"U.S.-Algerian ties have grown over the past decade as the United States has increasingly viewed Algeria as an important partner in the fight against international terrorism. The Algerian economy is largely based on hydrocarbons, and the country is a significant source of petroleum for the United States and of natural gas for Europe. Congress appropriates and oversees small amounts of bilateral development assistance, and Algerian security forces benefit from U.S. security assistance and participation in bilateral and regional military cooperation programs. […] Domestic terrorism perpetrated by violent Islamists remains Algeria's principal security challenge. Algerian terrorists also operate across the southern border in the Sahel and are linked to terrorism abroad. Al Qaeda in the Islamic Maghreb (AQIM), a U.S.-designated Foreign Terrorist Organization (FTO), is an Algerian-led criminal-terrorist network with roots in the 1990s civil conflict. As the dominant economic and military power in the region, Algeria has attempted to take the lead in developing a regional approach to counterterrorism in the Sahel."
CRS Report for Congress, RS21532