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Algerian businesses have traditionally leaned toward European partners. With their emerging capabilities and grand ambitions, Asian enterprises are now making inroads in the Algerian market.

A delegation of South Korean businessmen arrived in Algiers this week to explore "investment opportunities", Industry Minister Mohamed Benmeradi said.

It is in the automotive sector that the Koreans hope to rival French and German giants, the minister suggested.

"While Renault wants to set up partnerships in Algeria and Volkswagen would rather invest alone, the Koreans are looking more at assembly," he told Radio Chaîne 3 on June 22nd. "We are currently studying all the proposals."

A Renault factory in Algeria may eventually build 150,000 vehicles per year, but discussions with the French firm have been dragging on for a while and are "far from being finalised", Benmeradi said.

"We have advanced on some questions, but there are still three or four arounds ahead before we complete a project to build an automobile manufacturing plant," he added.

But over the next few months, Algeria will have to decide between the many offers on the table.

The market can take 300,000 new cars per year and may, therefore, "commit itself to two or three projects at once", according to the industry minister.

"The Koreans are also interested in environmental projects," said international economics consultant Abdelmalek Serraï. "In particular, they want to be involved in Not only Koreans, however, are giving the Europeans a run for their money in this part of the Maghreb.

The two biggest projects to have taken place in Algeria were secured by Chinese and Japanese companies. The East-West Highway, which runs over 1,200 km and cost an estimated $11 billion, was carried out by Cojaal from Japan and CITIC/CRCC from China. The other project, which cost $3 billion and aimed to transfer potable water from In Salah to the oasis of Tamanrasset, involved three Chinese companies and Algeria's Cosider.

Between 2008 and 2009, "Asian countries have shown an increase of nearly 2% in terms of the global volume of trade with Algeria (up from $10.68 billion to $10.89 billion over the same period)," professor and international expert Abderrahmane Mebtoul told Magharebia.

With China alone, the volume of trade has been rising continually. In 2009, it witnessed a growth of 8.8%, with Chinese investments reaching $900 million. According to the Chinese Embassy in Algiers, 30,000 Chinese nationals, including managers, engineers, technicians and manual workers, are currently employed in Algeria. the territorial development plan launched by our minister, Cherif Rahmani."

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