# Algeria international economic and diplomatic expansion

> Live situation record from CLSTR: https://clstr.news/situations/algeria-international-economic-and-diplomatic-expansion
> Updated: 2026-08-24T00:28:31.000Z. Sources: 23. Developments: 3.

Algeria is actively broadening its international economic and diplomatic footprint through diverse bilateral agreements across multiple sectors.

In the industrial and agricultural sectors, the country is focusing on food security and resource production. A major integrated phosphate project with the Italian group Saipem is expanding, marking a strategic shift toward mining and agriculture. Utilizing an ‘EPC Fast Track’ model, the project involves extracting ore at Bled El Hadba in Tebessa and transporting it to Oued El Keberit in Souk Ahras for conversion into fertilizer. The goal is to reach an extraction capacity of 5.5 million tonnes per year. To facilitate exports, the Chinese firm CHEC is upgrading the port of Annaba, while Algerian firms including Cosider Canalisations, SARPI, and GCB will contribute to various components. The first extraction of enriched phosphate is scheduled for the first quarter of 2027, with fertilizer production expected to follow in the final quarter of that year.

Additionally, the Algerian-Omani fertilizer company (AOA) in Arzew has officially moved to the operational phase of its expansion. The joint venture, owned by Sonatrach and Suhail Bahwan Holding, aims to increase ammonia and urea production by 50%.

Algeria is also strengthening cooperation in transport and energy. Agreements with Oman include maritime and aviation partnerships. The nation is engaging with Slovenia regarding agriculture and technology, particularly through participation in the AGRA 2026 international agriculture salon. Furthermore, Algeria is positioned as a key player in the EU’s T-MED initiative to transform the southern Mediterranean into a green electricity hub, while intensifying energy cooperation with Chad, Côte d'Ivoire, and Benin to develop an African energy network.

## Claims

- The foreign ministers discussed maritime navigation and creating conditions for dialogue in the Strait of Hormuz. (corroborated by 5 sources)
- Omani and Iranian foreign ministers emphasized the importance of continued consultations to promote regional peace and stability. (corroborated by 4 sources)
- Oman’s Foreign Minister is scheduled to visit Tehran on Tuesday to discuss regional security. (corroborated by 4 sources)
- The expansion of the AOA plant in Arzew aims to increase production of ammonia and urea by 50%. (corroborated by 2 sources)
- Iran has required vessels to obtain permission and pay transit fees through the Strait of Hormuz since February 28. (corroborated by 2 sources)
- The AOA joint venture is owned 51% by Sonatrach and 49% by Suhail Bahwan Holding. (single source)

## Timeline

### 2026-08-24: Algeria and Egypt expand phosphate and fertilizer production

Algeria and Egypt are investing heavily in phosphate and fertilizer production to increase high-value exports and industrial capacity through new mining and chemical processing projects.

2 sources. https://clstr.news/cluster/algeria-and-egypt-expand-phosphate-and-fertilizer-production

### 2026-08-21: Oman and Iran hold talks on Strait of Hormuz security

Oman’s Foreign Minister visits Tehran to negotiate maritime security in the Strait of Hormuz, while Algeria and Oman advance a major 50% production expansion for a petrochemical plant in Arzew.

17 sources. https://clstr.news/cluster/algeria-and-oman-sign-transport-cooperation-agreements

### 2026-08-15: Algeria and Italy expand partnership through phosphate project

Algeria and Italy are launching an integrated phosphate project to produce fertilizers, led by Saipem, with production expected to begin in late 2027 to enhance regional food security.

4 sources. https://clstr.news/cluster/algeria-and-italy-expand-partnership-through-phosphate-project

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Cite as: Algeria international economic and diplomatic expansion. CLSTR, https://clstr.news/situations/algeria-international-economic-and-diplomatic-expansion