Algeria has taken another step toward strengthening support for small businesses and diversifying its economy after the National Agency for Support and Development of Entrepreneurship signed a cooperation agreement with the Algerian-Saudi Investment Company (ASICOM) to enhance financing opportunities for micro, small and medium-sized enterprises.
The agreement, concluded on February 24, 2026, brings together National Agency for Support and Development of Entrepreneurship (NESDA), formerly known as ANSEJ, and Algerian-Saudi Investment Company (ASICOM). The partnership aims to connect Algeria’s entrepreneurship support ecosystem with cross-border investment capital, although authorities did not disclose specific funding volumes tied to the deal.
Signed during a conference in Algiers focused on small-business development opportunities, the cooperation framework is designed to improve access to financing for startups and micro-enterprises backed by NESDA programmes. Eligible businesses may receive investment or financing from ASICOM following technical evaluation and compliance with the company’s investment standards.
A key component of the agreement centers on improving project readiness. Under the arrangement, both institutions will collaborate on feasibility studies, financial assessments and the preparation of investment-ready business proposals. Officials say this approach is intended to bridge one of the most persistent challenges facing small enterprises transforming early-stage business ideas into bankable projects capable of attracting institutional investment.
Despite the strategic importance of the partnership, no financial commitments, guarantee mechanisms or capital deployment timelines were announced at signing. Analysts note that the absence of disclosed funding figures leaves uncertainty regarding the immediate scale of financing available to participating enterprises.
ASICOM was established in 2008 under a bilateral agreement between the governments of Algeria and Saudi Arabia to promote joint investment initiatives. The company was initially capitalized at 8 billion Algerian dinars, equivalent to roughly $60 million, with ownership equally shared between the two states.
Since its creation, ASICOM has deployed investments through equity participation, credit facilities and hybrid financing instruments across several economic sectors. According to publicly available portfolio data, the company’s cumulative investment commitments total about 26 billion Algerian dinars, including 5.9 billion dinars in equity investments and 1.8 billion dinars in credit allocations.
Its investment footprint spans retail infrastructure, manufacturing and tourism projects. Notable ventures include commercial developments such as City Center Mall and Carrefour hypermarkets, alongside industrial investments in steel and brick manufacturing as well as hospitality projects in regions including Skikda and Béjaïa.
The cooperation agreement comes as Algeria intensifies efforts to reduce reliance on hydrocarbons, which have historically dominated government revenues and export earnings. Authorities increasingly view SME development and private-sector expansion as critical drivers of job creation, innovation and economic resilience.
Official data released earlier in 2026 indicates that Algeria registered 743 investment projects valued at more than 889 billion Algerian dinars, with projected employment creation nearing 22,000 jobs. Strengthening access to finance for smaller firms is seen as essential to sustaining this investment momentum and broadening economic participation.
For Saudi Arabia, the partnership aligns with outward investment ambitions under Saudi Vision 2030, which encourages capital deployment into international markets and non-oil sectors. Expanding investment cooperation with African economies forms part of Riyadh’s broader strategy to deepen economic ties across emerging markets.
The NESDA–ASICOM agreement therefore formalizes a mechanism linking domestic entrepreneurship support structures with a bilateral investment platform. By prioritizing technical due diligence and structured project preparation, the initiative seeks to create a pipeline of viable enterprises capable of scaling beyond startup phase.
While the financial scope of the deal remains unspecified, policymakers view the partnership as a foundation for mobilizing future investment flows into Algeria’s SME sector, supporting long-term economic diversification and strengthening Algeria-Saudi economic cooperation.
