Algeria-Spain Trade Shows 9.1% Growth in Q1 2026, Signaling Economic Rebound
Image: Rass El Mal
Takeaway
The 9.1% increase in Algeria-Spain trade signals a recovery for European companies that faced supply chain disruptions and contract uncertainty following the 2022 diplomatic rift. Investors should monitor Spanish firms like Repsol and Naturgy, which have significant energy interests in Algeria, as deeper cooperation could lead to new infrastructure projects and supply agreements. The focus on energy security also suggests potential opportunities for companies specializing in pipeline construction and maintenance.
Trade between Algeria and Spain experienced a notable increase of 9.1% in the first quarter of 2026, according to the Spanish newspaper *Larrathon*. This growth signals a resurgence of economic momentum between the two countries and a strengthening of their commercial partnership across several strategic sectors. This increase occurs within a broader context of diversifying trade partners to offset declines with the United States and China, contributing to Spain's trade balance during the same period.
Algeria and Spain positioned themselves as important partners in 2015, remaining linked "with strong relations" as of 2017. However, relations experienced turbulence when, in March 2022, Algeria recalled its ambassador from Spain in response to Spain's stance on the Western Sahara issue. Subsequently, in June 2022, Algeria suspended the treaty of friendship and cooperation with Spain and froze trade exchanges. By November 2023, Algeria decided to return a diplomatic representative to Spain, Abdelfetah Daghmoum. In March 2026, Algeria reactivated the terms of the 2002 Treaty of Friendship, which had been frozen since October 2022.
In February 2026, Algeria's exports to Spain totaled €337 million, marking a 19.2% decrease from the €417 million recorded in February 2025. Conversely, imports from Spain increased by 3.02%, rising from €192 million to €198 million during the same period. Despite the export decrease, trade between Algeria and Spain has grown at an annualized rate of 3.71% over the past five years. The top exports from Algeria to Spain in February 2026 included petroleum gas (€179 million), crude petroleum (€114 million), and hot-rolled iron (€14.4 million). The main imports into Algeria from Spain in February 2026 were bovine meat (€27.8 million), sheep and goat meat (€27.6 million), and motor vehicle parts and accessories (€18.7 million).
The resurgence in trade relations benefits Spanish businesses, particularly those with major investment projects in Algeria across sectors like hydrocarbons, food, ceramics, and industry. In March 2026, José Manuel Albares, Spain's Minister for Foreign Affairs, European Union and Cooperation, visited Algiers, meeting with President Tebboune and his counterpart, Ahmed Attaf, to emphasize the strong ties and excellent relations between the two countries. During this visit, both countries agreed to strengthen their strategic partnership in energy, increasing gas supplies to Spain and reinforcing energy infrastructure. Albares also highlighted that trade was regaining momentum after the lifting of restrictions, with bilateral trade reaching almost 8.5 billion euros the previous year.
Looking ahead, both Algeria and Spain aim to consolidate a stable framework for relations through reactivated political dialogue and deepened cooperation on regional security. Further discussions are expected to explore potential joint investments in the energy sector and areas related to the energy transition. The stability and predictability of energy supplies, particularly via the Medgaz gas pipeline, remain a key focus for both nations.