Country Profile - Algeria
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General Information: Area: 2,381,741 sq km (919,595 sq miles). Population: 31,070,000 (2002). Population Density: 13.0 per sq km. Capital: Algiers (El Djezaïr): Population: 1,519,570 (1998). Government: Republic. Gained independence from France in 1962. Head of State: President Abdelaziz Bouteflika since 1999. Head of Government: Prime Minister Ahmed Ouyahia since 2003. Language: The official language is Arabic, but French is still used for most official and business transactions. Berber (Amazigh) is spoken in the northern mountainous regions of the Kabylias and the Aures and also in the south. In general, English is spoken only in major business or tourist centres. Religion: 99 per cent of the population adhere to Islam. Time: GMT + 1. Money Currency: Dinar (AD) = 100 centimes. Notes are in denominations of AD1000, 500, 200, 100 and 50. Coins are in denominations of AD100, 50, 20, 10, 5, 2 and 1, and 50, 20, 10, 5 and 1 centimes. Note: Because of the very strict adherence of the authorities to these regulations, visitors are strongly advised not to be associated with the black market, which tends to concentrate on the Euro and portable electronics. Electricity: 220 volts AC, 50Hz. The European two-pin plug is standard. |
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GEOGRAPHY: Algeria is situated along the North African coast, bordered to the east by Tunisia and Libya, to the southeast by Niger, to the southwest by Mali, and to the west by Mauritania and Morocco. It is Africa’s second-largest country, with 1200km (750 miles) of coastline. Along the coastal strip are the main towns, fertile land, beach resorts and 90 per cent of the population. Further south lies the area of the Hauts Plateaux, mountains of up to 2000m (6600ft) covered in cedar, pine and cypress forests with broad arable plains dividing the plateaux. The remaining 85 per cent of the country is the Sahara Desert in its various forms, sustaining only 500,000 people, many of whom are nomadic tribes with goat and camel herds. The oil and minerals boom has created new industrial centres like Hassi Messaoud, which have grown up within previously barely inhabited regions of the northern Sahara. The plains of gravel and sand in the deep south are interrupted by two mountain ranges: the dramatic Hoggar massif, rising to almost 3000m (9800ft), and the Tassili N’Ajjer or ‘Plateau of Chasms’. Both have long been important centres of Tuareg culture.
Communications:
Telephone: IDD is available. Country code: 213. Outgoing international code: 00. There are public telephones in all post offices, leading hotels and on many main streets.
Mobile telephone: GSM 900 network is operated by AMN. Coverage is limited to main towns. There are some roaming agreements. Operators include Orascom Telecom Algerie Spa (Djezzy) (website: www.djezzygsm.com).
Fax: Faxes may be sent from some more modern hotels.
Internet: The main ISP is Cerist (website: www.cerist.dz). There are three Internet cafes: in Algiers, Constantine and Oran.
Telegram: These can be sent from any post office from 0800-1900. The main post office in Algiers has a 24-hour service.
Post: Mail posted in any of the main cities along the coast takes 3 to 4 days to reach Europe; posted elsewhere, it could take much longer. A letter delivery service operates Saturday to Thursday. Parcels sent by surface mail may take up to 2 months to reach Algeria. All parcels sent by air or surface mail are subject to long delays in customs. Post office hours: Generally Sat-Wed 0800-1700; Thurs 0800-1200; but the main post office in Algiers (5 boulevard Mohamed Khémisti) is open around the clock.
Press: Daily newspapers are printed in Arabic or French. The main French-language dailies are El-Moudjahid, El Watan, Liberté, Le Matin, Le Soir d’Algérie and La Tribune. Ach-Cha'ab and Al-Massa are the leading Arabic-language dailies. Another daily, Horizons, has an English section.
Radio: BBC World Service (website: www.bbc.co.uk/worldservice) and Voice of America (website: www.voa.gov) can be received. From time to time the frequencies change and the most up-to-date can be found online.
Currency exchange: In the past, difficulties have arisen when trying to exchange currency in Algeria, with only one national bank (La Banque Extérieure d’Algérie) able to exchange foreign currency at branches in major business centres. Difficulties are now decreasing and it is possible, for example, to exchange currency at some of the larger hotels. However, the facilities for currency exchange remain quite limited.
Credit & debit cards: Very limited acceptance of American Express, Diners Club, MasterCard and Visa - and only in urban areas. Check with your credit or debit card company for details of merchant acceptability and other services that may be available.
Travellers cheques: Only top-class (4-star and above) hotels and government-run craft (souvenir) shops accept these, and only in certain establishments. To avoid additional exchange rate charges, travellers are advised to take travellers cheques in US Dollars or Euros.
Exchange rate indicators: The following figures are included as a guide to the movements of the Dinar against Sterling and the US Dollar:
| Date | Nov ’03 | Feb ’04 | May ’04 | Aug ’04 |
| £1.00 | 128.64 | 130.28 | 126.26 | 132.24 |
| $1.00 | 75.81 | 71.57 | 70.69 | 71.78 |
Currency restrictions: The import and export of local currency is allowed. The import of foreign currency is unlimited, but must be declared on arrival and changed at the nearest bank. The export of foreign currency is permitted up to the amount declared on arrival. The currency declaration and the exchange declaration must be presented upon departure.
Banking hours: Sun-Thurs 0900-1530.
Duty Free
Duty-Free: The following goods may be taken into Algeria by persons over 17 years of age without incurring customs duty:
200 cigarettes or 50 cigars or 400g of tobacco; 1l of alcoholic beverages; 500ml of Eau de Cologne or 150ml of perfume in opened bottles.
Prohibited items: Gold, firearms, ammunition and narcotics may not be imported or exported. Jewellery, gold and firearms may not be exported.
Public Holidays
Jan 1 2004 New Year’s Day.
Feb 2-3 Eid al-Adha (Feast of the Sacrifice).
Feb 22 Islamic New Year.
Mar 2 Ashoura.
May 1 Labour Day.
May 2 Mouloud (Birth of the Prophet).
Jun 19 Revolutionary Readjustment.
Jul 5 Independence Day.
Nov 1 Anniversary of the Revolution.
Nov 14-16 Eid al-Fitr (End of Ramadan).
Jan 1 2005 New Year’s Day.
Jan 21-23 Eid al-Adha (Feast of the Sacrifice).
Feb 10 Islamic New Year.
Feb 21 Ashoura.
Apr 21 Mouloud.
May 1 Labour Day.
Jun 19 Revolutionary Readjustment.
Jul 5 Independence Day.
Nov 1 Anniversary of the Revolution.
Nov 3-5 Eid al-Fitr (End of Ramadan).
Note: Muslim festivals are timed according to local sightings of various phases of the moon and the dates given above are approximations. The Algerian observance of Ramadan (lasting 1 lunar month and culminating in the feast days of Eid al-Fitr) has recently relaxed, and restaurants and other business centres will be open during the day. However, in the towns and oases of the south where religious observance tends to be more orthodox, some difficulty might be had in finding eating places and getting transport during the daylight hours. For a more detailed description, see the World of Islam appendix.
Health:
| Special Precautions | Certificate Required? | |
| Yellow Fever | Yes | 1 |
| Cholera | No | No |
| Typhoid and Polio | 2 | N/A |
| Malaria | 3 | N/A |
A yellow fever vaccination certificate is required by travellers over 1 year of age arriving within 6 days of transitting or leaving endemic or infected areas.
It is normally advised to get an immunisation course or booster against typhoid and sometimes poliomyelitis.
Malaria risk is limited. The benign vivax strain has been reported in Ihrir (Illizi Department).
Food & drink: Mains water is normally chlorinated, and whilst relatively safe may cause mild abdominal upsets. Bottled water is available and is advised for the first few weeks of stay. Drinking water outside main cities and towns is likely to be contaminated and sterilisation is considered essential. Milk is pasteurised and dairy products are safe for consumption. Powdered or tinned milk is available and is advised, but make sure that it is reconstituted with pure water. Local meat, poultry, seafood, fruit and vegetables are generally considered safe to eat.
Other risks: Hepatitis A occurs. Hepatitis B, diphtheria and tuberculosis are all present.
Rabies is present. For those at high risk, vaccination before arrival should be considered. If you are bitten, seek medical help without delay. For more information, consult the Health appendix.
Note: In 2003, there were three reported outbreaks of bubonic plague in western Algeria: El Kehailia, south of Oran, and in the areas of Mascara and Sidi Bel Abbes; the last reported case was on 10th July 2003.
Health care: Medical insurance is not always valid in Algeria and a medical insurance supplement with specific overseas coverage is recommended. Health care facilities are generally of a reasonable standard in the north but more limited in the south. Doctors and hospitals usually ask for immediate cash payment for their services. Emergency cases will be dealt with free of charge.
Travel – International
Note: Foreign travellers are advised against all holiday and non-essential travel to Algeria, owing to the continual threat of terrorism, which is greatest in rural areas in northern Algeria and in the desert and mountainous regions of the southeast (where a group of foreign tourists were abducted in 2003). It is advised that all travellers be extra cautious with personal security arrangements throughout their stay. All travel to the southeastern provinces of Tamanrasset, Djanet and Illizi is currently advised against.
Attacks from an armed insurgency of Islamist groups have targeted security forces but have also launched indiscriminate attacks on civilians by bombs and raids on villages, and on buses and vehicles, sometimes at false vehicle checkpoints.
AIR: Algeria’s national airline is Air Algérie (AH) (website: www.airalgerie.dz). Other airlines serving Algeria include Alitalia, Egyptair, Royal Air Maroc, Saudia and Tunis Air.
Approximate flight times: From Algiers to London is 2 hours 15 minutes.
International airports: Algiers (ALG) (Houari Boumediène) is 20km (12 miles) east of Algiers. Buses and trains operate to the city 0600-1900 (travel time – 30 minutes). Taxis are also available. Airport facilities include a bank and bureau de change, left luggage, shops, post office, tourist information, restaurants and car hire.
Oran (ORN) (Es Senia) is 10km (6 miles) from the city. Taxis are available to the city. Airport facilities include a bank, limited catering and car hire.
Annaba (AAE) (Les Salines) is 12km (7.5 miles) from the city. A bus service departs to the city every 30 minutes. Coach service is available on request and taxis are also available. Airport facilities include a restaurant, bank and car hire facilities.
Constantine (CZL) (Ain El Bey) is 9km (6 miles) from the city. There are bus and taxi links with the city and limited airport facilities.
Departure tax: None.
SEA: The main ports are Algiers, Annaba, Béjaia, Oran and Skikda. Regular shipping lines serve Algiers from Mediterranean ports. Algérie Ferries runs passenger services connecting Algeria to Marseille (France) and Alicante (Spain) (website: www.algerieferries.com).
RAIL: There is one daily train connecting Algiers with Tunis in Tunisia via Constantine and Annaba. A reservation is required for this route. First-class carriages are air conditioned; the train also carries a buffet car and couchettes. Another daily train runs between Algiers and Marrakech in Morocco. Stops en route are Oran, Fès, Mèknes, Rabat and Casablanca. Reservations are required and a supplement is charged. Air-conditioned coaches and light refreshments/buffet car are available. At present, services are interrupted owing to the closure of the border between Algeria and Morocco and through trains are not operating.
ROAD: Owing to border closures, land crossings between Morocco and Algeria are not possible at present. The main road entry points are Maghnia (Morocco), Souk-Ahras, Tebessa and El Kala (Tunisia), Fort Thiriet (Libya), In Guezzam (Niger) and Bordj Mokhtar (Mali). There is a good network of paved roads in the coastal regions and paved roads connect the major towns in the northern Sahara. Further south, the only substantial stretches of paved roads are on the two trans-Saharan ’highways’, one of which runs to the west through Reggane and up through Morocco to the coast, while the other runs through Tamanrasset and Djanet on its way to Ghardaia and Algiers. The precise route taken by trans-Saharan travellers often depends on the season. Please note that many desert ‘roads’ are up to 10km- (6 mile-) wide ribbons of unimproved desert and are suitable only for well-maintained 4-wheel-drive vehicles. Coach: Services are run by Altour (www.altour.com) and SNTF with international routes to Tunisia and Morocco. Documentation: International Driving Permit required.
Travel – Internal
AIR: Air Algérie operates frequent services from Algiers domestic airport (adjacent to Algiers International) to the major business centres of Annaba, Constantine and Oran. Less frequent services run from Algiers, Oran, Constantine and Annaba to the other less important commercial centres and gateway oases such as Ghardaia (6 hours from Algiers) and Ouargla, as well as important oil towns such as In Amenas and Hassi Messaoud. Services are generally reliable, but air travel to the far south may be subject to delay during the dry summer months because of sand storms. Despite this, air is by far the most practical means of transport to the far south for the visitor with limited resources of time; Djanet and Tamanrasset are the oasis gateways to the Tassili N’Ajjer and the Hoggar respectively.
Note: The London office of Air Algérie (tel: (020) 7487 5903) can provide a timetable of services and prices, make reservations and issue tickets. There is an Air Algérie office in every Algerian town which is served by the airline. Reservations and itineraries can be arranged from these offices, but as some of the more isolated offices are not connected by computer, fax or telex, reservations should be confirmed well in advance. Offices are very busy in the major towns.
SEA: Government ferries service the main coastal ports: Algiers, Annaba, Arzew, Béjaia, Djidjelli, Ghazaouet, Mostaganem, Oran and Skikda.
RAIL: There are 4000km (2500 miles) of railway in Algeria, run by the Société Nationale des Transports Ferroviaires (SNTF). Daily - but fairly slow - services operate in the northern part of the country between Algiers and Oran, Béjaia, Skikda, Annaba and Constantine. The southern routes connect once a day from Annaba to Tebessa via Souk Ahras, Constantine with Touggourt via Biskra (twice a day) and Mohammadia with Bechar. Trains on the southern routes only carry second-class coaches.
ROAD: Road surfaces are reasonably good. All vehicles travelling in the desert should be in good mechanical condition, as breakdown facilities are virtually non-existent. Travellers must carry full supplies of water and petrol. Traffic drives on the right. Travel by road (outside Algiers) in northern Algeria should be avoided, especially after dark. Coach: Relatively inexpensive coaches, run by the SNTF, link major towns. Services are regular but this mode of travel is not recommended for long journeys, such as travel to the south from the coastal strip. Services leave from the coach stations close to the centres of Algiers and Oran. Car hire: Can be arranged at the airport on arrival or in most towns. Many hotels can also arrange car hire. Documentation: An International Driving Permit is required. A carnet de passage may be required if one’s own car is to be used. Cars are allowed entry for 3 months without duty. Insurance must be purchased at the border. Proof of ownership is essential.
URBAN: Municipal bus and tram services operate in Algiers, its suburbs and the coastal area. 10-journey carnets and daily, weekly or longer duration passes are available. There are also two public lifts and a funicular which lead up to the hill overlooking the old souk in Algiers. An underground system is planned. Taxi: It is advised not to use public transport other than taxis recommended by established hotels. All taxis are metered and are plentiful in most cities and major towns, though busy during the early evening in the main cities as many people use them to return home after work. The habit of sharing a taxi is widespread. The amount on the meter is the correct fare, but there are surcharges after dark. Travellers are advised not to use unlicensed taxis, as these are likely to be uninsured.
Travel times: The following chart gives approximate travel times (in hours and minutes) from Algiers to other major cities/towns in Algeria.
| Air | Road | |
| Constantine | 0.45 | 4.00 |
| Ghardaia | 0.55 | 6.00 |
| Oran | 0.50 | 4.00 |
| Tlemcen | 1.00 | 6.00 |
| Béjaia | 0.45 | 3.00 |
| Biskra | 1.15 | 5.00 |
| El Oued | 1.25 | 6.00 |
| Annaba | 0.55 | 6.00 |
| H. Messaoud | 1.05 | 8.00 |
HOTELS: In general, good hotel accommodation in Algeria is limited. The business centres, and in particular Algiers, tend to have either extremely expensive luxury hotels or cheaper hotels primarily suited to the local population visiting on business or for social purposes. Algiers and Oran are full of the cheaper hotels, but they tend to be crowded and difficult to get into, even with a confirmed booking. For assurance on business, reserve rooms only at the best hotels.
Grading: All hotels are subject to government regulations and are classified by a star rating: deluxe (5-star), second class (4/3-star) and tourist class (2/1-star).
The Coast: The hotels in the resorts along the Mediterranean coast have increased in number, and many are of a reasonably high standard. Often, the good hotels in these resorts run their own nightclubs. Winter rates for coastal resorts apply from 1 October to 31 May, and summer rates for the remainder of the year.
The Oases: Good hotels in the gateway oases of the mid-south - such as Ghardaia and Ouargla - are few and far between, and during the season (any time other than high summer, which runs from late June to early September) it is vital to book well in advance.
The Far South: Hotels in the very far south are extremely limited. In Tamanrasset, better class hotels have been built since the oasis became a fashionable winter resort. Room availability is, however, limited.
CAMPING/CARAVANNING: Camping is free on common land or on the beaches but permission from the local authorities is necessary. Campsites with good facilities are found in Ain el-Turk, Annaba and Larhat.
YOUTH HOSTELS: There is a good network of (single sex) youth hostels throughout the country offering accommodation at budget rates. For more information, contact the Fédération Algérienne des Auberges de Jeunesse, 213 Rue Hassiba Ben Bouali, BP 15, El Annasser, Algiers (tel/fax: (21) 678 658/7).
Sport & Activities:
Horseracing and football are popular. The northern coastline offers fishing, swimming, sailing and water-skiing, mainly in Algiers and Annaba.
Social Profile:
Food & Drink: Algiers and popular coastal towns have a fair selection of good restaurants, serving mainly French and Italian-style food, though the spicy nature of the sauces sets the cuisine apart from its European counterparts. Even classic dishes will have an unmistakable Algerian quality. Fish dishes are exceptionally good. Menus generally feature a soup or salad to start, roast meat (lamb or beef) or fish as a main course and fresh fruit to finish. In the towns, stalls sell brochettes (kebabs) in French bread and covered in a spicy sauce (if desired). The range of foodstuffs in the south is more limited. Local cooking, which is often served for guests of a household, will often consist of roast meat (generally lamb), cous-cous with a vegetable sauce and fresh fruit to finish. Good-quality food is reasonably priced.
The sale of alcohol is not encouraged. Alcohol is only available in the more expensive restaurants and hotels and is generally not cheap. There are no licensing hours and hotel bars tend to stay open for as long as there is custom. Algeria produces some good wines but very few of them seem to be served in the country itself. If available, try Medea, Mansourah and Mascara red wines and Medea, Mascara and Lismara rosés. The major hotels may have a reasonable cellar of European wines. All visitors are advised to respect Muslim attitudes to alcohol.
Nightlife: The main towns offer reasonable entertainment facilities, including hotel restaurants, nightclubs, discos, folk dancing and traditional music. In Algiers and Oran, some cinemas show English and French films.
Shopping: Possible souvenirs include leatherware, rugs, copper and brassware, local dresses and jewellery. Berber carpets are beautifully decorated, and from the Sahara comes finely-dyed basketwork and primitive-style pottery. Bargaining is customary in street markets and smaller shops. The rue Didouche Mourad is the best shopping street in Algiers. There are two state-run craft centres with fixed prices. One is located at Algiers airport. Shopping hours: Sat-Thurs 0900-1200 and 1400-1900. Some shops open on Fridays.
Special Events: For a complete list of Special Events taking place in Algeria, contact the Ministère du Tourisme et de l’Artisanat (see Contact Addresses section). The following is a selection of special events occurring in Algeria in 2004:
Feb Sahara Marathon, Tindouf. Apr Tafsit (Spring celebration), Tamrasset. May Sbiba (peace celebration), Djanet. May 21-23 Strawberry Festival, Skikda. Nov 14-16 Eid al-Fitr (End of Ramadan), nationwide.
Social Conventions: Courtesy should be adopted with new acquaintances. The provision and acceptance of hospitality are as important a part of Algerian culture as elsewhere in the Arab world. In the main cities, the urban population lives at a frantic pace much akin to European urban dwellers, but in the south and in rural areas people are much more open and friendly. Algerian women have strict social and dress codes. Western women should respect Muslim tradition and cover themselves as much as possible or they may incite hostility. Tourist visits should be avoided during Ramadan. For more information, see the World of Islam appendix. Photography: Military installations and personnel should not be photographed. Visitors are advised to make sure there is nothing that could be of a governmental or military nature around their prospective photographic subject. Tipping: 10 per cent is usual.
Business Profile:
Economy: Petroleum and natural gas are the most important industries in Algeria and account for all but a small fraction of the country’s exports. Most of the country is covered by the Sahara Desert and despite investments in the agricultural sector (the main crops being wheat, potatoes, grapes, cereals and citrus fruits), Algeria is far from self-sufficient in foodstuffs and is vulnerable to drought. Most of the fertile land is located in the northern littoral region. The government has recently completed the process of breaking up state agricultural co-operatives and turning the land over to its occupants. Minerals, principally iron ore and phosphates, are the other major export. The country’s principal trading partners are France, Germany, Italy and Spain – it currently supplies a quarter of European natural gas imports. This proportion is likely to increase with the construction of a new pipeline linking coastal terminals to newly developed Saharan gas fields. From Europe, Algeria imports most of its industrial equipment and consumer goods. The IMF and other Western donors have provided loans and aid packages, conditional on liberalising economic reforms and the sale of state-owned industrial assets – the government has, by and large, been prepared to meet these. As the security crisis has eased in the last few years, economic links between Algeria and the EU have grown. In April 2002, Algeria signed an Association Agreement with the EU, which aims to boost both-way trade.
Business: Suits should always be worn in winter months, shirt sleeves during the summer. Prior appointments are necessary for larger business firms. Businesspeople generally speak Arabic or French and, as a great deal of bargaining is necessary, it is rarely convenient to carry out transactions through an interpreter. Patience is always important. Visitors are usually entertained in hotels or restaurants, where Algerian businessmen are seldom accompanied by their wives. Only rarely are visitors entertained at home. If visiting during Ramadan (and this should be avoided if possible) care should be taken to observe local custom in public places (for a more detailed description, see the World of Islam appendix). The climate is best between October and May. Office hours: Generally Sat-Wed 0800-1200 and 1300-1600.
Commercial Information: The following organisation can offer advice: Chambre Algérienne de Commerce et d’Industrie, Palais Consulaire, BP 100, 6 boulevard Amilcar Cabral, Place des Martyrs, 6003 Algiers (tel: (21) 715 160 or 965 050 or 966 060; fax: (21) 710 714; e-mail: caci@wissal.dz; website: www.caci.com.dz).
Climate:
Climate: Summer temperatures are high throughout the country, particularly in the south where it is both very dry and very hot. During this time, road travel is difficult and air travel prone to delay because of sandstorms. Northern cities have high humidity, while those along the coast are cooled by sea breezes. In the winter, the oases of the far south are pleasant and attract many visitors. The desert temperature drops dramatically at night. North of the Sahara, temperatures are very mild from September to May and vary little between day and night. South of the Sahara, temperatures are pleasant from October to April, but there are great variations between day and night. Coastal towns are prone to storms from the sea. Rainfall is relatively low throughout the country and in the far south it is virtually unknown.
Required clothing: Cotton and linen lightweights for winter months and for evenings in desert areas. Woollens and light rainwear are advised for the winter along the coast and the Hauts Plateaux. South of the Sahara, from mid-December to mid-January, temperatures drop and warm clothes are necessary both in the morning and the evening. A mountain sleeping bag is also required when camping.


India-Algeria Economic and Commercial Relations:
Algeria, a member of OPEC has become an important economic partner in recent
years. With 32 million population and GDP of $56 billion, Algeria is the fourth
largest economy in the Arab world. Hydrocarbons constitute 96% of its exports.
The rise in oil prices has contributed to an augmentation of its foreign
exchange reserves to more than $ 33 billion. Its annual imports are to the tune
of $12 billion. The gradual but perceptible improvement in the internal
situation in Algeria and the revival of growth has helped in building up
international confidence in the Algerian economy. Presently, Algeria is in the
process of liberalisation of its economy to create a pro-investment atmosphere.
Hydrocarbon remains the backbone of the Algerian economy. Majority of the
hydrocarbon products are exported to EU countries and the US. Algeria imports
almost all its basic requirements. France, Italy, Spain and some other European
countries and the US dominate the Algerian market. India has opportunities in
almost all sectors of economy as the market is price sensitive
Bilateral economic and commercial ties between India and Algeria are steadily
improving but they are still below potentials. The basket of Indian exports to
Algeria is slowly diversifying from the traditional agricultural exports to
automobiles, iron & steel, pumps, light engineering items, pharmaceuticals,
textiles, plastic material, etc. In 2002, the Indian exports to Algeria
accounted for $83 million. It was a 130% increase in bilateral trade from 2001,
which is an encouraging sign. As per trade statistics obtained from the Algerian
authorities, our exports crossed $ 92 million in the 11 months of 2003 (January
to November).
At present there are no joint venture projects between India and Algeria.
However, there are companies which are helping Algerian entrepreneurs in setting
up projects by supplying equipment, technical inputs, know-how, training
manpower etc in fields like automobiles, two wheelers, electronic items,
pharmaceuticals telecommunications etc.
A healthy trend of India's export to Algeria is that high value items like automobiles, steel pipes, automotive parts and pharmaceuticals form a good part of exports. In the light of the improved situation in Algeria and in view of the vast potential in this country Indian industries should have greater interaction with Algeria and make use of the opportunities. There are a number of areas that provide opportunities for Indian industries. They are:
Construction .& Infrastructure development: There is acute shortage of housing facilities in Algeria. Following 21 May 2003 earthquake, new housing projects are coming up. The government proposes to build around 20, 000 houses for the earthquake victims. There are opportunities for construction of roads, railways and modernization of airports and also augmentation of water resources (construction of dams, reservoirs etc.)
Hydrocarbon: Although oil was first discovered in Algeria 1956, Algeria is considered to be under explored. Over the last few years, significant oil and gas discoveries have been made, largely by foreign companies in partnership with state-owned Sonatrach. There is a high potential for future discoveries. All these projects are awarded thorough tendering process. There is scope for Indian companies in oil and gas discoveries and modernization of Algeria's hydrocarbon industry.
Power: Algeria's electricity demand is growing at a rapid, 5% annual rate. Currently, Algeria has around 6,000 MW of installed power generating capacity and will require 8,000 MW by 2010. This will need large investments in new generating capacity, plus transmission and distribution infrastructure (i.e., lines and sub-stations). In order to accomplish this, Algerian government hopes to attract foreign capital & know-how.
Pharmaceutical sector: Algeria is Africa's largest importer of medicines with annual imports of more than $500 million. Most of the medicines are imported from Europe and are expensive. Recently government has taken a decision to stop import of 128 medicines and is implementing various measures to promote local production especially generic medicines. New measures, inter-alia, include compulsory production of medicines by importers within two years timeframe. These measures will undoubtedly make Indian pharmaceutical industry more attractive for Algerian pharmaceutical companies.
IT sector is still undeveloped in Algeria. Indian IT companies have opportunities in banking and telecom sectors.
Algeria annually imports automobiles to the extent of $1 billion. Indian vehicles like Tata, Maruti, Hundai, Bajaj have already made an entry into the Algerian market.
Although the country's agricultural sector used to provide for most of its domestic requirements, this is no longer the case. Agricultural products are now the main imports of Algeria amounting to US$ 2.5 billion a year. Algeria is the world's fifth largest importer of wheat. Food and beverages are also imported in large quantities. There are good opportunities for supply of Indian wheat, spices processed foodstuff, tea and coffee, tobacco, meat products etc.
Algeria imports textiles to cater to the local and European markets. It is exempted from EU quota restrictions for textiles. While Indian textile and leather are being imported, the imports are far below their potential.
In areas like remote sensing, India figures among the few selected countries with which Algeria is seeking cooperation.
Strategy recommended for Algeria
Algeria is a large and attractive market. It is better to have a long term view while doing business here.
An exclusive 'Made in India Fair' would go a long way in enhancing India's trade and economic ties with Algeria
Regular visits by trade delegations is important. Visits by representatives of the export promotion councils and commodity boards as well as their participation in various trade fairs in Algeria is desirable.
It is advisable to have a reliable, active, influential and an experienced local Agent.
Constraints in the Commercial Work
No direct shipping link
Absence of inter-banking arrangement between Algeria and India
Language barrier. French and Arabic are business language.