Algeria has approved a defence allocation of roughly $25 billion in its 2026 finance law—its highest on record—keeping military outlays near one-fifth of total public spending as authorities point to persistent insecurity along southern and eastern borders, a fraught standoff with Mali, and an arms race with Morocco. Officials frame the posture as an “orientation défensive,” while the broader budget leans on hydrocarbons income and aims to narrow the deficit.

Border Pressures and Drone Dispute

Algiers argues its southern frontier has faced a decade of instability—armed groups, trafficking and irregular migration—while Libya’s post-2011 turmoil persists to the east. Relations with Bamako remain strained after Algeria said it downed a Malian armed drone near Tin Zaouatine in late March/early April, a case Mali tried to push to the World Court. The incident sharpened rhetoric on both sides and fed threat assessments used to defend high outlays.

Regional Rivalries and Procurement Trends

To the west, broken ties with Morocco and friction over Western Sahara intersect with Rabat’s deepening security cooperation following its 2021 normalisation with Israel, adding competitive pressure that Algiers watches closely. Analysts note this rivalry now extends into Sahel diplomacy, with blocs and alignments shaping procurement choices and exercises on both sides of the border. These dynamics reinforce Algeria’s case for sustained, high-tempo defence spending.