Half a century of relations between Qatar and Algeria: Prospects for a promising strategic partnership

The year 2024 marks the 50th anniversary of diplomatic relations establishment between Algeria and Qatar. The dynamic and high-level communication between the leaders of the two brotherly countries in both political and economic spheres is remarkable. His Highness the Amir Sheikh Tamim bin Hamad al-Thani was among the first world leaders to congratulate Algerian President Abdelmadjid Tebboune on his second term victory, immediately after the announcement of the presidential election results in Algeria.Since President Tebboune assumed power in 2019, the positions of the two countries have shown a qualitative convergence, as evidenced by the signing of agreements in various fields and the exchange of visits on several political and sporting occasions. Statistics indicate that the volume of Qatari investments in Algeria has exceeded $7bn, representing about 74% of the total foreign investments in Algeria. These investments are distributed across various sectors such as telecommunications, industry, health, agriculture, and tourism.Ooredoo Algeria: A successful modelIn 2013, the Qatari mobile operator Ooredoo entered the Algerian market. According to a report by the Algerian Postal and Electronic Communications Regulatory Authority for 2024, the number of Ooredoo subscribers reached 13.2mn in the first quarter of the current year. The company also recorded sales of $659.2mn in 2023. These figures reflect a successful model for Qatari investments in Algeria. Economic expert Murad Kuwachi believes that improving the business environment in Algeria through the issuance of new investment laws and ongoing reforms in the banking system, have enhanced transparency. In the same context, Dr Muhammad Labib Masikh, economics professor at the Higher Institute of Science and Technology in Algiers, believes that Qatar has focused its policies on the knowledge economy, as well as its services specializations, and its leading international experience in various fields of international company management, such as Ooredoo.Bellara Iron and Steel Complex: A mark of strong relations between the two countriesThe Algerian-Qatari Bellara Iron and Steel Complex is a pioneering joint venture between Qatar Steel International (49%), the Algerian Emital Group (46%), and the Algerian National Investment Fund (NIF 5%), with an investment cost exceeding $2bn. It is considered one of the largest industrial complexes in Algeria and Africa, and is expected to compete globally when it reaches a production rate of 5mn tonnes per year.In this regard, Hamza Bougadi, director of the Economic Studies Institution in Algeria, believes that Qatari investments are known for their high quality and returns. He notes that Qatari companies operating around the world have a very modern business model and management approach, and they employ experts from all over the world to add value and high quality to their products and expertise. The same applies to Algeria, where Qatari investments enjoy a good reputation, especially in the iron and steel industry, which is considered one of the most successful investments in Algeria and Africa. This industry has yielded rapid results, with iron exports to 33 countries exceeding $400mn in 2023, with production capacities exceeding 2mn tonnes and expectations of reaching 4mn tonnes.The Algerian-Qatari German Hospital: A quantum leap in public healthThe Algerian-Qatari German Hospital in Sidi Abdullah, located west of Algiers, is one of the promising projects in the healthcare sector which meets international standards. All technical studies have been completed, and work began in August, in presence of Algerian government members, as well as the Qatari ambassador Abdulaziz Ali al-Naama, and "Istithmar” company representative, engineer Mohammed bin Badr al-Sadah, who declared during the project opening ceremonies that the hospital, which has 300 beds with 6 floors, spanning 100,000sq m, is expected to open in 2026. Algerian Finance Minister Abdelaziz Fayed considered the project to be the fruit of a strong partnership between Qatar and Algeria, adding that the project will provide a quantum leap in the Algerian health sector and relieve Algerian citizens of the burden of travelling abroad for treatment.Baladna: The largest investment to achieve food securityIn April of this year, the Qatari company Baladna signed an agreement with the Algerian Ministry of Agriculture and Rural Development to establish the largest integrated agricultural and industrial project for the production of milk and milk powder in the world, with an investment value of $3.5bn and a herd of 270,000 cows to produce 1.7bn liters of milk annually, representing 50% of Algeria's milk needs. According to the Algerian News Agency, Algerian Agriculture Minister Youssef Cherfa, during a press conference held alongside Baladna Managing Director Ramez al-Khayyat on the sidelines of the signing ceremony of a framework agreement between his ministry and the Qatari company to establish the project, stated that "production will be carried out in four phases, the first of which will be in 2026." As for financing, Cherfa mentioned that it will be co-founded with 51% from the mixed company that will be established and 49% from Algerian banks loans.He also explained that the project will start with the production of milk powder, and in subsequent phases, 250 products will be produced, including baby milk, according to a memorandum of understanding between Baladna and the Algerian Ministry of Industry signed in September.In the same context, economic expert Kuwachi affirmed that Algeria relies heavily on the project to ensure its food security, especially in the dairy field. As Algeria imports about $10bn worth of food annually. The value of this project, estimated at $3.5bn, reflects Qatar's confidence in its Algerian partner. Meanwhile, economic expert Bashir Kalhout believes that Qatar has witnessed rapid growth in its liquefied natural gas exports in recent years, resulting in a large surplus year after year. Given that Algeria is one of Qatar's friendly Arab countries with strong relation ties, it is natural for Qatar to strengthen its investments in Algeria year after year, which will benefit both countries.Aligned positions and promising prospectsAlgerian researcher Labib Messikh believes that Qatar and Algeria are positioned within a harmonious pattern of international economic and even political interests, primarily the global natural gas market and the Palestinian cause. Amidst the fluctuations of the international system and the emergence of new patterns of interaction, which distinguished the Algerian-Qatari proximity. Representing a realistic and conscious vision of the importance of Arab-Arab convergence in the current international context.Meanwhile, economic expert Murad Kuwachi has noted a serious intention on the part of Qataris to invest in Algeria, coupled with a confidence in Algeria’s investment climate. This is evident through investments in non-traditional sectors. While foreign investments from Europe or China in Algeria typically focus on energy, mining, minerals, and infrastructures. Meanwhile agriculture and health ones have ventured just by Qatari investments, signifying a genuine commitment from Qatari counterparts to strengthen economic ties between the two countries and contribute to economic diversification. That Algeria aims to, through creating job opportunities for Algerian youth and achieve the United Nations’ Sustainable Development Goals.The success of Qatari investments in Algeria is a testament to the will and farsighted vision of the leaders of both countries, His Highness the Amir Sheikh Tamim bin Hamad al-Thani and President Abdelmadjid Tebboune, in consolidating and strengthening relations between the two countries. This, in turn, contributes to achieving security and prosperity for the Qatari and Algerian peoples, as well as for the peoples of the Arab region.Bilsl Djefer is Algerian journalist