Algeria Plans to Revive Shipbuilding as Defense Industry Grows
Algeria’s shipbuilding industry is poised for a revamp with the government hoping to tap domestic shipyards for upcoming procurement deals. The Algerian Defense Ministry has previously revealed plans to build Chinese Type 056 corvettes at local shipyards.
In mid-2020, the Algerian Navy placed an order for six Type 056 corvettes with China’s Hudong Zhonghua Shipbuilding Group, a subsidiary of China State Shipbuilding Corporation (CSSC). Part of the contract included building some of the vessels at Algerian yards.
In 2023, the Algerian Navy took delivery of the first corvette, the El Moutassadi. Analysts believe that the two-year gap in delivering the other vessels is a deliberate strategy to transition production from Chinese to Algerian yards. The local production will happen under a license from China.
The new corvette class is designed for patrol, escort and maritime protection missions. They have a length of around 95.5 meters and a displacement of 1,500 tons. The corvettes have a crew capacity of 78 people and a range of 3,500 nautical miles.
In the past decade, Algeria has been trying to diversify its oil-driven economy, with expansion of sectors such as shipbuilding top on the agenda. Recently, Algerian Transport Minister Saïd Sayoud ordered a study on the feasibility of expanding shipbuilding facilities in the country. Algeria has significant potential for the development of its shipbuilding and ship repair industry, thanks to its location in the Mediterranean.
Algeria is keen on expanding its defense industry, which includes empowering local production of naval platforms to reduce dependence on foreign yards. Algeria’s defense spending for 2025 surged to a record $25 billion, near the top of the charts in the Middle East and North Africa. Partly, the high defense bill is due to the changing security situation in the Sahel region as well as escalating border conflicts with the neighboring rival Morocco.
However, the key driver for the high defense budget is the ongoing modernization of the Algerian military. This includes fleet renewal for the country’s navy in response to increasing cases of smuggling, illegal migration in the Mediterranean and terrorism.
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