Embassy of Algeria in Canada

General Presentation on Algeria and

Economic Perspectives

May 27th, 2009.

By Ambassador Smail Benamara

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Prince Edward Island Charlottetown

1- Geography:• Location: Algeria is located in northwestern Africa, in the

heart of the Arab World, the African Continent and the Mediterranean region.

• Size: Algeria has an area of almost 2.4 million square kilometers (1.24274 mi). It is the second largest in Africa.

• Population: 34.4 million (January 2008 est.)

• Languages: Arabic (official), Berber (national)

• Land Boundaries: Algeria has huge territory with a desert zone and a population living in the country`s Northern part as opposed to Canada where the population lives in the country`s Southern part but the icy desert in the North.

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• Time Zone: Algeria’s time zone is Central European Time (Greenwich Mean Time plus 1 hour).

3MAP OF ALGERIA

2- History:

Therefore, there is the Berber period with Jughurta. Until the reign of Jugurtha's grandfather Masinissa, the people of Numidia were semi-nomadic and indistinguishable. Masinissa established a kingdom (roughly equivalent to modern northern Algeria) and became a Roman ally in 206 BC.

Algeria has a history of more than 2000 years full of good periods but also periods where the territory was conquered contributing at the same time in fostering the people`s determination for freedom and in taking advantage of various cultural and civilization contributions.

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The expansion of Islam occurred afterwards in North Africa contributing through the population going to build the the Islamic civilization in Andalucia (currently Spain).

• In the contemporary history, the French colonization lasted

for 130 years and had led to Algeria`s independence following a war from 1954 to 1962.

• Independence Day : 5 July 1962

• Algeria`s National Day: 1 November 1954 (Revolution day)

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Algerian Liberation War

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The Algerian parliament is bicameral, consisting of a lower chamber, the National People's Assembly (APN), with 380 members; and an upper chamber, the Council Of Nation, with 144 members. The APN is elected every five years.

• Executive branch

Head of state: President Abdelaziz BOUTEFLIKA

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The head of state is the President of Algeria, who is elected to a five-year term. President Bouteflika was elected last April for a five-year term.

A multiparty system with number of political parties represented in the Parliament.

In the 90`s, Algeria has witnessed a period of terrorism that is now over.

People’s National AssemblyPresident's Office (Presidency)

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Photo Gallery

of

Algeria’s beautiful landscape

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Tassili region in Southern Algeria

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11Mountains in Tizi-Ouzou region

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Coastal side of Bejaia region

13Chréa mountains

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Small villages in Tizi-Ouzou mountains

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Hoggar region in Southen Algeria

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16Hoggar region in Southen Algeria

17Hoggar region in Southen Algeria

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Hoggar region in Southen Algeria

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Roman Ruins in Algeria

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City of Algiers

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City of Oran

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City of Annaba

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City of Constantine

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Basilica of St Augustin - Annaba

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The Santa Cruz fort in Oran.

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Notre Dame d'Afrique, Basilica of Algiers

27The Big Mosque of Algiers

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Constantine outfit

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Tlemcen outfit

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Algiers outfit

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Kabyle outfit

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Algerian Handicrafts

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by Omar Racim by Baya

by Farid Benyaya by M'hamed Issiakhem 33

Economic Perspectives

The hydrocarbons sector is the backbone of the economy, accounting for roughly 60% of budget revenues, 30% of GDP, and over 95% of export earnings. Algeria has the eighth-largest reserves of natural gas in the world and is the fourth-largest gas exporter; it ranks 15th in oil reserves. Sustained high oil prices in recent years have helped improve Algeria's financial and macroeconomic indicators.

• Key Economic indicators

Here are some key economic indicators that are signs of a healthy economy and also of a serious growth and development policy:

• GDP (official rate): $171.3 billion (2008 est.)

• Unemployment rate: 12.9% (2008 est.)

• Inflation rate : 3.6% (2008 est.)34

• Debt-external: $2.913 billion (31 December 2008 est.) The external debt is derisory because Algeria has decided in 2007 to reimburse by anticipation its external debt.

• Financial Reserves of the Central Bank of Algeria: $150.5 billion (31 December 2008 est.)

Ministry of Finance35

ALGERIA’S VARIOUS PROGRAMS OF ECONOMIC DEVELOPMENT

1- The important five-year program: 2005 – 2009

President Abdelaziz Bouteflika has decided to promote a Complementary Growth Support Plan, which sets aside 150 billion US Dollars for development spending between 2005 and 2009. This plan aimed at improving living conditions, upgrading the country’s infrastructures, improving the business environment and rebalancing regional development.The major projects to be carried out during this four years are the huge projects of the construction of 1 million housing unit, a 1200-km highway line from the Moroccan to the Tunisian border, the capital city under-ground metro, fifteen (15) hospitals, universities, dams etc…

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2- The Five-year plan (2009-2013):

A new infrastructure and public works five year plan (2009-2013) is expected to be around US$150 billion, and will mainly be spent on infrastructure projects (roads, ports, public utilities), as well as the construction, transportation and water works sectors.

• Algeria – Canada Economic Relations

With 8.6 billion Canadian dollars trade exchange mainly due to the high oil prices (was 5.5 billion in 2007), Algeria is Canada’s first trade partner in Africa and the Arab world. Economic relations between Algeria and Canada have always been characterized by a common will from both sides to strengthen their efforts in order to reinforce cooperation and to stimulate commercial exchanges, which are already dense and in a constant progress,

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and to promote direct investment in the framework of a mutually advantageous partnership.

The economic cooperation reflects the presence in Algeria of 70 Canadian firms most of which have international dimensions, such as SNC-Lavalin, Dessau, Bombardier, Tecsult, First Calgary Petroleum and Talisman Energy.

Some of these companies operate in Algeria for over 40 years.

In 2008, Algeria imported from Canada worth of 580 million Canadian dollars of the durum wheat.

The commercial exchanges between Algeria and Canada are in a constant increase, mainly hydrocarbon exports and import by Algeria of equipment goods and agri-food products.

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The significant evolution occurred those last years in the bilateral economic relations, reflects the Canadian companies’ interest in Algeria’s market and particularly in the sectors of hydrocarbons, engineering, construction, hydraulic and services.

Algeria is also one of the main partners of the Canadian Wheat Board (CWB). Actually, it is among the top five world importers of Canadian durum wheat, lentils, chickpeas, and other pulses.

In the field of engineering and construction, among the most important projects achieved by Canada in the engineering field just for giving one exemple: two contracts have been awarded to SNC Lavalin company totaling an amount of 1.3 billion CAD for providing services of engineering,

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supply and construction of two power plants, one which is already operational with a capacity of 825 Megawatt totaling an amount of 560 million CAD, and the other one with the capacity of 1227 Megawatt is underway.

Also the engineering and construction company Dessau Soprin, present in Algeria since 2002, where it achieves various important economic projects, has signed two contracts for the achievement of studies, follow-up and supervision of two portions of the large-scale East-West Highway project (1200 Km), listed in the five-year economic revival program and another huge project the Great Mosque of Algiers.

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We have noticed, however, that our main economic relations are with the province of Quebec. Unfortunately little business is being done with Prince Edward Island despite the number of companies based in this province specialized in agriculture, tourism and fishing …etc. Those companies can be awarded contracts in Algeria.

Prince Edward Island enjoys the reputation as Canada's leading potato producing province. Producers are continually making improvements and striving to maintain and enhance the province's potato status by anticipating and meeting changing demands in world potato markets. Algeria wants to take advantage of this experience.

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• Free movement

In June 15th, 2007, the airline Air Algérie began twice to four weekly flights between Montreal and Algiers, facilitating the travel movements of Algerian and Canadian business community.

Air Algerie Crew during the first landing at Montreal’s Trudeau Airport.

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• Easy to get a business visa

The business visa is easy to get from the Embassy’s Consular Section located in Ottawa or our General Consulate in Montreal.

The business community can be issued business visa by mail in 48hours.

Consular Section in OttawaGeneral Consulate in Montreal

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FRAMEWORKS OF ASSISTANCE FOR CANADIAN FIRMS TO DO THEIR BUSINESS IN ALGERIA:

The Economic Section of the Embassy of Algeria which provide the most updated input, documents, statistics and other data on the Algerian economic economy and market. The Economic Section will be pleased to answer any question or concern that you might have by email at: info@embassyalgeria.ca

I would like also to underline the important role played by the Canadian Embassy in Algiers in favor of the Canadian business community: (www.canadainternational.gc.ca/algeria).

Also, the Embassy of Algeria’s website (www.amlbalgott.com) is an excellent source of economic information in both English and French languages.

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Last but not least, we have a bilateral framework that gathers Canadian businessmen who operate in Algeria. I’m talking about the Canada-Algeria Business Alliance (CABC) that has been revived last year to promote business between Algeria and Canada.

45CABA meeting on July 16 th, 2008, in Montreal

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In December 18th, 2008, the CABC organized an Economic Day on business opportunities offered by the Algerian market and is planning to organize a Canadian economic mission to Algeria next fall.

I would like to seize this opportunity to invite Canadian companies in general and those of Prince Edward Island in particular, to join the CABC at (www.alliance-affaires.ca) to take advantage of the various economic opportunities provided by the Algerian market.

I wish that PEI companies would show interest to the huge potential of the Algerian market and would make the necessary steps to discover this market oriented towards the future.

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Photo Gallery of

Economic & cultural projects achieved and supervised by Canadian

companies

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Sanctuary of the Martyr (by SNC-Lavalin)

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Thermal Power Plant IN Skikda (by SNC-Lavalin)

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East-West Highway (by Dessau-Soprin)

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The Big Mosque of Algiers Dessau-Soprin

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Photo Gallery of

Important projects in Algeria

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Algiers Tramway Cable Car

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Algiers Metro Subway

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Water Desalination Plant

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New Algiers International Airport

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Thank you for your kind attention and welcome in Algeria:

the land of hospitality.