Algeria

Trade balance stability, country seeks to promote water tourism; increase in China’s imports

Algeria will allow, for the first time, foreign investors to buy shares on its stock exchange through holding partnerships with Algerian investors. Algeria approved a new law for stock that should boost the economy, where the number of listed companies will rise from 4 to 50 in the next five years. The plan aimed at opening up Algeria’s largely state-controlled economy, diversifying its sources of income and complying with international standards. On the other hand, official figures show stability in the trade balance of Algeria during the first ten months of 2013 at about 9.14 billion dollars against $17.85 billion from a year earlier. It recorded a decline of 48.8%, according to provisional figures of the National Bureau of Automated Media and Statistics related to Customs. In October 2013, Paris hosted the first European- Algerian forum over Real Estate and investment “Immo-Invest 2013”. Several contactors and institutions attended this meeting, as well as construction and upgrading specialists. All participants tackled the issue of the Algerian real estate market and ways of development, in addition to the determination of real estate possession mechanisms and ways of dealing with banks. Petrol and natural gas sector is the main wealth of the country, besides it is a sort of danger on the Algerian economy in the future since Algeria depends on the incomes of this sector. Figures show a decline in exports due to the low level of petrol exports. The biggest challenge that must be confronted is opening up new horizons for the economy, especially in the fields of agriculture and tourist investment. Algerian exports fell 8.38% in 2013, recording $54.54 billion compared to $59.52 billion in the same period of 2012. This decline in exports is due to the 9.03% decline in fuel exports, 35% in crude products, 14.8% in properties of industrial supplies and 12.5% in the of non-food consumption. As for imports, they were stable at $45.4 billion between January and October of the last year compared to $41.67 billion during the same period in 2012, recording an increase of 8.96%. The report of the Algerian Customs indicated that the size of Algeria’s imports from China amounted to $6.82, i.e.11.98% of the total imports of Algeria during 2013. Regarding the volume of imports from France, it amounts $6.25 billion, i.e. 11.37% of Algeria’s total imports after it was the first goods and services supplier of Algeria in 2012 by more than $6 billion, followed by Italy in third place with $3.95 billion, then Spain (3.93) and Germany (2.13 billion). Fateh Alwazani, the economic analyst, said at an economic conference held lately in Paris that France lost its status as the first supplier of Algeria last year. This decline was in favor of China. French companies would be a competitor to China, which is entering industrial lands that spread across Algeria, especially the 49 new areas, road schemes, side road of high hills, outlets, railway schemes, tramway, residential schemes, hospitals, agriculture, finance, insurance, tourism, transportation, training and constructions.