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Business images of Algeria

Economy of Algeria

Algeria's economy continued to recover in the first half of 2022, led by a return of oil production to pre-pandemic levels and a continued recovery of the service sector along with a more vigorous agricultural activity. The recovery should continue into 2023, supported by the nonhydrocarbon sector and public expenditure growth, according to the latest edition of the World Bank's Algeria Economic Update.<br>External balances recovered and continued to grow on the back of higher global hydrocarbon prices. After growing by an estimated 59% over the first six months of 2022 and peaking in June, the average price of Algerian hydrocarbon exports lost around 26% in Q3-2022. External balances were also buoyed by a notable rise in non-hydrocarbon exports. Algeria’s terms of trade also improved as the dinar appreciated relative to the U.S. dollar and the Euro.

Top Sectors in Algeria

Agriculture in Algeria

Algeria's agricultural sector, which contributes about 8 percent of gross domestic product (GDP) but employs 14 percent of the workforce, is unable to meet the food needs of the country's population. As a result, some 45 percent of food is imported. The primary crops are wheat, barley, and potatoes. Farmers also have had success growing dates for export. Cultivation is concentrated in the fertile coastal plain of the Tell region, which represents just a slice of Algeria's total territory.

Fishing in Algeria

Fishing is a flourishing but minor industry. Fish caught are principally sardines, bonito, mackerel, smelt and sprats. Fresh fish are exported to France, dried and preserved fish to Spain and Italy. Coral fisheries are found along the coast from Bona to Tunis. The annual catch averages around 142,000 tons, 54% sardines.

Mining in Algeria

Algeria is rich in minerals; the country has many iron, lead, zinc, copper, calamine, antimony and mercury mines. The most productive are those of iron and zinc. Lignite is found in Algiers; immense phosphate beds were discovered near Tébessa in 1891, yielding 313,500 tons in 1905. Phosphate beds are also worked near Sétif, Guelma and Aïn Beïda. There are more than 300 quarries which produce, amongst other stones, onyx and white and red marbles. Algerian onyx from Ain Tekbalet was used by the Romans, and many ancient quarries have been found near Sidi Ben Yebka, some being certainly those from which the long-lost Numidian marbles were taken. Salt is collected on the margins of the chotts.

Banking in Algeria

Algeria's banking sector, largely controlled by public banks, faces challenges with high levels of non-performing loans, particularly to state-owned enterprises. Despite efforts to implement IMF-recommended reforms, such as enhancing supervision and modernizing the payment system, progress has been modest. Specific achievements include the establishment of the Algerian Real Time Settlements system in 2006. However, proposed privatization plans, like that of Crédit Populaire d’Algérie, have faced delays due to market instability. Recently, HSBC and Deutsche Bank announced plans to enter Algeria's banking market.

Tourism in Algeria

Algeria's tourism industry, which contributes only about 1 percent of GDP, lags behind that of its neighbors Morocco and Tunisia. Algeria receives only about 200,000 tourists and visitors annually. Ethnic Algerian French citizens represent the largest group of tourists, followed by Tunisians. The modest level of tourism is attributable to a combination of poor hotel accommodations and the threat of terrorism. However, the government has adopted a plan known as “Horizon 2025,” which is designed to address these shortcomings.


Algeria - Key Economic Indicators

Exports and Imports

Algeria's economy relies heavily on exports, with hydrocarbons (natural gas, crude oil) making up nearly 90% of its export value. They import a variety of goods, including wheat, food products, machinery, and iron ore.

Infrastructure Development

Algeria has invested in developing its road network, but there's still room for improvement. Total road length surpasses 100,000 kilometers, though upgrades and maintenance are ongoing. Other infrastructure projects include expanding ports and improving the national railway system.

Fiscal Policy

The Algerian government aims to diversify its income beyond oil and gas. They are working on increasing tax collection and reducing reliance on hydrocarbon revenue.

Monetary Policy

The Central Bank of Algeria manages inflation and interest rates. They may adjust these to control economic activity and currency stability.

Trade Agreements

Algeria participates in several trade agreements, including the Greater Arab Free Trade Area, which helps facilitate trade with other Arab nations.

Environmental Regulations

Algeria faces environmental challenges like desertification. The government has introduced regulations to address these issues, but stricter enforcement may be needed.

Tax system

Corporate Income Tax (CIT): Algeria utilizes a two-tiered corporate income tax system. The standard CIT rate stands at 26% for most business activities. However, specific sectors like construction, public works, tourism, and thermal activities (excluding travel agencies) benefit from a reduced rate of 23%.
Personal Income Tax: Personal income in Algeria is subject to a progressive tax structure. This means the tax rate increases as taxable income rises. The tax rate starts at 0% and goes up to a maximum of 35%. There's also a minimum threshold below which income isn't taxed (around 120,000 DZD or US$1053).
Sales Tax (VAT): The Value Added Tax (VAT) serves as the primary sales tax in Algeria. The standard VAT rate sits at 19%. This tax applies to the value added at each stage of the production and distribution chain.
Property Tax: Information on a separate property tax for individuals is limited. However, a single fixed tax system exists for businesses with a turnover below 30,000,000 DZD (approx. US$263,400). This tax combines elements of income tax, VAT, and professional activity tax, simplifying tax collection for smaller businesses.
Capital Gains Tax: Unlike some countries, Algeria doesn't have a separate capital gains tax. Profits generated from investments are likely taxed under the regular income tax regime.
Payroll Tax: Algeria's progressive income tax system essentially functions as a payroll tax for individuals. The tax rate on salaries and wages increases with higher income levels.
Tax Deductions and Credits: While specific details on current deductions and credits are limited, the system does offer a preferential rate for corporate profits that are reinvested (5%) compared to distributed profits (42%). This incentivizes companies to reinvest profits back into the business.
Tax Compliance: The Algerian tax administration is actively working on reforms to improve tax collection efficiency. The introduction of the single fixed tax system for small businesses also aims to simplify tax compliance in that sector.
Tax Burden: Overall, Algeria appears to have a moderate tax burden. While the top income tax tier reaches 35%, a minimum threshold exists, and the single fixed tax system eases the burden for smaller businesses.

386 Live Notices for Algeria ....

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Acquisition Of Full-Size 4X4 Suv Vehicles For Embassy Algiers
country Algeria
posting date26 Aug 2025
deadline10 Sep 2025
Maintenance of Primary Schools for the Year 2025
country Algeria
posting date26 Aug 2025
deadline31 Aug 2025
Renting School Buses for the Year 2025
country Algeria
posting date26 Aug 2025
deadline31 Aug 2025
The maintenance and upkeep of inverters installed at the level of the Directorate of Secure Titles and Documents located in Dar El-Beida and its secondary site located in Laghouat
country Algeria
posting date26 Aug 2025
deadline27 Aug 2025
Partial development work at the headquarters of the Bank of Algeria in Laghouat
country Algeria
posting date26 Aug 2025
deadline10 Sep 2025
ACQUISITION OF MONOCHROME LASER PRINTERS
country Algeria
posting date26 Aug 2025
deadline22 Sep 2025
THE ACQUISITION OF 350 USB E-TOKENS
country Algeria
posting date26 Aug 2025
deadline23 Sep 2025
Work to connect the sewerage system of the Bank of Algeria building in Cherchell to the public network and miscellaneous
country Algeria
posting date26 Aug 2025
deadline16 Sep 2025
Acquisition of IT equipment
country Algeria
posting date26 Aug 2025
deadline03 Sep 2025
Upgrading the software of the Algeria Post call center platform
country Algeria
posting date26 Aug 2025
deadline07 Sep 2025
Construction of a building consisting of a ground floor + two floors, all state-owned facilities for technical use, and a data center at the new headquarters of the Ministry of Housing, Urban Planning and the City located in Dely Ibrahim, Algeria
country Algeria
posting date26 Aug 2025
deadline02 Sep 2025
Acquisition of Equipment for the EPH and EHS of the wilaya of Tiaret
country Algeria
posting date26 Aug 2025
deadline09 Sep 2025
Provision for Construction of a B6/200R middle school to replace the Abou El Kacem El Chabi middle school in the Municipality of Sidi M'hamed
country Algeria
posting date26 Aug 2025
deadline10 Sep 2025
PROVISION FOR THE SELECTION OF A COMPANY FOR DRILLING, EXTRACTION, AND STOCKPOSTING OF 300,000 TONS OF IRON ORE AT GARA DJEBILET-W. TINDOUF
country Algeria
posting date26 Aug 2025
deadline09 Oct 2025
Opinion National Consultation N ° 39/At/Dg/Damp/Dam/2025/Range
country Algeria
posting date25 Aug 2025
deadline14 Sep 2025
Acquisition of synthetic oils for the benefit of SGSIA/Algiers Airport.
country Algeria
posting date25 Aug 2025
deadline09 Sep 2025
Acquisition of office supplies for SGSIA/Algiers Houari Boumediene Airport.
country Algeria
posting date25 Aug 2025
deadline10 Sep 2025
PROVISION FOR DRIVING, DRILLING, AND CONCRETE WORK OF (73) PILES
country Algeria
posting date25 Aug 2025
deadline12 Sep 2025
Provision for the completion of works on 500/200 public rental housing units in Miliana, from the program for the year 2025
country Algeria
posting date25 Aug 2025
deadline03 Sep 2025
Supply of coating product (two-component polyurethane pitch A & B); intended for various projects.
country Algeria
posting date25 Aug 2025
deadline10 Sep 2025