Algeria is set to receive more than $3 billion in new financing from the Islamic Development Bank Group (IsDB) under a fresh three-year cooperation agreement aimed at accelerating infrastructure development, particularly in the railway sector.
The new financing package was announced by the President of the IsDB Group, Mohammed Sulaiman Al-Jasser, in an interview with Algeria’s AL24 News on the sidelines of the bank’s annual meetings, which began on Monday.
Al-Jasser confirmed that the agreement—expected to be formalised during the meetings—marks a strategic expansion of the bank’s development footprint in Algeria and reflects growing confidence in the country’s reform trajectory.
The package will prioritise investment in Algeria’s railway network, aligning with the government’s push to enhance connectivity, facilitate trade, and stimulate regional development.
Financing volumes set to double
The new deal marks a significant step-up from previous commitments, with IsDB indicating plans to double Algeria’s financing volumes.
The oil producer’s cumulative financing from the bank has already surpassed $2.9 billion, with nearly all of it channelled into completed infrastructure and industrial projects.
“Algeria is witnessing a developmental resurgence, and the bank is keen to be a strategic partner in that journey,” Al-Jasser said, adding that discussions during the annual meetings will also include new bilateral agreements and a long-term strategy to expand the bank’s role in financing tech-based infrastructure across member states.
Long-standing partnership
Since becoming a founding member of the IsDB in 1974, Algeria has maintained strong ties with the bank.
The IsDB Group’s interventions in the country include 401 operations, of which 394 projects—valued at nearly $3 billion—have been complet.
The majority of this financing, about $2.2 billion or 74.3 percent, has gone into Algeria’s industry and mining sectors.
The northern African nation holds a capital subscription of 1.4 billion Islamic Dinar (ID) (2.43% of IsDB’s total subscribed capital), with a paid-up share of ID 199.9 million.
According to Al-Jasser, the country’s active engagement in the bank’s affairs, along with its hosting of the annual meetings, underscores its commitment to deepening economic cooperation across the Islamic world.
The latest financing push is expected to bolster Algeria’s long-term infrastructure strategy while reinforcing its position as a key player in the multilateral development finance landscape.
