Reasons to invest in Algeria (Updated April 2017)
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Economic stability


An economic stability
(data for  2016)

• GDP: $ 160 billion

• GDP per capita: $ 4,000

• GDP real growth rate: 4% (Source ONS)

• GDP real growth rate excluding hydrocarbons: 5.5 (Source ONS).

• External Debt: $ 3 billion

• Foreign exchange reserves: $ 114 billion

05 priority sectors to be developed

  • Industry :

    - metalworking, hydraulic binders, electrical and household appliances, industrial chemistry, mechanics and automotive, pharmaceutical production, aerospace, construction and ship repair, advanced technology, food processing, textiles and clothing, leather and timber products, wood and furniture industry, and Mines
  • Subcontracting Development:
  • Tourism:

    • Raising the value of Algeria  Destination;
    • Implementation of a Tourism Quality Plan (PQT)
    • Development and qualification of the offer by investing in tourist centers and villages of excellence;
    • Public-Private Partnership to strengthen the Tourism Channel;

  • Agriculture:

    •    focuses mainly on the permanent support of food security and the rural areas development.
     
  • Renewable Energies and Energy Efficiency: For the installation of a capacity of 22000MW by 2030, of which 4500 MW by 2019. This program concerns solar, thermal, biomass and wind.

  • Information and Communication Technologies: Which concerns the development of the digital economy, technology parks, the introduction of e-money and e-services, data and data base security, etc.

 

Functional and modern infrastructure in conformity with international standards

 

• Roads: 112,039 km of roads and highways (40th network World, 3rd in Africa) of which 29,573 km of national roads.

• Airports: 36 airports, of which 16 international.

  • Ports: 45 maritime infrastructures, of which 11 commercial ports, two oil ports, 31 fishing ports, one (01) marina and 2,200 maritime traffic lights
  • More than 53 km of jetties;
  • More than 59 km of quays plus landing stage;
  • More than 1,500 ha of water surface;
  • More than 790 Ha of land;
  •  31 oil and gas landing stage.

 

Railways network:   4498 km of railway network, of which 3854 km of operational lines and 2,380 others under way of construction;

  •  Three (03) sets:
  • The northern bypass linking Annaba, Constantine, Algiers, Oran with its extensions to the eastern (Tunisia) and west (Morocco) borders.
  •  The mining line with its branches serving the mineral deposits: the Iron in Ouenza and Boukhadra and the Phosphate in Djebel Onk.
  •  Penetrating motorways in the direction of the high lands and the south and a high lands bypass road linking the cities of Tébessa / Ain-Mlila / Ain-Touta / M'sila. To which are added the particular junctions.
  • Length of operational lines: 3750Km
  •  Length of dual track lines :553Km
  • Length of single track lines :3217Km
  •  Length of electrified lines :323Km
  • Number of operational stations: 175
  • Number of operational stopping places :215
  • One (01) metro in Algiers with a length of 9.5 km with three extensions of a total length of 9.4 km underway of construction.
  • 3 trams (Algiers, Oran and Constantine) and 4 trams underway of construction (Ouargla, Sidi Bel Abbes, Sétif).
  •  Passenger cars: 416
  •  Wagons : 10 873
  •  Electric rail cars : 64
  •  Diesel rail cars : 17
  •  Diesel  Locomotives: 261
  •  Electric  Locomotives: 14

 

A qualified, young and competitive labour force

 

- 5.5% of GDP to education

- 6.24% of the state operating budget for higher education

- 86% literacy rate

- 63.6% of the Algerian population training age annually

- 96% of school enrollment

- 1.5 million students, including 35,000 registered in doctoral training and 90000 in technical areas.

- 2 500 000 graduates since 1962, from 97 universities, 10 university centers, 20 national schools, 7 normal schools, 12 preparatory schools

- Almost 643,700 enrolled in vocational education which 200,000 (average) graduates from 1213 establishments (institutes and centers)

 

And competitive production factors costs

 

- Energy:

  • Natural gas: 0.21 to 0.40 Euros / therm
  • Electricity: 1 to 4 euro cents / kWh on average

- Salary: 180-900 euros (the minimum wage is set at 180 euros)

- Gasoline super 0.30 euros / L Gas Oil 0.17 euros / L

 

Incentives for investment

 

- Important tax incentives, up to 10 years of exemption, depending on the location and size of the project.

 And other additional benefits:

  • Partial or total reimbursement of expenses related to infrastructure works within the south and highland areas and areas the development of which requires a contribution from the State;
  • Reduction in employers' contribution to social security for the recruitment of young job seekers
  • The concession of land by mutual agreement, over periods of 33 years renewable and giving rise to the same property rights arising from sales
  • Discounts on the price of the rental fee on the land and property acquired within the framework of the realization of the investment
  • Tax exemptions throughout the life of the project for exporting projects.
  • Temporary Exemption for 5 years, of companies benefits tax (IBS), Global Income tax(IRG) and Tax on the turnover and 3%bonus  of the interest rate on bank loans granted to investments in certain activities within the steel and metal industrial sectors, the hydraulic binders and Electrical Appliances, Industrial chemistry, mechanics and automotive Pharmaceuticals, aerospace, shipbuilding and repair, advanced technology, food processing, textiles and clothing, leather and derivatives, wood and furniture industry.
  • Exemption from VAT, customs duties, taxes having equivalent effect or any other charge for the equipment needed for investment by industrial companies in the field of research and development.
  • Reduction of 50%, companies benefits tax (IBS) or Global Income tax(IRG),in common law for individuals and legal entities, activating and fiscally domiciled in the wilayas of Illizi, Tindouf, Tamanrasset and Adrar, and this for a period of 05 years from the January 1, 2015.
  • Support by the Public Treasury Administration, of the bank interest for investments made by industrial companies for the acquisition of technology and mastery to enhance the industrial integration rate of their products and competitiveness.
  • Extension until 31 December 2019, of the application of reduced rate of customs duty on acquisitions of equipment and furnishings not produced locally by hotel standards and within the scope of modernization and upgrading under the "Quality Plan Tourism Algeria" -The list of equipment and furnishings concerned is determined by the interministerial order of March 2, 2014.
  • Reduction of charges of contribution to social security (recruitment of young jobseekers)
    •  North: 56%to 80%
    •  Highlands and South: 72% to 90%

 

Supports in matter of financing through public banks

 

- Interest rate to 5,5 %

- A discount of  2%, it may reach 4.5 % (Tourism project in the South)

- A network of 29 banks and financial institutions, of which:

            * 14 private and 6 public and 9 financial institutions

            * 11.400 billion dinars of credit to the economy

- The existence of Leasing Companies

- Availability of investment funds

• FNI contribution  to 34% in major projects

05 Investment Funds covering the whole territory:  participation up to 49% in the capital of SMEs

- Possibilities to recourse to financial institutions guarantees: Guarantee Fund to Credits for Investment CGCI, the Credits Guarantee Fund for SMEs

 

An intensified protection and international arbitration agreements

 

  • Membership to international investors protection conventions, relating to international guarantees and arbitration;
  • Signing of 48 bilateral agreements and agreements on the investments promotion and reciprocal protection;
  •  Signing of 65 bilateral agreements on non-double taxation (source DGI).

 

 

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