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According to the report of the United Nations Conference on Trade and Development, Algeria has dominated the ranking of attractive countries and destinations for foreign direct investment (FDI) in the Maghreb region. In 2023, the country made a significant leap with net investment inflows reaching USD 1.2 billion.
Morocco ranks second with around USD 1.1 billion in FDI, followed by Mauritania with USD 0.87 billion and Tunisia with USD 0.84 billion. At the Arab level, the United Arab Emirates leads with net investment inflows of USD30.7 billion, followed by Saudi Arabia with USD 12.3 billion and Egypt with USD 9.8 billion.
The Algerian Investment Promotion Agency has registered 113 projects proposed by foreigners, either in direct investment or in partnership. This dynamic reflects a clear improvement in the business climate in Algeria, thanks to its competitive advantages and the many investment opportunities available. However, the UNCTAD report said global foreign direct investment declined by 2% in 2023 to USD 1.3 trillion. The decline is attributed to rising trade and geopolitical tensions amid a global economic slowdown.
FDI flows to developing countries decreased by 7%, reaching USD 867 billion, with a notable decline of 8% in Asia, 3% in Africa and 1% in Latin America and the Caribbean. Developed countries were also affected, with a decrease of 14% in Europe and 5% in North America. Tighter financing conditions in 2023 have led to a 10% reduction in investments in sectors linked to the Sustainable Development Goals (SDGs), including agri-food systems, water and sanitation.
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Despite these challenges, 86% of investment policy measures adopted in 2023 were investor-friendly. Digital tools, such as online one-stop shops, have played a key role in facilitating investment, quadrupling in developing countries since 2016. Similarly, information portals for business and investor registration in developing countries increased from 87 in 2016 to 135 in 2024, while developed countries saw their number increase from 42 to 51. For developing countries, digitalization is not just a technical solution, but also a stepping stone to broader implementation of digital government, addressing underlying weaknesses in governance and institutions that often hamper investment.
