AAPI Head Inspects Investment Projects in Mostaganem, Grants Concessions
Image: El Mawkie
Takeaway
The increased investment activity in Mostaganem signals a positive trend for industrial diversification in Algeria. International investors should monitor the development of industrial parks and subcontracting opportunities in the region. Companies specializing in industrial maintenance, equipment, and vocational training could find attractive opportunities. The success of these investments will depend on the Algerian government's ability to maintain a stable regulatory environment and address bureaucratic hurdles.
The Director-General of the Algerian Agency for Investment Promotion (AAPI), Omar Rekkache, conducted a field visit to Mostaganem on Saturday, May 23, 2026, to inspect several promising investment projects reflecting the region's industrial dynamism, particularly in industrial subcontracting and manufacturing. Rekkache, accompanied by the Governor of Mostaganem, Ahmed Boudouh, oversaw the granting of concession contracts for economic properties and construction permits to a number of investors, supporting industrial investment and boosting economic development in the region. The visit included the "EURL MIK" company, specializing in industrial maintenance and the manufacture of mechanical parts, which began operations in 2025.
Algeria has been actively working to improve its investment climate in recent years. In 2022, the country introduced a new investment law aimed at simplifying procedures and offering incentives to both local and foreign investors. This law followed a period of economic reforms initiated in 2020, which sought to diversify the economy away from its reliance on hydrocarbons. In 2024, Algeria launched a "one-stop shop" for exporters to accelerate trade digitalization, reducing compliance costs and improving market access for SMEs [cite: Algiers Brief]. These efforts have contributed to a 9.1% growth in Algeria-Spain trade in Q1 2026, signaling an economic rebound for European companies [cite: Algiers Brief].
Mostaganem, strategically located on the Mediterranean coast, is emerging as a key industrial hub. The province benefits from its proximity to major ports and industrial zones, facilitating trade and logistics. The focus on industrial subcontracting and manufacturing aligns with Algeria's broader strategy to develop its non-hydrocarbon sectors. Comparable industrial zones in Algeria, such as Rouiba and Skikda, have attracted significant foreign investment in recent years, particularly in sectors like automotive manufacturing and pharmaceuticals. The development of industrial parks in Mostaganem aims to replicate this success and create a diversified industrial base.
The investments in Mostaganem are expected to benefit local SMEs by providing them with opportunities to participate in the supply chains of larger industrial projects. International companies specializing in industrial equipment and technology could also see increased demand for their products and services. The focus on industrial maintenance, as exemplified by "EURL MIK", suggests a growing need for specialized technical expertise, which could create opportunities for vocational training partnerships, similar to the one between Algeria and Germany [cite: Algiers Brief]. However, the success of these investments will depend on the availability of skilled labor and the efficiency of bureaucratic processes.
Looking ahead, the AAPI is expected to conduct similar visits to other provinces in Algeria to promote investment opportunities and address challenges faced by investors. The Algerian government is also planning to launch new initiatives to further streamline investment procedures and offer additional incentives, potentially including tax breaks and access to financing. The implementation of these measures will be crucial in attracting both domestic and foreign investment and achieving Algeria's economic diversification goals. The next key date to watch will be the AAPI's next announced provincial visit, expected in June 2026.