This study employs a multidimensional methodological approach to examine the intersection of economic diversification and spatial rebalancing, focusing on small towns. By integrating recent census data, national economic statistics, export figures, and qualitative insights from case studies and stakeholder interviews, the research explores regional urbanization patterns, population growth drivers, and spatial balance within Algeria’s urban network. Additionally, it investigates Algeria’s integration into Global Production Networks (GPN), emphasizing the state’s regulatory role and the challenges posed by dependence on hydrocarbons. The case of Sigus illustrates how multi-scalar factors and local resources influence economic and industrial dynamics. This mixed-methods framework provides a comprehensive understanding of Algeria’s spatial and economic strategies, aligning findings with national development plans such as SNAT 2025.