construction sector value is estimated to have approximately %5 increase per year in the years between 2015-2024.

Algerian government who come short about meeting the needs of housing are taking steps in giving commitment to building 1 million housings. With these steps, the construction sector becomes a more important sector in Algeria along with reaching a market volume of 400 million dollars.

Regarding to the National Statistics and Data Processing Center’s (CNIS) information, import volume of construction materials were 3,65 billion US Dollars of value in the end 2017, and this volume is expected to rise for about 15,6 percent.

While the increased need in infrastructure is signified as one of the main reasons for the rise of imports of construction materials, imports were commonly coming from Spain, Italy, France, England, Nederland and USA primarily.

Algeria’s main trends and developments for the construction sector are as follows:

• The value of the construction sector will rise for over %5 per year between the years 2015 and 2024. After the expected years, it’s presumed that the sector’s value will rise from 22,8 billion US Dollars to 47,4 billion US Dollars.

• The government is continuing to take the housing issue to hand by committing to build 1 million housings until the end of 2019

• In 2013, which is the last year that information issued healthily, Algeria bought 58,3 billion US Dollars’ worth of materials.

• Algeria’s main imports are industrial materials, construction products, food, machines, transport goods, textile goods, furniture and consumer products. Algeria’s main exports are petroleum, natural gasses and petroleum products.

• In construction sector, Algeria is showing a dynamic growth.

The fluctuations in Petroleum prices directed Algerian Government to create alternative sectors

The fluctuations in Petroleum prices directed Algeria, just like UAE, to create alternative sectors. To accommodate for reduced petroleum prices and lower the dependency on petroleum trade, Algerian Government are paying closer attention to tourism and hotel investments.

%35 of gross national product consist of two thirds of total export. Algeria’s situation on petroleum and gas export, in regards to OPEC, is 1,348,361 barrels per day in 2016 which makes Algeria 18.th exporter around the world in terms of petroleum exporters. However, the petrol crisis harmed the country. Algeria’s crude oil production on January 2017 was 1 million 91 thousand barrels decreased to 997 thousand barrels on the same day of October. On December 2017 petrol production increased to 1 million 37 thousand barrels but nevertheless, the numbers couldn’t reach the last year’s.

While the petrol prices were still an uncertainty, the country made a decision to focus on tourism for saving its GNP. National Tourism Improvement Plan of Algerian Government aims to attract more foreign people to the country by the year of 2027 and in order to support this aim, a need for considerable amounts of infrastructure and construction projects comes to existence.

In December, Minister of Tourism, Hacène Mermouri stated the approval of the construction of 1.812 new hotel projects in order to increase the tourism capacity of the country from 100 thousand rooms to 240 thousand. This statement explicitly shows that Algerian market for lifts will grow significantly and Turkish lift manufacturers will need to prepare themselves for this great opportunity.