Algeria has secured a $3 billion loan package from the Islamic Development Bank to be disbursed over the next three years, aimed at accelerating key development initiatives.
- Algeria has secured a $3 billion loan from the Islamic Development Bank to support development initiatives over three years.
- The funding will focus on major infrastructure projects, including the expansion of Algeria’s railway network.
- The Islamic Development Bank and Algeria are strengthening their partnership through a new framework targeting competitiveness and sustainable growth.
Algeria maintains a significant and multifaceted relationship with the Islamic Development Bank (IsDB), both as a major contributor and beneficiary having joined the IsDB in 1974 as a founding member.
Announced by Bank President Muhammad Sulaiman Al Jasser on Ennahar TV, the funding will support major infrastructure projects, including the expansion of the country’s railway network, part of a broader presidential strategy to better connect Algeria’s economic zones and stimulate national growth.
Furthermore, the IsDB and Algeria are enhancing their strategic partnership through a new comprehensive framework.
This framework focuses on boosting competitiveness, fostering private sector development, enhancing human capital, and strengthening regional cooperation.
Algeria’s railway projects
Last year, Algeria laid out an ambitious project to construct an expansive 6,000 kilometers of railway lines within the North African nation, a move lauded by Algerian President Abdelmadjid Tebboune as pivotal in advancing his country’s socio-economic progress.
Algeria announced it will be partnering with China on the project, which it says will facilitate the exploitation of mines, promote trade, and create economic vitality across the country.
Confirming the project, Tebboune noted, “Our Chinese friends have agreed to this project, which will cover a distance of around 6,000 km.”
The ambitious railway project is part of Algeria and China’s broader cooperation under the Belt and Road Initiative (BRI), the massive China-led strategy to boost global trade and commerce by improving infrastructure and connectivity.
This move aims to keep Algeria on track to triple its rail network by 2030—a strategic effort to boost national economic growth and enhance regional connectivity.
The country already has more than 5,000 kilometers of rail in operation, but the planned expansion will introduce faster, more efficient routes that connect remote communities and unlock new economic opportunities.
The Islamic Development Bank’s funding will play a pivotal role in bringing these new projects to life, supporting not only rail infrastructure but also a broader portfolio of development initiatives designed to modernize Algeria’s economic landscape and strengthen its role in regional trade.
