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 Energy Minister: Two Billion People Worldwide Suffer from Energy Shortages

Saudi Minister of Energy Prince Abdulaziz bin Salman (OPEC website) 
Saudi Minister of Energy Prince Abdulaziz bin Salman (OPEC website) 
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Saudi Energy Minister: Two Billion People Worldwide Suffer from Energy Shortages

Saudi Minister of Energy Prince Abdulaziz bin Salman (OPEC website) 
Saudi Minister of Energy Prince Abdulaziz bin Salman (OPEC website) 

Saudi Energy Minister Prince Abdulaziz bin Salman has warned that the global energy transition must not come at the expense of economic growth and the cost of living. He highlighted that nearly two billion people around the world are currently facing energy shortages.

Speaking at the opening session of the 9th OPEC International Seminar in Vienna, the minister stressed that the path toward energy transition must be realistic and practical. He emphasized that this shift should not be viewed as a threat to oil producers, but rather as an opportunity for technological innovation.

Despite the growing use of renewable, nuclear, and hydrogen energy sources, Prince Abdulaziz maintained that oil and gas will remain essential and irreplaceable components of the global energy mix. He welcomed the fact that an increasing number of countries are adopting a more pragmatic view of the transition.

Also speaking at the seminar, UAE Energy Minister Suhail Al Mazrouei said on Wednesday that oil markets have been able to absorb OPEC+ production increases without a rise in inventories, indicating that global demand still requires more crude.

Al Mazrouei explained that the group is not concerned about oversupply and has seen no significant stockpile build-up, even after recent production hikes.

OPEC+, which supplies around half of the world’s oil, has been cutting production for several years to support market stability. However, the group recently began easing these cuts in response to rising global demand, particularly during the summer.

OPEC+ began unwinding its 2.17 million barrel-per-day production cut in April, increasing output by 138,000 barrels per day. That was followed by monthly hikes of 411,000 barrels per day in May, June, and July. On Saturday, the group approved a further increase of 548,000 barrels per day for August.

Al Mazrouei pointed out that the absence of a significant buildup in inventories despite these steady increases suggests that the market needed those barrels.

He added that stability - not just price - should be the focus, stressing that short-term thinking based solely on price is insufficient. He noted that oil prices must remain attractive enough to draw in new investments, warning that countries with large oil reserves still are not investing at the necessary levels.