Hundreds of Algerian protesters were arrested on Saturday, as demonstrations demanding democratic reforms were held in the nation's capital city in spite of a government ban.

Though the demonstrators were outnumbered by police in full riot gear, they managed to outflank security barricades and rush into the centre of Algiers.

Shouting slogans such as "No to the police state!" and holding signs that read "Give us back our Algeria," protesters clashed with baton-wielding police during skirmishes in the city core. No serious violence was reported.

The head of an Algerian human rights group says 400 people were arrested during the protests, which followed similar demonstrations that toppled Egypt's authoritarian leader this week. Observers said that journalists were also detained during the protests.

The Algerian government has attempted to temper protests by banning public demonstrations and blocking the streets of the capital.

Thousands of people defied the ban despite the heavy security presence, taking to the streets to demand President Abdelaziz Bouteflika step down. Bouteflika has led the North African nation since 1999.

Algeria saw five days of rioting in early January amid sky-high food prices, poverty and high unemployment.

Some observers suggest Algeria could be the next Arab country to be swept up in nationwide protests against its leader. Egyptian President Hosni Mubarak was forced to resign on Friday, while neighbouring Tunisia forced autocrat President Zine El Abidine Ben Ali into exile on Jan. 14.

Kamran Bokhari, regional director for Stratfor, a global intelligence agency, said the Arab world could see a domino effect after Tunisia and Egypt.

"To the extent that people are excited, people are energized and electrified, yes. We are already seeing people mass, not in large numbers, in Algeria, in Yemen. There are lots of places to watch," Bokhari told CTV News Channel on Saturday.

News reports from Algeria suggested that security forces outnumbered demonstrators. Daily newspaper La Liberte reported some 30,000 riot police have been deployed in Algiers, while some 10,000 demonstrators came to march.

Algeria has been under a state of emergency since 1992, when the cancellation of the country's first multiparty election led to an Islamist insurgency that resulted in the death of some 200,000 people.

On Saturday, opposition leaders said the defiance marked a turning point for the North African nation.

"This demonstration is a success because it's been 10 years that people haven't been able to march in Algiers and there's a sort of psychological barrier," said Ali Rachedi, who once ran the Front of Socialist Forces party.

"The fear is gone," he added.

Algeria has been ruled by a single-party political system since 1962, when the nation gained autonomy from the colonial power of France.

President Bouteflika, 73, has been instrumental in guiding the nation back to relative stability. However, critics say that a relaxation of the country's emergency rule is long overdue. Bouteflika has also been criticized as being too old and disconnected to understand the pulse of his country.

His regime has also been beset by reports of widespread corruption. Critics say that top officials skim off energy profits and divert them for their own use instead of injecting funds back into the national economy.

With files from The Associated Press