After over two years of frozen trade relations and diplomatic tensions, Algeria and Spain are restoring their economic partnership, this time with a clear focus on innovation, joint development, and strategic resilience.
The renewed relationship is moving away from the old model based largely on Algerian natural gas exports and Spanish industrial imports. Now, both countries are prioritising projects in renewable energy, digital infrastructure, water management, and co-development in key economic sectors.
The 28-month-long trade suspension, which severely affected supply chains, exposed the heavy dependence each country had on the other. Algeria experienced delays in accessing industrial equipment, while Spain was left scrambling to secure alternative gas supplies after disruptions to the Medgaz pipeline—the main channel for Algerian gas to Spain.
However, the suspension also pushed both governments to implement domestic reforms. Algeria introduced policies to diversify its economy, ease restrictions on foreign investment, and promote the growth of start-ups and industrial zones. Spain, meanwhile, advanced its decade-long economic transformation. The country ended 2024 with a 3.2% growth rate—the highest in the EU—thanks to growth in renewable energy, digital technologies, and manufacturing.
This evolution has prepared the ground for a different kind of partnership—one based on mutual strength, innovation, and economic balance. As part of this reset, the two governments have agreed to deepen cooperation in sectors such as solar and wind energy, hydrogen fuel, smart water systems, sustainable agriculture, pharmaceutical production, cloud computing, and even ecotourism.
The ongoing Algerian-Spanish Business Forum, which began in Algiers on June 15 and ends on June 17, 2025, is expected to cement this new direction. Business leaders from Spain’s Levante region—known for its innovations in green technology and agriculture—are meeting with Algerian entrepreneurs and government officials to explore new investment deals, co-production models, and technological exchanges.
Some of the ideas being discussed include setting up joint innovation laboratories, launching co-located industrial parks, and creating a digital trade corridor across the Mediterranean to ease logistics and boost SME participation in global supply chains.
To support these goals, institutional backing and legal clarity are key. Both governments are working on reforms to simplify customs procedures, speed up cross-border investment approvals, and create safer financing systems. The Algerian-Spanish Business Council will take the lead in coordinating activities and ensuring projects stay on track.
A senior Spanish diplomat at the forum said: “We’re committed to building a long-term relationship with real structures in place. We are not just reopening trade; we are modernising the way our economies work together.”
Algerian officials also said this was not just about going back to the old status quo but establishing a “future-focused, balanced relationship” that benefits both sides.
The revival of economic ties is seen as an example for other countries seeking to rebuild partnerships in a world that is shifting towards multipolar trade dynamics and increasing pressure to invest in green, digital, and inclusive development.
As the talks continue and agreements take shape, analysts say the success of this new chapter will depend not only on signing deals but also on building strong institutions that deliver on promises and remain transparent.
