Algeria has secured a $3 billion loan package from the Islamic Development Bank (IsDB), set to be disbursed over the next three years to support critical development initiatives across the country.
Announced by IsDB President Muhammad Sulaiman Al Jasser on Ennahar TV, the funding will primarily finance major infrastructure projects including the expansion of Algeria’s railway network, a central pillar of the government’s strategy to enhance economic connectivity and stimulate national growth.
As a founding member since 1974, Algeria maintains a longstanding and multifaceted relationship with the Islamic Development Bank, both as a significant contributor and beneficiary.
This latest financial commitment strengthens that partnership, further formalized through a new comprehensive framework focused on improving competitiveness, fostering private sector growth, enhancing human capital, and boosting regional cooperation.
Central to these efforts is Algeria’s ambitious plan to construct 6,000 kilometers of new railway lines, a project endorsed by President Abdelmadjid Tebboune as key to advancing socio-economic progress.
The railway expansion is set to unlock economic vitality by facilitating mining exploitation and promoting trade across the nation.
“Our Chinese friends have agreed to this project, which will cover a distance of around 6,000 km,” Tebboune confirmed, highlighting the collaboration with China under the Belt and Road Initiative (BRI), the vast infrastructure strategy aimed at improving global trade connectivity.
Currently operating over 5,000 kilometers of rail, Algeria aims to nearly triple its rail network by 2030, creating faster, more efficient routes that connect remote areas and open new economic opportunities.
The Islamic Development Bank’s financing will be instrumental in realizing these ambitious projects, supporting not only the railway expansion but also a broad range of development initiatives designed to modernize Algeria’s economy and enhance its regional trade role.
