Diapositive 1

1


INVEST IN ALGERIA


For those who see a long way off, Algeria is
close by
www.andi.dz
2
Why Invest in Algeria ?

• 06 Main Reasons
• 1 - Economic opening
• 2 - Market.
• 3 - Economic indicators
• 4 - important available Resource.
• 5 - Basic infrastructure.
• 6 - Ease.

3
1 Economic opening

• Basic principles
• Freedom to invest.
• Investment guarantee protection.
• No discrimination between foreign national
  investors.
• Recourse to international arbitration
• Guarantee of profit capital repatriation.
• Association Agreement with EU
• Planned membership of the WTO

4
1 Economic opening

• Ratification of numerous international agreement
  conventions, including the agreement with the
  kingdom of spain, related to the investment
  promotion protection, signed in december, 23rd
  1994 and wich provides
• Equal traitment between spanish national
  investors
• Nationalization or similar mesures
• Compensation for losts
• transfert of payments generated by the
  investment
• Recourse to international arbitration
• Arbitration sentences Respect execution in the
  hosting country

5

• 1 Economic opening
• FDI Flows

Million US
Source UNCTAD World Investment Report 2002
Bank of Algeria
6
1 Economic opening

• Main investing countries

Millions US
Source UNCTAD World Investment Report 2002
Bank of Algérie
7
2 - MARKET.

• Great Investment Potential in
• Industry Agro-food, chemicals/Pharmaceuticals,
  Manufacture, paper packaging, engineering,
  electronics...
• Building trade and civil engineering House
  construction, concessions, activities related to
  public services and works
• Mines gold, marble, stone, salt, phosphate,
  ferrous non ferrous metals.
• Agriculture development of farmlands, fishing
  aquaculture, breeding, Service to agriculture.
• Services Banking Insurance, Financial
  intermediation, Telecommunication, Tourism,
  Business consulting, transport

8
2- MARKET.

• Growing local Market.
• Size 2.381.741 km2
• Population 31 million
• GDP US 70 Billion
• Important NEED
• Guaranteed TURNOVER

9
2- MARKET.

• Attractive business environment
• Good basic infrastructures
• Strategic position at the crossroads of
• Arabian, African European markets.

10
(No Transcript)
11
3 Economic Performance.

• Macro-economic indicators
• Economic growth 6,8 (2003)
• Inflation 2 in
  average
• Exchange Reserves US 33 billion
• Exchange /DA 90 in average
• Trade Indicators (2003)
• Key import US 11,7
  Billion
• Key export US 18,4
  Billion
• Balance of trade US 6,7
  Billion

12
4 - RESOURCES

• NATURAL RESOURCES.
• GAS, OIL, ELECTRICITY, ORES, FORESTS, SOILS, SEA
  RESOURCES, TOURISM,
• HUMAN RESOURCES
• Available educated workforce at very competitive
  costs
• 40 000 Graduates / year in higher Education,
  from 52 establishments including 30 academic
  centers.
• 94 000 Graduates / year in professional
  training, from 517 establishments.

13
5 Good ingfrastructure

• A very developed power network

• Roads

106 000 Km

• Railways

4 000 Km
11 Multiservice including 2 for hydrocarbon
exportation

• Harbours

30 aerodrom opened to civil aviation including13
for international aviation.

• Aeroports

14
6 - EASE.

• Investment incentives and encouragement
• A Follow up of the investors by the National
  Investment development Agency.
• 06 regional One Stop Shops at the investors
  disposal.

15
6 - EASE.

• Many incintives to investment for goods
  services
• Production projects
• 1. General regime for ordinary investment
• 2. Agreement regime for investments of
  national interest

16
6 - EASE.
Advantages granted to common goods service
production investments
1.Reduced customs rates for equipments
General Scheme
2.Exemption from value added tax
3.Exemption of transfer tax for real estate
acquisitions
17
6 - EASE

• 06 regional One stopshops

Annaba
Algiers
Oran
Blida
Constantine
Ouargla
18
6 - EASE.
INVESTMENT AGREEMENT REGIME

• Investissements of national impact eligible to
  the investissement agreements regime can benefit
  from additional incentives, more particularly
  taxes are concerned, on
• corporation/profits tax
• paid out dividend (global income tax),
• turnover (tax on professional activity),
• property tax.
• For These projects infrastructure works needed
  for the investment realization, can also be taken
  in charge partially or totally.

19
CONCLUSION.

• Invest in Algeria means
• investment protection guaranty
• Opportunity of an increasing market with an
  attractive risk-return trade off.
• Lower Production Costs guarantied return
• Regional Great markets Proximity.

20
therefore, your contact will be

• The Nationale Investment Developmemt Agency -
  ANDI.
• http// www.andi.dz

28, Rue Ahmed Ouaked - Dely Ibrahim-
(213) 21 36 28 96 to 98
(213) 21 37 30 84
Information_at_andi.dz
21
Thank you for your attention