Following a successful Algeria Trade & Investment Conference in November 2008 as well as our Maghreb Business Briefing earlier this year, the Middle East Association is planning a trade mission to Algeria, kindly sponsored by United Insurance Brokers, from 23-26 January 2010.

Algeria is the second largest country in Africa, the third most populous in the Arab world, Africa’s fourth largest producer of oil and the world’s fifth largest producer of gas.   Sound policies and limited integration in the international financial system have limited the impact of the last two years’ global economic downturn on Algeria, allowing it to record a 3% GDP growth rate in 2008.  It has increased its international reserves to $135 billion while continuing to reduce its external debt to a marginal $4.5 billion (3% of GDP) and holding inflation to one of the lowest rates in the region.  This puts Algeria in a strong position at the start of its 2010-14 five year programme which involves the investment of $150 billion in infrastructure projects.

In spite of slower liberalization in external trade in 2008 and a protectionist cap of 49% on foreign investors’ share in major ventures imposed in January 2009, the World Bank identified Algeria in its Doing Business in the Arab World 2010 report as among the region’s reformers in 2008-09.  It noted, for example, the reduction in corporate tax from 25% to 19% for some sectors – and Algeria recently changed its working week to start on Sunday, instead of Saturday, to increase the overlap with the Western week.   Algeria is a good business environment because of its low labour costs and goodwill towards foreigners.