The visit of Spanish Prime Minister Pedro Sánchez to Algiers is expected to mark the revival of economic
cooperation between the two countries after several years of diplomatic tensions.
While Algerian authorities are emphasising a partnership destined to expand into new sectors, several structural
challenges could limit their stated ambitions.
Energy remains the main pillar of the bilateral relationship between Algiers and Madrid, which are revitalizing bilateral cooperation. Algeria remains a major supplier of natural gas to Spain thanks to the Medgaz pipeline and liquefied natural gas (LNG) exports.
This dependence on hydrocarbons, however, underscores the limited diversification of the Algerian economy, whose foreign revenues remain largely dependent on energy exports and fluctuations in international prices.
At the time of Prime Minister Pedro Sánchez’s visit to Algiers, authorities from both countries are now discussing cooperation in renewable energy and green hydrogen.
But these projects remain, for the most part, at the stage of intentions. Their realisation will require significant investments, a stable regulatory framework, and an implementation capacity that several observers still consider
insufficient in Algeria, where numerous industrial projects have experienced delays or revisions.
The planned cooperation in agriculture, digital technologies, and artificial intelligence also comes at a time marked by internal constraints.
Despite substantial public programs, Algeria remains heavily dependent on food imports and faces challenges related to productivity, water management, and the attractiveness of its business environment.
Furthermore, the warming of relations with Madrid is occurring without any change in Spain’s position on Western Sahara, which led to the diplomatic rupture in 2022.
According to several analysts, this normalisation primarily reflects a return to economic pragmatism, as Algeria seeks to attract more foreign investment and diversify an economy still heavily reliant on hydrocarbons.
The results of this rapprochement will now depend less on political pronouncements than on the ability of both countries to translate their vows into concrete projects.
MK/AK/Sf/fss/as/APA