Algeria
The original report was published in The Times on Thursday, July 5, 2012
 Abdelaziz Bouteflika, President of Algeria
On July 5, Algeria celebrates 50 years since its declaration of independence from France in 1962. In addition to instilling pride and patriotism across the nation, the event also unites Algeria’s government, business community and citizens in highlighting the current peace, progress and stability that contrast so greatly with the country’s tumultuous past
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Various mechanisms are now in place to help spur relations and business between the two nations
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If ever there was a country with limitless investment opportunities, it is Algeria
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 Algeria now boasts a sophisticated economy, with low external debt, and enough currency reserves to cover its operating costs for five years
Substantial foreign currency reserves and a large hydrocarbon stabilisation fund have helped buffer Algeria against the latest economic crises
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Algeria is set to catch up by granting 3G licences to its three mobile operators in a move that will boost competition and benefit the consumer
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Major road projects will create an efficient modern transportation network that will also boost development, investment and employment
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 Algerian citizens whose monthly income is less than 24,000 dinars (about £197) are entitled to free homes provided by the state
A huge housing programme is under way as the government attempts to improve the living standards of thousands of families throughout Algeria
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Since independence, successive Algerian governments have pursued programmes of national reconstruction, initially focused on the creation of an industrial base and a reduction in unemployment, and a new impetus has been given to improving housing and urban planning during the past 10 years
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 To assure quality and safety, all new building projects in Algeria are legally obliged to involve the CTC Centre
The National Technical Control of Construction Centre (CTC) is increasing safety levels in the Algerian construction industry by standardising risk prevention
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Tackling the challenges of affordable social housing requires teamwork
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In the housing and related infrastructure sectors, companies from Spain, France, Turkey, China and South Korea are lending their expertise to the Algerian construction workers, and by doing so, are helping the country to meet its target of building two million new homes by 2017
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 The entire energy demand of Western Europe could be met 60 times over by the solar potential of the Sahara
Algeria plans to generate 40 per cent of the nation’s electricity from renewable sources by 2030
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The first steps in oil exploration in Algeria were made in 1877
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 Sonatrach
Reliable transport networks and strategic partnerships provide keys to
the oil and gas giant’s export success
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Algeria launches a new drive to develop its mining sector
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Already one of Africa’s top five economies, Algeria aims to become a major
manufacturing partner for leading European brands
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The government has spent heavily on its public firms, enabling better transfer of know-how for Algeria – and better results for investors
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Located in Tizi Ouzou not far from Algiers, ENIEM is one of the jewels of Algeria’s SGP INDELEC group
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 Aziza Boukaoula, President of SGP CABELEC
It is time to advantage of public sector synergies boosting competitiveness, increasing flexibility and reducing imports through local subcontracting
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Known for their superb value, CABELEQ’s domestically made products sell themselves. Meanwhile, the company and its subsidiaries look to ICT and solar power for expansion
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As Algeria’s car market expands, French and German companies are looking to manufacture in the country
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Groupe GICA, Algeria’s state-owned building materials giant is spending £2.6 billion on upgrading and expanding its facilities to meet the nation’s voracious appetite for cement
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 Groupe GICA produces Portland Cement 450 (CPJ 42.5), CPJ 32.5 and CRS 400
Mineral-rich Algeria has no shortage of natural resources for producing building materials
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Created in January 1983, the National Enterprise
for Public Works Materials (ENMTP) manufactures a range of heavy equipment vital for a country in transition
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Algeria is keen to share its beauty and culture with the world and believes its tourism sector is capable of boosting employment and investment
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Sharpened focus on agriculture as part of a drive for sustainable development aims to boost domestic production
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 MOURAD MEDELCI, Algerian Minister of Foreign Affairs
Minister of Foreign Affairs Mourad Medelci highlights Algeria’s 50 years of progress and strengthened ties with Britain
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Algeria’s varied topography presents significant physical challenges for balanced land management and equitable economic development
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Algeria has overcome the effects of terrorism and civil war, but a fully open free market has yet to emerge. The private sector is still underdeveloped, although it is growing steadily thanks to initiative, ambition and the work of private business organisations
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 President Bouteflika opening the new Algiers metro system, October 2011
Infrastructure in Algeria’s aviation and maritime sectors
is being expanded and improved, and there are plans to extend
and modernise the railway network
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Unconventional sources of water meet the needs of Algeria’s people, farmers and businesses
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Algerian entrepreneurism is reflected in the country’s leading food producer which is also looking to enter the hotel and tourism sectors
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The Algerian government has embarked on a major town-planning initiative aimed at creating 2 million new homes by the end of its current five-year plan spanning 2010-2014
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The real estate situation in Algeria is in no way comparable to the European system, which is mostly a commercial model focused on selling properties
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 FGCMPI guarantees the completion of building work, right up to the point where the keys are handed over
Up until the mid-1980s, real estate development in Algeria was under the sole jurisdiction of the state
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According to a census conducted in 2007 by the Ministry of Housing and Urban Development, there were more than half a million slum dwellings in Algeria
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Energy-rich Algeria wants to secure the future of its oil and gas industry, and needs greater foreign investment to boost exploration and the exploitation of vast untapped unconventional resources
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With 100 companies and subsidiaries, 160,000 workers and responsibility for 30 per cent of Algeria’s GDP, Sonatrach is not just the biggest group in Algeria, but the biggest in Africa, and the 14th largest oil and gas producer in the world
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Algeria expects to gain an additional 30 million tons of refining capacity from its plans to build five new oil refineries
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The process of liquefaction creates many export opportunities, as it enables 600 cubic metres of gas to be reduced to one cubic metre of liquid. When the liquid gas is delivered to its destination, it is then regasified in Sonatrach terminals, before being distributed locally by pipeline
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Algeria has better reason than most to develop its renewable energy sector
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The economy in Algeria today is still under the influence of the country’s history, the current environment being the result of choices made in the past
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Companies such as SGP INDELEC are determined to remain leaders in Algeria by improving their competitiveness through strategic international partnerships
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Partnerships with companies overseas are particularly sought after by Algeria’s business community, as the ideal foreign partner can not only bring outside experience to a joint venture and help upgrade local operations, but also make a significant contribution to a company’s management and marketing functions
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 The charge for national electrification has created huge demand for CABELEQ’s cables
The 1976 National Plan introduced the target of nationwide domestic electrification, with many of the large state-run organisations, such as Sonelgaz, playing important roles
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Based in Algiers, Groupe SAIDAL is the largest pharmaceuticals group in the country and ranks among the largest in Africa, producing everything
from small molecule medicines to vaccines
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Few things can be as frustrating for a company as being unable to keep up with demand for the products it manufactures
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 Algeria will soon be able to produce enough
While the creation of Groupe GICA reflects the desire of the government to keep as much of the economy as possible in Algerian hands, the benefits of partnerships with foreign companies are well understood
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Joint ventures proliferating in both public and private sectors are making major contributions to building a better future for Algeria, as evidenced by the ongoing pursuit of strategic partnerships by SGP EQUIPAG
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Investors are encouraged to join the hundreds of foreign companies that have given their seal of approval to Algeria
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Situated along the route taken by centuries of travellers from the Near East heading to Al-Andalus (Spain), Algeria has seen many different cultures pass through, and has inevitably absorbed bits and pieces of each of them
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LOCATION:
Northern Africa, bordering the Mediterranean Sea, between Morocco and Tunisia
AREA:
total: 2,381,741 sq km
CLIMATE:
arid to semiarid; mild, wet winters with hot, dry summers along coast; drier with cold winters and hot summers on high plateau; sirocco is a hot, dust/sand-laden wind especially common in summer
NATURAL RESOURCES:
petroleum, natural gas, iron ore, phosphates, uranium, lead, zinc
LANGUAGES:
Arabic (official), French (lingua franca), Tamazight (Kabylie), and other Berber dialects
RELIGIONS:
Sunni Muslim (state religion) 99%, Christian and Jewish 1%
POPULATION:
35,406,303 (July 2011 est.)
country comparison to the world: 35
GOVERNMENT TYPE:
republic
CAPITAL:
name: Algiers
INDEPENDENCE:
5 July 1962 (from France)
GDP - composition by sector:
agriculture: 12%
industry: 56.5%
services: 31.5% (2011 est.)
AGRICULTURE - products:
wheat, barley, oats, grapes, olives, citrus, fruits; sheep, cattle
INDUSTRIES:
petroleum, natural gas, light industries, mining, electrical, petrochemical, food processing
EXPORTS:
$78.51 billion (2011 est.)
EXPORTS - commodities:
petroleum, natural gas, and petroleum products 97%
EXPORTS - partners:
US 24.9%, Italy 17.5%, Spain 10%, Canada 6.3%, France 5.1%, Netherlands 5.1%, Brazil 4.3% (2009)
IMPORTS:
$49.84 billion (2011 est.)
IMPORTS - commodities:
capital goods, foodstuffs, consumer goods
IMPORTS - partners:
France 18%, China 10.6%, Italy 9.9%, Spain 7%, Tajikistan 4.8%, Germany 4.4% (2009)
AIRPORTS:
143 (2010)
PIPELINES:
condensate 2,600 km; gas 16,360 km; liquid petroleum gas 3,447 km; oil 7,611 km; refined products 144 km (2010)
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