Algeria, EU Hold Talks to Revise ‘Partnership Agreement’

Former Foreign Policy Representative in the European Union Josep Borrell meets with Algerian President Abdelmadjid Tebboune. (Algerian Presidency file photo)
Former Foreign Policy Representative in the European Union Josep Borrell meets with Algerian President Abdelmadjid Tebboune. (Algerian Presidency file photo)
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Algeria, EU Hold Talks to Revise ‘Partnership Agreement’

Former Foreign Policy Representative in the European Union Josep Borrell meets with Algerian President Abdelmadjid Tebboune. (Algerian Presidency file photo)
Former Foreign Policy Representative in the European Union Josep Borrell meets with Algerian President Abdelmadjid Tebboune. (Algerian Presidency file photo)

Algeria and the European Union last week launched the first round of talks aimed at reviving their 20-year “Partnership Agreement.”

The talks were initiated at the request of Algiers.

The Delegation of the European Union to Algeria said on Friday that a delegation headed by Florian Ermacora, head of the North Africa Unit at the Directorate-General for Neighborhood and Enlargement Negotiations of the European Commission, paid a working visit to Algeria from January 27 to 30.

The delegation met with representatives of several Algerian ministerial departments, including Foreign Affairs, Energy and Mines, Water Resources, Industry, Trade and Finance. The European officials were also received at the Algerian Investment Promotion Agency (AAPI).

In addition to the EU Neighborhood department, the delegation included representatives from the EU departments for Energy, Home Affairs, Migration and Foreign Affairs.

Discussions focused on future cooperation between the EU and Algeria in the fields of investment, trade facilitation, renewable energy, migration, culture and job creation.

During the visit, Head of the North Africa Unit, EU Directorate-General for Neighborhood and Enlargement Negotiations Florian Ermacora reaffirmed the EU's willingness to give new impetus to cooperation between Algeria and the European Union in the context of the development of a new pact for the Mediterranean, the EU mission said.

It noted that the visit aims to hold consultations on cooperation between the European Union and Algeria for the period 2025-2027.

The new Agenda for the Mediterranean was launched by the European Union in 2021 to strengthen the strategic partnership with its Southern Neighborhood partners in trade and renewable energies, upgrading facilities and infrastructure, and managing migration and counter-terrorism issues.

The European delegation's visit was not announced by Algerian officials.

Also, the statement issued by the EU delegation did not mention whether talks with representatives of the Algerian ministries addressed the country’s request to revise its partnership agreement with the EU and to rebalance the mutual interests of the two parties.

In late 2024, ambassador of the EU in Algeria Diego Mellado Pascua said 2025 could be a very important year for both parties to consult on their mutual relations within a comprehensive framework.

Last June, the EU said it launched a dispute settlement case against Algeria and requested consultations with Algerian authorities to address several restrictions imposed on EU exports and investments.

“The EU considers that, by imposing these trade restrictive measures since 2021, Algeria is not respecting its trade liberalization commitments under the EU-Algeria Association Agreement,” it said in a statement.

The EU’s aim is to engage constructively with Algeria with a view to removing the restrictions on several market sectors, spanning from agricultural products to motor vehicles.

These include an import licensing system with the effects of an import ban, subsidies contingent on the use of local inputs for car manufacturers, and a cap on foreign ownership for companies importing goods in Algeria.

A European diplomat in Algeria, who declined to be named, told Asharq Al-Awsat that the EU is seeking to assess Algeria's prospects and the extent to which the agreement can be modified.

He said the statistical office of the European Union, Eurostat, confirms that Algeria's exports to the 27 Member States of the Union amounted to 18.747 billion euros and its imports from these countries were around 12.648 billion euros.



IMF Says World Is Drifting Toward More Adverse Growth Scenario as Energy Disruptions Continue

Pierre-Olivier Gourinchas, Director of IMF Research Department, speaks during an economic outlook briefing during the 2026 IMF and World Bank Group Spring Meetings in Washington, DC, on April 14, 2026. (AFP)
Pierre-Olivier Gourinchas, Director of IMF Research Department, speaks during an economic outlook briefing during the 2026 IMF and World Bank Group Spring Meetings in Washington, DC, on April 14, 2026. (AFP)
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IMF Says World Is Drifting Toward More Adverse Growth Scenario as Energy Disruptions Continue

Pierre-Olivier Gourinchas, Director of IMF Research Department, speaks during an economic outlook briefing during the 2026 IMF and World Bank Group Spring Meetings in Washington, DC, on April 14, 2026. (AFP)
Pierre-Olivier Gourinchas, Director of IMF Research Department, speaks during an economic outlook briefing during the 2026 IMF and World Bank Group Spring Meetings in Washington, DC, on April 14, 2026. (AFP)

The world may be already drifting towards the International Monetary Fund's "adverse scenario" forecast of weaker 2.5% global growth in 2026 even as it released ‌on Tuesday ‌a more benign ‌reference ⁠forecast of 3.1% growth, ⁠IMF chief economist Pierre-Olivier Gourinchas said.

Gourinchas told a news conference that the reference forecast assumes that the conflict is ⁠resolved quickly and that energy ‌prices ‌normalize in the second ‌half of 2026, but acknowledged ‌that the war's developments are fluid and changing daily. He said the reference forecast ‌was "not quite yet" irrelevant.

"I would say that we ⁠are ⁠somewhere in between the reference scenario and the adverse scenario," Gourinchas said.

"And of course, every day that passes and every day that we have more disruption in energy, we are drifting closer towards the adverse scenario."


Iraq Says Has ‘Understandings’ to Bypass Hormuz Blockade

A worker rides a bicycle at the Zubair oil field in Basra, Iraq, April 6, 2026. (Reuters)
A worker rides a bicycle at the Zubair oil field in Basra, Iraq, April 6, 2026. (Reuters)
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Iraq Says Has ‘Understandings’ to Bypass Hormuz Blockade

A worker rides a bicycle at the Zubair oil field in Basra, Iraq, April 6, 2026. (Reuters)
A worker rides a bicycle at the Zubair oil field in Basra, Iraq, April 6, 2026. (Reuters)

Baghdad's oil ministry said Tuesday it has "understandings" with the United States and Iran to reduce the impact of the blockade of the Strait of Hormuz on Iraqi oil exports.

The ministry did not elaborate or say when these reported understandings were reached.

But Iran announced earlier this month -- before the fragile ceasefire was reached last Wednesday with the United States -- that it would allow Iraqi shipping to transit the key waterway.

Iraqi oil ministry spokesperson Saheb Bazoun told the Iraqi News Agency (INA) "there are understandings with the American and Iranian sides to circumvent the blockade imposed on the Strait of Hormuz, and with all parties to guarantee exports".

A founding member of the OPEC oil cartel, Iraq normally exports the majority of its crude through the strait, but like other exporters in the oil-rich region, it has been left scrambling for alternative routes.

Bazoun told INA that Iraq was continuing to use secondary export routes, including a pipeline to the Turkish port of Ceyhan and via Syria's Baniyas port.

Authorities announced earlier this month Iraq has begun exporting crude using tanker trucks through Syria, after resuming oil exports of 250,000 barrels per day through Ceyhan.

The Middle East war has wrought havoc on energy markets, especially after Iran tightened the screws on the Strait of Hormuz -- through which roughly a fifth of global oil and gas passes -- sharply slowing maritime traffic, and reportedly charging transit fees.

Despite the two-week ceasefire between the United States and Iran, and after a failed attempt to reach an agreement, Washington imposed a blockade on Iranian ports in the Strait of Hormuz, sending tremors through global energy markets.

Oil exports account for some 90 percent of Iraq's budget revenues, which plummeted more than 70 percent in March compared with February.


Saudi Arabia Boosts Water Efficiency with Over $26.7 Billion in Investments Since 2018

Shuaibah Desalination Plant (Saudi Water Authority)
Shuaibah Desalination Plant (Saudi Water Authority)
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Saudi Arabia Boosts Water Efficiency with Over $26.7 Billion in Investments Since 2018

Shuaibah Desalination Plant (Saudi Water Authority)
Shuaibah Desalination Plant (Saudi Water Authority)

Saudi Arabia has invested about SAR100 billion ($26.7 billion) in its water sector since 2018, as part of its National Water Strategy to improve efficiency and sustainability while expanding private sector participation in line with Vision 2030.

Deputy Minister for Water at the Ministry of Environment, Water and Agriculture Abdulaziz Al-Shaibani told Asharq Al-Awsat that increased public-private partnerships are driving a shift toward a more efficient operating model and easing pressure on the state budget.

He said private sector involvement has transferred capital costs for major projects, including desalination plants, transmission networks, storage facilities and wastewater treatment, while boosting value across the supply chain through water reuse and reducing reliance on non-renewable resources.

Lower operating costs have also strengthened the sector’s appeal to investors. Seawater desalination using reverse osmosis now costs about SAR0.74 per cubic meter, while groundwater desalination costs around SAR0.55, offering competitive returns for local and international investors.

Local content in privatization projects has reached about 70 percent, while Saudis account for 90 percent of operational jobs, highlighting the sector’s contribution to economic growth and employment.

Al-Shaibani said investment in research and development has helped reduce production costs and localize key technologies, including reverse osmosis membrane manufacturing, valued at SAR 1.14 billion ($304 million). This supports the development of domestic supply chains and increases economic value added.

According to data from the Saudi Water Partnership Company (SWPC), 51 privatization projects have been launched with total investments of about SAR56 billion ($14.9 billion), including operational projects and others under development or tender.

Private sector production capacity is expected to reach 2.6 million cubic meters per day by 2030 and rise to 8.18 million cubic meters per day by 2032. Water transmission capacity between cities is projected to reach 2.43 million cubic meters per day by 2029, while strategic storage capacity is expected to reach just over 7 million cubic meters.

Major projects include the Juranah Independent Strategic Water Reservoir in Makkah province, with a capacity of 2.5 million cubic meters, the Rayis-Rabigh Independent Water Transmission Project, and the Rabigh 3 Independent Water Plant, all developed under long-term contracts to ensure sustainability.

The Al-Khafji solar-powered desalination plant, one of the world’s leading projects of its kind, has reduced desalination costs by about 40 percent, supporting more efficient and sustainable production.