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PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA2019THE NORTH AFRICA COUNTRY SERIES

PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE i

PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA2019

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PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE iii

ACKNOWLEDGEMENTS

Team Leader:

Samir S. Amir

Lead Researcher:

Ahsan Hamid

DISCLAIMER

The findings, interpretations and conclusions expressed do not

necessarily reflect the views of the Board of Directors and Members

of The Pakistan Business Council or the companies they represent.

Any conclusions and analysis based on ITC, World Bank, OECD Data,

Doing Business and The World Factbook data are the responsibility

of the author(s) and do not necessarily reflect the opinion of the

UN, WTO, World Bank or CIA. Although every effort has been made

to cross-check and verify the authenticity of the data, The Pakistan

Business Council, or the author(s), do not guarantee the data included

in this work. All data and statistics used are correct as of March 20th,

2019, and may be subject to change.

For any queries or feedback regarding this report, please contact

[email protected] or [email protected]

iv

THE PAKISTAN BUSINESS COUNCIL:AN OVERVIEW

The Pakistan Business Council (PBC) is a business policy advocacy platform, established in 2005

by 14 (now 78) of Pakistan’s largest private-sector businesses and conglomerates, including

multinationals. PBC businesses cover nearly all sectors of the formal economy. It is a professionally-

run organization headed by a full-time chief executive officer.

The PBC is a not-for-profit entity, registered under Section 42 of the Companies Ordinance 1984.

Though it is not required under the law to do so, the PBC follows to the greatest extent possible,

the Code of Corporate Governance as applicable to listed companies.

The PBC is a pan-industry advocacy group. It is not a trade body, nor does it advocate for any

specific business sector. Rather, its key advocacy thrust is on easing barriers to allow Pakistani

businesses to compete in regional and global markets. The PBC conducts research and holds

conferences and seminars to facilitate the flow of relevant information to all stakeholders in order

to help create an informed view on the major issues faced by Pakistan.

The PBC works closely with the relevant government departments, ministries, regulators and

institutions, as well as other stakeholders including professional bodies, to develop consensus

on major issues which impact the conduct of business in and from Pakistan. The PBC has

submitted key position papers and recommendations to the government on legislation and other

government policies affecting businesses. It also serves on various taskforces and committees of

the Government of Pakistan as well as those of the State Bank, SECP and other regulators with the

objective to provide policy assistance on new initiatives and reforms.

PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE v

THE PBC’S FOUNDING OBJECTIVES

The major objectives of the PBC as stated in its founding documents are:

• To provide for the formation and exchange of views on any question connected with the

conduct of business in and from Pakistan.

• To conduct, organize, set up, administer and manage campaigns, surveys, focus groups,

workshops, seminars and field works for carrying out research and raising awareness in

regard to matters affecting businesses in Pakistan.

• To acquire, collect, compile, analyze, publish and provide statistics, data analysis and other

information relating to businesses of any kind, nature or description and on opportunities

for such businesses within and outside Pakistan.

• To promote and facilitate the integration of businesses in Pakistan into the World economy

and to encourage in the development and growth of Pakistani multinationals.

• To interact with governments in the economic development of Pakistan and to facilitate,

foster and further the economic, social and human resource development of Pakistan.

More information on the PBC, its members, and its workings, can be found on its website: www.

pbc.org.pk

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THE PBC’S MEMBER COMPANIES

PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE vii

viii

Executive Summary

Since 2015, the Pakistan Business Council (PBC), has been publishing a Country Profile Series

aimed at promoting Pakistan’s trade with its non-traditional trading partners. In 2015 ‘six’ countries

from Africa – Angola, Ethiopia, Ghana, Mozambique, Nigeria and South Africa were covered,

in 2016 ‘five’ countries from South America – Argentina, Brazil, Chile, Columbia, and Mexico

were highlighted, in 2017 ‘five’ countries of Central Asia – Kazakhstan, Kyrgyzstan, Tajikistan,

Turkmenistan, and Uzbekistan were showcased, while in 2018 “six” South East Asian countries –

Cambodia, Indonesia, Malaysia, Singapore, Thailand, Vietnam were featured. In the 2019 series,

the PBC is covering ‘four’ countries in North Africa – Algeria, Egypt, Morocco and Tunisia are

being featured by the PBC. This is the first publication in the North Africa Country Series and

features the People’s Democratic Republic of Algeria (Algeria).

Algeria, located in North Africa spans an area of 2,381,740 km2. The country is bordered by Libya,

Mali, Mauritania, Morocco, Niger, Tunisia and Western Sahara. As of July 2018, Algeria had an

estimated population of 41.66 million, with less than 1% of the population being non-Muslims.

Nearly the entire population can be categorised as of Arab-Berber descent.

Initially inhabited by the Berbers, Algeria became a part of the Carthage empire in the 2nd

century BC. Islam was introduced to the region in the early Islamic era and was soon adopted by

the masses. Eventually, modern-day Algeria became a part of the Ottoman empire in 1500 AD.

It was conquered by the French in the early 19th Century. The French ruled the country for more

than 130 years, and it was a period characterised by constant violence and turmoil between the

locals and the European settlers. With the ever-increasing, uncontrollable clashes between the

two factions, the French finally decided to grant Algeria independence and a new country came

into being on 25th September 1962.

Being an oil-based economy, Algeria fared well till the oil-price shock of 2014. The fall in oil

prices has meant that the country’s GDP, GDP per capita, GDP growth, unemployment, inflation

and trade figures have all worsened. The total dominance of the oil sector has meant that other

industries in the country never developed, and the product mix of the export basket reflects this.

From having a Balance of Trade (BoT) surplus of USD 11.09 billion in 2013, Algeria recorded a BoT

deficit of USD 10.86 billion in 2017. Export revenue has declined rapidly over the last four years

owing to a plunge in global oil prices. Imports in the same period portray a more gradual decline.

Nearly 96% of Algerian exports in 2017 were mineral oils and fuels whereas imports, distributed

much more evenly, comprised of machinery, vehicles, cereals and iron and steel.

Owing to its proximity with Europe, most of the fossil fuels extracted from Algeria end up in Italy,

France, Spain and the Netherlands whereas the country fulfils much of its demand for machinery

PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE ix

(mechanical and electrical) and food items from markets such as China, India and Europe. Algeria’s

trade with Pakistan has been in Pakistan’s favour. Algerian exports to Pakistan totalled a mere USD

80,000 against imports of nearly USD 25.0 million in 2017; thus Algeria recorded a BoT deficit of

USD 24.84 million with Pakistan. However, a calculation of the Indicative Trade Potential reveals

that in 2017, Pakistan had a potential to export goods worth USD 849.12 million for the top-25

product category whereas Algeria’s potential for the 25 leading product categories stood at USD

132.25 million.

Finally, on the Ease of Doing Business index, Algeria moved up nine places in 2019 to be ranked

157th among the economies surveyed. From 2018 to 2019, dealing with construction permits and

getting an electricity connection has become easier in Algeria whereas starting a business and

registering property have become more cumbersome.

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TABLE OF CONTENTS � Section 1: Overview of Algeria ....................................................................................... 01

� Geographic and Demographic Indicators .......................................................... 02

� Social Indicators .................................................................................................... 05

� Short Country History ........................................................................................... 06

� Section 2: Economic Outlook .......................................................................................... 11

� Algerian Economy ............................................................................................... 12

� Economic Indicators ............................................................................................ 13

� Sectors of the Economy ...................................................................................... 17

� Section 3: Trade ................................................................................................................. 21

� Trade Overview ..................................................................................................... 22

� Exports Overview .................................................................................................. 22

� Import Overview ................................................................................................... 25

� Trade with China ................................................................................................... 28

� Trade with India ..................................................................................................... 32

� Trade with Neighboring Countries ...................................................................... 36

� Section 4: Trade with Pakistan ........................................................................................ 39

� Bilateral Trade with Pakistan ................................................................................ 40

� Potential Trade with Pakistan ............................................................................... 44

� Section 5: Ease of Doing Business .................................................................................. 49

� Ease of Doing Business ........................................................................................ 50

� Consulates & Business Forums ........................................................................... 50

PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE xi

LIST OF TABLES � Table 1: Economic Indicators ............................................................................... 12

� Table 2: Top-5 sources of inward FDI .................................................................. 15

� Table 3: Top-5 FDI recipients (sectors) ............................................................... 15

� Table 4: Top-10 Exports of Algeria at the 2-digit level ...................................... 23

� Table 5: Top-25 Exports of Algeria at the 6-digit level ...................................... 23

� Table 6: Algeria's top-10 export destinations ..................................................... 25

� Table 7: Top-10 Imports of Algeria at the 2-digit level ...................................... 25

� Table 8: Top-10 Imports at the 6-digit level ........................................................ 26

� Table 9: Algeria’s top-10 Import partners ........................................................... 27

� Table 10: Top-10 Exports to China at the 2-digit level ....................................... 28

� Table 11: Top-10 Exports to China at the 6-digit level ....................................... 29

� Table 12: Top-10 Imports from China at the 2-digit level .................................. 30

� Table 13: Top-10 Imports from China at the 6-digit level .................................. 30

� Table 14: Top-10 Exports to India at the 2-digit level ........................................ 32

� Table 15: Top-10 Exports to India at the 6-digit level ........................................ 33

� Table 16: Top-10 Imports from India at the 2-digit level .................................... 34

� Table 17: Top-10 Imports from India at the 6-digit level .................................... 35

� Table 18: Trade with neighbouring countries ..................................................... 36

� Table 19: Top 10 Exports to Pakistan at the 2-digit level ................................... 41

� Table 20: Top-10 Exports to Pakistan at the 6-digit level .................................. 41

� Table 21: Top-10 Imports from Pakistan at the 2-digit level .............................. 43

� Table 22: Top-10 Imports from Pakistan at the 6-digit level .............................. 43

� Table 23: Algeria's Top-25 Potential Exports to Pakistan .................................. 45

� Table 24: Pakistan's Top-25 Potential Exports to Algeria .................................. 46

� Table 25: Ease of Doing Business (Selected Indicators) .................................... 50

xii

LIST OF FIGURES � Figure 1: Algeria Flag ........................................................................................... 02

� Figure 2: Map of Algeria ...................................................................................... 03

� Figure 3: Population Pyramid .............................................................................. 04

� Figure 4: Nominal GDP ........................................................................................ 13

� Figure 5: GDP Per Capita ..................................................................................... 14

� Figure 6: FDI, Net inflows ..................................................................................... 14

� Figure 7: Unemployment ..................................................................................... 16

� Figure 8: Production of Algeria's Potential Crops ............................................. 17

� Figure 9: Value-added by the Industrial Sector as a % of GDP......................... 18

� Figure 10: Value-added by the Services Sector as a % of GDP ........................ 19

� Figure 11: Algeria's Bilateral trade ...................................................................... 22

� Figure 12: Trade Balance with China ................................................................... 28

� Figure 13: Bilateral trade with India .................................................................... 32

� Figure 14: Bilateral trade with Pakistan ............................................................... 40

PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE xiii

OVERVIEW OF ALGERIA

SECTION

1

02

Country NamePeople’s Democratic Republic of Algeria

Government TypePresidential Republic

Capital City: Algiers

Time DifferenceUTC + 1

Chief of StatePresident Abdelaziz Bouteflika

Head of GovernmentPrime Minister Ahmed OUYAHIA

Central BankThe Bank of Algeria

Currency Algerian Dinar

Figure 1: Algeria Flag

PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 03

Geography

Location Algeria is located in North Africa. It is bordered

by the Mediterranean Sea to the north; Tunisia

to the northeast; Morocco to the west; Libya to

the east; Western Sahara, Mali and Mauritania

to the southwest; and Niger to the southeast.

Geographic Coordinates 36°45'08" N, 3°02'31" E

Land Boundaries Libya (989 km2), Mali (1359 km2), Mauritania

(460 km2), Morocco (1900 km2), Niger (951 km2),

Tunisia (1034 km2), Western Sahara (41 km2).

Total Area2,381,740 km2

Land UseAgricultural Land: 17.4 %; Forest: 0.82 % Others: 81.8 %

Natural Resources Petroleum, natural gas, iron ore, phosphates, uranium, zinc and lead.

Natural HazardsMudslides and floods in rainy season, droughts, mountainous areas subject to severe earthquakes

Figure 2: Map of Algeria

04

Demographics

Population Total Population: 41,657,488 (July 2018 est.)

Growth Rate: 1.63% (2018 est.)

Religious Groups Muslims (predominantly Sunni): 99%; Others (Christian and Jewish): <1% (2012 est.)

Ethnic Groups Arab-Berber: 99%, European: below 1%

Languages Arabic (Official), Berber (Official), French

Urbanization Urban population: 72.6% of total population (2018)

Rate of urbanization: 2.46% annual rate of change (2015-20 est.)

Age Structure

Figure 3: Population Pyramid

10,000 6,000 2,000 2,000 6,000 10,000

0-14

15-24

25-54

55-64

65 years & over

Thousands

Population Pyramid

Males Females


Social Indicators Literacy Rate ( 15 Years & Over): 80.20 %

Males : 87.20 %

Females: 73.10 % (2015 est.)

Total Dependency Ratio : 52.70

Youth Dependency Ratio: 43.80

Elderly Dependency Ratio: 9.00 (2015 est.)

Life Expectancy at Birth: 77.20 years

Males: 75.80 years

Females: 78.70 years (2018 est.)

Infant Mortality Rate (Per 1000 live births): 18.9

Males: 20.40

Females: 17.20 (2018 est.)

Connectivity Total Roadways: 113,655 km

Paved: 87,605 km

unpaved: 26,050 km (2010 est.)

Total Railways: 3,973 km

Standard gauge: 2,888 km, 1.432-m gauge

Narrow gauge: 1,085 km 1.055-m gauge (2014 est.)

Airports

With paved runways: 64 (2017 est.)

With unpaved runways: 93 (2013 est.)

Ports and Terminals

Major seaport(s): Algiers, Annaba, Arzew, Bejaia,

Djendjene, Jijel, Mostaganem, Oran, Skikda

LNG Terminals: Arzew, Bethioua, Skikda

Communications Telephones-Fixed lines

Total subscriptions: 3,130,090

Subscriptions per 100 inhabitants: 8 (2017 est.)

Telephones-Mobile cellular

Total subscriptions: 49,873,389

Subscriptions per 100 inhabitants: 122 (2017 est.)

Broadband fixed Subscriptions

Total: 3,166,907

Subscriptions per 100 inhabitants: 8 (2017est.)

Internet Users

Total: 17,291,463

percent of population: 42.90 % (July 2016 est.)

06

Short Country History

Pre-Historic Algeria

Initially inhabited by the Numidians, later known as the Berbers, modern-day Algeria became a

part of the Carthage Empire in 2nd Century BC. With the demise of the Carthage Empire, the

area was conquered by the Romans in 24 AD. Muslims arrived in the region around 8th Century

AD consequently converting a large number of people to Islam. Several cities and settlements

were conquered by Spaniards by 1500. Eighteen to twenty years later, the Algerian coastline was

captured by Khair-ed-Din or Barbarossa as he is known in Europe. Soon after Algeria became a

part of the Ottoman Empire and was under the Ottomans, till the early 19th Century.

In 1827, the Ottoman Governor called the French consul to settle a payment dispute, however,

due to an incident the matter escalated. The French King at the time, Charles X, saw this as an

insult to France and sent out a naval expedition against the governor, which was later followed by

a military expedition. At the time the incident happened, the Ottomans had already lost much of

their influence in Algeria, and by 1830, the French forces were able to conquer much of the region.

Colonial Era – Under the French Rule

Though the French easily overpowered the forces of the ‘dey’ (Ottoman Governor), they faced

stiff resistance from the city of Constantine in the north and by the amir of Mascara. Following

the French victories in the region, Algiers, Oran and Constantine were declared as French

Departments, and by 1848 almost all of modern Algeria came under French rule. Meanwhile,

French locals were encouraged to settle in Algeria, and by the 1880s nearly 350,000 Europeans

had settled in the region.

The 1930s witnessed mounting socio-political and economic crisis in Algeria, with local resentment

rising. However, some nationalist leaders believed that the path to prosperity lay in integration

rather than separation. One such leader was Ferhat Abbas, and in 1931 he presented a manifesto

to the French government, asking for equal rights for the Muslim population of Algeria. Instead

of granting equal rights to the entire community, the socialist government of Léon Blum came up

with the Blum-Violette plan. The plan proposed voting rights for certain “Meritorious’’ Muslims,

almost 60,000 in number. The proposal, however, was rejected by the Muslims citing, inadequate

representation.

Tensions between the Muslims and the French Government reached a tipping point on May 8th

1945 at Setif, when a Muslim protest for equal rights turned violent. According to official French

reports, around 1,500 people lost their lives whereas according to unofficial reports the death toll

was closer to 6,000. To diffuse the ever-increasing tensions and violence, the French authorities

proposed a plan under the Organic Statute of Algeria. The proposal outlined a bicameral

legislature, with one house representing the Europeans and Meritorious Muslims whereas the


other house representing the other 8 million plus locals. Once again the proposal was met with

resentment, by locals and settlers alike. On 1st November 1954, the FLN (Front de Liberation

Nationale) a local guerilla group, launched a war against the settlers. However, the rebellion was

put down by the French forces.

With constant ongoing violence between the FLN and the Organisation armée secrete (OAS);

the militant wing of the settlers, a large number of French troops had to be stationed in Algeria

to maintain peace. Rising domestic and international pressure to grant Algeria independence

forced the French government to start negotiations with Algerian political parties. In March 1962,

a ceasefire agreement was signed, this came to be known as the Evian Accords. According to the

agreement a referendum was held so to decide the fate of the colony. The referendum held on

1st July 1962 had almost six million ballots cast in favour of granting independence to Algeria.

Thus on 25th September 1962, the country was renamed as the People’s Democratic Republic of

Algeria and declared a sovereign state.

Post-Independence

Post-independence, Ahmed Ben Bella, leader of the FLN, became the first president of Algeria;

however, his presidency was short-lived. In 1965, Ben Bella was overthrown after a coup led by

his Minister of Defense, Houari Boumediene, who was backed by the army. Boumediene ruled

Algeria with a Socialist ideology, and under his rule, an Industrialization program was started.

After Boumediene's death in 1978, the FLN transferred the reins of the country to a colonel named

Chadli Bendjedid.

With the conventional policy paradigm of the country shifting away from Socialism, Bendjedid

introduced not only liberal economic reforms but also a new constitution allowing political parties

to be set up. Among the new political parties, the Islamic Salvation Front (FIS), emerged as the

most popular one. In the first two rounds of the legislative elections of 1991, the FIS emerged

victoriously. However, fear prevailed among the ruling elite that the country might fall into the

hands of Islamists; hence the army intervened on 11 January 1992, and the last round of elections

was cancelled. The army intervention led to civil war breaking out in Algeria which dragged on for

the next seven years.

In the elections held in 1999, Abdelaziz Bouteflika, a civilian, backed by the FLN and the generals

emerged victoriously. Though President Bouteflika was initially thought of as a puppet leader

controlled by the ruling cabal, his future policies proved him otherwise. Bouteflika stated his

mission was to bring back political stability to the country. To ensure this, he proposed the ‘Civil

Concord’ Plan, which was legitimised by a referendum. Most of the civil war insurgents were

granted amnesty under the plan and were released without trials.

In the elections of 2004, Abdelaziz Bouteflika was successful in winning another term as the

President of Algeria. Once reelected, President Bouteflika, rolled out his Charter for Peace and

National Reconciliation, an amnesty scheme which was a part of his reforms to increase the

08

political, social, institutional and economic inclusivity in the country. Following a parliamentary

vote in November 2008, President Bouteflika, amended the constitution thus removing the two-

term limit for the presidency, enabling him to secure another term in the elections of 2009 and a

further one in the 2014 elections.

The oil price shocks of 2014 took a toll on the Algerian economy with a rise in inflation and

unemployment. President Bouteflika, who is still in office is now facing a wave of unpopularity in

the country. His old-age and health problems, following a stroke in 2013, which left him partially

paralysed forces him to spend most of his time hospitalised. Thus, when he announced he would

run for the fifth time in the 2019 elections, massive riots erupted across the nation. However, a few

days later he announced that he would not seek a new term.


10


ECONOMIC OUTLOOK

SECTION

2

12

Algerian Economy Before independence, the Algerian economy was mainly agro-based. However, as oil revenues

surged during the 60s and 70s, the government shifted its focus towards the oil industry. Since then,

the hydrocarbon sector has been the major contributor to the economy. This sector accounted for

25% of the GDP and 95% of the country’s export revenue. Being largely dependent on oil exports,

the economy took a significant hit during the oil price crash in 2014, and the effects are still felt.

The over-dependence of the Algerian economy on fuel exports meant that the global oil-price

shocks of 2014 affected every aspect of the economy from export revenue and terms to trade

(ToT) to the domestic price level in the country. Following the dip in oil prices, the Algerian Dinar

lost nearly 38% of its value by 2017. Moreover, the forex reserves of the state declined to USD

97.61 billion in 2017 from an all-time high of USD 194.71 billion in 2013; a decline of almost 50%.

To arrest the rising fiscal deficit in the country, the government withdrew subsidies on electricity,

natural gas and diesel leading to a hike in inflation.

As a long-term plan, the Algerian government, in 2016, unveiled a new model aimed at fostering

economic growth through diversification by 2030. As part of this model, economic reforms such

as a new investment code, new customs code and a draft law of public, private partnership was

introduced. Additionally, the government also presented a new budgetary plan for the period

2015-2019 which aims at balancing the budget by 2020.

The table below summarises the economic indicators of Algeria for the period 2013-2017. During

these years, Algeria’s economy witnessed a slow-down, with the growth rate declining to 1.60%

in 2017 from 2.77% in 2013. Unemployment, which remains a cause of concern for the Algerian

government, reached a record high of 13.57% in 2017. Moreover, the protectionist policies of

Algeria, which limit the foreign share in any enterprise to 49%, has curtailed the net-inflow of FDI

into the country. In 2017, FDI net inflows declined to USD 1.20 billion, down from USD 1.69 billion

in 2013.

Economic Indicators 2013 2014 2015 2016 2017

GDP (Current USD Billion) 209.76 213.81 165.98 160.13 167.56

GDP Per Capita (USD) 5,471.12 5,466.43 4,160.22 3,916.88 4,123.39

GDP growth (Annual %) 2.77 3.79 3.76 3.30 1.60

FDI net inflows (Bop Current USD) 1.69 1.50 -0.54 1.64 1.20

Unemployment (% of total labour force) 9.82 10.60 11.20 10.20 13.57

Inflation (Annual %) 3.25 2.92 4.78 6.40 5.59

Exports (USD Billion) 66.00 60.39 34.80 29.99 35.19

Imports (USD Billion) 54.91 58.62 51.80 47.09 46.05

Balance of Trade (USD Billion) 11.09 1.77 -17.01 -17.10 -10.86

Table 1: Economic Indicators


Economic Indicators

Gross Domestic Product

Figure 4 shows the nominal GDP of Algeria for the 20-year period, ending in 2017. In 2009, the

Algerian economy took a hit from the Global Financial Crisis, consequently, the country registered

a negative economic growth with the GDP declining to USD 137.21 billion in 2009 from USD

171.00 billion in 2008; a fall of nearly 20%. From 2009 onwards, the country once again started

registering positive growth figures until the oil-price shocks of 2014, when once again Algeria

recorded a negative YoY growth of 22%, with the GDP declining to USD 165.98 billion in 2015.

Although 2017 showed some growth over 2016, but growth at such miniscule level would not be

sustainable for the country in general.

Figure 4: Nominal GDP

GDP per Capita

According to the World Bank’s definition of income groups, Algeria is categorized as an Upper

Middle-Income country. From 1997 to 2008, the country’s GDP per capita rose steadily enabling

the state to more than triple its GDP per capita. Following the global financial crisis, the country's

nominal income per capita reached an all-time high of USD 5,565.13 in 2012 just-in line with

the global oil prices and stayed nearly constant till 2014. However, since then, the average GDP

per capita declined sharply before showing some improvement in 2017 when it was recorded at

USD 4,123.39.

48.18

171.00 213.81

167.56

-

50.00

100.00

150.00

200.00

250.00

1997 2002 2007 2012 2017

USD

Bil

lion

Nominal GDP

14

Foreign Direct Investment

FDI Trend over the past 20 yearsThe graph below shows the net inflows of FDI for the years 1997-2017. The net FDI inflows

averaged USD 1.29 billion for this period; reaching a high of USD 2.75 billion in 2009 and a low of

negative USD 0.54 billion in 2015. Despite a decline of almost 27% in net FDI inflows in 2017 over

2016, Algeria managed to diversify investments across sectors. The investments by Huawei and

Samsung in Algeria are evidence to this claim. Among the North African countries, Algeria ranks

third in terms of net FDI inflows, behind Egypt and Morocco.

1,612.01

4,905.25

3,868.83

5,565.13

4,123.39

-

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

1997 2002 2007 2012 2017

USD

GDP Per Capita

0.26

2.64

2.75

1.50

1.20

-1.00

-0.50

0.00

0.50

1.00

1.50

2.00

2.50

3.00

1997 2002 2007 2012 2017

USD

Bil

lion

FDI, net inflows

Figure 5: GDP Per Capita

Figure 6: FDI, Net inflows


Obstacles impeding FDI growth in AlgeriaDespite a flourishing domestic market and a great potential in natural resources, Algeria has

struggled to attract foreign investments. The 49:51 equity holding law is protectionist in

nature, enforced in 2008, it limits foreign ownership in a business to 49% which has hindered

FDI growth in Algeria. The inconsistent and unevenly applied regulations across firms further

increases uncertainty in the market and raises the perception of commercial risk among foreign

investors. Low FDI inflows are also due to corruption which prevails in the country; according

to the transparency international report, Algeria ranked 112 in corruption perception index of

2017. Factors including limited regional trade, extensive bureaucratic procedures and insufficient

intellectual property rights have also hampered FDI growth in Algeria.

New Investment Code (2016)

The collapse in oil prices, compelled the hydrocarbon-based economy to prioritize diversifying its

sources of revenues. In 2016, Algeria revised its investment code to catalyze FDI inflows. As a part

of its revised investment plan, Algeria removed the requirement for foreign investors to present

a positive foreign exchange balance. Under the new investment code, foreign investors are also

not obliged to notify the Algerian authorities about the transfer of foreign shareholdings in locally

incorporated firms unless the transferred shares exceed 10 %. Moreover, the 2016 finance law also

relaxed the restrictions on foreign debt financing, however, this is limited to strategic investments

which require approval from the Algerian government on a case by case basis.

The tables below show the top-5 investing countries in Algeria as well as the sectors which have

received the highest FDI inflows for the period 2003-20151.

Top-5 Inward Investment in Algeria by Country(between January 2003 & May 2015)

Exporting Countries

Projects Jobs Created

Cost (USD Million)

% of Total

UAE 26 11,561 15,280 22.46

Spain 24 6,702 7,860 11.55

France 81 10,011 5,950 8.75

Vietnam 2 1,999 4,743 6.97

Switzerland 12 5,874 4,538 6.66

Total 375 93,153 68,040 -

1 Source: FDI intelligence from the Financial Times

Table 2: Top-5 sources of inward FDI Table 3: Top-5 FDI recipients (sectors)

Top-5 Inward Investment in Algeria by Sector(between January 2003 & May 2015)

Sector Projects Jobs Created

Cost (USD Million)

% of Total

Coal, Oil & Natural gas

28 6,489 19,130 28.12

Metals 21 16,486 14,371 21.12

Real Estate 19 14,199 13,343 19.61

Chemicals 14 3,863 7,294 10.72

Hotels & Tourism

12 5,826 2,678 3.94

Total 375 93,153 68,040 -

16

Unemployment

Presently, unemployment is one of the more pressing issues in Algeria. As depicted in the figure

below, though the unemployment rate has declined over the last two decades, yet the number

remains high. In 2000, the total unemployment rate peaked at 29.77 %, which gradually dropped

to 10.13 % in 2017. In addition to this, Algeria also faces gender disparity in the labour force. As

reported by UNCTAD statistics, males account for 82 % of the total labour force while women’s

share is limited to 18 % only.

Figure 7: Unemployment

25.43

29.77

13.57

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

1997 2002 2007 2012 2017

Ann

ual (

%)

Unemployment Rate (% of Labor Force)


Sectors of the Economy

Agricultural Sector

The agricultural sector, currently, accounts for 13.3 % of the GDP. Agriculture is the second largest

contributor to the economy after the hydrocarbon sector. The country produces cereals (mainly

wheat and barley), citrus fruits, vegetables, dates, and olives. To address the widening trade deficit

owing to the increasing food imports combined with lower export revenue from fuel exports, the

government allocated AD 300 billion to stimulate the ongoing Agricultural and Rural Renewal

Policy. Under this scheme, measures such as facilitating farmers’ access to land and introducing

preferential lending rates for agricultural producers have been taken. The law allows the lease

of state-owned land for up to 40 years and considerably relaxes the documentation procedures.

In an attempt to ease credit access, in 2008, Rfig (Zero –interest loans) and Ettahadi loans were

offered at subsidized interest rates.

As depicted in the figure below, dates, olives and grapes have emerged as potential agricultural

crops over the last decade. Among these crops, dates’ production has surged by 91.50 % from

552,765 tones (2008) to 1,058,559 tones (2017). Resultantly, its exports have risen by 61.76 %, over

the same period, to reach USD 52.34 million in 2017. Likewise, grapes and olives have also

registered a positive growth of 40.94 % and 169.40 % in the period 2008-17.

Figure 8: Production of Algeria's Potential Crops

366

553

1,059

204

402 567217

254

684

0

200

400

600

800

1000

1200

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Pro

duc

tion

('000

To

nnes

)

Years

Production of Algeria's Potential Crops

Dates Grapes Olives

18

Industrial Sector

Figure 9: Value-added by the Industrial Sector as a % of GDP

The figure above shows the percentage contribution of the Industrial Sector to the GDP of Algeria

from 2009 to 2017. According to the World Bank classification, Industry Value Added comprises

value added in mining, manufacturing, construction, electricity, water, and gas. Value added is the

net output of a sector after adding up all outputs and subtracting intermediate inputs. Algeria

which started out as a planned economy gradually adopted privatization starting in the late 90s.

However, to date, the largest industrial sector, the Hydrocarbon sector, is controlled by the state.

The contribution of the Industrial sector peaked in 2006, at 58.89% of the GDP and the contribution

nearly stayed the same till 2008; this can perhaps be explained by the simultaneous increase in

global oil prices during the same period. Although it seemed that the industrial sector was on

track after 2009, the growth was short-lived with the industrial sectors share sliding to reach its

lowest point, 35.73% of the GDP in 2015, following the plunge in oil prices. However, with policies

to diversify the economy and the easing of regulations to simulate foreign investments, industrial

production appears to once again to be on a growth trajectory with a contribution of 37.24% in

2017.

Other than the oil industry, key industries in Algeria include agro-processing, cement, steel,

cement and machinery.

45.36

58.89 58.62

47.90

35.73

37.24

-

10.00

20.00

30.00

40.00

50.00

60.00

70.00

1999 2002 2005 2008 2011 2014 2017

-Industry Value Added as % of GDP


Services Sector

The services sector is the most significant contributor to the Algerian GDP in terms of Value

Addition whereas it is the second largest source of employment in the country. Services include

value added in wholesale and retail trade, transport, and government, financial, professional, and

personal services such as education, health care, and banking services. The figure below shows

the contribution of the services sector to Algeria’s GDP from 1999 to 2017. Over the years, the

share of the services sector has not shown a significant increase, from 37.8% of the GDP in 1999,

the sector's contribution increased by less than 8% over the 18-year old period.

Figure 10: Value-added by the Services Sector as a % of GDP

37.86 39.63

45.62

-

10.00

20.00

30.00

40.00

50.00

60.00

1999 2002 2005 2008 2011 2014 2017

Services, value added (% of GDP)

20


TRADE

SECTION

3

22

Trade Overview Evident from the figure below, Algeria has been running a Balance of Trade (BoT) deficit for the

past three years. Although the country enjoyed a large BoT surplus in 2013 of USD 11.09 billion,

the situation deteriorated in the next three years. The trade deficit can primarily be associated

with a plunge in exports over the last five years, a fall of 46.7%! From 2013 to 2016, exports

consistently went downhill and were recorded at their lowest in 2016, USD 29.99 billion. Imports,

on the other hand, increased between 2013 and 2014, however, since then, imports have also

shown a declining trend, from USD 58.62 billion in 2014 to USD 35.19 billion in 2017, a fall of 16.1%.

Export Trends

Major Exports of Algeria

Table 4 shows the Top-10 exports of Algeria at the HS two-digit level. As stated earlier, exports

have dwindled from USD 66 billion to USD 35.19 billion in the last five-year period. Algerian

exports are dominated by HS-27 (Mineral fuels, mineral oils and products), fuel exports have

contributed nearly 96.6% to the total export revenue on average. Likewise, fuel exports and total

exports are also highly correlated with a Coefficient of Correlation of 0.99, meaning a $1 change

in fuel exports would change the overall exports by $0.99.

Apart from exporting mineral oils, Algeria also exports Inorganic Chemicals (HS-28), Fertilizers

(HS-31) and Sugars and sugar confectionery (HS-17) among others. However, the contribution

of the products as mentioned earlier to the overall exports is neither significant nor have these

depicted any significant fluctuations during the 2013-17 period.

Figure 11: Algeria's Bilateral trade

66.0060.39

34.8029.99

35.19

54.91 58.6251.80

47.09 46.05

11.091.77

-17.01 -17.10-10.86

-30.00-20.00-10.00

0.0010.0020.0030.0040.0050.0060.0070.0080.00

2013 2014 2015 2016 2017

USD

Bil

lion

Algeria's Trade Overview

Exports Imports Trade Balance


Top-10 Exports of Algeria at HS-02 LevelAll values in USD Billion

2013 2014 2015 2016 2017

Total All Products 66.00 60.39 34.80 29.99 35.19

Code Product Description

27 Mineral fuels, mineral oils and products 64.90 58.71 33.35 28.59 33.82

28 Inorganic chemicals; organic or inorganic compounds of precious metals

0.34 0.63 0.51 0.35 0.38

31 Fertilizers 0.04 0.31 0.42 0.45 0.33

17 Sugars and sugar confectionery 0.28 0.23 0.15 0.23 0.23

29 Organic chemicals 0.05 0.17 0.08 0.08 0.06

25 Salt; Sulphur; earths and stone; plastering materials, lime and cement

0.10 0.10 0.10 0.07 0.06

08 Edible fruit and nuts; peel of citrus fruit or melons 0.03 0.04 0.03 0.04 0.05

84 Machinery, mechanical appliances, nuclear reactors, boilers; parts

0.01 0.01 0.00 0.02 0.04

70 Glass and glassware 0.02 0.02 0.01 0.02 0.03

89 Ships, boats and floating structures 0.00 0.00 0.01 0.00 0.02

Table 4: Top-10 Exports of Algeria at the 2-digit level

The break-up of exports at the HS six-digit level shows that, amongst mineral fuels and oils (HS-

27), crude oil (HS-270900) has been and still is the leading export of Algeria. Exports of crude

oil, have not only declined in absolute terms but have witnessed a fall in its significance in the

Algerian export basket. In 2013, crude oil exports were valued at USD 30.38 billion and had a

share of 46%, in 2017 however, exports had fallen to USD 12.72 billion, and the contribution was

down to 36%. Though exports of Natural gas (HS-271121) also posted a decline in overall revenue,

the product has maintained a nearly constant share in the exports basket over the past five years.

Top-25 Exports of Algeria at HS-06 LevelAll values in USD Billion

2013 2014 2015 2016 2017



270900 Petroleum oils, crude 30.38 22.02 11.89 11.33 12.72

271121 Natural gas in gaseous state 13.58 10.90 7.21 6.40 7.14

271012 Light oils and preparations 4.53 7.55 3.81 3.03 3.86

271111 Natural gas, liquefied 7.04 7.34 4.70 3.04 3.65

271019 Medium oils and preparations 3.24 4.45 2.38 2.03 2.59

271112 Propane, liquefied 3.11 3.23 1.64 1.32 1.91

271113 Butanes, liquefied (excluding of a purity of >= 95% of N-butane or isobutane)

1.95 2.31 1.16 1.00 1.24

270799 Oils and other products of the distillation of high temperature coal tars

1.07 0.88 0.53 0.40 0.56

310210 Urea, whether or not in aqueous solution 0.02 0.31 0.42 0.45 0.32

281410 Anhydrous ammonia 0.29 0.49 0.25 0.14 0.23

24

All values in USD Billion

2013 2014 2015 2016 2017

170199 Cane or beet sugar and chemically pure sucrose, in solid form

0.27 0.23 0.15 0.23 0.23

271129 Hydrocarbons in gaseous state, n.e.s. (excluding natural gas)

0.00 0.00 0.00 0.02 0.13

281420 Ammonia in aqueous solution 0.01 0.09 0.23 0.18 0.11

251020 Natural calcium phosphates and natural aluminum calcium phosphates

0.10 0.10 0.10 0.07 0.06

080410 Fresh or dried dates 0.03 0.04 0.03 0.04 0.05

280429 Rare gases (excluding argon) 0.04 0.05 0.03 0.02 0.04

845011 Fully-automatic household or laundry-type washing machines, of a dry linen capacity <= 6 kg

0.00 0.00 0.00 0.01 0.03

290220 Benzene 0.00 0.05 0.02 0.03 0.03

290511 Methanol "methyl alcohol" 0.05 0.04 0.03 0.03 0.02

700529 Float glass and surface ground and polished glass, in sheets

0.01 0.01 0.01 0.01 0.02

890120 Tankers 0.00 0.00 0.00 0.00 0.02

271600 Electrical energy 0.01 0.03 0.02 0.01 0.02

220210 Waters, incl. mineral and aerated, with added sugar, sweetener or flavour

0.00 0.00 0.00 0.00 0.01

470790 Recovered “waste and scrap” paper or paperboard 0.01 0.01 0.01 0.01 0.01

180400 Cocoa butter, fat and oil 0.01 0.01 0.01 0.01 0.01

Table 5: Top-25 Exports of Algeria at the 6-digit level

Major Export Partners

As evident from the table below, a significant chunk of Algerian exports ends up in Europe. For

instance, out of the top-10 export destinations listed in the table below, seven are in Europe, and

these accounted for more than 55.0% of the total exports. Reason for this phenomenon can be

found by looking at the map of Algeria; thus it is no coincidence that the top-3 exports markets

for Algeria are also the countries with which Algeria shares the Tyrrhenian Sea.

Currently, Italy is Algeria’s largest export market with a contribution of 16.0% to the total export

revenue followed by France and Spain with a share of 12.6% and 11.7% respectively. However, it

was in 2016 only that Italy took the lead as the leading market, previously Spain was Algeria’s most

significant export partner. Regarding the product-mix, although, the vast majority of Algerian

exports are mineral fuels, the type and state of these fuels vary. For instance, Algeria’s largest

export to Italy and Spain is natural gas whereas Frances’ leading import is crude oil.


Top-10 Export Markets 2013 2014 2015 2016 2017

World Total 66.00 60.39 34.80 29.99 35.19

Italy 9.02 8.19 5.26 5.21 5.63

France 6.79 6.46 4.58 3.42 4.43

Spain 10.34 9.25 6.16 3.88 4.10

United States of America 5.34 4.78 2.21 3.87 3.47

Brazil 2.66 2.68 1.48 1.62 2.13

Netherlands 4.82 4.73 1.97 1.47 1.90

Turkey 2.66 2.65 1.81 1.34 1.84

United Kingdom 7.20 5.07 2.43 1.06 1.61

Portugal 1.60 1.76 0.91 0.85 0.96

Belgium 2.05 1.75 1.00 0.99 0.92

Table 6: Algeria's Top-10 export destinations

Import TrendsThe Algerian import bill was recorded at USD 46.05 billion in 2017, down from USD 54.91 billion

in 2013. Imports during the period have followed a more-or-less similar trajectory as that of

exports. The table below shows the top-10 imports at the HS two-digit level; HS-84 (Machinery

and Mechanical Appliances…), is the leading import category, followed by HS-87 (Vehicles other

than railway…). Imports of HS-87 have depicted a sizeable decrease over the last five years, from

USD 7.77 billion in 2013 to USD 3.44 billion in 2017. Apart from these, food items such as cereals

and dairy produce also fell in value and in 2017, these accounted for 5.9% and 3.0% of the total

import bill.

Top-10 Imports of Algeria at HS-02 LevelAll values in USD Billion

2013 2014 2015 2016 2017




8.39 10.18 9.18 8.28 8.01

85 Electrical machinery and equipment and parts 4.07 5.07 5.07 4.54 3.98

87 Vehicles other than railway or tramway rolling stock, and parts

7.77 6.98 4.89 3.49 3.44

73 Articles of iron or steel 1.85 2.50 2.69 3.20 2.92

10 Cereals 3.27 3.65 3.52 2.78 2.75

72 Iron and steel 3.26 3.59 3.03 2.25 2.41

39 Plastics and articles thereof 2.08 2.22 2.14 2.18 2.04


30 Pharmaceutical products 2.29 2.52 1.98 2.02 1.89

04 Dairy produce; birds’ eggs; natural honey; edible products of animal origin

1.26 2.05 1.17 0.99 1.41

Table 7: Top-10 Imports of Algeria at the 2-digit level

26

Imports at the six-digit level reflect the overall economic slow-down of the Algerian economy.

Not only imports of luxury goods, such as motor cars and vehicles have declined over the period,

imports of essential food items such as wheat have also declined. Though Algeria is rich in oil

reserves, the country’s other sectors are not developed adequately. The state of manufacturing as

well as agricultural production is poor and is therefore insufficient to meet the domestic demand

for consumer products.

Top-25 Imports of Algeria at HS-06 LevelAll values in USD Billion

2013 2014 2015 2016 2017



100199 Wheat and meslin 1.69 1.59 1.62 1.24 1.29

170114 Raw cane sugar, in solid form, not containing added flavoring or coloring

0.67 0.66 0.53 0.75 0.97

870322 Motor cars and other vehicles principally designed for the transport of persons

2.02 1.54 0.96 0.62 0.86


720711 Semi-finished products of iron or non-alloy steel containing, by weight, < 0,25% of carbon

0.04 0.12 0.20 0.18 0.80


730890 Structures and parts of structures, of iron or steel 0.24 0.40 0.50 0.70 0.80

40221 Milk and cream in solid forms, of a fat content by weight of > 1,5%

0.61 1.04 0.67 0.54 0.78

100590 Maize (excluding seed for sowing) 0.89 0.98 0.87 0.77 0.77

730419 Line pipe of a kind used for oil or gas pipelines,of iron or steel

0.04 0.11 0.24 0.33 0.67

150710 Crude soya-bean oil, whether or not degummed 0.66 0.57 0.47 0.53 0.60

300490 Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes

1.15 1.21 0.85 0.76 0.59

851712 Telephones for cellular networks 0.24 0.40 0.62 0.66 0.54


0.89 0.81 0.52 0.37 0.52

100119 Durum wheat 0.43 0.78 0.78 0.55 0.50

721420 Bars and rods, of iron or non-alloy steel, with indentations, ribs, groves

1.82 1.84 1.37 1.11 0.49

230400 Oilcake and other solid residues, whether or not ground or in the form of pellets

0.70 0.82 0.60 0.53 0.42

890120 Tankers 0.00 0.00 0.00 0.00 0.41

40210 Milk and cream in solid forms, of a fat content by weight of <= 1,5%

0.46 0.75 0.33 0.25 0.39

300212 Antisera and other blood fractions 0.00 0.00 0.00 0.00 0.33

90111 Coffee (excluding roasted and decaffeinated) 0.31 0.30 0.29 0.30 0.33

851770 Parts of telephone sets, telephones for cellular networks

0.18 0.25 0.30 0.35 0.32

852872 Reception apparatus for television, color 0.33 0.37 0.34 0.37 0.32

853710 Boards, cabinets for electric control or the distribution

0.20 0.19 0.20 0.32 0.29

240391 Tobacco, “homogenized” or “reconstituted” from finely-chopped tobacco leaves

0.30 0.35 0.39 0.28 0.28

Table 8: Top-25 Imports at the 6-digit level


Major Import Partners

China is and has been the largest foreign supplier to Algeria for the last four years; Chinese

imports increased both in absolute and relative terms. In 2013, China’s share in Algeria’s import

basket was roughly 12.4%, however, by the end of 2017 China had gained 18.1% of the Algerian

import market. European economies, such as France and Italy, which had been Algeria’s traditional

sourcing markets have also witnessed a decline in their exports to Algeria. Imports from France

declined to USD 4.3 billion, 9.3% of total imports in 2017 from USD 6.26 billion or 11.4% of total

imports in 2013.

Top-10 Import PartnersAll values in USD Billion

2013 2014 2015 2016 2017

World Total 54.91 58.62 51.80 47.09 46.05

China 6.83 8.24 8.26 8.41 8.32

France 6.26 6.34 5.44 4.77 4.30

Italy 5.65 5.04 4.86 4.65 3.76

Germany 2.86 3.80 3.43 3.02 3.22

Spain 5.08 5.03 3.95 3.57 3.13

Turkey 2.08 2.13 2.04 1.94 2.01

United States of America 2.37 2.88 2.74 2.32 1.84

Korea, Republic of 1.12 1.63 1.17 1.09 1.69

Argentina 1.74 1.93 1.28 1.33 1.52

Brazil 1.32 1.38 1.15 1.21 1.37

Table 9: Algeria’s Top-10 Import partners

28

Trade with China Algeria has been running a Balance of Trade (BoT) deficit with China for the last two decades. From

2008 to 2013, the BoT deficit averaged between USD 2.5 billion and USD 3.5 billion. However,

since the global oil price slump in 2014, Algeria’s BoT has worsened at an alarming rate. Though

imports from China have not increased significantly since 2014, exports have rapidly gone down.

From a deficit of USD 4.65 billion in 2013, the country’s BoT deficit was recorded at its highest

in 2016, USD 8.08 billion. however, once exports regained some momentum in 2017, the gap

between exports and imports narrowed, and the deficit was down to USD 7.63 billion at the end

of 2017.

Figure 12: Trade Balance with China

Algerian exports to China have declined over the last five years. In 2013, Algeria’s export revenue

from the Chinese market was recorded at USD 2.18 billion, which fell to a mere USD 333.4 million

in 2016 before picking-up in 2017. The overall decline of 68% in five years is a testament to the

damage caused by the reduction of global oil prices. Algerian exports to China are mostly mineral

fuels and oils, and HS-27 (Mineral fuels, mineral oils and products) have contributed on an average

99.1% to Algeria’s exports to China.

Top-10 Products at HS-02 Level Exported by Algeria to China All values in USD Million

2013 2014 2015 2016 2017

Total All Products 2,181.28 1,729.32 557.12 333.40 691.61


27 Mineral fuels, mineral oils and products 2,177.22 1,724.94 552.37 325.39 686.24

41 Raw hides and skins (other than furskins) and leather

1.34 1.05 1.94 0.96 2.08

45 Cork and articles of cork 1.08 2.23 1.96 0.94 1.91

51 Wool, fine or coarse animal hair; horsehair yarn and woven fabric

0.00 0.00 0.26 0.33 0.83

2.18 1.730.56 0.33 0.69

6.838.24 8.26 8.41 8.32

(4.65)(6.51) (7.70) (8.08) (7.63)

-10.00

-8.00

-6.00

-4.00

-2.00

0.00

2.00

4.00

6.00

8.00

10.00

2013 2014 2015 2016 2017

USD

Bil

lion

Trade with China

Exports to China Imports from China Trade Balance


All values in USD Million

2013 2014 2015 2016 2017


0.11 0.03 0.06 0.11 0.08

21 Miscellaneous edible preparations 0.00 0.00 0.00 0.00 0.07

38 Miscellaneous chemical products 0.26 0.00 0.00 0.02 0.07

22 Beverages, spirits and vinegar 0.39 0.12 0.00 0.18 0.06

40 Rubber and articles thereof 0.00 0.00 0.00 0.01 0.06

08 Edible fruit and nuts; peel of citrus fruit or melons

0.02 0.00 0.00 0.12 0.05

Table 10: Top-10 Exports to China at the 2-digit level

Table 11 shows Algerian exports to China at the HS six-digit level. In 2017, exports were dominated

by HS-271012 (Light oils and preparations) which have shown a growth of more than 127.0% over

the previous year. The increase in exports of Light oils has been accompanied by a decline in the

exports of HS-270900 (Petroleum oils, crude), which were recorded at USD 106.42 million in 2017,

down from USD 1.48 billion in 2013.

Top-10 Products at HS-06 Level Exported by Algeria to ChinaAll values in USD Million

2013 2014 2015 2016 2017

Total All Products 2,181.28 1,729.32 557.12 333.40 691.61



270900 Petroleum oils, crude 1,478.33 437.86 111.27 0.00 106.42




0.00 66.05 0.00 15.61 13.96

410411 Full grains, unsplit and grain splits, in the wet state

0.00 0.77 0.46 0.65 1.94

450190 Cork waste; crushed, powdered or ground cork

0.01 0.18 0.91 0.25 0.85

450310 Corks and stoppers, of natural cork, incl. round-edged blanks

0.41 0.38 0.16 0.25 0.51

510129 Degreased wool, non-carbonized, neither carded nor combed

0.00 0.00 0.00 0.00 0.33

450390 Articles of natural cork 0.15 0.42 0.12 0.16 0.26

Table 11: Top-10 Exports to China at the 6-digit level

30

Algeria’s Imports from China

Though from 2013 to 2017, Algerian imports have shown a gradual decline. Imports from China,

during the same period, have increased from USD 6.83 billion to USD 8.32 billion, a growth of

21.8%. The table below, showing imports at the two-digit level, reveals that HS-84 (Machinery and

Mechanical appliances) is the leading product imported from China, followed by HS-85 (Electrical

Machinery) and HS-73 (Articles of iron and steel).

Top-10 Products at HS-02 Level Imported by Algeria from ChinaAll values in USD Millions

2013 2014 2015 2016 2017

Total All Products 6,827.55 8,243.81 8,259.66 8,409.86 8,317.84



1,894.92 1,974.48 1,935.82 1,973.25 2,226.22

85 Electrical machinery and equipment and parts

1,072.22 1,787.33 2,049.17 1,920.31 1,778.71

73 Articles of iron or steel 315.62 765.37 765.45 1,250.00 1,180.03


1,242.78 1,106.20 879.93 464.82 339.90

40 Rubber and articles thereof 260.77 286.53 257.35 273.33 243.32


94 Furniture; bedding, mattresses, mattress supports, cushions

180.63 202.70 193.80 181.60 170.45

54 Man-made filaments 102.36 111.29 138.18 161.18 164.70

72 Iron and steel 54.48 94.96 191.48 206.74 162.22

64 Footwear, gaiters and the like 110.84 123.13 114.13 123.56 123.14

Table 12: Top-10 Imports from China at the 2-digit level

Table 13 shows Algeria’s top 10 imports from China at the six-digit level. HS-730419 (line pipe of

a kind used for oil and gas pipelines) was the leading import during 2017, valued at USD 525.52

million. HS-851712, (Telephones for Cellular networks), or mobile phones was the second largest

import in 2017 from China; mobile phones have shown steady growth over the years, and imports

in 2017 were recorded at USD 448.02 million.

Top-10 Products at HS-06 Level Imported by Algeria from ChinaAll values in USD Millions

2013 2014 2015 2016 2017

Total All Products 6,827.55 8,243.81 8,259.66 8,409.86 8,317.84


730419 Line pipe of a kind used for oil or gas pipelines, of iron or steel

21.26 76.58 123.71 230.40 525.52

851712 Telephones for cellular networks 126.96 288.16 502.41 557.22 448.02

852872 Reception apparatus for television, color

198.34 283.99 288.36 350.94 298.24

730890 Structures and parts of structures, of iron or steel

26.24 72.20 97.82 205.97 287.65


All values in USD Millions

2013 2014 2015 2016 2017

841510 Window or wall air conditioning machines

302.92 128.42 107.72 173.60 155.11

401120 New pneumatic tyres, of rubber, of a kind used for buses and lorries

145.01 164.67 134.05 137.59 116.93

851770 Parts of telephone sets, telephones for cellular networks

97.45 185.93 126.07 187.14 116.91

847330 Parts and accessories of automatic data-processing machines

63.24 65.09 72.64 55.36 113.96

851761 Base stations of apparatus for the transmission or reception of voice

21.16 46.64 31.16 26.32 107.15

540710 Woven fabrics of high-tenacity yarn, nylon, other polyamides or polyesters

56.81 69.92 96.90 106.12 101.00

Table 13: Top-10 Imports from China at the 6-digit level

32

Trade with India Figure 9 shows the bilateral trade between Algeria and India for the five years ending in 2017.

Exports to India, depict a fluctuating trend; with export revenue falling from USD 816.23 million

in 2013 to USD 260.08 million in 2015, before rising once again to USD 871.52 million in 2017.

Imports, on the contrary, portray a gradual decline over the same period, an overall decrease of

24.7%; from USD 1.31 billion in 2013 to USD 983.92 million in 2017. In 2015 Algeria’s trade deficit

with India amounted to USD 857.09 million whereas Algeria’s BoT deficit with India in 2017 was

USD 112.39 million.

Figure 13: Bilateral trade with India

Exports to India

Algeria’s exports to India are dominated by mineral fuels and oils. HS-27 (Mineral Fuels, mineral

oils and products) contributed on an average 96% to the total export revenue derived from the

Indian market between 2013 & 2017. Apart from mineral fuels, leading exports to India in 2017

included; HS-25 (Salt; Sulphur…), HS-47 (Wood pulp) and HS-08 (Edible fruits and nuts), however

at the two-digit level all products combined, excluding HS-27, contributed a mere 1.5% to total

export receipts.

Top-10 Products at HS-02 level Exported by Algeria to IndiaAll values in USD Millions

2013 2014 2015 2016 2017




25 Salt; Sulphur; earths and stone; plastering materials, lime and cement

3.25 2.05 17.95 2.77 7.77

47 Pulp of wood or of other fibrous cellulosic material; recovered

1.13 0.79 1.42 1.87 3.37

816.23682.75

260.07479.79

871.52

1306.681196.01 1117.15

940.50 983.92

-490.45 -513.25-857.09

-460.71

-112.39

-1000.00

-500.00

0.00

500.00

1000.00

1500.00

2013 2014 2015 2016 2017USD

Mil

lio

n

Trade with India




2013 2014 2015 2016 2017

08 Edible fruit and nuts; peel of citrus fruit or melons

0.00 0.36 0.79 0.84 0.88

41 Raw hides and skins (other than furskins) and leather

1.76 1.34 0.79 0.47 0.69

45 Cork and articles of cork 0.54 0.57 0.38 0.32 0.37


0.00 0.21 0.00 0.07 0.10


0.00 0.00 0.00 0.03 0.07



Table 14: Top-10 Exports to India at the 2-digit level

Table 15, showing exports at the six-digit level, reveals that in the mineral fuels category, Algeria

primarily exports crude oil to India. In 2017, HS-270900 (Petroleum oils, crude) accounted for nearly

84.3% of total exports. Although, exports currently are dominated by mineral fuels, but previously

trade was much more evenly distributed, for instance in 2013, crude oil, LNG and medium oils had

a share of 39.4%, 14.8% and 43.9% respectively in total exports. However, in 2017, exports of the

latter categories had shrunk to 9.8% and 3.0% respectively.

Top-10 Products at HS-06 level Exported by Algeria to IndiaAll values in USD Millions

2013 2014 2015 2016 2017



270900 Petroleum oils, crude 323.52 347.32 201.83 387.69 734.32




0.00 6.31 1.37 19.98 9.34

251020 Natural calcium phosphates and natural aluminium calcium phosphates

3.25 2.05 17.95 2.77 7.77

470790 Recovered “waste and scrap” paper or paperboard

1.12 0.78 1.41 1.82 3.15


80410 Fresh or dried dates 0.00 0.36 0.79 0.84 0.88

410411 Full grains, unsplit and grain splits, in the wet state

0.18 0.57 0.68 0.29 0.53

450190 Cork waste; crushed, powdered or ground cork

0.32 0.43 0.31 0.32 0.37

Table 15: Top-10 Exports to India at the 6-digit level

34

Imports from India

Algeria’s imports from India have consistently declined between 2013 & 2017. From USD 1.31

billion in 2013, imports fell by 24.7% and were recorded at USD 983.92 million in 2017. At the

two-digit level, significant imports from India include HS-87 (Vehicles other than railway…), HS-

84 (Machinery, mechanical appliances…) and HS-29 (Organic Chemicals). The fall in imports of

vehicles (HS-87) over the years can perhaps be explained by the oil price shocks and the general

slowing down of the Algerian economy. However, machinery and mechanical appliances (HS-84)

have seen a rise in imports not only from India but from China too.

Top-10 Products at HS-02 level Imported by Algeria from IndiaAll values in USD Million

2013 2014 2015 2016 2017

Total All Products 1,306.68 1,196.01 1,117.15 940.50 983.92



483.69 447.94 367.06 136.73 246.18


86.84 82.53 104.89 116.08 105.95

29 Organic chemicals 55.16 57.42 57.85 74.54 94.38


02 Meat and edible meat offal 125.39 144.78 117.83 105.48 73.83

85 Electrical machinery and equipment and parts

98.71 37.16 28.24 98.61 62.31


07 Edible vegetables and certain roots and tubers

98.44 36.14 33.18 28.70 34.11

12 Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit

8.58 32.48 19.68 15.36 30.79

10 Cereals 27.20 30.89 39.08 29.10 27.00

Table 16: Top-10 Imports from India at the 2-digit level

Import data for products at the six-digit level reveals that apart from vehicles, the key imports of

Algeria from India are food items. However, among the food category, staple foods such as rice

(HS-100630) have not shown any significant change during the analysis period whereas luxury

food items such as HS-20230 (Frozen, boneless meat of bovine animals) and HS-71320 (Dried,

shelled chickpeas) have posted significant reduction in trade numbers over the last five years.


Top-10 Products at HS-06 level Imported by Algeria from IndiaAll values in USD Million

2013 2014 2015 2016 2017




281.84 310.24 251.73 61.29 125.32


0.13 0.51 0.17 6.32 69.37

020230 Frozen, boneless meat of bovine animals

121.19 97.06 80.68 65.24 55.69

071320 Dried, shelled chickpeas "garbanzos" 97.77 34.88 32.83 28.42 33.41

850423 Liquid dielectric transformers 0.00 0.25 0.00 31.07 28.30

100630 Semi-milled or wholly milled rice, whether or not polished or glazed

26.36 26.73 24.93 26.89 26.48

870193 Tractors, of an engine power > 37 kW but <= 75 kW

0.00 0.00 0.00 0.00 24.04


33.45 31.27 36.68 38.49 23.75

120242 Groundnuts, shelled, whether or not broken

0.00 22.40 13.25 5.86 22.35

390769 Polyethylene terephthalate", in primary forms

0.00 0.00 0.00 0.00 19.62

Table 17: Top-10 Imports from India at the 6-digit level

36

Trade with Neighboring Countries The following table shows Algeria’s trade (exports and imports) with its immediate neighbours.

Tunisia, Morocco and Libya which share a land border with Algeria, these three combined had

a share of a mere 3.5% in exports and 1.3% in imports. The reason for such a negligible amount

of trade is twofold; firstly, the low trade complementarity between Algeria and its neighbours.

For instance, Libya and Tunisia are themselves well-endowed with oil reserves whereas the most

significant export of Algeria is also oil. Hence, there is not much common ground between the

neighbours to engage in bilateral trade. Secondly, Algeria does not enjoy cordial relations with

Morocco, and the two countries have multiple times in the past, faced each other in a military

stand-off, including a border dispute in 1963, and Morocco’s annexation of Western Sahara in

1976, which Algeria opposes.

Exports

(USD Million)Relative % share in Exports to World

Imports(USD Million)

Relative % Share in Imports from

World

Tunisia 753.42 2.14 329.59 0.72

Egypt 456.83 1.30 420.71 0.91

Morocco 450.37 1.28 261.41 0.57

Libya 18.94 0.05 0.29 0.00

Sudan 18.07 0.05 9.14 0.02

Aggregate 1,697.63 4.82 1,021.14 2.22

Table 18: Trade with neighbouring countries


38


TRADE WITH PAKISTAN

SECTION

4

40

Bilateral Trade with PakistanFrom 2013 to 2017, the highest level of Algerian exports to Pakistan were recorded in 2013; USD

0.39 million. Evident from the figure below, Pakistan is not a very popular market for Algerian

goods. Exports to Pakistan declined steadily post-2013 and were recorded at their lowest in

2017 at a mere USD 80,000. Imports, on the other hand, are relatively much higher compared

to exports; however, even then, the relative share of Pakistan as a sourcing market for Algeria is

minuscule. Much like exports, imports also declined from 2013 to 2018 and were recorded at USD

24.93 million in 2017. The insignificant amount of export revenue derived from Pakistan coupled

with the relatively higher import bill from Pakistan resulted in a BoT deficit for Algeria in 2017 of

USD 24.84 million.

Figure 14: Bilateral trade with Pakistan

Algeria’s Exports to Pakistan

Table 19 shows Algerian exports to Pakistan at the two-digit level. As mentioned previously,

Pakistan represents an insignificant share in the overall Algerian export portfolio. In 2013, exports

were concentrated in a single category only; HS-47 (Pulp of Wood…), valued at USD 390,000.

However, in 2017 we see HS-79 (Zinc and articles) taking a lead, with exports of USD 60,000 and

exports of HS-79 contracting to USD 20,000.

0.39 0.30 0.21 0.07 0.08

32.03 33.8128.96 26.95 24.93

-31.63 -33.51-28.75 -26.89 -24.84

-40.00

-30.00

-20.00

-10.00

0.00

10.00

20.00

30.00

40.00

2013 2014 2015 2016 2017

USD

Mil

lio

n

Trade with Pakistan



Top-10 Products at HS-02 Level Exported by Algeria to PakistanAll values in USD Million

2013 2014 2015 2016 2017



79 Zinc and articles thereof 0.00 0.00 0.00 0.00 0.06

47 Pulp of wood or of other fibrous cellulosic material; recovered

0.39 0.27 0.21 0.07 0.02

48 Paper and paperboard; articles of paper pulp

0.00 0.00 0.00 0.00 0.00

49 Printed books, newspapers, pictures and other products of the printing industry

0.00 0.00 0.00 0.00 0.00

50 Silk 0.00 0.00 0.00 0.00 0.00


0.00 0.00 0.00 0.00 0.00

52 Cotton 0.00 0.00 0.00 0.00 0.00

53 Other vegetable textile fibres 0.00 0.00 0.00 0.00 0.00


55 Man-made staple fibres 0.00 0.00 0.00 0.00 0.00

Table 19: Top 10 Exports to Pakistan at the 2-digit level

At the six-digit level, Algeria’s exports to Pakistan primarily comprise of HS-790112 (Unwrought

Zinc…); 75% of total exports in 2017. Zinc is an input for the iron and steel industry and is used for

galvanising. The only other product category exported, other than zinc, is HS-470790 (Waste and

Scrap paper and paperboard) and has witnessed a decline in trade numbers since 2013.

Top-25 Products at HS-06 Level Exported by Algeria to PakistanAll values in USD Million

2013 2014 2015 2016 2017



790112 Unwrought zinc, not alloyed, containing by weight < 99,99% of zinc

0.00 0.00 0.00 0.00 0.06


0.34 0.27 0.21 0.07 0.02

480257 Uncoated paper and paperboard 0.00 0.00 0.00 0.00 0.00

480439 Kraft paper and paperboard, 0.00 0.00 0.00 0.00 0.00

481490 Wallpaper and similar wallcoverings of paper

0.00 0.00 0.00 0.00 0.00

481820 Handkerchiefs, cleansing or facial tissues and towels

0.00 0.00 0.00 0.00 0.00

481830 Tablecloths and serviettes of paper pulp, paper

0.00 0.00 0.00 0.00 0.00

482010 Registers, account books, notebooks 0.00 0.00 0.00 0.00 0.00

482110 Paper or paperboard labels of all kinds, printed

0.00 0.00 0.00 0.00 0.00

490191 Dictionaries and encyclopaedias, and serial instalments thereof

0.00 0.00 0.00 0.00 0.00

42


2013 2014 2015 2016 2017

491199 Printed matter 0.00 0.00 0.00 0.00 0.00

500100 Silkworm cocoons suitable for reeling 0.00 0.00 0.00 0.00 0.00

500500 Yarn spun from silk waste 0.00 0.00 0.00 0.00 0.00

500720 Woven fabrics containing >= 85% silk or schappe by weight

0.00 0.00 0.00 0.00 0.00

510521 Wool, combed, in fragments "open tops" 0.00 0.00 0.00 0.00 0.00

511119 Woven fabrics containing >= 85% carded wool or carded fine animal hair

0.00 0.00 0.00 0.00 0.00

511220 Woven fabrics containing predominantly, but < 85% combed wool or combed fine animal hair

0.00 0.00 0.00 0.00 0.00

520420 Cotton sewing thread 0.00 0.00 0.00 0.00 0.00

520514 Single cotton yarn, of uncombed fibres 0.00 0.00 0.00 0.00 0.00

520531 Multiple "folded" or cabled cotton yarn, of uncombed fiber

0.00 0.00 0.00 0.00 0.00

520542 Multiple "folded" or cabled cotton yarn, of combed fibres

0.00 0.00 0.00 0.00 0.00

520631 Multiple "folded" or cabled cotton yarn containing predominantly, but < 85% cotton by weight, ...

0.00 0.00 0.00 0.00 0.00

520710 Cotton yarn containing >= 85% cotton by weight, put up for retail sale

0.00 0.00 0.00 0.00 0.00

520919 Woven fabrics of cotton, containing >= 85% cotton by weight and weighing > 200 g/m², unbleached

0.00 0.00 0.00 0.00 0.00

520932 Woven fabrics of cotton, containing >= 85% cotton by weight and weighing > 200 g/m²

0.00 0.00 0.00 0.00 0.00

Table 20: Top-25 Exports to Pakistan at the 6-digit level

Algeria’s Imports from Pakistan

In the past five years, Algeria’s imports from Pakistan have shown a decline of 22.2%, or USD

7.1 million. In recent years, exports of knitted apparel from Pakistan (HS-61) have witnessed an

increased demand in the Algerian market and was the most exported product category in 2017,

USD 3.73 million. Although HS-10 (Cereals) is the second largest Algerian import from Pakistan,

the significant chunk of imports is dominated by textiles and apparel products. The table below,

shows the top-10 largest imports from Pakistan at the two-digit level, out of these ten product

categories, five are textiles and combined these accounted for 50.8% of the total import bill from

Pakistan.


Top-10 Products at HS-02 Level Imported by Algeria from PakistanAll values in USD Million

2013 2014 2015 2016 2017



61 Articles of apparel and clothing accessories, knitted or crocheted

0.88 1.19 1.31 3.01 3.73

10 Cereals 1.16 4.25 3.57 4.41 3.29

62 Articles of apparel and clothing accessories, not knitted or crocheted

5.95 5.73 5.05 3.46 2.99

52 Cotton 3.67 2.34 2.08 1.46 2.41

63 Other made-up textile articles 2.72 2.47 2.34 1.92 1.94


90 Optical, photographic, cinematographic, measuring, checking, precision, medical

1.29 1.48 1.55 1.66 1.43

14 Vegetable plaiting materials 0.24 0.28 0.35 1.28 1.22

15 Animal or vegetable fats and oils and their cleavage products

0.11 0.21 0.27 0.32 1.20

73 Articles of iron or steel 2.13 2.20 1.72 1.32 0.95

Table 21: Top-10 Imports from Pakistan at the 2-digit level

At the six-digit level, we find that HS-100630 (Semi-milled or wholly milled rice) was the most

significant import from Pakistan in 2017. Rice imports in 2017 were recorded at USD 3.29 million,

down from USD 4.25 million in 2014. Following rice imports, the second and third largest Algerian

imports are vegetable products and fixed vegetable fats respectively, these too belong to the

food-items group.

Top-25 Products at HS-06 Level Imported by Algeria from PakistanAll values in USD Million

2013 2014 2015 2016 2017




1.16 4.25 3.57 4.36 3.29

140490 Vegetable products n.e.s 0.24 0.28 0.35 1.28 1.22

151590 Fixed vegetable fats and oils 0.11 0.20 0.26 0.26 1.01

621132 Men's or boys' tracksuits and other garments, n.e.s. of cotton

1.43 0.98 3.07 1.75 0.92

732399 Table, kitchen or other household articles, of iron other than cast iron

0.02 1.94 1.61 1.16 0.81

520512 Single cotton yarn, of uncombed fibres, containing >= 85% cotton by weight

0.00 0.00 0.07 0.00 0.79

901890 Instruments and appliances used in medical, or veterinary sciences

0.79 0.95 0.95 1.10 0.73

610910 T-shirts, singlets and other vests of cotton, knitted or crocheted

0.31 0.11 0.05 0.49 0.70

540742 Woven fabrics of filament yarn containing >= 85% nylon or other polyamides by weight

0.00 0.03 0.42 0.57 0.67

44


2013 2014 2015 2016 2017

620342 Men's or boys' trousers, bib and brace overalls, breeches and shorts, of cotton

0.74 0.45 0.25 0.53 0.60

520300 Cotton, carded or combed 0.03 0.00 0.00 0.00 0.57

950662 Inflatable balls 0.36 0.45 0.79 0.84 0.53

630291 Toilet linen and kitchen linen of cotton 0.40 0.27 0.37 0.30 0.43

620343 Men's or boys' trousers, bib and brace overalls, breeches and shorts of synthetic fibres

0.04 0.00 0.04 0.01 0.43

220720 Denatured ethyl alcohol and other spirits of any strength

0.02 0.00 0.21 0.12 0.40

611020 Jerseys, pullovers, cardigans, waistcoats, of cotton

0.05 0.12 0.20 0.36 0.39

901839 Needles, catheters, cannulae and the like, used in medical, surgical…

0.23 0.27 0.13 0.15 0.38

611610 Gloves, mittens and mitts, 0.07 0.04 0.08 0.03 0.38

630260 Toilet linen and kitchen linen 0.95 0.78 0.81 0.55 0.35

611120 Babies' garments and clothing accessories of cotton, knitted or crocheted

0.01 0.01 0.01 0.31 0.34

540741 Woven fabrics of yarn containing >= 85% by weight of filaments of nylon or other polyamides

0.00 0.17 0.40 0.31 0.33

610342 Men's or boys' trousers, bib and brace overalls, breeches and shorts of cotton

0.02 0.06 0.07 0.09 0.30

630619 Tarpaulins, awnings and sunblinds of textile materials

0.23 0.30 0.29 0.10 0.28

630232 Bedlinen of man-made fibres (excluding printed, knitted or crocheted)

0.16 0.10 0.02 0.09 0.28

610462 Women's or girls' trousers, bib and brace overalls, breeches and shorts of cotton, knitted ...

0.01 0.07 0.14 0.34 0.28

Table 22: Top-25 Imports from Pakistan at the 6-digit level

Algeria’s Export Potential with Pakistan

Table 23 shows the top-25 high-potential Algerian exports to Pakistan. Using data from 2017, we

can estimate that Algeria had a potential of exporting USD 132.3 million worth of the products

mentioned in the table below. However, amongst these high-potential items, only goods worth USD

20,000 were currently being exported. The most promising product according to our calculation

was HS-290511 (methyl alcohol) with prospective exports of USD 24.91 million. Whereas other

high potential items included HS-310210 (Urea), HS-845011 (washing machines) and HS-470790

(waste and scrap paper) to name a few, however, none of these was exported to Pakistan in 2017.


Algeria's Top-25 High Potential Exports to Pakistan at HS-06 LevelAll Values in USD Millions

Code Product Description Algeria’s exports to Pakistan

Pakistan's Imports from World

Algeria’s Exports to World

Export Potential2017

290511 Methanol "methyl alcohol" 0.00 46.60 24.91 24.91

310210 Urea, whether or not in aqueous solution 0.00 16.79 322.08 16.79

845011 Fully-automatic household or laundry-type washing machines, of a dry linen capacity <= 6 kg

0.00 10.12 32.90 10.12


0.02 21.18 9.99 9.97

080410 Fresh or dried dates 0.00 8.95 52.34 8.95

220210 Waters, incl. mineral and aerated, with added sugar, sweetener or flavour

0.00 7.07 12.24 7.07

852872 Reception apparatus for television, colour 0.00 77.92 5.29 5.29

170199 Cane or beet sugar and chemically pure sucrose, in solid form

0.00 5.28 225.45 5.28

180400 Cocoa butter, fat and oil 0.00 4.30 8.51 4.30

410510 Skins of sheep or lambs, in the wet state "incl. wet-blue", tanned, without wool on

0.00 6.58 3.51 3.51

480300 Toilet or facial tissue stock, towel or napkin stock and similar paper for household or sanitary

0.00 3.42 3.53 3.42

961900 Sanitary towels (pads) and tampons, napkins and napkin liners for babies

0.00 105.25 3.36 3.36

854810 Waste and scrap of primary cells, primary batteries and electric accumulators

0.00 16.26 3.15 3.15

841810 Combined refrigerator-freezers, with separate external doors

0.00 6.61 3.11 3.11

700729 Laminated safety glass (excluding glass of size and shape suitable for incorporation in motor

0.00 2.85 5.39 2.85

851712 Telephones for cellular networks 0.00 760.26 2.82 2.82

854449 Electric conductors, for a voltage <= 1.000 V, insulated, not fitted with connectors

0.00 85.38 2.70 2.70


0.00 368.14 2.44 2.44

680911 Boards, sheets, panels, tiles and similar articles, of plaster or compositions based on plaster

0.00 2.27 4.75 2.27

700529 Float glass and surface ground and polished glass, in sheets

0.00 1.99 24.16 1.99

150790 Soya-bean oil and its fractions, whether or not refined

0.00 1.90 8.34 1.90

481910 Cartons, boxes and cases, of corrugated paper or paperboard

0.00 4.00 1.73 1.73

880330 Parts of aeroplanes or helicopters, n.e.s. (excluding those for gliders)

0.00 17.04 1.56 1.56

190531 Sweet biscuits 0.00 1.71 1.51 1.51

700510 Float glass and surface ground or polished glass, in sheets, having an absorbent, reflecting ...

0.00 3.54 1.26 1.26

Total of Top-25 Products 0.02 1,585.40 767.01 132.25

Table 23: Algeria's Top-25 Potential Exports to Pakistan

46

Pakistan’s Export Potential with Algeria

If we analyse Algeria as a market for Pakistani sellers, we find that in 2017, Pakistan had a potential

to export goods worth USD 849.12 million, these are listed in the table below. An overview of the

table below reveals that the most apparent cause of this wide gap between the actual trade and

potential trade is the low trade complementarity between the countries. For instance, the first

product mentioned in the table is HS-481159; however, neither is Pakistan a renowned supplier

of the said good nor is Algeria a significant market. Hence trade remains low. Another example,

HS-100630 (rice), though Pakistan produces one of the highest quality of rice in the variety, and

though world exports of HS-100630 are more than USD 1.5 billion, we see that Algeria is not a

significant consumer of rice as reflected by their total imports of USD 74.9 million. Hence it is

pertinent to note that unless Pakistan diversifies its export portfolio, it will not be able to enhance

its share of the Algerian market.

Pakistan's Top-25 High Potential Exports to Algeria at HS-06 Level All values in USD Millions

Code Product Description Pakistan's Exports to Algeria

Pakistan's exports to World

Algeria's Imports from World


481159 Paper and paperboard, surface-coloured, surface-decorated …

0.00 81.07 77.49 77.49


3.29 1512.69 74.86 71.57


0.00 70.79 585.28 70.79

300439 Medicaments containing hormones or steroids used as hormones but not antibiotics

0.00 48.65 119.02 48.65

730690 Tubes, pipes and hollow profiles "e.g., open seam, riveted or similarly closed", of iron

0.00 44.03 45.12 44.03

841199 Parts of gas turbines 0.00 43.86 274.62 43.86

901890 Instruments and appliances used in medical, surgical or veterinary sciences

0.73 360.58 44.48 43.75

390761 polyethylene terephthalate", in primary forms, having a viscosity number of >= 78 ml/g

0.00 134.58 41.07 41.07

151620 Vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, ...

0.02 39.76 133.21 39.75

390769 polyethylene terephthalate", in primary forms, having a viscosity number of < 78 ml/g

0.00 37.54 141.75 37.54

020110 Carcases or half-carcases of bovine animals, fresh or chilled

0.00 110.28 35.95 35.95

721049 Flat-rolled products of iron or non-alloy steel, of a width of >= 600 mm, hot-rolled or cold-rolled

0.00 31.18 31.78 31.18

851712 Telephones for cellular networks 0.00 30.75 536.13 30.75

901580 Instruments and appliances used in geodesy, topography, hydrography, oceanography, hydrology

0.00 33.70 27.51 27.51



Code Product Description Pakistan's Exports to Algeria

Pakistan's exports to World

Algeria's Imports from World


251512 Marble and travertine, merely cut, by sawing or otherwise, into blocks or slabs of a square

0.00 25.06 30.33 25.06

640399 Footwear with outer soles of rubber, plastics or composition leather, with uppers of leather

0.01 68.99 22.97 22.96

020230 Frozen, boneless meat of bovine animals 0.00 20.40 70.36 20.40

210690 Food preparations 0.00 18.52 231.67 18.52

610990 T-shirts, singlets and other vests of textile materials, knitted or crocheted (excluding cotton)

0.04 106.42 17.61 17.57

850710 Lead-acid accumulators of a kind used for starting piston engine "starter batteries"

0.00 17.04 40.01 17.04

080390 Fresh or dried bananas (excluding plantains) 0.00 16.87 63.09 16.87

730890 Structures and parts of structures, of iron or steel

0.00 16.85 797.90 16.85

620342 Men's or boys' trousers, bib and brace overalls, breeches and shorts, of cotton

0.60 410.42 17.39 16.79

630140 Blankets and travelling rugs of synthetic fibres

0.00 24.33 16.59 16.59

610910 T-shirts, singlets and other vests of cotton, knitted or crocheted

0.70 197.76 17.29 16.58

Total of Top-25 Products 5.39 3,502.12 3,493.46 849.12

Table 24: Pakistan's Top-25 Potential Exports to Algeria

48


EASE OF DOING BUSINESS

SECTION

5

50

EASE OF DOING BUSINESS Ease of doing business is an economic indicator published annually by the World Bank to rank

economies based on how conducive regulatory environment is for business operations.

According to the ease of doing business report (2019), Algeria ranked 157 among 190 economies,

up by 9 places, as compared to the previous year. Algeria’s rank in dealing with construction

permits, getting electricity and trading across borders has significantly improved. For these

parameters, the rank went up by 17, 14 and 8 places respectively.

Indicators 2019 Rank 2018 Rank Change in Rank

Overall 157 166 9

Starting a Business 150 145 -5

Dealing with Construction Permits 129 146 17

Getting Electricity 106 120 14

Registering Property 165 163 -2

Getting Credit 178 177 -1

Protecting Minority Investors 168 170 2

Paying Taxes 156 157 1

Trading across Borders 173 181 8

Enforcing Contracts 112 103 -9

Resolving Insolvency 76 71 -5

Table 25: Ease of Doing Business (Selected Indicators)

Consulates & Business Forums

Algerian Ambassador to Pakistan:Mr. Lakhal Benkelai,

Embassy Address:

Algerian Embassy in Pakistan

House No. 107, Street No.9, Sector E-7

Islamabad

Pakistan

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