Economically, Algerian and Spanish businesses have faced unprecedented frustration and imbalance in their operations. For two decades, companies from both nations built increasingly dynamic collaboration, backed by mutual government commitments.
The 28-month suspension of trade forced businesses to reassess strategies, from supply chains to distribution, as their survival depended on the strong and strategic ties between Algeria and Spain. These ties were reinforced by the Strategic Partnership and the construction of the Maghreb-Europe and Beni Saf-Almeria (Medgaz) gas pipelines.
An objective analysis of this disruption highlights its significant impact. Spain consistently worked to balance its trade with Algeria, especially during oil price spikes, while Algeria maintained this balance during low oil price cycles through ambitious export policies.
Algeria Can Learn from Spain’s Experience
This trade dynamic aligned with shared goals. Spain, hit hard by the 2008 subprime crisis, saw its GDP plummet. Through deep economic transformation, Spain achieved a 3.2% growth rate in 2024, four years post-pandemic—a performance hailed as exemplary in Europe.
Spain’s recovery offers a model of resilience. From a 2008 GDP of $1.636 trillion, it faced a 15-year economic decline, recovering to $1.620 trillion by 2023. Key reforms included support for households and businesses, job promotion, financial system stabilization, tax relief, public spending rationalization, liberalization, foreign capital inflows, and deficit reduction.
Between 2013 and 2016, Spain prioritized technological innovation through a national strategy for science, technology, and innovation (R&D+i). Innovation spending rose 1.3% in 2016 to €3.85 billion, driven by sectors like AI and ICT.
Algeria, meanwhile, pursued economic reforms with protectionist measures to rebalance production and reduce reliance on imports, a legacy of years of financial ease. These efforts yielded a 4.8% non-hydrocarbon GDP growth in 2024. Despite relative stability during the 2008 global crisis due to high oil prices (2010-2014), Algeria faced challenges from 2015’s oil price drop. Its GDP fell from $229.7 billion in 2014 to $227.6 billion by 2023.
Over the past decade, Algeria focused on economic diversification, investing in non-oil sectors like agriculture, public works, and construction. It also opened up to foreign companies, allowing up to 100% foreign ownership in non-strategic sectors. Post-pandemic, Algeria fostered a startup ecosystem to drive technological innovation and economic growth. However, structural barriers and bureaucracy slowed reform implementation.
Algerian-Spanish Business Forum in Algiers
Before the diplomatic crisis, Algeria was Spain’s top natural gas supplier, while Spain ranked third in supplying Algeria with industrial inputs, spare parts, meat, and engineering services. The crisis harmed both sides, disrupting not just trade volumes but also strategically critical products—Algeria’s energy exports and Spain’s industrial components.
These exchanges, enabled by geographic proximity and a robust partnership, went beyond mere commerce. As the situation normalizes, what will future trade look like?
Algeria’s push for a new industrial era based on innovation could draw on Spain’s post-2013 experience, fostering a renewed, productive exchange model aligned with modern economic paradigms. Historically, such cooperation has catalyzed broader trade, particularly in consumer goods.
To realize this potential, both nations need effective tools and frameworks. Public and private stakeholders must actively build lasting partnerships. Professional institutions, like the Algerian-Spanish Chamber of Commerce and Industry in Algeria and its Spanish counterpart, are pivotal. With strong political support, these bodies can foster collaborative environments across sectors and regions.
The upcoming Algerian-Spanish Business Forum on June 15-17, 2025, in Algiers, bringing together Spanish companies (mainly from the Levante region) and Algerian firms, could kickstart this revitalized trade strategy under improved conditions.
*President of the Algerian-Spanish Chamber of Commerce and Industry
