The informal sector plays a significant role in urban economies across Africa, including Algeria. In Algeria, the arts and humanities sector contributes to cultural diversity and social cohesion within urban areas. The research employs a narrative analysis approach, drawing from semi-structured interviews with key informants including artists, cultural practitioners, and community leaders. Data collection was conducted through in-depth discussions and observations in urban settings. A notable finding is the significant proportion (30%) of informal sector arts and humanities activities are concentrated in the cultural districts of Algiers, indicating a high concentration of creativity hubs despite economic challenges. The study highlights the resilience and adaptability of the arts and humanities within the constraints of the informal sector. It underscores the need for supportive policies to enhance the sustainability of these sectors. Policy recommendations include fostering partnerships between government bodies, private sector entities, and civil society organizations to provide resources and recognition for the informal sector’s cultural contributions.