Economic Overview & Business Opportunities
Why Investors Should Consider Venturing to Algeria
With 44 million inhabitants with an average age of 27.7, the largest country in Africa, and the 3rd largest coast of the Mediterranean at 1 hour flight to Europe, and a rich oil reserve, the economic conjuncture and business opportunities in Algeria are elements to be considered by investors.
It is a lucrative country certainly, but it is also a rather particular market. Among the challenges that investors should expect are language barriers, bureaucratic difficulties, and sometimes rigid regulation, particularly in terms of exchange regulation.
But thanks to its many virgin sectors, Algeria remains a promising destination and a market with enormous potential. Any investor who is considering starting a business here must first consider the economic situation and business opportunities in Algeria. This may not be the first thing that comes to mind, but Algeria offers a surprising number of possibilities.
Algeria is home to the 10th largest reserve of the world’s natural gas resources. As the 6th largest exporter of gas in the world, hydrocarbon is one of the its strongest revenues. This aspect of its economy has contributed to the country’s macroeconomic stability.
This means that you can expect a low-cost and affordable price if you are thinking of investing in Algeria.
Algeria’s economic overview and business opportunities have been flourishing in the past few years. This is thanks to the large-scale public contracts that have been given to foreign contractors. The regular deployment of Algeria’s Global Tenders have also proven to be a big boost in terms of investment. Moreover, Algeria’s government has also been focused on creating the necessary infrastructure to drive growth.
However, the shocks that hit oil prices over the past two years have raised alarm bells and shown that the Algerian government must work more seriously on the diversification of economic revenues and no longer rely on hydrocarbons as a single source of revenue and the creation of the infrastructure needed to stimulate growth. Something that can open the doors to local and especially foreign investment and facilitate the rules and mechanisms to reinforce the development of these investments.
Moreover, Algeria happens to be among the handful of countries that have successfully achieved a reduction in poverty by 20% within the past two decades. With the oil boom helping to pave the way toward clearing external debt, Algeria is shifting toward an economy that is more diversified. This will enable the creation of new jobs to help sustain economic growth.
Why Invest in Algeria
Investors have strong reasons to invest in Algeria besides its positive economic overview and business opportunities that await. Other reasons include:
- The proven economic stability
- The availability of natural resources
- It is the 4th energy supplier of the European Union
- It is rich in mineral resources like iron, gold, zinc, among other things
- With over 3,000 hours of sunlight annually, the country has solar potential to consider
- The ambitious business friendly policies
- The 2025 Development Plan for Aquaculture and Fishing Activities
- It’s Renewable Energy Program for 2030
- Strategic location which gives it access to markets in Europe, Arab and Africa
- It also borders seven major markets (Mauritania, Tunisia, Morocco, Western Sahara, Libya, Mali and Niger)
- It is a member of the Arab Free Trade Area
- Functional and modern infrastructure that conforms with the international standard requirements
- Young, qualified and competitive labour force
Algeria’s economic overview and business opportunities potential is promising, If you are considering a good investment destination within this region of the world, Algeria is one to keep in your sights.
- Algeria Company Setup
- Tax advice and Tax consulting
- Corporate tax returns
- Transfer Pricing documentation and analysis
- Tax restructuring
- Handling of tax audits and litigation
- Tax audit
- Bookkeeping services
- Payroll services
- Preparation and review of annual financial statements and cash basis accounting
- Cost accounting
- Establishment and improvement of accounting procedures
- Statutory audit
- Upon agreed procedures audit
- Due diligence
- IJAD Solutions Software
Certified CPA since 2010, Lakhdar has spent the last 13 years providing tax and accounting services for local companies and subsidiaries of multinational groups based in Algeria. He was leading audit and outsourcing services during more than 9 years in one of the big4 in Algeria.
With a rich tax & accounting knowledge, a strong experience in the field, he can help secure your business and provide the needed advice.
Bachlor in Finance with more than 25 years of experience in outsourcing services with various local and multinationals clients.
With a good relationship with authorities, a large experience in the field, Hakim can provide a reel added value to the mission’s team.