Invest in Tunisia Tunisia Share performances 5 Tunisia in a nutshell 6 A competitive economy that works well 8 Tunisia at the crossroads of continents 10 A knowledge-based society 12 A dense and modern infrastructure 14 A favorable business environment 16 An attractive site for investment 18 A country where you can enjoy life 20 FIPA-Tunisia Bizerte Tabarka Tunis Beja Kelibia Jendouba Nabeul Zaghouan Hammamet El Kef Siliana Enfidha Sousse Kairouan Monastir Mahdia Kasserine Main cities El Djem Highways Sidi Bouzid Ports Sfax Railways Gafsa Skhira Airports Gabes National borders Tozeur Jerba Kebili Zarzis Mednine Tataouine Latvia Denmark Lithuania Ireland Belarus Great Britain Netherlands Poland Belgium Germany Czech Republic Ukraine Francfort Paris Austria Switzerland Hungary France Romania Bulgaria Corsica Italy Spain Sardinia Portugal Greece Mediterranean sea Turkey Tunis TunisieTunisia Morocco Algeria Libya 4 Tunisia in a nutshell Geographic location Area 162,155 km2 Location North Africa, 140 km from Italy 1,300 km of coastline along the Mediterranean Climate Mediterranean Time zone GMT + 1 Capital Tunis (2.4 million inhabitants in the city & suburbs) Main cities Sfax, Sousse, Bizerte, Nabeul, Gabes, Kairouan, El Kef, Jendouba, Beja... Population Population 10,434,000 inhabitants Working population 47.3% of the overall population Middle class 80% Annual income per capita 5,142 TND Life expectancy 74.3 years Official language Arabic Languages commonly used French, English, Italian Institutional framework System Presidential Administrative divisions 24 governorates, further subdivided into delegations Currency Tunisian dinar (TND) TND 1 = 1,000 millimes Exchange rate Average rate for 2009 TND 1 = Euro 0.532 = US$ 0.741 Key figures 2009 2010 (E) GDP (in million TND) 53,419.1 57,553.8 Exports (in million TND) 26,680.7 28,868.7 Investment rate (% of GDP) 25.9% 26.5% Savings rate (% of GNAI*) 23.1% 23.3% Budget deficit (% of GDP) 3.8% 3.6% Rate of external indebtedness (% of GNAI*) 41.5% 39.5% Debt service ratio (% of current receipts) 11.4% 9.6% *GNAI: gross national available income (E): estimated Ministry of Development and International Cooperation, Economic Budget 2010 5 A competitive economy that works well A competitive economy Thanks to its proximity to Europe, its socio-political stability, its highly skilled human resources and its effective integration into the Euro-Mediterranean area, Tunisia features several advantages making it a real success story in the Mediterranean area. Tunisia is ranked in the southern shore of st the Mediterranean and in Africa according to the Global It is quoted as a model of economic success by international institutions and is Competitiveness Report 2009- awarded first rate rankings in terms of competitiveness across the African and 2010, released by the Davos World Southern Mediterranean area. Economic Forum and 40th out of 133 developed and emerging 1 countries in terms of global The Global Competitiveness Index competitiveness. Rank Country Score 7 Germany 5.37 16 France 5.13 18 Belgium 5.09 33 Spain 4.59 40 Tunisia 4.50 48 Italy 4.31 61 Turkey 4.16 70 Egypt 4.04 73 Morocco 4.03 Global Competitiveness Report 2009-2010, Davos World Economic Forum A diversified economy enjoying ongoing growth For a decade, Tunisia has been characterized by a sustained and continuous growth. Thus, despite the persistent instability of the global economy, Tunisia is pursuing its commitment to diversity and to building an economy based on knowledge and Low inflation on technology intensive activities. Over the last five years inflation has on average The 2008 global crisis has not, however, prevented Tunisia from recording a been kept at 3.6% thanks to the strengthening growth rate of around 3% in 2009 and which should reach 4% in 2010. of rules governing competition and to continuous The services sector and the manufacturing industries account for 42.7% and improvement in productivity. Hence, despite 17.6% of GDP respectively. fluctuation in oil and food prices on the international level in 2008 and 2009, the inflation GDP structure – factor costs in 2009 rate was kept at 5% and 3.7% respectively. In % 11.0 Agriculture & fishing Trends in the inflation rate 5.0 Non manufacturing industries In % 4.5 35.1 17.4 Manufacturing industries 2008 3.7 Tourism 2006 3.1 Transport 2009 17.6 Communications 2007 6.7 2.0 6.4 5.8 Other services 2005 6 Ministry of Development and International Cooperation, Economic Budget 2010 National Institute of Statistics, 2010 An economy open to the world In 2009, exports of goods and services accounted for 50% of GDP. They recorded a drop of 6.5% at constant prices under the effects of the crisis prevailing in the countries of the EU; Tunisia‘s main trading partner. This decline affected mainly the exports of goods (mechanical and electrical products, textiles and energy). Exports of services (notably tourism) recorded a slight increase. However, Tunisian exports remain diversified and are no more directly dependent on basic commodities (oil, phosphates). The mechanical and electrical industries remain the largest exporting branch (20.2%) followed by textiles (19.7%). “The business has survived quite well in 2009. The fall in exports to Europe was partially offset by the resilience of the tourism sector and production increases in the sectors of mining (iron, phosphate) and energy (oil). Domestic demand was supported by public investment and by household consumption boosted by a wage revaluation in the public and private sectors.” The French Insurance Company for Foreign Trade “COFACE”, 2009 A low-risk economy Tunisia has been awarded an investment rating by financial institutions and rating agencies since 1994. Tunisia’s rating in 2009 US agencies Standard & Poor’s BBB Moody’s Baa2 Fitch Rating BBB European agency IBCA BBB Japanese agency R & I A- They said about Tunisia: “Tunisia’s macroeconomic stability and resistance to shocks are its main rating strengths.” Charles SEVILLE, Director – Sovereign Group at FITCH, February 2009 7 Tunisia at the crossroads of continents A strategic position Less than three hours flying time from major European and Middle East cities, Tunisia is a preferred destination for those seeking a foothold in this 800 million consumer market. Tunisia is the country from st the southern Mediterranean shore to join, since January 2008, the Free Trade Area of the European Union. Regular service 1 European and Middle Eastern markets are easily accessible through: ■ nine airports and 124 foreign airlines providing more than 1,400 weekly flights to Europe; Average frequency of flights per week Country Frequency France 571 Italy 172 Germany 169 Belgium 73 United Kingdom 68 Switzerland 54 Spain 32 Morocco 30 United Arab Emirates 17 Egypt 16 Saudi Arabia 14 The Tunisian Civil Aviation and Airports Authority, 2009 ■ the existence of several ports and a modern maritime fleet to meet the requirements of security and speed. The diversity of activities of these ports, their complementary role and their location allow for the accommodation of all types of ships and for processing all kinds of goods. More than 8,000 vessels are accommodated annually. The shipping of goods reached 31 million tons in 2009; Frequency of regularly-scheduled shipping lines for transport of merchandise (Port of Rades) per week City Frequency Marseille (France) 7 Genoa (Italy), Valetta (Malta) 5 Valencia and Barcelona (Spain) 5 Livourna (Italy) 2 Gioia-Tauro, Pozzalo, Cagliari, Laspezia and Trapani (Italy) 1 Merchant Marine and Ports Office, 2009 ■ one of the best telecommunication networks in Africa. Indeed, 33.3% of the population uses the Internet, with 381,982 subscribers in 2009 compared to 128,352 in 2007. The total telephone density per 100 inhabitants is 105.2%. 8 Free access to the European Union market The European Union is Tunisia’s primary economic and commercial partner. From January 1st, 2008, Tunisia was the first country of the southern Mediterranean shore to join the Free Trade Area of the European Union, opening hence the door of a market of more than 500 million consumers. Tunisian exports to the European Union market experienced a remarkable evolution. Their share in total exports increased from 51% in 1976 to 73.8% in 2009. Industrial goods represent about 80% of total exports to the European Union. Tunisia is the leading industrial exporter in the southern shore of the Mediterranean to the European Union according to the survey “National Industrial Strategy by 2016”, issued by Ernst & Young in 2008. Ongoing integration of the Maghreb and Arab markets Tunisia‘s exports to Maghreb and Middle Eastern countries have tripled over the past five years rising from 815 million dinars in 2004 to 2,377 million dinars in 2009. This was possible thanks to: ■ preferential agreements with Maghreb and Arab countries, ■ bilateral agreements setting up free-trade zones with Turkey, Egypt, Morocco, Jordan, Iraq and Libya and governing trade with these countries, ■ a regional agreement signed in 1998 and establishing the Arab Free Trade Area, ■ the Agadir Free Trade Agreement signed in 2004 between Jordan, Egypt, Morocco and Tunisia. Preferential access to several markets Tunisia is eligible for tariff reductions under the Generalized Preference System, mainly for manufactured, agricultural and handicraft products with the United States, Canada, Japan, Switzerland and Australia. It is also eligible for preferential access to markets in several African countries in the framework of bilateral agreements. They said about Tunisia: “ARDIA in Tunisia represents one of the main R&D centers of our group ACTIA. This is a basis centralized in Tunisia to serve other subsidiaries of our group located in France and more widely in Europe, like Italy or England or even in the US and China. Today it is a great success in view of our development.” Cyril ROCHARD, General Manager of ARDIA, ACTIA GROUP 9 A knowledge-based society A modern educational system By allocating ¼ of its budget, 6.9% and 1.19% of GDP respectively to education and R&D, Tunisia has continued to invest in its education system to meet the requirements of economy.