The article analyzes the opportunities and threats facing the People’s Democratic Republic of Algeria at the moment. Algeria has the potential to become a regional leader in one of the most strategically important regions of the world in a number of parameters. These are natural and human resources, stable economic and diplomatic ties with the Arab world, Europe and America. Both the major powers and the neighbours in the region have placed their hopes in Algeria as a key partner in the efforts to ensure security and combat terrorism. The Algerian authorities seek to present their country as a strong regional leader, free from the internal divisions and extremism that have plagued other Arab States. However, in reality the situation is more complicated, Algeria is a potentially unstable state. At the moment, Algeria is in a difficult situation, given both the internal situation and the danger posed from the outside. The main reason for the political and economic uncertainty in the country is the expectations and fears associated with the upcoming change of power, the presidential elections are scheduled for 2019. Algeria’s socio-economic sphere was another vulnerable place that could, in case of unfavourable developments, create instability. The Berber issue, which threatens the unity of the country, is one of the long-standing major problems of the Algeria. The confrontation between Algeria and Morocco on the Western Sahara issue has led to keep on the zone of instability in the region and has contributed to the terrorist threats. Over the past decade, Algeria has had to pay increasing attention and resources to regional security issues. In this area, Algeria has demonstrated its commitment to peaceful diplomacy, non-interference in the internal affairs of other states and rejection of any external role of its armed forces. This position has brought the Republic international recognition as a regional leader and a reliable partner in the fight against terrorism.