Algerias president has recently announced that they intend to develop their own energy resources. One hindrance is the fact that their economy is largely controlled by the state. Most of their exports are made up of hydrocarbons which also account for a large amount of their GDP. Due to recent decline of oil prices their economy has destabilized due to a reduction in foreign exchange reserves and increasing external debt. Despite the decline in these areas of the economy, subsidies on education and housing have not been reduced. In an attempt to further stabilize their decreasing economy they have put policies in place to restrict imports on foreign goods. Algeria’s economic growth potential is reduced by excess regulation in industries not related to hydrocarbons and strong insistence on state driven expansion.