Lahcen Haddad: The Mirage of petro-rent as gulf states evolve, Algeria stalls, Morocco advances

Drawing on the analytical framework developed by Daron Acemoglu and James A. Robinson in Why Nations Fail, it becomes clear that the prosperity of nations depends neither on geography nor culture, but on the nature of their institutions.

Countries with inclusive institutions—those that broaden participation and ensure an equitable distribution of power—tend to prosper. By contrast, those with extractive institutions—concentrating power and resources in the hands of a narrow elite—fall into stagnation.

From this perspective, the trajectories of oil-producing states diverge sharply. Saudi Arabia and the United Arab Emirates, long reliant on a rentier state-led model, have embarked on strategic transitions.

Through ambitious economic reforms (such as Vision 2030), they seek to diversify their economies, encourage private investment, and integrate youth and women into the productive sphere.

While political power remains centralized, their economic institutions are becoming more inclusive, attracting innovation and entrepreneurship.

Algeria, by contrast, remains trapped in a classical extractive model. Its economy is still overwhelmingly dependent on hydrocarbons, power remains concentrated within a politico-military apparatus, and economic activity is governed by clientelist logic.

In the absence of structural reforms, the country suffers from chronic underdevelopment despite its abundant resources. It embodies Acemoglu and Robinson’s central thesis: extractive institutions block prosperity.

Morocco, without oil rents, illustrates a different path. It has transformed itself into a regional hub for industry and services, investing in infrastructure, renewable energy, public–private partnerships, and redistributive taxation. Its model combines economic liberalism with gradual social inclusion, all underpinned by a long-term strategic vision.

The conclusion is clear: it is not natural resources that make nations wealthy, but the quality of their institutions.