Algerian defense spending is set to rise to a record level of 3.35 trillion dinars (25.1 billion dollars), with Bloomberg noting that it is “one of the highest levels in the Middle East and North Africa,” representing about one-fifth of the country’s total budget for the coming year, as the state prepares for what it describes as “unprecedented regional threats.”
Bloomberg highlighted that the 16% annual increase, detailed in the 2025 budget bill approved by parliament on Wednesday, is the latest in a series of increases in Algeria’s military spending under President Abdelmadjid Tebboune.
It pointed out that Algerian defense spending is already ranked 19th globally, according to the Stockholm International Peace Research Institute in 2023, the highest in Africa, and only behind Saudi Arabia and Israel in the Middle East and North Africa region.
Bloomberg also observed the challenges facing Algeria, noting its ongoing decades-long dispute with neighboring Morocco over the Sahara. While Morocco’s claim has gained significant support from the U.S., France, and Spain, Algeria remains the primary supporter of the Polisario Front.
In recent years, a series of military coups in southern Algeria, from Mali to Niger and Burkina Faso, have compounded insecurity, alongside the resurgence of radical Islamist movements that pose a potential threat.
According to Bloomberg, the upcoming budget of 125.7 billion dollars, which represents an increase of about 10% over 2024, does not provide details on how the defense allocations will be spent.
The budget also forecasts a 1.9% increase in oil and gas exports in 2025, based on a crude price of 70 dollars per barrel. Algeria anticipates an economic growth rate of 4.5% in 2025 and 2026, but this is expected to slow to 3.7% by 2027, due to declining energy revenues.
Algeria is working to diversify its economy as many Western energy buyers shift towards greener resources. The International Monetary Fund, which expects Algeria’s economy to grow by 3.8% this year, stated in March that “the large fiscal deficit expected in the near term and financing needs could increase financial, tax, and inflation vulnerabilities.”
add your comment
Terms of publication : Not to offend the writer, people, sacred things, or attack religions or the divine self, and refrain from racist incitement and insults.