Crisis with Algeria strains a 65 million euro real estate market in the region
The long-running dispute between Spain and Algeria since mid-2022 has hit Alicante hard, with the tally rising past 211 million euros in losses. Export sectors like textiles, footwear, plastics and marble have been among the most affected as the two countries work to restore normal trade flows. Local business leaders acknowledge progress toward reopening but warn that much of the missed sales may never return, because customers have shifted to alternate suppliers during the interruption.
The halt in commercial activity followed a shift in the Spanish government’s stance on Western Sahara, prompting Algeria in June 2022 to suspend most trade with Spain except for gas. That initial reaction morphed into a sustained setback for Alicante’s exports, a consequence intensified by the region’s geographic ties and sea links to Algeria. The economic reverberations have been especially sharp given the province’s dense commercial links with the North African market.
After more than a year and a half of friction, there are glimmers of potential improvement as both sides engage in talks to restore normal operating conditions. In a sign of goodwill, Algerian authorities recently relaxed restrictions on certain Spanish meat products, though the path forward remains layered and requires additional steps to be fully effective.
The people most affected in Alicante watch these negotiations with cautious optimism. The textile sector, for instance, saw a dramatic decline of 53.7 million euros in overseas sales during the crisis. Pepe Serna, president of the Valencia Community Textile Entrepreneurs Association, points out that even when official bans were not in place, practical obstacles made selling into the Algerian market nearly impossible. He also argues that Spanish foreign policy should better account for the economic consequences experienced by sectors on the ground.
In the footwear space, the Valencian Footwear Entrepreneurs Association notes a similar pattern. The sector recorded losses of 18.4 million euros due to halted exports, with leaders like Marián Cano stressing the ambiguity of the talks while expressing hope that a key market could rebound. He adds that finding a replacement supplier makes reestablishing long-standing business relationships challenging once markets reopen.
Plastics and footwear together accounted for about 18.4 million euros in lost trade, and Héctor Torrente, head of the Ibiae umbrella, emphasizes that political disputes should not overshadow private interests. He believes a restart is possible and that the industry will rebound if relations resume smoothly.
Marble exports suffered a setback of 3.2 million euros, a figure that underscores how Algeria’s protectionist stance toward mining compounds the challenge of reactivating supply chains. Luis Horcajuelo, leader of the Alicante Marble Association, notes that while Algeria may not rank as a priority destination today, the door remains open for future opportunities if ties improve.
The easing of tensions has also touched the maritime corridor linking Alicante with Algeria. Recent data from Spain’s Ministry of Transport and Sustainable Mobility show a notable uptick in travel across the sea, with passenger numbers edging above 162,000 last year and car traffic climbing beyond 41,000 units, signaling renewed interest in cross-border commerce and travel. These trends foreshadow a broader return to higher activity in the port of Alicante as operators prepare for peak season operations.
Port authorities and regional officials have begun planning for a smoother summer schedule, building on dialogue between the port authority leadership and the regional subdelegation. The evolving collaboration aims to reestablish reliable, efficient routes that can support both passenger movement and freight activity, reflecting a broader push to revive economic exchanges with North Africa.
As the sector awaits the next steps, analysts stress that recovery hinges on credible policy signals and practical measures that restore confidence for exporters and buyers alike. The Alicante corridor remains vigilant, recognizing that a full comeback will require continued communication, targeted support for affected industries, and a stable framework for cross-border trade.
The current trajectory suggests a staged return rather than an immediate full resumption. Stakeholders in Alicante are watching closely how talks evolve and whether new agreements will translate into concrete orders, timely deliveries, and a durable business environment that can withstand future political shifts in the region. The overarching aim is to reestablish a sustainable channel for commerce and to protect the long-term interests of local workers who depend on the North African market for a significant portion of their earnings.
In sum, the Algeria-Spain dispute has reshaped the landscape for a broad spectrum of Alicante enterprises. The path forward—while uncertain—remains framed by a shared objective: restore normal trade and revive investment, while ensuring that regional resilience is built into supply networks moving ahead. The coming months will reveal how decisively commerce can rebound and how quickly the broader economic fabric can regain its former strength, both in Alicante and along the wider Iberian-Africa corridor. The evolving story is a reminder of the delicate balance between policy decisions and real-world economic vitality, and it underscores the importance of keeping close watch on developments in both countries as markets adjust to a recalibrated state of trade relations.
Attribution: Market observers and industry associations track the evolving situation in Alicante and highlight ongoing discussions as a barometer for regional economic health. The perspectives cited reflect insights from local entrepreneurs and sector leaders involved in textiles, footwear, plastics, and marble, and they emphasize the real-world impact of diplomatic shifts on business activity. These points are reported to provide context for how cross-border tensions can alter export patterns and port operations in the short and medium term.