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INVEST IN ALGERIA. For those who see a long way off, Algeria is close by. www.andi.dz. Why Invest in Algeria ?. 06 Main Reasons : 1 - Economic opening 2 - Market. 3 - Economic indicators 4 - important available Resource. 5 - Basic infrastructure. 6 - Ease. 1 – Economic opening.
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INVEST IN ALGERIA For those who see a long way off, Algeria is close by www.andi.dz
Why Invest in Algeria ? 06 Main Reasons : 1 - Economic opening 2 - Market. 3 - Economic indicators 4 - important available Resource. 5 - Basic infrastructure. 6 - Ease.
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
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
1 – Economic opening • FDI Flows : Million US$ Source: UNCTAD World Investment Report 2002 Bank of Algeria
1 – Economic opening • Main investing countries Millions US$ Source: UNCTAD World Investment Report 2002 Bank of Algérie
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…
2- MARKET. • Growing local Market. • Size : 2.381.741 km2 • Population : 31 million • GDP : US$ 70 Billion • Important NEED • Guaranteed TURNOVER
2- MARKET. • Attractive business environment • Good basic infrastructures • Strategic position at the crossroads of Arabian, African & European markets.
3 – Economic Performance. • Macro-economic indicators • Economic growth : + 6,8 % (2003) • Inflation : 2 % in average • ExchangeReserves : 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
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.
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
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.
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
5% 15% 30% 0% 7% 17% 0% 8% 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
6 - EASE • 06 regional One stopshops Annaba Algiers Oran Blida Constantine Ouargla
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.
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 marketsProximity.
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@andi.dz