montage n° 4 - Ministère de l'énergie et des mines

performancesAccording to a studyAlgeria is the no. 3 Arab country in termsof attracting foreign investment flowsAlgeria is the numberthree Arab country interms of attractingforeign investmentswhich amounted to34.2 billion dollars in2005, indicated aBritish study whoseresults have just beenpublished.Algeria is ranked behind theUnited Arab Emirates,known for their modernlegislation as well as theiropenness to foreign investment, andEgypt, the most populated Arab countryand reputed for its financial openness,reveals the study entitled “Worldinvestment prospects to 2010: boom orbacklash" drawn up by EconomistIntelligence Unit from the reviewEconomist Magazine in collaborationwith the “world investment programmeof the University of Columbia”The investment flows towards Arabcountries, in 2005, reached 34.2 billiondollars, indicated the study before predictinga 6.7% increase for the currentfinancial year to 36.5 billion, i.e. 3% ofworld flows or what is equivalent, as acomparison, to the investments attractedby a single country such as Canadaor Hong Kong.The study furthermore warns againstthe payment at the end of the decade ofthe world direct investment flows, likelyto reach 1,200 billion dollars in thecurrent year, emphasising in passingthat this situation would benefit industrialisedcountries who would see theirshare rise to 70% to the detriment ofthat of developing countries which iscurrently around 35%. Most of theseinvestment flows since the start of thisyear related to acquisition and purchasetransactions of which the UnitedNew confidencefrom investorsAlgeria is in third place in terms of foreign direct investments (FDI) in theArab world, according to a study which has just been published in the Britishreview Economist Magazine.Algeria comes after the United Arab Emirates and Egypt in the ranking establishedby this study, which estimates the total amount of investments madein the Arab world, in 2005, at 34.2 billion dollars, an amount which shouldclimb to 36.5 billion for 2006. This study confirms the constant improvementin Algeria's attractiveness in terms of FDI whose projects do not only concernthe hydrocarbons sector, but also affect other activities apart from that of oil.Investor's confidence in our country is related to numerous factors which, inparticular, are the reinforcement of the stability and the numerous opportunitiesthe market offers in a context marked by a significant improvement in thecountry's economic situation. Investor's confidence is explained also by theimprovement of the business climate, further to the implementation of thereforms in the different domains. Other than the benefits provided by theinvestment code in terms of taxation, repatriation of profits, etc. the reformsinitiated by the modernisation of the authorities and the banking system havehad very positive effects in terms of transparency and quality of service. Theadaptation to the international standards and the upgrading process arebeing continued, still in view of a successful integration into globalisation.The five year economic recovery programme, which must entail expenditureof around 100 billion dollars, represents a significant work load for the financialoperators who are also counting on the growth in consumption further tothe creation of numerous jobs and to the improvement of household income.In addition to the rich potentials available, Algeria's comparative advantageswill be reinforced with the accomplishment of important projects in thedomain of infrastructures (east-west motorway, railway, ports and airports,dams, etc.). This modernisation effort in terms of infrastructures is alsoaccompanied by a serious work with regards improving skills and qualifications- another essential asset to take up the challenge of performance andcompetitiveness. With the installation of companies from Europe, the UnitedStates and Arab countries in Algeria, the snowball effect is leading to a multiplicationin the number of investments.States is the number one beneficiarywith a large attractiveness of directinvestments (a quarter of the world'sdirect investments between 2006 and2010). As for Europe, it would remainat the head of the direct investors in theglobal markets whereas the developingcountries the most in sight such asChina, Brazil, Mexico and India wouldconsolidate their positions in thisdomain.Energie & Mines29November 2006