Algeria has been in a difficult transition to diversify its economy off of oil but it is beginning these efforts, particularly in regards to renewable energy, industry, tourism, financial services, and Islamic banking.
The country has started to move in the direction of diversifying its economy but it is not an easy thing to do and something that doesn’t happen over night.
This reality doesn’t stop the IMF from trying to pressure Algeria to impose severe austerity and selling strategic national assets because Algeria has a significant budget deficit and the economy contracted 4% in 2020.
Putting aside the fact that IMF loans in countries like Argentina made the debt worse and saw less internal revenue coming in, the Algerian economy faired better in 2020 than many other OPEC economies, notably Saudi Arabia.
President Abdelmadjid Tebboune has refused to head the IMF’s economic advice and has ruled out going to the IMF due to the fact getting IMF loans means you are going to be losing sovereignty.
The Algerian government is taking a balanced approach to the diversification of its economy and dealing with the problems in its finances.
Prime Minister Ayman Benabderrahmane told Members of Parliament,
“The government is working on a deep review of the investment law to take care of the various concerns of businessmen and the obstacles that prevented the realisation of projects,” Benabderrahmane, also finance minister, told parliament after debating the government action plan.
“We want to create an attractive investment environment to attract foreign direct investment to our country.”
Far more significantly, when detailing the government’s plans for the financial services sector and for public private partnerships, he stated Islamic banking is set to have a greater role in the Algerian economy.
The new investment law will be accompanied by other measures to seek new financing sources, including developing the Algiers stock exchange, improving bank management, encouraging partnerships between private and state firms to carry out major projects and opening the door for greater role of Islamic finances, Benaberrahmane said.
“The banking and financial reform will allow a transparent and efficient management,” he said, repeating the government will sell stakes in some of the country’s six state banks.
“We want to have alternative funding methods,” Benabderrahmane said.
Greater involvement of usury free Islamic banking in the Algerian economy is a nightmare for the globalist cabal that runs most of this world and it will draw further fury against Algeria by the usual suspects.
The Algerian government’s plans for diversifying the economy and tackling the economic problems in Algeria strike the right balance between neoliberalism and communism and having greater involvement of usury free Islamic banking will be huge for the country.
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