ALGIERS // The winner of Algeria’s presidential election must tackle a major problem facing the country — its dependence on hydrocarbon revenues.
Oil and gas revenues are declining and have become a crutch used by the government to defuse social tensions.
Sporadic protests over poor living conditions came to a head in early 2011, as the uprising across the border in Tunisia toppled a decades-old dictatorship.
Abdelaziz Bouteflika, the president, responded by hiking public spending, raising wages and initiating a reform programme.
Mr Bouteflika, who is seeking a fourth term, is the favourite among six candidates running in Thursday’s election.
Discontent remains a real threat in the years to come, experts say, with official jobless figure of 9.8 per cent hiding a burgeoning informal sector, much higher youth unemployment and many people holding precarious, often illegal jobs.
“Despite high levels of spending in 2011 and 2012, and additional wage increases in 2013, social demands remain elevated and could further increase,” the International Monetary Fund said in February.
And a special committee of former colonial power France’s National Assembly said in December that Algeria’s hydrocarbons sector employed just 3 per cent of the active population but generated 40 per cent of GDP and 97 per cent of export earnings.
Since Mr Bouteflika came to power in 1999, Algeria has reaped vast revenues as oil prices have risen, enabling it to pay off its debts, amass $200 billion (Dh734bn) in foreign reserves and plough $500bn into social spending schemes.
“From 1999 to 2012, Algeria has earned more from its resources than in the 36 previous years. Hydrocarbons exports brought in $751 billion in 13 years,” said the economist Abderahmane Mebtoul.
But as the IMF warned that the windfall has brought problems of its own, creating vulnerability to price fluctuations and holding back Algeria’s fledgling non-energy sector.
“The economy’s vulnerability to developments in the hydrocarbon sector is worsening. Declining hydrocarbon production and surging domestic consumption are squeezing export volumes, compounding the long-standing risk of lower oil prices.”
Meanwhile, Algeria’s import bill reached almost $55bn last year.
Mr Bouteflika has launched huge spending programmes under each of his three five-year terms. There was one of $155bn between 2005 and 2009 and another $286bn between 2010 and 2014, of which $130 billion was earmarked for completing unfinished projects.
But the results have been mixed, at best.
“Tangible results have been registered in the social sector because of these public redistribution policies and from job creation, with a significant decline in unemployment,” said the economy expert Mustapha Mekideche.
But he also lamented the “extensive reliance on foreign capability, on the inexplicable extra costs and on the quality of work, which could have been better”.
A glaring example of the problems associated with major state-controlled projects in Algeria is the 1,200-kilometre East-West motorway, which has been dogged by allegations of corruption and extended delays.
Launched in 2007, it was originally due to cost less than half the current estimate of $13bn.
Another economist, Abdelatif Rebah, believes the “vulnerability and structural handicaps of the Algerian economy have got worse” and that the country’s dependence on energy exports has not changed, despite repeatedly announced plans to diversify.
“The share of industry in Gross Domestic Product has gone from 25 per cent to 5 per cent in 30 years,” he said.
The ruling elite is acutely aware of the need for structural change.
Abdelmalek Sellal, who resigned as prime minister to head Mr Bouteflika’s re-election campaign, said last year that boosting industry was the only way to “break out of this vicious circle of dependence on hydrocarbons”, create sustainable employment and drive healthy economic growth.
“Getting the economy on the path to re-industrialisation and reducing the power of the lobbies will be one of the key tasks awaiting the future president,” said the economist Mr Mekideche.
* Agence France-Presse
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COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
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On sale: Now
The specs
Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
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Auron Mein Kahan Dum Tha
Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar
Director: Neeraj Pandey
Rating: 2.5/5
ADCC AFC Women’s Champions League Group A fixtures
October 3: v Wuhan Jiangda Women’s FC
October 6: v Hyundai Steel Red Angels Women’s FC
October 9: v Sabah FA
Zayed Sustainability Prize
Killing of Qassem Suleimani
SPECS
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The specs
Engine: 1.4-litre 4-cylinder turbo
Power: 180hp at 5,500rpm
Torque: 250Nm at 3,00rpm
Transmission: 5-speed sequential auto
Price: From Dh139,995
On sale: now
The line up
Friday: Giggs, Sho Madjozi and Masego
Saturday: Nas, Lion Bbae, Roxanne Shante and DaniLeigh
Sole DXB runs from December 6 to 8 at Dubai Design District. Weekend pass is Dh295 while a one day pass is Dh195. Tickets are available from www.soledxb.com
Squid Game season two
Director: Hwang Dong-hyuk
Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun
Rating: 4.5/5
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
In numbers
Number of Chinese tourists coming to UAE in 2017 was... 1.3m
Alibaba’s new ‘Tech Town’ in Dubai is worth... $600m
China’s investment in the MIddle East in 2016 was... $29.5bn
The world’s most valuable start-up in 2018, TikTok, is valued at... $75bn
Boost to the UAE economy of 5G connectivity will be... $269bn
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
Match info
Liverpool 4
Salah (19'), Mane (45 2', 53'), Sturridge (87')
West Ham United 0
Farasan Boat: 128km Away from Anchorage
Director: Mowaffaq Alobaid
Stars: Abdulaziz Almadhi, Mohammed Al Akkasi, Ali Al Suhaibani
Rating: 4/5
Killing of Qassem Suleimani
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
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Transmission: Single-speed automatic
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On sale: Now
Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Hoopla%3Cbr%3E%3Cstrong%3EDate%20started%3A%20%3C%2Fstrong%3EMarch%202023%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Jacqueline%20Perrottet%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%3C%2Fstrong%3E%2010%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%3Cbr%3E%3Cstrong%3EInvestment%20required%3A%3C%2Fstrong%3E%20%24500%2C000%3C%2Fp%3E%0A
5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
KEY%20DATES%20IN%20AMAZON'S%20HISTORY
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Keep it fun and engaging
Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.
“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.
His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.
He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.
GOODBYE%20JULIA
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Tips for taking the metro
- set out well ahead of time
- make sure you have at least Dh15 on you Nol card, as there could be big queues for top-up machines
- enter the right cabin. The train may be too busy to move between carriages once you're on
- don't carry too much luggage and tuck it under a seat to make room for fellow passengers
