Algeria - Safety and SecurityAlgeria - Safety and Security
OVERVIEW
CHALLENGES
Due the sensitive nature of this sector, it is highly recommended that U.S. companies find an approved local partner. The list of approved local firms is not made public and can be difficult to acquire, the Commercial Section at the U.S. Embassy in Algiers can assist companies. Sales cycles are notoriously long and can include import licenses that take up to twelve months to attain. Russian, Chinese, Italian and German companies have a strong presence in this sector.
OPPORTUNITIES
Algeria prioritizes safety and security solutions, and U.S. firms have had considerable success in this sector. In addition, Algeria has recently demonstrated an affinity for American solutions across the board. Opportunities in safety and security fall into the following major categories: (a) Monitoring and protecting its expansive borders with neighboring Morocco, Mauritania, Mali, Niger, Libya and Tunisia; (b) Protecting thousands of miles of oil and natural gas pipelines and facilities throughout remote desert areas; (c) Protecting government buildings, infrastructure and major points of entry into the country such as airports and seaports, and (d) Cyber monitoring technologies, which have become of significant interest to a variety of Algerian Government agencies.
SUB SECTOR BEST PROSPECTS
The Algerian defense budget is one of the largest in the MENA region and comprised approximately 5.5 percent of the country’s GDP in 2018 (more than USD 9.5 billion). Consequently, Algeria has a large and reasonably well-equipped military force. Algeria’s military spending and political will for a strong military is influenced by a history punctuated by an bitter war of independence against France, hostilities with Morocco in the 1960’s, and a civil war in the 1990’s.
The ongoing threat of terrorism is a driver of government military procurement policy. The terrorist attack on the In Amenas gas processing plant in January 2013 reinforced the political will for a strong military. The Algerian armed forces’ main suppliers are Russia, China, Spain, France, and the United States. Assessing the current military budget, Algeria continues to increase military spending and spends considerably more on national defense than its neighbors. Instability in Libya and the Sahel region, political tensions with Morocco, and internal conflicts likely contribute to the elevated spending.
Source: Stockholm International Peace Research Initiative (SIPRI)
Source: SIPRI
For more information about opportunities in the safety and security sector, please contact U.S. Commercial Specialist Kamal Achab at +213-770-082-093 or kamal.achab@trade.gov.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
- Safety and security solutions have long constituted a pillar of U.S.-Algerian commercial ties.
- While security has largely improved over the last 15 years, Algeria experienced major upheaval and instability during the 1990’s when over 200,000 people were killed during a decade long civil war.
- The January 2013 In Amenas hostage crisis, where 39 foreign workers were killed, was the most significant recent terrorist attack in the country. The government has strengthened security measures and Algeria has not suffered a similar attack since then.
- The Algerian economy is vulnerable to changes in commodity prices and heavily dependent on oil & gas exports revenues.
- Since a high in June 2014, oil prices have declined sharply, severely impacting Algeria’s foreign currency revenue reserves.
- Dwindling reserves led to substantial cuts in budget expenditures, slowdown of economic growth and Algerian currency depreciation.
- The security situation along the borders with Libya, Mali, Niger and Tunisia is unstable.
- Regional terrorist groups constitute a permanent security threat. Algeria has capable security forces focused on combating terrorism and criminal elements throughout its expansive territory, and the U.S. government enjoys a healthy working relationship with the Algerian government in this effort.
- 2019 has seen regular peaceful protests by the general population and separate demonstrations by students, attorneys and judges. The protests succeeded in making President Bouteflika step down, but the protests continue. The Embassy recommends visitors to the country avoid these demonstrations.
CHALLENGES
Due the sensitive nature of this sector, it is highly recommended that U.S. companies find an approved local partner. The list of approved local firms is not made public and can be difficult to acquire, the Commercial Section at the U.S. Embassy in Algiers can assist companies. Sales cycles are notoriously long and can include import licenses that take up to twelve months to attain. Russian, Chinese, Italian and German companies have a strong presence in this sector.
OPPORTUNITIES
Algeria prioritizes safety and security solutions, and U.S. firms have had considerable success in this sector. In addition, Algeria has recently demonstrated an affinity for American solutions across the board. Opportunities in safety and security fall into the following major categories: (a) Monitoring and protecting its expansive borders with neighboring Morocco, Mauritania, Mali, Niger, Libya and Tunisia; (b) Protecting thousands of miles of oil and natural gas pipelines and facilities throughout remote desert areas; (c) Protecting government buildings, infrastructure and major points of entry into the country such as airports and seaports, and (d) Cyber monitoring technologies, which have become of significant interest to a variety of Algerian Government agencies.
SUB SECTOR BEST PROSPECTS
- Border surveillance and inspection technologies
- Infrastructure protection solutions for seaports, airports, border crossings, security and safety agencies such as the police, and buildings
- Oil and gas pipeline security solutions
- Unmanned Air Vehicles (UAVs)
- Cyber security monitoring and interception solutions
- Comprehensive radio communication systems
- Forensic solutions
- Fire prevention and control equipment, alarm equipment for building safety emergency evacuation systems
The Algerian defense budget is one of the largest in the MENA region and comprised approximately 5.5 percent of the country’s GDP in 2018 (more than USD 9.5 billion). Consequently, Algeria has a large and reasonably well-equipped military force. Algeria’s military spending and political will for a strong military is influenced by a history punctuated by an bitter war of independence against France, hostilities with Morocco in the 1960’s, and a civil war in the 1990’s.
The ongoing threat of terrorism is a driver of government military procurement policy. The terrorist attack on the In Amenas gas processing plant in January 2013 reinforced the political will for a strong military. The Algerian armed forces’ main suppliers are Russia, China, Spain, France, and the United States. Assessing the current military budget, Algeria continues to increase military spending and spends considerably more on national defense than its neighbors. Instability in Libya and the Sahel region, political tensions with Morocco, and internal conflicts likely contribute to the elevated spending.
| Algerian Defense Spending as a Percentage of GDP | ||||||||||
| Year | 2014 | 2015 | 2016 | 2017 | 2018 | |||||
| Share of GDP | 5.5% | 6.3% | 6.4% | 6.0% | 5.3% | |||||
Source: Stockholm International Peace Research Initiative (SIPRI)
| Regional Defense Spending in Million USD in 2018 (Adjusted Figures) | |||||||
| Year | 2016 | 2017 | 2018 | ||||
| Algeria | 10,637 | 10,073 | 9,584 | ||||
| Morocco | 3,363 | 3,462 | 3,697 | ||||
| Tunisia | 0,925 | 0,859 | 0,844 | ||||
For more information about opportunities in the safety and security sector, please contact U.S. Commercial Specialist Kamal Achab at +213-770-082-093 or kamal.achab@trade.gov.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.