According to the Stockholm International Peace Research Institute (SIPRI) 2025 yearbook, Algeria ranked second globally in the percentage of public spending allocated to military procurement, at 8.2% of GDP, trailing only Ukraine (which spent over 30% due to the ongoing war). This marks a significant increase from 5.6% in 2024.
Algeria's military expenditure surpassed combined spending on education (7.1% of GDP) and health (4.3% of GDP) in 2025. The North African nation has deepened military cooperation with Russia, signing a $2.1 billion arms deal in March 2026 for Su-35 fighter jets and S-400 air defense systems, according to the Russian Federal Service for Military-Technical Cooperation.
Regional tensions with Morocco over Western Sahara and shared borders with unstable neighbors (Libya, Mali, Niger) are key drivers. Algeria's defense budget for 2025 was $18.6 billion, up 12% from 2024, per SIPRI. The country also maintains a mandatory military service of 12 months for men.