Algeria Bound

The resignation of French interior minister Bruno Retailleau signals a critical turning point in France’s strained relationship with Algeria.  The minister’s hardline stance on migration and security deepened mistrust between Paris and Algiers, freezing cooperation and diplomatic exchange. His departure removes a major obstacle to dialogue.

Algeria’s Sonatrach has signed a $5.4 billion production-sharing contract with Saudi Arabia’s Midad Energy North Africa to explore and develop hydrocarbons in the Illizi Sud field, marking one of the country’s largest energy partnerships of 2025.

Algeria’s 2026 draft budget raises government spending above 17.6 trillion dinars, with a significant portion allocated to public salaries, subsidies for basic goods, and infrastructure investments. The plan anticipates 4.1% economic growth.

Algeria’s government is set to boost its military budget to historic levels in 2026, with over $24 billion earmarked for defense spending. This unprecedented increase, outlined in the country’s draft finance law, reflects Algeria’s aim to reinforce security amid regional instability and border threats. The new funding will prioritize modernizing military equipment and strengthening operational readiness, underscoring the military’s central role in national policy.