By Alice Mitchell, Export-USA.com Editor;
2009-01-18


Algeria may be a difficult market to enter because of the bureaucratic process, but it sure offers interesting investment prospects for U.S. exporters. A plus is the stable political situation. On the other hand, Algeria suffers from slow economic reforms and poor agricultural production. This is a good opportunity for American companies to export agricultural products.


U.S. exports 5.5% of the total Algerian imports, which means $91,200,000.00, and its main competitors are France, China, Italy, and Spain. A promising and successful sector for American exporters is the oil and gas one. Exporters are encouraged to focus mostly on material, support service and equipment in the gas production sector. Also, the telecommunications and information sector offers good prospects.


Other promising sectors for U.S. investors and exporters are: consumer goods; healthcare construction, equipment and services; infrastructure, civil engineering and construction; water resources equipment, and power generation. The Algerian market share is dominated by Europe and Asia, but U.S. products are starting to gain trust on the market due to the quality of the products. Also, demand has increased because of the declining value of the dollar.


Moreover, American products are, most often, bought by consumers which have higher incomes. It is recommended that American exporters and investors open a representational office in Algeria rather than promoting them from distance, as direct connections are very important when it comes to finding a business partner in Algeria.


The Algerian prime minister implemented in August 2008 a restrictive investment policy which specifies that in any investment it is required an Algerian majority stake. The tax law has also been changed so that within four years companies must re-invest the value of the tax received. If not, the company will face a 30% penalty.

Disclaimer: This article is for informative purposes only and was comprised from various sources believed to be reliable. However, Export-USA does not make any warranty regarding the accuracy of the information in this article. Always check with a specialist and do your own research before engaging in international trade.