US-Based New Lines Institute Report: Algeria Positioned as North Africa’s Leading Contender in Artificial Intelligence Development
By Dr. Hana Saada
A new assessment by the US-based New Lines Institute places Algeria at the forefront of North Africa’s emerging artificial intelligence landscape, identifying the country as the most structurally prepared to assume regional leadership in AI development on the basis of a comprehensive national strategy spanning education, innovation, data governance, and international cooperation.
The report argues that Algeria is no longer primarily perceived through its traditional energy profile, but increasingly as a state seeking strategic technological autonomy through a coordinated AI agenda built on six pillars: scientific research and innovation, skills development through education, sector-specific applications in health, agriculture and energy, investment stimulation, data governance reform, and the construction of an integrated AI ecosystem.
It highlights Algeria’s academic capacity as a key structural advantage, noting that more than 57,000 students are currently enrolled in computer science and artificial intelligence programmes across 52 universities, supported by 74 specialised master’s tracks. The country is also positioned among Africa’s strongest performers in scientific publication output, with Algerian researchers represented within the top two percent of global scientific rankings.
On the economic trajectory, the report projects Algeria’s AI market to expand from approximately $499 million in 2025 to $1.69 billion by 2030, driven by a compound annual growth rate of 27.7 percent, underpinned by accelerating adoption across key productive sectors.
Agriculture, which accounts for 12.4 percent of GDP, is identified as a priority deployment field, where AI-enabled precision farming could increase output by 20 to 25 percent. In energy, digital transformation is projected to generate annual efficiency gains estimated between $200 million and $300 million, particularly within hydrocarbons and industrial optimisation systems.
The report also points to rising domestic investment momentum, citing a 2025 allocation of 1.5 billion dinars by Algérie Télécom to support start-ups operating in artificial intelligence, cybersecurity and robotics, within a broader national digital transformation programme encompassing more than 500 projects scheduled for 2025–2026.
Human capital development is presented as a central strategic lever, with Algeria targeting the training of 500,000 ICT specialists by 2030 in an effort to reduce skills shortages and mitigate talent outflows, while strengthening long-term technological sovereignty.
Geographically, Algeria’s position between Europe and sub-Saharan Africa, combined with its energy base, is described as enabling conditions for its potential emergence as a regional AI hub, particularly in a context where neighbouring ecosystems remain unevenly developed.
The report also emphasises Algeria’s calibrated geopolitical positioning, noting its diversified partnerships with the United States, China, Italy and France, which it frames as a strategy aimed at preserving autonomy while ensuring continuous technology transfer. It highlights expanding cooperation with Italy in cybersecurity, telecommunications and subsea cables, including participation in the MEDUSA cable project linking North Africa to Southern Europe.
A gradual shift toward English-language instruction in higher education is also noted, alongside growing academic cooperation with American institutions, including partnerships involving Algerian schools of mathematics and AI with the University of Notre Dame.
China–Algeria cooperation is likewise expanding through joint laboratories and training programmes in digital technologies, reflecting a broader policy of diversified technology partnerships designed to accelerate knowledge transfer.
Despite these advances, the report identifies structural constraints, particularly limited data centre capacity, uneven internet connectivity in certain regions, and the need for faster digital infrastructure deployment and improved business conditions. Algeria is ranked 120th globally in AI readiness, a position the report attributes more to current infrastructural gaps than to underlying potential.
It concludes that Algeria’s long-term trajectory could position it as one of the most influential technological actors in North Africa and the Sahel, provided that ongoing reforms translate strategic ambition into scalable digital capacity.
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