Algeria’s constitutional court certified President Abdelmadjid Tebboune’s reelection for a second and final term on September 14, 2023. Despite progress in infrastructure, housing, and agriculture under his leadership, the economy remains undiversified, with high unemployment, especially among youth.
The country is heavily reliant on its hydrocarbon sector, with oil and natural gas exports accounting for 90% of its exports and 60% of fiscal revenues in 2023. However, Algeria has vast untapped potential, particularly in sectors like agriculture, mining, renewable energy, and tourism.
To reduce dependence on hydrocarbons, Tebboune could implement a three-pillar economic transformation strategy. First, a comprehensive vision for economic diversification, akin to Saudi Arabia’s Vision 2030, should be developed.
Second, the establishment of a sovereign wealth fund could help manage hydrocarbon revenues and invest in strategic sectors. Third, the creation of special economic zones would attract foreign investment and create jobs by simplifying the business environment.
Algeria’s path forward requires balancing economic sovereignty with openness to global trade and investment, creating opportunities for growth beyond its petrostate status.
