Ministry Delegate for Participation and Investment Promotion MDPPI TABLE OF CONTENTS 1. INVESTMENT ENVIRONMENT ......................................................... 16 CHAPTER 1 - PRESENTATION OF ALGERIA ............................................ 16 Geography and Climate .................................................................. 16 Location..................................................................................... 16 Relief ........................................................................................ 17 Climate ...................................................................................... 17 Faun and Flora .............................................................................. 17 Faun.......................................................................................... 18 Flora ......................................................................................... 18 Main Cities of the Country Institutions ................................................ 18 Legislative power.......................................................................... 18 The Constitutional Council................................................................ 19 Executive power........................................................................... 19 Law and Judiciary Power ............................................................... 20 Law .......................................................................................... 20 Judiciary power............................................................................ 20 Administration.............................................................................. 20 Provinces.................................................................................... 20 Townships................................................................................... 21 Population and its Characteristics..................................................... 21 Population and demography .............................................................. 21 Education.................................................................................... 21 Employment................................................................................. 21 Language ................................................................................... 22 Official language ........................................................................... 22 Other languages ............................................................................ 22 Religion..................................................................................... 22 Religion in Algeria.......................................................................... 22 Incidences of religions obligations in the business world ............................. 22 2 Holidays and Public Holidays............................................................ 23 National holidays........................................................................... 23 Religious holidays .......................................................................... 23 Weekend .................................................................................. 24 Working days of banks and insurance agencies......................................... 24 Telephone Number System................................................................ 24 Useful Information for Travelers to Algeria........................................... 24 Inoculation.................................................................................... 24 Tourism ....................................................................................... 25 Hotels ......................................................................................... 25 Travel documents............................................................................ 25 Personal belongings.......................................................................... 25 Importing foreign currencies............................................................... 25 Time zones ................................................................................... 25 Currency ...................................................................................... 25 Mobility ....................................................................................... 26 Transportation and Infrastructures ..................................................... 26 Roads.......................................................................................... 26 Railroad ....................................................................................... 26 Sea transportation........................................................................... 26 Air transportation............................................................................ 27 CHAPTER 2 - BUSINESS ENVIRONMENT.................................................. 28 Evolution of the Algerian Economy..................................................... 28 Background information..................................................................... 28 Growth rate .................................................................................. 28 Limited impact of the growth rate on unemployment.................................. 29 Increase of the Gross Domestic Product (G.D.P) ........................................ 29 Exchange rate ................................................................................ 29 Inflation....................................................................................... 29 Budgetary policy............................................................................. 29 Balancing of macro-economic forces...................................................... 29 Security ....................................................................................... 30 International Conventions................................................................. 30 Agreement of the TheArab Maghreb Union,UAM......................................... 30 3 Agreement with the European Union, E.U..................................................31 Other Multilateral Agreements ........................................................... 31 Arbitration.................................................................................... 31 Investment.................................................................................... 31 Customs ....................................................................................... 31 Transportation................................................................................ 32 Fiscal and Social Security Conventions................................................. 32 Listing of non double taxation Treaties................................................... 32 Listing of social security conventions ..................................................... 32 CHAPTER 3 - SECTORS OF ACTIVITY..................................................... 33 The Sector of Hydrocarbons ............................................................. 33 Oil provinces................................................................................. 33 Reserves remain under-exploited ......................................................... 33 Infrastructures................................................................................ 34 The Industrial Sector....................................................................... 34 General presentation........................................................................ 34 Assigned objectives ......................................................................... 36 Leveling of the economy and industry.................................................... 36 Partnership encouragement ................................................................ 37 The Mining Sector.......................................................................... 37 Organization of the mining sector......................................................... 37 Liberalization of the mining sector ....................................................... 37 The Agricultural Sector ................................................................... 37 The Telecommunications Sector........................................................ 38 Opening of the telecommunication market .............................................. 38 Current and potential capacities........................................................... 38 Fixed telephone ............................................................................. 38 Portable cellular telephone................................................................. 38 Computers and Internet..................................................................... 39 Media ......................................................................................... 39 Press........................................................................................... 39 Radio .......................................................................................... 39 Television..................................................................................... 39 Postal Services .............................................................................. 39 Water Resources............................................................................ 40 Current needs in water ..................................................................... 40 4 Current water supply ........................................................................ 40