Reasons Why Set Up Business in Algeria
Algeria is the tenth-largest country in the world and the largest in the Arabic and African region. It is located in the Maghreb region of North Africa and is a regional and middle power. It supplies large amounts of natural gas to Europe and estimates to have the 16th largest oil reserves in the world and the second-largest in Africa, while it ranks 9th for the largest reserves of natural gas. Because of the country’s resources, you can start to set up business in Algeria.
Despite having below-average scores on the economic freedom and ease of doing business index, the country has possibilities which could greatly boost its economic growth. This includes favourable demographics, high demand for diversification of the economy, and huge foreign-exchange reserves derived from oil and gas.
Setting up a business in Algeria may prove to be a high-risk, high-reward scenario as Algeria continues to tackle institutional weaknesses and faces ongoing political uncertainty. However, hope remains that the country will be able to undergo changes and build on opportunities.
Then, the oil wealth of Algeria and consumer base of 41 million people offer valuable business opportunities in different industry like consumer goods, technology, medical equipment, electricity, agriculture, and construction services. There is also a great demand for better telecommunications systems and to build an advanced digital economy to enhance growth and provide jobs for its tech-savvy youth.
With millions expecting to enter the labour market yearly, the country is eager for business and development opportunities. Private companies that set up business in Algeria could help pave the way to make the technological leap needed and be pioneering trailblazers in various sectors and industries that urgently require it.
Other sectors to consider for companies to set up business in Algeria include:
- Oil and Gas – Hydrocarbons
- Safety and Security
- Public Works, Infrastructure Development, and Water Resources
- Information and Communications Technology
Future Economic Outlook
To achieve better economic prosperity and stability in the long-term, Algeria will need to accelerate its current rate of economic diversification. The burden on fiscal policy and domestic financing pressures can be alleviated once the government chooses to start borrowing on the international market and open up the economy to more foreign investment.
Additionally, once better policy frameworks are put into place to encourage more international companies to set up business in Algeria, it will have a better shot at attracting foreign investment and making use of their oil wealth to further develop the country’s economy.
If you are interested to set up business in Algeria, 3E Accounting is the right choice for you. Our global connections and dedication to detail ensure that we have the necessary know-how and up-to-date information to ensure your success.
Then, contact us today to get quick and thorough results from our effective and high-quality work.