Algeria and Turkey Aim for $10 Billion Trade Target, Initiate Preferential Trade Agreement Talks
Image: Rass El Mal
Takeaway
The deepening economic ties between Algeria and Turkey present a strategic opportunity for Turkish businesses seeking to expand into North Africa. Investors should monitor the progress of the preferential trade agreement negotiations, as its successful implementation could significantly reduce trade barriers and boost bilateral commerce. Companies in the manufacturing, construction, and energy sectors stand to benefit from increased investment and trade flows.
Algeria and Turkey are intensifying their economic partnership, targeting a trade volume of $10 billion, as announced during Algerian President Abdelmadjid Tebboune's official visit to Ankara on May 7, 2026. The current trade volume between the two countries has exceeded $6.4 billion in 2024, solidifying Turkey's position as a key economic partner for Algeria. As part of this deepening relationship, Algerian Minister of Trade and Export Promotion, Professor Kamal Rezig, confirmed the official commencement of negotiations for a preferential trade agreement between Algeria and Turkey during the Algerian-Turkish Business Forum in Ankara.
Algeria and Turkey's economic ties have seen steady growth, with Turkish investments in Algeria reaching approximately $7.7 billion across various economic and industrial sectors. This figure represents a significant increase from previous years, reflecting Turkey's growing interest in the Algerian market. In 2020, Algeria and Turkey revised their cooperation agreement, initially signed in 2006, to strengthen economic, technical, and scientific collaboration [cite: Investment, Economy]. This revision laid the groundwork for further expansion of trade and investment between the two countries.
The Algerian-Turkish Business Forum, held in conjunction with President Tebboune's visit, saw wide participation from business leaders and investors from both countries. The forum served as a platform to explore opportunities for enhanced economic cooperation and increased trade. The agenda for President Tebboune's visit included discussions on strengthening historical relations and exploring broader prospects for mutual benefit. President Tebboune was officially received by his Turkish counterpart at the Presidential Complex in Ankara.
The deepening economic partnership between Algeria and Turkey is expected to benefit various sectors, including manufacturing, construction, and energy. Algerian companies stand to gain from increased access to the Turkish market, while Turkish firms can leverage Algeria's strategic location and resources to expand their presence in North Africa. The preferential trade agreement, once finalized, is anticipated to further reduce trade barriers and promote bilateral commerce. The focus on steel and plastics industries in Algeria, as highlighted in previous reports, could see further investment from Turkish companies [cite: Investment, Economy].
Looking ahead, the successful negotiation and implementation of the preferential trade agreement will be crucial in achieving the $10 billion trade target. The Algerian government's ongoing efforts to diversify its economy and attract foreign investment will also play a key role in fostering closer economic ties with Turkey. Any shifts in regional geopolitics or changes in Turkish economic policy could impact the trajectory of this partnership. The next meeting of the Algerian-Turkish High-Level Cooperation Council, expected in 2027, will provide an opportunity to review progress and set new priorities.