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Updated July 24, 2024

Algeria

Successive U.S. Administrations have sought to improve
ties with Algeria, an energy exporter with one of Africa's
largest militaries. Algeria is a top purchaser of Russian
arms and a top source of natural gas for Western Europe.
Algeria is also on the UN Security Council in 2024-2025,
further elevating its importance for U.S. policymakers.
Algeria's energy sector has attracted interest from U.S.
firms, albeit constrained by a challenging business climate.
Algeria's long-standing skepticism of Western powers is
rooted in its brutal war of independence from France (1954-
1962). U.S. policy leverage is further limited by Algeria's
economic self-reliance and warm relations with China and
Russia, and by the United States' close ties to regional rival
Morocco. Algerian officials have welcomed increased U.S.
outreach and expressed an interest in diversifying the
country's partnerships, but stark policy differences endure
over Ukraine, the Gaza war, and other issues.
PoLtics
Algeria's political system is defined by a strong presidency
and security apparatus. President Abdelmadjid Tebboune,
78, appears to face few viable rivals as he seeks a second
term in elections slated for September 7, 2024. Tebboune
was first elected in 2019, after long-standing President
Abdelaziz Bouteflika stepped down in the face of an
unprecedented national protest movement. Turnout in the
2019 election was low at 40%, and some observers initially
characterized Tebboune, a former prime minister, as a
relatively weak figure backed by the senior military
command. Tebboune appears to have since consolidated
power, with the help of strong energy export revenues.
Pledging a new Algeria, President Tebboune has pursued
anticorruption prosecutions of Bouteflika-era officials and
business leaders, restructured the powerful intelligence
services, and advanced further protectionist measures
within Algeria's state-centric economy. Tebboune has also
overseen a broad crackdown on civil society activists,
opposition parties, and the once freewheeling press. After
pandemic-related lockdowns, the government has
effectively quashed what remained of the 2019 protest
movement, some of whose participants assailed Tebboune
as representing continuity in Algeria's ruling system.
Amnesty International reported that over 200 Algerians
were in jail as of late 2023 due to a relentless crackdown
on citizens for expressing any form of dissent.
A political independent, President Tebboune is supported
by the National Liberation Front (FLN), the former
independence movement and once the sole legal party. The
FLN remains the largest party in parliament, but lost seats
in elections in 2021 and 2017. The bicameral legislature
rarely serves as a check on the executive, and voter turnout
in 2021 was historically low at 23%. A new constitution
adopted by referendum in 2020 did not significantly alter
the government's structure or balance of power.

Figure I. Algeria at a Glance

Source: CIA World Factbook, IMF; 2024 estimates unless noted.
The opposition is diverse and divided, comprising leftist,
Islamist, Amazigh (Berber), and regionally anchored
parties. After the FLN, the largest parties in parliament are
the pro-military National Rally for Democracy (RND) and
the Islamist Movement of Society for Peace (MSP). The
RND has backed Tebboune's reelection bid, while the MSP
has nominated a candidate to challenge him, as has the
country's oldest opposition party, the Amazigh-led Front of
Socialist Forces (FFS). The Islamic Salvation Front, whose
electoral gains in 1991 sparked a military coup and
subsequent decade-long civil conflict, remains banned. Up
to 200,000 people died in the 1990s conflict, known in
Algeria as the black decade. Religiously conservative
Salafist social movements that eschew formal political
competition have grown in prominence since the 2000s.
The Economy and Energy Sector
Algeria was the world's seventh-largest natural gas exporter
in 2023 and has the 12th-largest proven natural gas reserves.
Algeria also produces and exports oil, and is thought to
have the world's third-largest untapped shale gas resources
and significant renewable energy potential. The oil and gas
sector accounts for about one-fifth of Algeria's GDP, over
90% of its exports, and nearly 40% of state revenues.
Most of Algeria's gas exports go to Europe, by ship and
pipeline. Algeria is the top gas supplier for Italy and Spain,
and Europe's second-largest supplier of liquified natural
gas by pipeline. Friction with Morocco led Algeria in 2021
to suspend gas exports to Spain via the Maghreb-Europe
Gas (MEG) pipeline, which transits Morocco; two other
pipelines directly connect Algeria to Spain and Italy.
State-owned enterprises reportedly comprise more than half
of Algeria's formal economy, led by the national oil and
gas firm, Sonatrach. The State Department reports that a
difficult business climate, an inconsistent regulatory
environment, and sometimes contradictory government

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