Algeria and Malaysia are forging a new economic partnership, shifting from traditional trade to substantial industrial and investment collaborations. This strategic alliance envisions multi-billion dollar projects and a shared ambition to connect Algeria to the broader African market while opening Southeast Asian markets to Algerian businesses.
The Malaysian Ambassador to Algeria, Rizani Irwan Muhamad Mazlan, highlighted a significant transformation in economic cooperation between the two nations since early 2025. Bilateral trade has surged by 56%, exceeding $147 million. While acknowledging this as a positive step, the Ambassador emphasized that the current figures still fall short of the true potential of both economies.
Malaysian exports to Algeria are currently led by high-quality palm oil, valued at approximately $76 million. However, a noteworthy development is the substantial increase in Malaysian imports from Algeria, rising from $2.1 million to nearly $39 million within a year. This growth is fueled by hydrocarbons, chemical products, and increasingly, Algerian agricultural products finding their way into the Malaysian market, signaling diversification beyond the energy sector.
Beyond trade, significant industrial investments are on the horizon. Algeria has moved beyond preliminary exploration to concrete projects. The Malaysian Lion Group is poised to become a major player in the Algerian market, with a planned investment of around $6 billion in the iron and aluminum sectors. Negotiations are underway with the El Hadjar steel complex in Annaba for an industrial partnership. This partnership involves Algeria providing infrastructure and local labor, while Malaysia contributes advanced technology and systems. This collaboration signifies a deepening of economic ties and a strategic alignment between Algeria and Malaysia.
