Algeria’s economy under pressure as water risks grow

Water and Environment: Rising Toxic Risks in Southern Regions

The findings underscore the need for targeted infrastructure investments in water treatment and monitoring. The Ministry of Water Resources has not issued a response regarding immediate corrective measures or funding allocation.

Housing and Social Risk: Oil Revenue Cushion Under Pressure

Poverty eradication initiatives remain a priority, with DA 500 billion (approx. $3.8 billion) earmarked for vulnerable communities. No breakdown of disbursements or beneficiary coverage was released. The World Bank’s latest Algeria Country Report projects GDP growth at 3.5% for 2025, below the 4.1% recorded in 2024, citing fiscal constraints.

Defense Spending: Military Budget Retains Top Priority

The 2025 Finance Law allocates DA 2.1 trillion (approx. $16 billion) to defense-related expenditures, including procurement and personnel. No details on foreign military contracts or domestic defense industry developments were disclosed.

Gender Equality: Shelter Gaps Persist Despite Legal Frameworks

Maghreb-wide trends show Algeria lagging in survivor support infrastructure. Morocco has operationalized 70 public shelters since 2022, while Tunisia reports 52. Algeria has not disclosed a number.

Foreign Investment: 2025 Finance Law Introduces Key Provisions

The law also permits 100% foreign ownership in selected sectors, excluding hydrocarbons, defense, and media. The Algerian Investment Agency (ANDI) reports 47 new foreign investment projects in Q1 2025, down from 62 in Q1 2024. France remains the top investor, accounting for 35% of approved projects.

Diplomacy: Algeria Adjusts Approach to Regional and European Partners

Relations with Morocco remain tense, with Algeria citing “unacceptable conduct” after Morocco protested Algeria’s presence at a UNESCO cultural event marking Kazakhstan-Algeria ties. Algeria did not comment on Morocco’s decision to boycott the event.

Education: Language Shift Accelerates in Universities

Criticism from academics and students has centered on insufficient teacher training and a lack of English-language textbooks. No timeline for full implementation was provided.

Historical and Political Developments: Hirak Anniversary Raises Tensions

Veterans of the 1954–1962 independence war publicly endorsed ongoing demonstrations, linking demands for transparency to the legacy of the revolution. No state response to their statements was recorded.

Cultural and Bilateral Relations: Anniversary Markers and Diplomatic Frictions

Algeria marked its 65th Independence Day on July 5, 2025, with no new policy announcements. The event included military parades in Algiers and Oran.

Balance of the Week

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