Algeria and Spain Reignite Economic Partnership After 28-Month Freeze

After more than two years of suspended trade, Algeria and Spain are relaunching their economic cooperation with a renewed focus on innovation and joint development. This shift comes as both nations undergo transformative reforms, aiming to move beyond past diplomatic tensions and establish a sustainable, balanced partnership.

For over two decades, Algeria and Spain enjoyed robust trade ties, primarily built on Algerian gas exports and Spanish industrial imports. However, diplomatic tensions led to a 28-month freeze that severely disrupted supply chains and economic operations for both nations.

Algeria, which relied heavily on industrial imports, and Spain, dependent on Algerian natural gas—delivered through the Medgaz pipeline—suffered from the breakdown in economic relations. The halt exposed the vulnerabilities of over-reliance and reinforced the urgency of rebuilding strategic interdependence.

During the pause, both countries advanced major domestic reforms. Algeria prioritized economic diversification, eased foreign investment restrictions, promoted start-ups, and developed new industrial zones. Spain, in contrast, capitalized on a decade of reforms to boost innovation and competitiveness, achieving one of Europe’s strongest growth rates in 2024 at 3.2%.

This parallel evolution opens the door to a more resilient and future-oriented partnership, one that prioritizes joint production, technology transfer, and the creation of bilateral innovation networks. Key sectors for collaboration include renewable energy, water management, food security, pharmaceuticals, digital infrastructure, and ecotourism.

The upcoming Algerian-Spanish Business Forum, taking place in Algiers from June 15 to 17, 2025, will be a pivotal moment in solidifying these ambitions. Businesses from Spain’s Levante region and Algerian firms will explore opportunities for investment, tech integration, and co-production.

Institutional backing will be essential. Legal reforms and political support must streamline procedures and eliminate bureaucratic hurdles. The Algerian-Spanish Business Council is expected to play a leading role in coordinating efforts and ensuring continuity.

The rekindled Algeria-Spain economic partnership represents more than a restoration—it is a redefinition. Rooted in innovation and mutual benefit, this new phase promises stronger economic resilience and long-term cooperation in a rapidly changing global economy.