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U.S. Commercial Service. Doing Business in Algeria Presented by Wifak Rtal Bennani 15, June , 2007. Market Overview. Size: 10 th largest country in the world and the 2 nd largest in Africa. Strategic location: the Mediterranean, other Maghreb countries and the Sahel.
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U.S. Commercial Service Doing Business in Algeria Presented by Wifak Rtal Bennani 15, June , 2007
Market Overview • Size: 10th largest country in the world and the 2nd largest in Africa. • Strategic location: the Mediterranean, other Maghreb countries and the Sahel. • GDP: $115 billion, • GDP growth: 5.1% • GDP per capita : $3,300 • Inflation: 5% • Population: 33.2 million.
Market Overview Imports: $25 billion- Exports: $51 billion ( 97% Hydrocarbons: oil and gas) U.S: first bilateral trade partner, ahead of France, Italy and Germany U.S exports to Algeria:+ $1 billion The security situation: generally improved particularly in the Major cities.
Algeria : true energy giant • Premier Energy power of the Mediterranean. • Ranking Worldwide: 15th: oil reserves, 18th: production, 12th: export, 7th: natural gas resources.
Market Entry Strategy Partnerships and joint ventures: viable forms local office: beneficial to procuring tenders for government contracts Relationships are important to finding a partner in Algeria Agents and consulting firms can watch for small or rapidly changing technical requirements during a tender process.
Best Prospects for U.S. Exporters • Oil & Gas- Hydrocarbons • Banking and Financial Services • Housing and Construction • Telecommunications & Information Technology • Infrastructure: Highway and railway projects • Healthcare • Power Generation • Tourism • Water Resources Equipment • Agribusiness & Agriculture
Energy: Oil and Gas • Investment $32.4 billion: SONATRACH- State owned- ( 2006- 2010) • 64%: upstream • 20%: midstream( pipelines and transport) • 16%: downstream
Energy: Power generation • Total installed capacity for power generation is expected to total 10250 megawatts by the end of 2010. This is a 50% increase compared to 2004. • This capacity is expected to further increase to 12000 megawatts by 2012. • SONELGAZ will invest $7.1 billion in power generation project between 2005-2009. • Export opportunities to the European market: Algeria is developing two underwater line projects for 3000 megawatts which will run along to Spain and Italy.
Energy: Renewable energy • There are many solar power energy opportunities to be developed as Algeria is looking at diversifying its energy exports outside of hydrocarbons
Project financing The Algerian budget surplus exceeds $100 billion that the Government plans to invest on infrastructure and public works. Six state-owned banks still dominate the commercial market with 95% share
Trade events Algiers International Trade Fair, June 2008 Algiers, Algeria. U.S pavilion organized by the U.S Commercial Service Franchise Expo, November 2007, Algiers, Algeria www.safex.com.dz
Contact Us American Embassy Tel: +213 21692317 Fax:213 21691863 E-mail: Faiza.Gamoura@mail.doc.gov kamel.achab@mail.doc.gov http://www.buyusa.gov/algeria/en
U.S. Commercial Service THANK YOU