Algeria’s Decision to Cut Ties with Moroccan Companies Likely to Backfire, Expert Warns

"Tebboune’s directives are part of the hostile measures that the Algerian leaders are pursuing against Morocco," Mohamed Tayyar told The Arab Weekly. According to him, these measures take many forms and cover many areas. "They are adopted without taking into account the interests of the Algerian people, who are going through a very critical phase with a sharp rise in the unemployment rate and a significant decline in the economy as shown by recent figures," the Moroccan researcher stressed.

Observers consider the Algerian president’s decision as "a form of blackmail" in anticipation of Morocco’s refusal to extend the agreement on the Algerian gas pipeline that passes through the kingdom to Spain. If this agreement is not renewed, Algeria could lose an important gas market, as Morocco is the largest importer in North and West Africa, AW analyzes. Signed in 2011 for a period of ten years, this agreement will expire next November.

"Morocco is about to unlock its gas potential - even though the country is not a major producer and imports most of its gas. The country has nearly 700 billion cubic feet of reserves in the announced developments," a Global Data report also indicates.

The Algerian president recently ordered Algerian companies, including the mobile operator Djezzy, the Algerian Insurance and Reinsurance Company (CAAR) and the National Insurance Company (SAA), to terminate their contracts with companies from countries "hostile" to Algeria, including Morocco.