Algerian economist Abdulrahman Mataboul said Algeria's transformation from a rental economy, entirely dependent on hydrocarbon revenues to cover spending budgets, towards a productive industrial economy, has become an urgent necessity in order to avoid further crisis caused by the collapse of the economy oil prices in world markets.

Mataboul said in a press statement for Arabs Today that the Algerian government is required today to set a clear economic policy, out of dependence, and this through the development of the industrial sector, agriculture and services.

Regarding to his expectations of oil prices in international markets, Mataboul expected that the price would not exceed $ 60, and the impossibility of returning to $ 100 as it was earlier, given the new changes in the international market.

He stressed that the bet today in Algeria is to build an industrial economy and abandon the rent economy, as some Arab countries did, to grant new investment facilities and fight bureaucracy, to stimulate the private sector to invest outside the hydrocarbons sector, to reform the banking system and develop the stock market and internal borrowing operations, and to ensuring the security and diversity of energy sources.

The Algerian government is forced to avoid repeating the scenarios of the 1990s and to return to the economic and social revolution," he said.

On the collapse of the value of the local currency against foreign currencies, and the possibility of impact on the prices of consumer goods, Mataboul said  that the reasons for this crisis the decay, the reasons for this are the weakness of production, and Algeria's exports are fuels, adding that the government is required to build a strong and clear economic policy and encourage productive institutions.

 

"In order to do so, it must open a serious and responsible dialogue with economic partners, blaming the government for the collapse of the value of the dinar against other foreign currencies," Mataboul added.

 

He praised the decision of the government to determine the import licenses of some products, pointing out that it is a temporary measure aimed at regulating foreign trade and is part of the new strategy adopted by the government of Abdel Malik Sallal to push the Algerian economy.