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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
ii
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
samir@pbc.org.pk or ahsan.hamid@pbc.org.pk
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
vi
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.
x
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
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 05
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
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 07
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.
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 09
10
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 11
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
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 13
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
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 15
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)
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 17
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
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 19
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
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 21
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
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 23
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
Total All Products 66.00 60.39 34.80 29.99 35.19
Code Product Description
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.
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 25
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
Total All Products 54.91 58.62 51.80 47.09 46.05
Code Product Description
84 Machinery, mechanical appliances, nuclear reactors, boilers; parts
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
27 Mineral fuels, mineral oils and products 4.32 2.84 2.34 1.56 1.94
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
Total All Products 54.91 58.62 51.80 47.09 46.05
Code Product Description
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
271019 Medium oils and preparations 2.52 1.30 1.04 0.54 0.81
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
271012 Light oils and preparations 1.25 0.89 0.95 0.80 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
870332 Motor cars and other vehicles principally designed for the transport of persons
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
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 27
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
Code Product Description
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
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 29
All values in USD Million
2013 2014 2015 2016 2017
84 Machinery, mechanical appliances, nuclear reactors, boilers; parts
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
Code Product Description
271012 Light oils and preparations 587.10 902.36 310.13 226.50 514.55
270900 Petroleum oils, crude 1,478.33 437.86 111.27 0.00 106.42
271111 Natural gas, liquefied 68.06 141.96 87.10 15.72 31.78
271112 Propane, liquefied 43.73 176.72 43.86 67.56 19.53
271113 Butanes, liquefied (excluding of a purity of >= 95% of N-butane or isobutane)
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
Code Product Description
84 Machinery, mechanical appliances, nuclear reactors, boilers; parts
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
87 Vehicles other than railway or tramway rolling stock, and parts
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
39 Plastics and articles thereof 186.79 202.06 200.05 207.70 220.31
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
Code Product Description
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
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 31
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
Total All Products 816.23 682.75 260.07 479.79 871.52
Code Product Description
27 Mineral fuels, mineral oils and products 802.62 674.89 236.68 452.54 858.23
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
Exports Imports Trade Balance
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 33
All values in USD Millions
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
84 Machinery, mechanical appliances, nuclear reactors, boilers; parts
0.00 0.21 0.00 0.07 0.10
51 Wool, fine or coarse animal hair; horsehair yarn and woven fabric
0.00 0.00 0.00 0.03 0.07
39 Plastics and articles thereof 0.08 0.07 0.00 0.02 0.03
30 Pharmaceutical products 0.00 0.00 0.00 0.00 0.00
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
Total All Products 816.233 682.754 260.067 479.791 871.524
Code Product Description
270900 Petroleum oils, crude 323.52 347.32 201.83 387.69 734.32
271111 Natural gas, liquefied 120.70 110.62 0.00 18.02 84.97
271019 Medium oils and preparations 358.40 205.88 30.22 20.50 26.53
271113 Butanes, liquefied (excluding of a purity of >= 95% of N-butane or isobutane)
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
271112 Propane, liquefied 0.00 4.03 3.26 6.35 3.07
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
Code Product Description
87 Vehicles other than railway or tramway rolling stock, and parts
483.69 447.94 367.06 136.73 246.18
84 Machinery, mechanical appliances, nuclear reactors, boilers; parts
86.84 82.53 104.89 116.08 105.95
29 Organic chemicals 55.16 57.42 57.85 74.54 94.38
30 Pharmaceutical products 56.45 59.02 64.96 72.55 79.23
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
39 Plastics and articles thereof 16.47 14.65 34.48 32.75 41.27
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.
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 35
Top-10 Products at HS-06 level Imported by Algeria from IndiaAll values in USD Million
2013 2014 2015 2016 2017
Total All Products 1306.68 1196.01 1117.15 940.50 983.92
Code Product Description
870322 Motor cars and other vehicles principally designed for the transport of persons
281.84 310.24 251.73 61.29 125.32
870332 Motor cars and other vehicles principally designed for the transport of persons
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
300490 Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes
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
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 37
38
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 39
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
Exports Imports Trade Balance
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 41
Top-10 Products at HS-02 Level Exported by Algeria to PakistanAll values in USD Million
2013 2014 2015 2016 2017
Total All Products 0.39 0.30 0.21 0.07 0.08
Code Product Description
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
51 Wool, fine or coarse animal hair; horsehair yarn and woven fabric
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
54 Man-made filaments 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
Total All Products 0.39 0.30 0.21 0.07 0.08
Code Product Description
790112 Unwrought zinc, not alloyed, containing by weight < 99,99% of zinc
0.00 0.00 0.00 0.00 0.06
470790 Recovered “waste and scrap” paper or paperboard
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
All values in USD Million
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.
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 43
Top-10 Products at HS-02 Level Imported by Algeria from PakistanAll values in USD Million
2013 2014 2015 2016 2017
Total All Products 32.03 33.81 28.96 26.95 24.93
Code Product Description
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
54 Man-made filaments 3.13 3.21 4.32 3.39 1.63
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
Total All Products 32.03 33.81 28.96 26.95 24.93
Code Product Description
100630 Semi-milled or wholly milled rice, whether or not polished or glazed
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
All values in USD Million
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.
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 45
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
470790 Recovered “waste and scrap” paper or paperboard
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
300490 Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes
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
Export Potential2017
481159 Paper and paperboard, surface-coloured, surface-decorated …
0.00 81.07 77.49 77.49
100630 Semi-milled or wholly milled rice, whether or not polished or glazed
3.29 1512.69 74.86 71.57
300490 Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes
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
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 47
All values in USD Millions
Code Product Description Pakistan's Exports to Algeria
Pakistan's exports to World
Algeria's Imports from World
Export Potential2017
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
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE 49
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
PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA n COUNTRY PROFILE C
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