Algeria Rises as a Leading Investment Destination in Africa: Ranked Second Most Attractive Country for Foreign Investors in 2025
✍️ BY: Dr. Hana Saada
Algiers – September 2025 – Algeria has reaffirmed its growing stature as a dynamic economic hub on the African continent, securing second place—alongside Egypt—in the 2025 Global Attractiveness Index, a benchmark ranking issued by the Italian business consulting group The European House–Ambrosetti (TEHA). The results, unveiled on September 7, 2025, highlight Algeria’s increasing appeal to multinational corporations and foreign investors, positioning the country at the forefront of Africa’s economic transformation.
The Global Attractiveness Index, which evaluated 146 countries covering 98 percent of global GDP and 94 percent of the world’s population, employed over fifty performance indicators derived from internationally recognized institutions such as the United Nations Development Programme, the International Monetary Fund, the World Bank, and UNCTAD. Criteria spanned across critical dimensions including foreign direct investment inflows, governance effectiveness, the rule of law, debt-to-GDP ratios, human development levels, unemployment rates, technological progress, gender parity, scientific publications, and the share of students pursuing STEM fields.
Based on four sub-indices—positioning, dynamism, sustainability, and future prospects—countries were graded on a scale from 0 to 100, then classified into four categories: highly attractive, fairly attractive, moderately attractive, and weakly attractive. Algeria, with a score of 30 points, earned its place among the “moderately attractive” countries, ranking 78th globally. This performance places Algeria at the same level as Egypt, and just behind Mauritius, which leads the African chart at 76th globally with a score of 30.4 points.
Algeria’s advancement reflects both structural reforms and a deliberate national strategy aimed at diversifying its economy beyond hydrocarbons. Infrastructure development, expanded manufacturing, and a reinforced framework for trade and investment promotion have become hallmarks of the government’s efforts. The ranking further acknowledges Algeria’s progress in education, human capital, and its ambitious digital transition, elements that investors increasingly weigh when selecting new markets.
Regionally, Morocco (85th), Côte d’Ivoire (89th), Botswana (93rd), South Africa (96th), Senegal (97th), Rwanda (99th), and Seychelles (100th) complete the continent’s Top 10. Notably, only Mauritius, Egypt, and Algeria managed to enter the “moderately attractive” category, while the majority of African countries remain in lower tiers due to persistent challenges in governance, innovation, and human capital development.
At the global scale, the United States retained the first position with a perfect score of 100 points, followed by China (87.7), Germany (81.4), Singapore (80.9), and Japan (78.8). Four countries in total were classified as “highly attractive,” twelve as “fairly attractive,” sixty-three as “moderately attractive,” and sixty-seven as “weakly attractive.”
For Algeria, the significance of this recognition extends beyond numerical rankings. It embodies the international community’s acknowledgment of the country’s untapped potential, geographic advantage at the crossroads of Africa, Europe, and the Mediterranean, and the credibility of its economic reforms. The achievement sends a strong signal to foreign investors seeking stability, growth opportunities, and strategic market access in an increasingly competitive global environment.
This positioning strengthens Algeria’s ambition to emerge not only as a continental investment destination, but as a pivotal gateway linking Africa to the wider global economy.
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