Algeria

The People’s Democratic Republic of Algeria is situated between the Mediterranean Sea and the Sahara Desert in the western part of the Arab world. Covering approximately 2.38 million square kilometers, Algeria remains the largest country in Africa and the tenth largest in the world. With a population exceeding 44.9 million as of 2024, it is the third most populous Arab country after Egypt and Sudan. The capital, Algiers, is located in the north along the Mediterranean coast.

In December 2019, former Prime Minister Abdelmadjid Tebboune was elected president following mass protests and the Hirak movement, which called for political reform, transparency, and accountability. Tebboune pledged a “New Algerian Republic.” Early parliamentary elections were held in June 2021, with his party securing the majority.

An association agreement between the EU and Algeria has been in place since 2005. In 2017, both parties adopted new partnership priorities under the renewed European Neighborhood Policy, focusing on political dialogue, governance, the rule of law, trade, and energy cooperation. Algeria is a major producer of oil and gas, which have historically driven economic growth. The government continues to promote economic diversification, emphasizing sustainable environmental policies, green technologies, and entrepreneurship.

The country has seen a surge in start-up culture, with young entrepreneurs driving innovation. To attract foreign investment, Algeria introduced a new investment law in 2022, which simplified regulations, enhanced investment guarantees, and established a one-stop-shop for investors. The new investment promotion agency, AAPI, has replaced the former development agency, ANDI, streamlining business facilitation.

The EU and Algeria reaffirmed their commitment to bilateral cooperation at the Association Council of March 13, 2017, setting renewed priorities in:

1. Political dialogue, governance, the rule of law, and fundamental rights.
2. Socio-economic development, trade, and market access.
3. Energy, environment, and sustainability.
4. Strategic and security dialogue.
5. Cultural and inter-religious exchange, migration, and mobility.

Algeria primarily imports food, machinery, and chemical products while exporting oil, gas, and petroleum products. Prior to the COVID-19 pandemic, the construction and logistics sectors experienced growth rates exceeding 4% annually. In bilateral trade, Germany recorded an export surplus of approximately $510 million in 2023, with exports to Algeria totaling $2.13 billion and imports from Algeria amounting to $1.62 billion. More than 200 German companies are active in Algeria. Germany ranked fifth among the most important supplier countries in 2020