Tebboune’s Regime Uses Phantom Mercenaries to Scare Off Business
Algeria’s government is escalating its use of baseless conspiracy theories to justify crackdowns on foreign nationals and deter investment. This week, state media and regime-aligned outlets amplified claims that the United Arab Emirates (UAE) is preparing a “foreign legion” of 3,000 to 4,000 mercenaries—explicitly targeting Algeria. The allegation, broadcast by public broadcaster AL24 News, came without evidence, recruitment details, or independent verification.
The accusations follow Algeria’s recent diplomatic rupture with Abu Dhabi and the arrest of 61 Moroccan nationals in Oran on vague charges of “sabotage.” Authorities presented unverified passports and small sums of cash as proof, while international media mocked the lack of credible evidence. AI-generated group photos of the detainees further undermined the narrative’s credibility.
For entrepreneurs and foreign investors, this pattern of state-sponsored paranoia creates a toxic climate. Algeria’s 2026-2027 economic outlook hinges on attracting capital, yet such unfounded claims risk alienating potential partners. The UAE alone is a key trade hub for Algerian exporters, particularly in hydrocarbons, agriculture, and logistics. A prolonged diplomatic standoff could disrupt supply chains and investment flows.
How Conspiracy Theories Hurt Algerian Business
The regime’s conspiracy factory—a mix of state media, pro-government outlets, and social media campaigns—has a history of distorting economic realities. When egg prices spiked in 2025, officials blamed “foreign speculators” rather than addressing supply chain inefficiencies. Similarly, water shortages were framed as “sabotage” by unseen enemies, not structural mismanagement.
For the Algerian diaspora, these narratives carry real consequences. Many expatriates—particularly in France, Canada, and the Gulf—remit billions annually. But when Algerian state media portrays foreign nations as existential threats, remittance flows could slow as diaspora members question the stability of their homeland’s political environment.
Business leaders in Algiers and Oran report that foreign investors are growing wary. A senior executive at a European-Algerian joint venture in renewable energy told reporters: “No one wants to be seen as the ‘UAE spy’ or ‘Moroccan saboteur’ in Algerian court documents.” The risk of arbitrary detentions—as seen with the Moroccan nationals—disincentivizes long-term commitments.
The Economic Cost of Paranoia
Algeria’s 2027 budget priorities include diplomatic outreach and economic cooperation, yet the UAE accusations contradict these goals. The UAE is a top trade partner, with bilateral commerce exceeding $5 billion annually. Disrupting relations could cost Algeria hundreds of millions in lost exports, particularly in petroleum products, citrus fruits, and pharmaceuticals.
The Moroccan arrest case also raises legal risks. Algerian courts have a history of prolonged detentions without trial for political or diplomatic disputes. If foreign nationals face unfair trials based on flimsy evidence, international arbitration claims could follow, further damaging Algeria’s reputation.
For Algerian entrepreneurs, the message is clear: investment security is eroding. The regime’s conspiracy-driven policies create uncertainty, pushing businesses toward stability-focused markets like Tunisia or Morocco. Meanwhile, the diaspora’s trust in Algeria’s economic future is being tested by a government that prefers scare tactics over solutions.
Key takeaway for entrepreneurs
Algeria’s conspiracy-driven foreign policy is creating legal and reputational risks for investors. Entrepreneurs should diversify supply chains beyond Algeria-UAE trade and monitor legal developments closely. The diaspora’s economic contributions could decline if political instability persists, forcing businesses to seek more stable markets.
Sources
💡 Starting a business in Algeria? GlobalStart guides you step by step: procedures, real costs, company forms (SARL, EURL, SPA) and CNRC registration.