According to the Stockholm International Peace Research Institute (SIPRI) 2025 report, Algeria allocated approximately 5.6% of its GDP to military spending, making it the second-highest in the world relative to economic output, after Ukraine. In absolute terms, Algeria's military budget was estimated at $18.5 billion, the largest in Africa.
The Algerian government has justified these expenditures as necessary for national security, citing regional instability and threats from terrorism. However, critics argue that such high spending diverts resources from social programs, including healthcare and education.
In 2025, Algeria's military budget represented about 15% of total government spending, one of the highest proportions globally. The country's defense sector employs an estimated 500,000 personnel, including conscripts.
International observers have noted that Algeria's military expenditure has increased steadily over the past decade, with a 30% rise since 2020. The government has also invested in domestic arms production, including drones and armored vehicles.
