Approximately 600 French companies exporting to Algeria went bankrupt during the 2025 crisis between France and Algeria, according to a new analysis by the Institut Montaigne. The figure highlights the impact that diplomatic tensions have had on smaller French businesses heavily dependent on the Algerian market.
The finding comes from a September 2026 Institut Montaigne briefing titled “Moving Beyond Emotion,” written by Michel Duclos and Augustin Motte. The report examines the political and economic relationship between France and Algeria and argues that deteriorating bilateral ties have increasingly affected French companies operating in or exporting to Algeria.
Around 600 French companies went bankrupt in 2025
According to the report, around 5,000 French companies export to Algeria. About one-third generate more than 25% of their revenue from the Algerian market, leaving a significant number of businesses exposed to disruptions in bilateral trade.
The Institut Montaigne says this exposure helps explain the resilience of France’s market share in Algeria but also creates substantial risks when diplomatic relations deteriorate.
The report cites approximately 600 bankruptcies among French companies exporting to Algeria during the 2025 crisis.
The impact is particularly significant for small businesses, many of which are run by French-Algerian dual nationals and have developed commercial activities closely linked to the Algerian market.
France’s share of the Algerian market has declined
The economic consequences extend beyond company failures. According to the Institut Montaigne, French access to several strategic Algerian markets has been progressively restricted amid growing mistrust toward France.
Wheat is one of the clearest examples. France supplied 80–90% of Algeria’s wheat imports until 2019, but French exports subsequently fell sharply, with imports from France eventually approaching zero.
Other countries have benefited from the shift, particularly China, Turkey and Italy.
The report points to Italy’s growing role in Algeria, including the opening of a FIAT manufacturing plant in Oran following the suspension of Renault’s operations at its facility in the same city.
Hydrocarbons remain central to the relationship
Despite the deterioration in political relations, energy has remained an important area of cooperation.
Hydrocarbons account for more than half of bilateral trade and almost 90% of French imports from Algeria, according to the report. France imports around 12% of its natural gas and 9% of its oil from Algeria, making Algeria its fourth-largest supplier for both resources.
The Institut Montaigne describes energy cooperation as one of the few areas of the relationship that has continued to provide benefits to both sides despite diplomatic tensions.
Overall, however, bilateral trade has weakened. Trade between France and Algeria was worth around €11 billion in 2024, while the report indicates that the figure had fallen below €9 billion by August 2026.
The economic relationship therefore remains significant, but the distribution of trade and investment is changing as Algerian businesses and institutions increasingly diversify their international partnerships.
Sami B. is the founder and editor of Algeria News Gate, an independent English-language platform covering Algeria’s political, economic, and business developments. Based in Europe, he reports on official announcements, economic trends, and international relations involving Algeria.