Algeria Sets Roadmap for Knowledge-Based Economy

People in the reopened Medina of Rabat after lockdown measures were lifted in Rabat, Morocco, Friday, June 26, 2020. (AP)
People in the reopened Medina of Rabat after lockdown measures were lifted in Rabat, Morocco, Friday, June 26, 2020. (AP)
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Algeria Sets Roadmap for Knowledge-Based Economy

People in the reopened Medina of Rabat after lockdown measures were lifted in Rabat, Morocco, Friday, June 26, 2020. (AP)
People in the reopened Medina of Rabat after lockdown measures were lifted in Rabat, Morocco, Friday, June 26, 2020. (AP)

The Algerian government had set a clear roadmap for a rapid transition to a knowledge-based economy, said Prime Minister Abdelaziz Djerad.

During the Oran Disrupt 2021 conference on startups, he stressed the need to intensify efforts and involve all actors, based in Algeria or abroad, to achieve this objective.

The national economy currently needs companies that offer real added value and rely on research and development to provide innovative services and products, he explained.

The government has decided to support innovators wherever they are, he stressed, citing the establishment of a regulatory framework for startups and an investment fund that ensures smooth financing for innovative projects, as well as significant tax incentives in line with the Finance Law for 2021.

Djerad revealed the launch of the first project for startups, which will have branches across the country.

Meanwhile, the country’s foreign exchange reserves reached $42 billion, down from $60 billion in Q1 2020.

Earlier this month, President Abdelmadjid Tebboune pointed out that by calculating the oil revenues for the past year, which amounted to $24 billion dollars, the country’s exchange reserves fell from $60 billion to $42 billion, and it is changing on a weekly basis.

The drop in global oil prices has severely affected Algeria, a member of the Organization of the Petroleum Exporting Countries (OPEC), where oil and gas exports account for 60 percent of the state budget and 94 percent of total export revenues.

In April 2019, reserves reached $72.6 billion, down from $79.88 billion in December 2018 and $97.33 billion in late 2017.

Algeria uses its foreign exchange reserves to purchase import goods and services, amounting $45 billion annually.

The government has been trying to cut spending on imports to alleviate the financial pressure caused by the decline in oil and gas revenues.

Tebboune stressed then that “the new economic trend is to allow the import of only what the national economy needs”.



Saudi-Ukraine Joint Business Council Poised for Major Trade Opportunities

Continental Farms Ukraine, owned by Saudi firm SALIC (Asharq Al-Awsat)
Continental Farms Ukraine, owned by Saudi firm SALIC (Asharq Al-Awsat)
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Saudi-Ukraine Joint Business Council Poised for Major Trade Opportunities

Continental Farms Ukraine, owned by Saudi firm SALIC (Asharq Al-Awsat)
Continental Farms Ukraine, owned by Saudi firm SALIC (Asharq Al-Awsat)

Saudi Arabia and Ukraine are looking to their revived Joint Business Council, set to be reestablished this year, to unlock economic, investment, and trade opportunities.
With Kyiv facing an energy crisis in the wake of its ongoing conflict, Riyadh is poised to step in and help meet its energy needs. In return, Saudi Arabia is seeking key food imports from Ukraine, including various types of meat and grains.
The two countries announced the revival of the council in a joint statement on Tuesday during Ukrainian President Volodymyr Zelensky’s official visit to the kingdom.
Both sides discussed the strength of their economic ties and underscored the importance of joint efforts to boost trade, which grew by 9% last year. They agreed on the need to overcome challenges hindering commercial relations.
Bilateral trade exceeded SAR 1.72 billion ($459.2 million) in 2023, with key exchanged goods including meat, edible offal, plastics and related products, live animals and animal products, as well as grains.
Experts believe Saudi Arabia and Ukraine are counting on their revived Joint Business Council to unlock significant economic opportunities.
They highlight Kyiv’s urgent need for energy, particularly natural gas, which it previously imported from Russia, while Saudi Arabia seeks to secure key food supplies, especially grains, from Ukraine.
Fadl Al-Buainain, a member of Saudi Arabia’s Shura Council, told Asharq Al-Awsat that the council will play a crucial role in boosting investment opportunities between the two countries. He noted that Ukraine will prioritize cooperation in Saudi Arabia’s energy sector, given its severe energy shortages following the Russia-Ukraine war.
Kyiv, he said, is particularly focused on securing gas supplies and may later explore collaboration on nuclear reactors and coal.
On the Saudi side, the kingdom is looking to invest in promising sectors aligned with its Vision 2030 goals, particularly those linked to strategic and food security, Al-Buainain said.
He emphasized that Ukraine has strong capabilities in meat, grain, and other food production, making it an attractive partner for Riyadh, which has already invested in Ukraine’s agricultural sector.
Al-Buainain also pointed to Saudi-Ukrainian partnerships in the defense industry and stressed that Kyiv will require extensive reconstruction and infrastructure development once the war ends—an area where both countries stand to benefit from enhanced cooperation under the revived business council.