Algeria: Military upgrades, elections ahead and climate unrest

Defense sector: Fighter jet contracts and modernization

Algeria continues military modernization with two parallel supplier moves. The Algerian Air Force received its first batch of Russian Su-34E fighter-bombers in Q2 2024, increasing its strike capability. Simultaneously, Algiers is in advanced talks with China for a reported order of 14 Chengdu FC-1 Xiaolong multirole fighters, per APAnews. The FC-1 order value is estimated at $300 million. Both platforms will be integrated into existing Russian-made aircraft fleets, requiring spare parts and training investments estimated at $40 million annually over three years.

Elections: 2026 legislative race under preparation

Parliamentary elections scheduled for 2026 are prompting pre-campaign positioning. The Interior Ministry has announced a new voter registration drive targeting 1.2 million first-time voters aged 18–25. The High Independent Election Authority (HIEA) has published updated electoral districts in six governorates, adjusting boundaries for an expected 5.7 million registered voters. Political parties have until September to submit updated membership lists. The National Liberation Front (FLN) and Democratic National Rally (RND) maintain their dominance in party financing, controlling 68% of declared campaign funds for the 2021 cycle, according to official reports.

Transport and logistics: New partnerships and ground handling

Transport sector developments focus on regional connectivity. TRANSOM Group signed a memorandum of understanding with Algeria’s National Office of Airports (ONDA) to develop ground handling services at Houari Boumediene Airport (ALG), targeting a 25% increase in cargo throughput by 2026. In parallel, Algeria and Mauritania concluded high-level talks in Ouargla on the Trans-Saharan Railway feasibility study, with the EU allocating €38 million for Phase 1 engineering. Separately, Algeria and Oman signed three transport agreements covering air services, maritime links and logistics zones, with a joint investment pipeline of $120 million over five years.

Government policy: Visa exemptions and energy diplomacy

Diplomatic passport holders from Algeria and Uzbekistan will no longer require visas for bilateral travel, under an agreement signed in Tashkent. In energy, French utility Engie has submitted a non-binding offer to Sonatrach to expand Algerian natural gas supply to Europe via the Medgaz pipeline. The proposed volumes total 2.5 billion cubic meters annually, contingent on new field development in the Berkine Basin. Sonatrach forecasts production growth of 4% in 2024, reaching 105 billion cubic meters.

France-Algeria ties: Strategic signals amid tension

High-level diplomatic exchanges remain limited. Algeria’s foreign ministry summoned the French ambassador in Algiers on May 8 following statements by French legislators on Western Sahara. No policy changes were announced. The Algerian government continues to restrict French military exports after the cancellation of a €500 million drone deal in 2023. Bilateral trade fell 8% in Q1 2024 to €1.9 billion, driven by lower French automotive and pharmaceutical exports.

Tourism: E-visa push for Saharan destinations

Algeria’s tourism ministry launched an electronic visa program for 41 countries targeting Saharan regions—Tamanrasset, Djanet and Adrar—effective June 1. The program reduces processing time from 10 days to 72 hours and aims to attract 50,000 visitors in 2024, up from 32,000 in 2023. Investments in desert tourism infrastructure total $85 million in 2024, focusing on Tamanrasset’s new airport expansion and Djanet’s hotel capacity increase from 1,200 to 1,800 beds.

Cinema: Legislative and funding shifts

Algerian cinema received regulatory updates. The Ministry of Culture revised film funding rules, increasing the annual national production fund from $12 million to $18 million and mandating that 30% of budgets be spent domestically. The National Centre for Cinematography (CNC) also approved $4.2 million in grants for six new feature films, prioritizing post-colonial memory themes. Separately, the Cannes Film Festival hosted a roundtable on Algerian-French co-productions, attended by five French distributors and three Algerian producers.

Urban transport: Tramway projects resume

Urban transport projects restarted after delays. The Ministry of Transport reactivated tramway construction in Oran and Constantine, with completion schedules pushed to Q4 2025 instead of Q2 2025 due to supply chain delays. The Oran line 2 contract, valued at $240 million, is financed by the African Development Bank (AfDB) and the Algerian government. Constantine’s line 3, worth $195 million, is funded by the Islamic Development Bank (IsDB). Both lines will add 32 km of track and 47 new stations combined.

Sports: Olympic team and doping debate

Algeria named a 16-athlete squad for the 2024 Paris Olympics, featuring three debutants in athletics. Imane Khelif won gold in the women’s boxing middleweight final, following international controversy over her eligibility after failing a gender eligibility test in 2023. Algeria’s Olympic Committee (COA) has not commented on the ruling. The International Boxing Association (IBA) has suspended Khelif’s previous results, but the IOC recognizes her participation under Olympic standards.

Climate and water: Riots and desalination progress

Water scarcity triggered unrest in Laghouat and Djelfa. Protests in Laghouat on May 12 led to road blockades and clashes with security forces. Authorities responded by announcing a $110 million emergency water pipeline from the Chott Melrhir aquifer to supply 300,000 people. The Hamma seawater desalination plant, inaugurated in March, was awarded the OPIC Impact Award for delivering 100 million cubic meters annually to Algiers. The plant operates at 92% capacity and reduced water cuts in the capital by 40% since January.

Balance of the week’s developments

Military modernization continued with parallel procurement from Russia and China, signaling long-term defense investment. The 2026 election calendar is accelerating administrative preparations. Transport agreements with Mauritania and Oman expand regional logistics networks. Energy diplomacy with France remains centered on gas supply, while visa exemptions with Uzbekistan ease diplomatic travel. Tourism policy shifts aim to boost Saharan arrivals. Cinema funding and co-production rules were updated. Urban transport projects resumed with AfDB and IsDB financing. Olympic preparations proceeded despite international eligibility debates. Water infrastructure investments responded to civil unrest.

Key takeaway for entrepreneurs
Algeria’s defense sector offers opportunities in aircraft maintenance and training, with projected spare parts demand of $40 million annually. Transport logistics providers can target ground handling expansion at Algiers airport and potential Trans-Saharan Railway contracts. Desalination and water pipeline projects present engineering and procurement opportunities valued at over $100 million in the coming year.