Oil and gas extraction and the presence of iron and phosphates have been of great importance for Algeria’s industrialization. Oil and gas dominate in terms of contributions to the economy, but offer few jobs. In the lighter manufacturing industry there are significantly more jobs.
The industrial sector has long been dominated by state-controlled heavy industries such as steel mills, petrochemical factories and the manufacture of fertilizers and cement. However, the emphasis has gradually shifted to lighter industry with the processing of agricultural products in the food, tobacco and textile industries. There is also the pharmaceutical industry, dominated by the state-owned company Saidal, as well as the automotive industry with both the production of auto parts and assembly. Newer features include manufacturing of home electronics.
- COUNTRYAAH: List of top trading partners of Algeria. Includes countries that imported most shipments from and exported most goods to the country.
Since 1989, the state industry has gradually been market-adjusted and many outdated and inefficient facilities have been eliminated. During the 1990s, hundreds of thousands of industrial workers lost their jobs. Lack of spare parts and raw materials has contributed to the decline of the traditional industry.
Composition factories for cars have been of great importance in the economy, but this has also led to corruption scandals in connection with a popular protest wave, as it has been found that the owners of the factories have had close contact with the political elite, in the context that favored both parties (see Calendar).
In order to attract investment, not least to the manufacturing industry, rules restricting foreign ownership have been mitigated.