World Country Guide

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 Algrienne 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).