Qatar boosts agrifood investments in Algeria with new projects

Qatar is significantly expanding its investments in Algeria's agricultural sector, reflecting deepening economic ties between the two nations, with Algeria and Qatar both prioritising agriculture to boost their food security

On 20 September, Algeria's National Agricultural Land Office (ONTA) granted Al Rayyan Agricultural a certificate of qualification for a concession covering 1,811 hectares in the municipality of Hassi Fehal (18.11 square kilometers). Al Rayyan is also stablishing operations in the commune of El Meniaa, two hours from Hassi Fehal and approximately 867 km from Algiers.

The new concession allows Al Rayyan to invest in strategic crops, supporting Algeria's efforts to enhance agricultural production.

El Meniaa's governor, Mokhtar Benmalek, expressed strong support for the project, referring to it as "promising" and committing to expedite necessary administrative procedures, including drilling permits for agricultural wells and development documents.

He emphasised the government's commitment to "remove any obstacles to ensure the smooth progress of this investment," as reported by the Algerian Press Service (APS).

Chettouh Lahcene, the director of ONTA in El Meniaa, said that the Qatari investor would benefit from government programmes, including access to seeds and participation in initiatives launched by Algerian authorities. This support extends to cereal and forage production, fruit cultivation, palm farming, and livestock rearing.

Al Rayyan's project manager, Djakhdem Hadj Aissa, highlighted the potential benefits to the region, stating: "This agricultural investment will bring a plus to the region, thanks to different types of strategic crops, according to the programme agreed with the Ministry of Agriculture and Rural Development." He added that 27 irrigation points would be installed, in addition to the existing three, to expand irrigated areas for various agricultural sectors.

"The aim is to expand the project to other areas if results are encouraging and production abundant in this investment niche," he said. No details were given on the amount or duration of this project.

In parallel, Baladna is advancing its substantial investment in Algeria. On 19th September, Baladna signed a memorandum of understanding with the Algerian Ministry of Industry for the construction of an infant milk production plant. The agreement was signed in Algiers between the Algerian Minister of Industry, Ali Aoun, and Baladna's chairman, Mohamad Moutaz Al-Khayyat.

Minister Aoun emphasised the importance of this "vital" project and showed his availability to "support the project and provide the necessary assistance and facilities for its success," according to a statem ent from his ministry.

This project is part of a larger $3.5 billion mega-project in Adrar, covering 117,000 hectares, as outlined by Baladna in April 2024. The venture is held 51% by Baladna and 49% by the Algerian state through the National Investment Fund.

The project comprises three key elements: a cereal and forage farm, a cow farm for milk and meat production, and a milk powder production plant.

According to Baladna, the project aims to meet 50% of Algeria's national demand for powdered milk, supplement the local market with red meat, create 5,000 direct local jobs, and contribute to the growth of the national cattle stock.

The project is expected to roll out in phases, with the first phase starting in 2026 and the final phase scheduled nine years after the project's launch.

Baladna's chairman, Mohamad Moutaz Al-Khayyat, commented on the agreement, saying: "We are delighted to formalise this partnership between Baladna and the Algerian Ministry of Agriculture and Rural Development. This strategic project is a cornerstone in fostering the growth of Algeria's agricultural sector, driving the nation toward self-sufficiency, and bolstering food security—a critical global challenge that commands concerted efforts from countries and international entities alike."

Preliminary works for the project commenced in September 2024, including the drilling of exploratory wells to study the nature of groundwater, ensuring the sustainability of resources.

The Governor of Adrar, Al-Arabi Bahloul, attended the launch and remarked: "Baladna's project will constitute a huge leap for the vital food sectors, as well as dairy products, making it a milestone in achieving food security," as reported by Qatar Tribune on 4th September 2024.

The project is designed to produce about 1.7 billion litres of milk annually from 270,000 cows, as reported by AGBI on 29th April 2024. This output would be sufficient to supply every person in Algeria with three litres of milk per month, significantly reducing the country's reliance on imported milk powder.

Baladna's CEO, Malcolm Jordan, stated that the project "aims to meet 50% of Algeria's national demand for powdered milk," and will also "supplement the local market with red meat" and "contribute to the growth of the national cattle stock."

Qatar, a small Gulf emirate rich in hydrocarbons, imports most of its food but has been expanding its agrifood investments in Africa and elsewhere to secure its food supplies. Many of its agrifood companies rose to prominence during the Saudi-led blockade of Qatar, forcing Doha to diversify its food supplies

The economic relationship between Qatar and Algeria flourished under President Abdelmadjid Tebboune, elected recently to a new term.

In 2022, both leaders inaugurated the expansion of the Algerian-Qatari steel plant in Jijel. Furthermore, preliminary work on the Algerian-Qatari-German hospital project in Sidi Abdallah (Algiers) was launched in August, with government officials and Qatar's Ambassador to Algeria, Abdulaziz Ali Al-Naama, in attendance.

On 1st September, Algerian Minister of Commerce Tayeb Zitouni announced that a Qatari investment would open no less than 500 commercial spaces across several provinces, as reported by Algerian media. This move is expected to create thousands of jobs and further solidify Qatar's economic footprint in Algeria.

Experts attribute this investment surge not only to strong diplomatic relations but also to Algeria's new investment laws offering significant incentives to foreign investors. Geo-economics consultant Abderrahmane Hadef stated that "the agreement between the leaders of both countries is undoubtedly responsible for this positive momentum in economic cooperation, as they share the same visions in terms of geopolitics but also the fraternal relationship that binds them."

He added that the "economic and pragmatic aspect" certainly weighed in the balance, with Algeria offering competitive advantages and Qatar possessing expertise in managing large global projects and considerable financing capabilities.

Economics professor Brahim Guendouzi noted that Qatar is now the largest Arab investor in Algeria, estimating that "the investment portfolio is approximately two-thirds of that of Arab countries." He anticipates future Qatari investments in retail and hospitality sectors will create thousands of jobs and further consolidate Qatar's assets in Algeria.

Guendouzi highlighted that Algeria's new investment law "offers significant facilities, incentives, and guarantees to foreign investors," making the country an attractive destination for Qatari businessmen.

Qatari investments in Algeria represent 74% of all Arab investments, according to estimates.

“People talk about Algeria-Spain relations and Algeria-France relations…, but Qatari investments outside hydrocarbons in Algeria are equivalent to, or even exceed, the investments of European countries combined,” noted Algerian Foreign Minister Attaf in an interview with Al Jazeera and broadcast on the Qatari platform Atheer in December.