Tweet
With accession to the World Trade Organisation on the horizon in 2006 and the EU Association Agreement now in force, Algeria has signalled its move to free markets and free trade. At the same time, President Bouteflika’s Charter for Peace and National Reconciliation has stressed the need to put the past aside and concentrate on the much-needed task of economic development.
Emerging Algeria 2006 contains in-depth analysis of all the economic and business sectors, along with interviews and viewpoints from key players, including President Bouteflika, Minister of Finance Mourad Medelci, Mohamed Meziane, CEO of Sonatrach, Ian Smale, CEO and President of BP North Africa, and many other key personalities.
ECONOMY
Record oil prices have meant unprecedented stability and prosperity for the Algerian economy, as well as a golden opportunity for reform. The government’s $60bn spending programme targeting infrastructure, housing, education and jobs training should help to make long-term growth sustainable. In this chapter, expertly written articles and interviews with leading government and business figures survey developments in the Algerian economy, including changes in the job market, efforts to prepare for WTO membership, the challenges and opportunities of the EU Association Agreement and prospects for export growth outside of oil and gas. An interview with the minister of finance, Mourad Medelci, explores the government’s reform efforts and outlines its ambitious $60bn spending programme.
BANKING
Despite the liberalisation of the banking sector in 1990, the Algerian market remains significantly under-banked, limiting both investment and growth. Our sector overview covers the prospects for future growth as well as the obstacles currently hindering sector development, including high levels of non-performing loans (NPLs), low penetration rates and the sluggish pace of privatisation. Specialist articles examine privatisation efforts and the growing momentum for banking reform. A viewpoint from Abdelkader Beltas, president of SRH, traces the development of the Algerian mortgage market.
CAPITAL MARKETS
With only three stocks on offer and a market capitalisation of $1.4bn, the Algiers Stock Exchange remains something of a fledgling market. A number of new IPOs and bond issues slated for 2006 should give the market a much-needed boost. We review the upcoming transactions and offer in-depth analysis on leading bonds. We hear from Lachemi Siagh, CEO of Strategica, on the ins and outs of investing and raising capital in Algeria. An interview with the head of Algeria’s bourse regulator highlights government initiatives to kick-start the equity market.
INSURANCE
Although it continues to lag behind other regional markets, efforts are underway to modernise the Algerian insurance sector. State controls keep premiums artificially low, hampering revenues and impeding growth in the sector. The market also remains overly reliant on automobile premiums, though proposed changes to the insurance law should help boost the personal insurance segment, particularly life insurance. This chapter reviews recent moves towards privatisation, cultural barriers to widespread insurance adoption and the lingering impact of the earthquakes of 2003. We also interview the head of the National Insurance Council.
TELECOMS & IT
With the entry of a third private mobile operator, Algeria is now the fastest growing market in the Maghreb. Further investment is needed to reach regional standards, and network development and service quality are in particular need of improvement. This chapter surveys prospects for the sector, including the potential for a second fixed-line provider, the problem of illegal handset sales and the growth of Chinese suppliers. We also assess how low penetration rates and over-reliance on government spending continue to hamper the growth of the IT sector. An in-depth feature takes a closer look at the problem of rampant software piracy, as well as the steps the government is finally taking to combat it.
source : Oxford Business Group
Emerging Algeria 2006 contains in-depth analysis of all the economic and business sectors, along with interviews and viewpoints from key players, including President Bouteflika, Minister of Finance Mourad Medelci, Mohamed Meziane, CEO of Sonatrach, Ian Smale, CEO and President of BP North Africa, and many other key personalities.
ECONOMY
Record oil prices have meant unprecedented stability and prosperity for the Algerian economy, as well as a golden opportunity for reform. The government’s $60bn spending programme targeting infrastructure, housing, education and jobs training should help to make long-term growth sustainable. In this chapter, expertly written articles and interviews with leading government and business figures survey developments in the Algerian economy, including changes in the job market, efforts to prepare for WTO membership, the challenges and opportunities of the EU Association Agreement and prospects for export growth outside of oil and gas. An interview with the minister of finance, Mourad Medelci, explores the government’s reform efforts and outlines its ambitious $60bn spending programme.
BANKING
Despite the liberalisation of the banking sector in 1990, the Algerian market remains significantly under-banked, limiting both investment and growth. Our sector overview covers the prospects for future growth as well as the obstacles currently hindering sector development, including high levels of non-performing loans (NPLs), low penetration rates and the sluggish pace of privatisation. Specialist articles examine privatisation efforts and the growing momentum for banking reform. A viewpoint from Abdelkader Beltas, president of SRH, traces the development of the Algerian mortgage market.
CAPITAL MARKETS
With only three stocks on offer and a market capitalisation of $1.4bn, the Algiers Stock Exchange remains something of a fledgling market. A number of new IPOs and bond issues slated for 2006 should give the market a much-needed boost. We review the upcoming transactions and offer in-depth analysis on leading bonds. We hear from Lachemi Siagh, CEO of Strategica, on the ins and outs of investing and raising capital in Algeria. An interview with the head of Algeria’s bourse regulator highlights government initiatives to kick-start the equity market.
INSURANCE
Although it continues to lag behind other regional markets, efforts are underway to modernise the Algerian insurance sector. State controls keep premiums artificially low, hampering revenues and impeding growth in the sector. The market also remains overly reliant on automobile premiums, though proposed changes to the insurance law should help boost the personal insurance segment, particularly life insurance. This chapter reviews recent moves towards privatisation, cultural barriers to widespread insurance adoption and the lingering impact of the earthquakes of 2003. We also interview the head of the National Insurance Council.
TELECOMS & IT
With the entry of a third private mobile operator, Algeria is now the fastest growing market in the Maghreb. Further investment is needed to reach regional standards, and network development and service quality are in particular need of improvement. This chapter surveys prospects for the sector, including the potential for a second fixed-line provider, the problem of illegal handset sales and the growth of Chinese suppliers. We also assess how low penetration rates and over-reliance on government spending continue to hamper the growth of the IT sector. An in-depth feature takes a closer look at the problem of rampant software piracy, as well as the steps the government is finally taking to combat it.
source : Oxford Business Group
Commentaire