Algeria leads MENA region in defence spending

Algeria has the highest ratio of military spending to Gross Domestic Product (GDP) in the Middle East and North Africa (MENA) region. According to 2025 data from the Stockholm International Peace Research Institute (SIPRI), reported by Observalgerie on the 13th of June, Algeria allocates 8.8% of its GDP to the military sector. This percentage puts the country ahead of regional neighbours like Saudi Arabia, Oman, Kuwait, and Jordan.

This metric tracks the relative economic effort a country dedicates to defence rather than the total cash spent. Globally, Algeria’s 8.8% allocation ranks second only to Ukraine, which leads due to its ongoing conflict with Russia.

Within the MENA region, Algeria sits above other high-spending nations. Saudi Arabia allocates 6.5% of its GDP to defence, followed by Oman at 5.7%, Kuwait at 4.7%, and Jordan at 4.6%. Morocco ranks sixth in the region at 3.54%. The remaining countries include Bahrain (3.11%), Mauritania (2.75%), Lebanon (2.51%), Tunisia (2.49%), Iraq (2.45%), and Egypt (0.61%).

There is a clear difference between economic weight and total budget according to the Stockholm International Peace Research Institute. While Algeria leads the region in GDP percentage, its absolute spending is lower than other regional powers. For comparison, Saudi Arabia spent $83.2 billion in 2025, and Turkey reached $30 billion. Algeria follows behind at $25.4 billion, placing it 20th globally in total military expenditure.

Several factors drive Algeria’s high defence priority. The country has a vast territory and long land borders to monitor. Ongoing instability in the Sahel, security issues in Libya, cross-border smuggling, and the need to protect energy facilities all require significant resources. The historical regional tensions with Morocco also encourage continuous modernisation and a high state of military readiness.

SIPRI notes that these total figures reflect more than just buying weapons. The $25.4 billion budget covers military salaries, daily operations, equipment maintenance, construction, research and development, and central administrative support.

Observalgerie, El Khabar, SIPRI, Maghrebi.org