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                            A Special International Report Prepared by
                           The Washington Times Advertising Department - Published on July 2, 1999
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Advertisers

(1) Sonatrach, An International Petroleum Group

(2)Council of Privitisation

(3)Bank of Agriculture and Rural Development

(4)CNEP

(5)Group Touring Club of Algeria

(6)Groupe Enad

(7)Wines from Algeria

(8)Blanky Industry Company

(9)EFG - Hermes

(10)DHL Worldwide Express

(11)Enterprise De Travaux Publics Batiments & Hydraulique

(12)Office National des Aliments du Betail (ONAB)

(13)Hotel El Djazaïr

(14)Halliburton Company

(15)Algeria National Enterprise for Tourism

(16)Investment Promotion, Support and Monitoring Agency, APSI

(17)Hôtel El-Aurassi

(18)Saïdal Group

(19)Mechanical Public Holding

(20)ENCG

(21)Sonatrach, Partnership the strategic choice

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A Special International Report Prepared by The Washington Times
Advertising Department

Written by:
Rod Craig

Propject Director:
Hala Nasreddine

Photography by:
Rod Craig

For more information, call
The Washington Times International Advertising Department
at (202) 636-3035
(202) 635-0103 fax
e-mail: natlad@wt.infi.net

Director-General sees light as country comes out of tunnel

"The country is coming out from a long tunnel," said Khaled Bouguerra, director-general of the APSI, the government's agency for investment promotion, support and followup.

Bouguerra felt that many people had accounts to settle with Algeria: "I am not talking about the American opinion - the Americans don't know Algeria.

"Algeria has never had a remarkable image. When there were demonstrations in Algeria - many people thought it was for bread or flour. But this was a false impression. There has never been famine in Algeria.

"Algeria is a complicated country. During the past eight years it has appeared in the media a lot. So much so that every one has heard of it now. I think that in the long term we shall gain from even the negative."

"The APSI is a government agency which is the fruit of much work. When Algeria started its reforms the first part was a law of which one of the aims was to separate the functions linked to monetary powers from government powers.

"In 1993 there was the revision of the code of commerce. There was the liberalization of the exterior commercial code so it fell under the competence of a bank and not of a minister. We had to create the whole mechanization of decentralization and liberalization.

"Now there is the equality of treatment between economic agencies whatever their nationality."

There was no longer the notion of nationality of capital.

"Capital is just resident or non-resident - it is resident if it is in an Algerian bank and non-resident if it is in a foreign bank. There is complete equality between a local promoter and a foreign promoter because the incentive system is the same."

The APSI reports that investment declarations continued to grow considerably in 1998 after "significant results" in 1997.

The number of projects that were declared grew from 694 in 1994 to 4,989 in 1997 and reached nearly the double (9,144) in 1998. However, although the number of job creations rose from 1997 to 1998, it was by a smaller percentage - they went from 266,761 to 388,702. In financial terms investments went from 438 billion Dinars to 912 billion Dinars in 1998.

In the public sector there were only 84 projects totalling 29 billion Dinars and creating only 15,000 jobs.

There were also six mixed companies, of which five were with foreign partners, costing 3 billion Dinars and creating 870 jobs.

The imbalance between private and public investment can be explained by the government’s policy of disengagement from the economic sector in favor of private initiative, the lack of resources of existing public enterprises to extend their investments, and the incentives which are available for the development of small and medium sized industries.

Table of Contents

(1) His Excellency Abdelaziz Bouteflika, President of the Democratic and Popular Republic of Algeria

(2) Country has resources and potential and is moving toward peace

(3) History

(4) Stability predictable for Algeria

(5) Terrorism is costly - in lives and finances

(6) Political Parties

(7) Despite being free, press sometimes is silenced

(8) Local bidders and foreign investors being courted

(9) Despite previous problems, economic future is bright

(10) Institutions

(11) Director-General sees light as country comes out of tunnel