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Algeria-Qatar Ministerial Meeting Strengthens Bilateral Ties: A Model of Strategic Partnership, Economic Growth

Algeria-Qatar Ministerial Meeting Strengthens Bilateral Ties: A Model of Strategic Partnership and Economic Growth
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BY: Dr. Hana Saada

ALGIERS- Ahmed Attaf, the Minister of Foreign Affairs and the Algerian Community Abroad, arrived in Doha, Qatar on Monday evening, on behalf of President Abdelmadjid Tebboune, to participate in the third session of Arab Economic and Cooperation Forum with Countries of Central Asia and Azerbaijan.

On Tuesday, the Minister of Foreign Affairs engaged in discussions with the Qatari Prime Minister and Minister of Foreign Affairs, Sheikh Mohammed bin Abdulrahman Al-Thani.

According to a statement from the ministry, the two parties discussed the relations between the two countries and developments in the situation in Gaza, as well as other matters of common interest.

Strengthening Algerian-Qatari Relations: A Model of Strategic Partnership and Economic Growth

Algiers and Doha maintain privileged relations that have strengthened in recent years through promising strategic partnerships.

In this context, the first session of political consultations between the two countries took place this week in Doha, Qatar, co-chaired by the Secretary-General of the Ministry of Foreign Affairs and the National Community Abroad, Lounès Magramane, and his Qatari counterpart, Ahmed Hassan Al-Hammadi. These consultations aim to activate the clauses of the memorandum of understanding signed during the state visit of the President of the Republic to Qatar in February 2022.

The session provided an opportunity to commend the momentum and dynamics of the relations between the two countries, allowing both parties to review the state of privileged bilateral relations in several areas, including politics, economics, investment, and ways to deepen and further promote them, in anticipation of the 6th session of the Algeria-Qatar Joint High Commission.

Both countries have made significant strides in strengthening cooperation in various fields, as evidenced by the signing of several memorandums of understanding and cooperation agreements in economic sectors, particularly in tourism, agriculture, industry, health, and higher education.

The Largest Arab Investor in Algeria

Qatar is the largest Arab investor in Algeria, with investments representing more than 70% of all Arab investments, according to recent estimates. Foreign Minister Ahmed Attaf stated in an interview with Al Jazeera that “Qatari investments outside hydrocarbons in Algeria are equivalent to, or even exceed, the investments of European countries combined.”

Furthermore, the Qatari Ambassador to Algeria, Abdulaziz Ali Al-Naama, stated in January 2023 that the Qatari Businessmen’s League “welcomed the promulgation of the new Algerian investment law, which offers wealth-creating opportunities for both parties, as observed during successive visits by Qatari businessmen to access the Algerian production and industry market and prepare the necessary arrangements for it.”

The diplomat also recalled the signing of an investment agreement aimed at strengthening cooperation and investment in the development and management of 73 hotels under the Hotel, Tourism, and Thermalism Group (HTT) across the country. He also noted that Qatar plans to launch other tourism projects, in addition to commercial, food, and industrial projects.

Major Investment Projects

Qatar’s investments in Algeria are distinguished by their strategic and structuring importance for the national economy, such as the Algerian Qatari Steel (AQS) project in the Bellara industrial zone, Jijel, valued at approximately $2 billion with a production capacity of five million tons of steel. The AQS complex is a joint venture between Qatar Steel International (49%), the Imetal group (46%), and the National Investment Fund (FNI 5%).

Qatar’s investment is also present in the telecommunications sector, with the mobile operator Ooredoo, established in Algeria since 2004 and currently with over 13 million subscribers to 3G and 4G technologies. This Algerian subsidiary of Ooredoo recorded a revenue of $659.2 million in 2023, representing an 11% increase from the previous year. The Qatari telecommunications group recently announced plans to launch 5G technology in its African markets, including Algeria.

In the energy sector, a flagship project with Qatar is underway for the construction of a petrochemical complex in Algeria, as part of a partnership between the state-owned enterprise Sonatrach and Qatar’s Power International Holding. This plant will produce essential raw materials such as butene and polybutene (inputs used in the production of organic products and polymers).

In the health sector, there is also a significant project planned for the construction of the Algerian-Qatari-German hospital, which is expected to be inaugurated by the end of 2025, according to the latest estimates. Located in the new city of Sidi Abdallah, the infrastructure will be equipped to accommodate more than 250,000 outpatients and 25,000 inpatients annually.

However, the investment project that currently attests to the strength of relations between the two countries is the implementation of a $3.5 billion project for the production of milk powder with the Qatari firm Baladna, which recently signed a framework agreement with the Ministry of Agriculture. The agreement involves the establishment of a giant dairy farming company in the Adrar province in the south of the country, covering an area of 117,000 hectares.

In summary, the relationship between Algeria and Qatar continues to yield substantial economic benefits through diverse and mutually beneficial cooperation across various sectors, marking a model of successful partnership in the region.

 

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