Algeria Suspends Tobacco Contracts with UAE Firms Amid Diplomatic Tensions

Relations between the United Arab Emirates and Algeria continue to deteriorate. Last week, the Algerian Ministry of Justice requested the suspension of the conclusion of contracts with the United Tobacco Company (UTC) and the Algerian-Emirati Tobacco Company (STAEM). According to Echorouk, a media outlet close to the Algerian authorities, this measure is justified by "the discontent of the Algerian authorities towards the Emirati party due to its non-compliance with the commitments made in the agreement signed in 2005, under which it had undertaken to enter into a partnership with Algeria, where it was planned that the Emiratis would work to develop the tobacco company’s capacities and make Algeria a country exporting tobacco products, particularly to Europe and Africa." The newspaper also mentions "the existence of a suspicion of smuggling of millions of dollars in the tobacco sector and their transfer abroad, which has cost Algeria losses of several billion over more than 20 years."

This decision follows a meeting of the High Security Council (HCS) chaired by Algerian President Abdelmadjid Tebboune on January 10, at the end of which he expressed in a statement his "regrets concerning the hostile actions against Algeria, emanating from a brotherly Arab country," without however naming the United Arab Emirates. But according to the Algerian media, it is indeed Abu Dhabi. On December 12, 2023, the public radio accused the Emirates of having released 15 million euros in favor of Morocco to "finance subversive media campaigns." Relying on "sources close to the file," the official media claimed that "disinformation and misinformation" campaigns on social networks aim to "create a climate of tension between Algeria and the Sahel countries."

Since the visit of King Mohammed VI to the United Arab Emirates, where 12 memoranda of understanding were signed between the two countries on railway transport, the development of Moroccan airports, real estate, tourism, energy, as well as on education, food security, water access, etc., the diplomatic crisis between Abu Dhabi and Algiers has intensified.