Algeria and Turkey Target $10 Billion in Trade, Sign Economic Agreements
Image: Rass El Mal
Takeaway
The targeted increase in Algerian-Turkish trade to $10 billion signals a deepening economic relationship that international investors should monitor closely. The focus on renewable energy, banking, and infrastructure presents opportunities for firms with expertise in these sectors. Investors should analyze the potential impact of a preferential trade agreement on specific industries and supply chains.
Algeria and Turkey are aiming to increase their bilateral trade volume to $10 billion, as stated by Algerian Minister of Trade and Export Promotion, Kamal Rezig, and Turkish Trade Minister, Ömer Bolat, on May 7, 2026, in Ankara. This announcement coincided with the Algerian-Turkish Business Forum, which both ministers co-chaired, and saw the participation of Algerian and Turkish business leaders, economic operators, and representatives from investment bodies. President Abdelmadjid Tebboune's official visit to Turkey included a stop at the mausoleum of Mustafa Kemal Atatürk, the founder of the Turkish Republic, followed by an official reception by Turkish President Recep Tayyip Erdoğan at the Presidential Complex.
Algeria and Turkey have been strengthening their economic partnership in recent years. In 2021, trade between the two countries stood at approximately $4.2 billion. By 2023, Turkish investments in Algeria reached $5 billion, creating nearly 30,000 jobs. In January 2024, Tosyali Algeria, a Turkish steel company, announced it would supply premium steel to the Algerian automotive and appliance industries, reducing reliance on imports. This followed Algeria's prioritization of steel and plastics as foundational industries for its domestic automotive sector.
The focus on expanding trade includes developing cooperation in renewable energy, banking, agriculture, and infrastructure. Algeria's efforts to diversify its economy and reduce reliance on hydrocarbons align with Turkey's expertise in various sectors. Algeria's ongoing digital transformation project, launched in 2023, presents opportunities for Turkish technology companies specializing in areas such as e-governance, cybersecurity, and fintech. In 2025, Algeria streamlined sheep acquisition for Eid al-Adha via a digital platform and imported 16,250 sheep through the Port of Ténès.
Increased trade and investment between Algeria and Turkey could benefit several sectors. Algerian companies gain access to Turkish technology and manufacturing expertise, while Turkish firms can expand their presence in the North African market. The development of Algeria's steel and plastics industries, supported by Turkish investment, could reduce reliance on imports and boost domestic manufacturing. The potential signing of a preferential trade agreement between Algeria and Turkey could further reduce trade barriers and boost bilateral commerce.
Looking ahead, the signing of a preferential trade agreement between Algeria and Turkey is a key catalyst to watch. The expansion of cooperation in renewable energy projects could attract further investment and contribute to Algeria's energy transition goals. Any shifts in regional geopolitics or trade policies could impact the feasibility of achieving the $10 billion trade target. The next meeting of the Algerian-Turkish High-Level Cooperation Council, expected in early 2027, will provide further insights into the evolving economic partnership.