Presentation on North Western African Economies and their market conditions, economic development and social setting as well as cultural environment.

1. Said Cherkaoui, Ph.D. E-mail:
Center for International Trade Development
International Business Development Seminar Series
Seminar on Algeria
Doing Business in Africa
Algeria Tunis
ia
When: Tuesday, October 5, 2004 - Time 8:45 am - 1:00 pm
Where: United States Department of Commerce
250 Montgomery Street, 14th floor, San Francisco CA 94104

2. Said Cherkaoui, Ph.D. E-mail:
Presenter:
Dr. Cherkaoui’s career combines an
international consulting practice, executive
and managerial business duties with E-
Learning practices, applied research and
academic responsibilities in Europe and the
United States of America.
He has a successful record in international
trade, business, and market development
for various economic sectors which span
from food-agriculture to information
technology and telecommunications. He is
actually involved in trade and project
development in Morocco, Tunisia, the rest
of Africa, the Middle East and China.
During June 2004, Dr. Cherkaoui has
represented 15 Californian companies at
the Casablanca American Café Food Exhibit
organized by the USDA in Morocco.
Dr. Cherkaoui has held Executive and
Senior Management positions at Global
Center for Trade (GLOCENTRA), East Bay
Center for International Trade
Development and California-Mexico Trade
Assistance Center, Mercanteo/Amient,
Sprint, Everex, the San Francisco Chamber
of Commerce, Baker Associate and as
Researcher in France.
Dr. Cherkaoui is a published Author of inserts in a
dictionary on Africa, Middle East, the construction of the
European Market, the North American Free Trade
Agreement (NAFTA), Brazil, China (telecommunications)
and Custom Relationship Management.
Dr Cherkaoui holds a Doctorate in Economics with
Honors from the Universite de Sorbonne, Paris, France.
Dr Cherkaoui also received his DEA degree in
Prospective Science from l'Institut de Prospective et de
Politique de la Science, Universite Pierre-Mendes
France, (UPMF) Grenoble, France and a Diplome du
Second Cycle in Economics & Finance from L'Institut
d'Etudes Politiques, UPMF, Grenoble, France. His
graduate studies concentrated on the industrial role of
the Moroccan State while his Bachelor of Arts degree
was in Accounting, Economics and Statistics, both from
the same Institute.
Dr. Cherkaoui also holds several U.S. technical and
professional certificates on Telecommunications,
Information Technology, Entrepreneurship, Online
Teaching, Sales, International Trade, Trade Finance,
Export-Import operations and Trade with Mexico.

3. Said Cherkaoui, Ph.D. E-mail:
Algeria is important
to world energy
markets because it is
a significant oil and
gas producer and
exporter. Algeria also
is a member of OPEC
and an important,
growing energy
source for Europe..
Algeria’s Oil Production
Source: http://www.eia.doe.gov/emeu/cabs/algeria.html

4. Said Cherkaoui, Ph.D. E-mail:
 Algeria's average crude oil production during 2003
was around 1.2 million bbl/d. Together with 445,000
bbl/d of lease condensate and 250,000 bbl/d of natural
gas plant liquids, Algeria averaged about 1.86 million
bbl/d of total oil production during 2003, up sharply
from 1.57 million bbl/d in 2002. Algeria's crude oil
production is running well above its OPEC quota of
782,000 bbl/d (as of November 1, 2003; only crude oil
production is subject to the OPEC quota).
 Algeria had estimated net oil exports (including crude
oil, lease condensate, and natural gas liquids) of around
1.65 million bbl/d in 2002, most of which went to
Europe and the United States. Domestic oil consumption
is around 212,000 bbl/d.
Source: http://www.eia.doe.gov/emeu/cabs/algeria.html
Algeria’s Crude Oil

5. Said Cherkaoui, Ph.D. E-mail:
 Commercial production of natural gas began in 1961, with output in
2000 of 2.8 trillion cubic feet (Tcf). Algeria has 160 Tcf of proven
natural gas reserves, primarily associated (with oil), ranking it in the
top 10 worldwide. Algeria's recoverable natural gas potential may,
however, be as high as 282 Tcf.
 In 2000, natural gas (including natural gas liquids) accounted for
about 60% of Algeria's total hydrocarbons production. Algeria also is a
major natural gas exporter, accounting for one-fifth of EU natural gas
imports in 2000 (Russia accounted for 39% in that year).
 As of 2002, Algeria's total natural gas export capacity, via pipeline and
LNG tanker, was over 2 Tcf per year. This is expected to increase rapidly
in coming years as major new gas fields, export pipelines, and LNG
facilities come online.
 Algeria's goal is to export 3 Tcf per year or more by 2010. Algeria is a
founding member of the Gas Exporting Countries' Forum, a loose group
of 15 gas producing countries formed in Tehran in May 2000.
Source: http://www.eia.doe.gov/emeu/cabs/algeria.html
Algeria’s Natural Gas

6. Said Cherkaoui, Ph.D. E-mail:
ALGALGERIERIAA
Population: 32.8m (2003)Population: 32.8m (2003)
Nominal GDP: US$61.6bn - US$162.1bn (at PPP)Nominal GDP: US$61.6bn - US$162.1bn (at PPP)
GDP per head: US$1,880 - US$4,940 (at PPP)GDP per head: US$1,880 - US$4,940 (at PPP)
CurrencyCurrency:: Algerian DinarAlgerian Dinar
Public holidays: May 1st (Labour Day), June 19thPublic holidays: May 1st (Labour Day), June 19th
(Righting Day), July 5th (Independence Day), November(Righting Day), July 5th (Independence Day), November
1st (Anniversary of the Revolution).1st (Anniversary of the Revolution).
All Muslim holidays are observed in accordance withAll Muslim holidays are observed in accordance with
the lunar calendar: Martyr's Day; Eid al-Adha;the lunar calendar: Martyr's Day; Eid al-Adha;
Ramadan; Eid al-Fitr; January 1st (New Year).Ramadan; Eid al-Fitr; January 1st (New Year).

7. Said Cherkaoui, Ph.D. E-mail:
ALGALGERIERIAA
Local Trade RepresentationLocal Trade Representation
The appointment of agents or representatives inThe appointment of agents or representatives in
Algeria is no longer prohibited.Algeria is no longer prohibited.
Many individuals or partnerships are seeking toMany individuals or partnerships are seeking to
represent U.S. companies, although many have littlerepresent U.S. companies, although many have little
practice in this field.practice in this field.
International trade is much liberalized.International trade is much liberalized.
State monopolies for imports have been dismantledState monopolies for imports have been dismantled
and private operators are increasingly involved inand private operators are increasingly involved in
import/export transactions.import/export transactions.

8. Said Cherkaoui, Ph.D. E-mail:
ALGALGERIERIAA
Standards and Technical RegulationsStandards and Technical Regulations
There are over 2500 Algerian standards, most of themThere are over 2500 Algerian standards, most of them
equivalent to ISO standards with the exception of electricalequivalent to ISO standards with the exception of electrical
equipment, which are equivalent to CEI standards.equipment, which are equivalent to CEI standards.
A small number of standards are compulsory but theA small number of standards are compulsory but the
majority is only recommended. Contract standards aremajority is only recommended. Contract standards are
acceptable as long as they do not conflict with any that areacceptable as long as they do not conflict with any that are
compulsory.compulsory.
The Algerian standards organization is: INAPI -The Algerian standards organization is: INAPI - InstitutInstitut
Algérien de Normalisation et Propriété IndustrielleAlgérien de Normalisation et Propriété Industrielle, 5 & 7, 5 & 7
Rue Abou Hamou Moussa, Boite Postale 1021, AlgerRue Abou Hamou Moussa, Boite Postale 1021, Alger
Tel: 00 213 21 637771-Fax: 00 213 21 610971-Telex: 66409Tel: 00 213 21 637771-Fax: 00 213 21 610971-Telex: 66409

9. Said Cherkaoui, Ph.D. E-mail:
ALGALGERIERIAA
1-1- Labeling and Packaging RegulationsLabeling and Packaging Regulations
The label should be securely fixed to the packaging andThe label should be securely fixed to the packaging and
surround it and should be in Arabic and French and to besurround it and should be in Arabic and French and to be
in legible characters that are readily visible in the normalin legible characters that are readily visible in the normal
conditions of presentation and sale with the following:conditions of presentation and sale with the following:
1)1) Sales name, distinct from the brand or fancy name;Sales name, distinct from the brand or fancy name;
2)2) Name or company name and address of theName or company name and address of the
manufacturer and the Algerian natural person or legalmanufacturer and the Algerian natural person or legal
entity who is responsible for importing, packing orentity who is responsible for importing, packing or
marketing the product;marketing the product;
3)3) Net contents expressed in metric units;Net contents expressed in metric units;
4)4) Mode of use, and any precautions if requiredMode of use, and any precautions if required..

10. Said Cherkaoui, Ph.D. E-mail:
ALGALGERIERIAA
2-2- Labeling and Packaging RegulationsLabeling and Packaging Regulations
With hazardous products: the label shall also mention theWith hazardous products: the label shall also mention the
symbol or symbols that represent the toxicity,symbol or symbols that represent the toxicity,
inflammability, corrosivity, irritation risks, etc.inflammability, corrosivity, irritation risks, etc.
The above information may be printed direct onto theThe above information may be printed direct onto the
packaging if the visibility and legibility requirements arepackaging if the visibility and legibility requirements are
met and the information is indelible.met and the information is indelible.
The packaging that is used for hazardous products shouldThe packaging that is used for hazardous products should
be different from that used for food products.be different from that used for food products.
Where volumes and weights are less than five liters or fiveWhere volumes and weights are less than five liters or five
kilograms, any material may be used apart from glass orkilograms, any material may be used apart from glass or
plastic where these are transparent or translucent and in theplastic where these are transparent or translucent and in the
form of bottles, jars or pots.form of bottles, jars or pots.

11. Said Cherkaoui, Ph.D. E-mail:
ALGALGERIERIAA
Patents and TrademarksPatents and Trademarks
Manufacturers and traders are strongly advised to patent theirManufacturers and traders are strongly advised to patent their
inventions and register their trademarks in Algeria, and to do so throughinventions and register their trademarks in Algeria, and to do so through
a patent or trademark agent.a patent or trademark agent.
Algeria subscribes to the International Convention for the ProtectionAlgeria subscribes to the International Convention for the Protection
of Industrial Property.of Industrial Property.
The inventor or his assignee may apply for a patent and unless there isThe inventor or his assignee may apply for a patent and unless there is
a reciprocal agreement, foreigners living abroad must appoint ana reciprocal agreement, foreigners living abroad must appoint an
Algerian agent resident in Algeria.Algerian agent resident in Algeria.
Before the filing, date or earlier priority date of application theBefore the filing, date or earlier priority date of application the
invention must not have been available to the public in Algeria orinvention must not have been available to the public in Algeria or
elsewhereelsewhere
Patents are granted for a period of 20 years subject to annual renewalPatents are granted for a period of 20 years subject to annual renewal
fees.fees.

12. Said Cherkaoui, Ph.D. E-mail:
ALGALGERIERIAA
PatentsPatents
Compulsory licenses may be granted if, withoutCompulsory licenses may be granted if, without
good cause, the patent has not been adequatelygood cause, the patent has not been adequately
worked within four years from the application orworked within four years from the application or
three years from the grant of patent.three years from the grant of patent.
Patents of confirmation are also granted for patentsPatents of confirmation are also granted for patents
granted in a foreign country before 1 January 1966,granted in a foreign country before 1 January 1966,
where the invention and its benefits to the nationalwhere the invention and its benefits to the national
economy justify it. Such patents are granted for aeconomy justify it. Such patents are granted for a
term of 10 years subject to annual renewal fees.term of 10 years subject to annual renewal fees.

13. Said Cherkaoui, Ph.D. E-mail:
ALGALGERIERIAA
TrademarksTrademarks
The first applicant is entitled to register a trademark,The first applicant is entitled to register a trademark,
but if the trademark is not used during the yearbut if the trademark is not used during the year
following registration, without good cause, thefollowing registration, without good cause, the
registration ceases to be effective.registration ceases to be effective.
An authorized delegate domiciled in Algeria abroadAn authorized delegate domiciled in Algeria abroad
must represent applicants resident in Algeria.must represent applicants resident in Algeria.
Registration is for a period of 10 years and may beRegistration is for a period of 10 years and may be
renewed.renewed.

14. Said Cherkaoui, Ph.D. E-mail:
ALGALGERIERIAA
1-1- Exchange ControlsExchange Controls
Any amount of foreign currency may be taken intoAny amount of foreign currency may be taken into
the country on arrival at the Algerian port of entry.the country on arrival at the Algerian port of entry.
Visitors must obtain and complete a certificate,Visitors must obtain and complete a certificate,
which should be immediately endorsed bywhich should be immediately endorsed by
customs showing how much currency is beingcustoms showing how much currency is being
bought into the country.bought into the country.
This document must be produced and dulyThis document must be produced and duly
endorsed whenever foreign currency is exchangedendorsed whenever foreign currency is exchanged
for Algerian currency for use in the country.for Algerian currency for use in the country.

15. Said Cherkaoui, Ph.D. E-mail:
ALGALGERIERIAA
2-2- Exchange ControlsExchange Controls
Visitors must obtain and complete a certificate, whichVisitors must obtain and complete a certificate, which
should be immediately endorsed by customs showingshould be immediately endorsed by customs showing
how much currency is being bought into the country.how much currency is being bought into the country.
This document must be produced and duly endorsedThis document must be produced and duly endorsed
whenever foreign currency is exchanged for Algerianwhenever foreign currency is exchanged for Algerian
currency for use in the country.currency for use in the country.
On departure, this document must be surrendered toOn departure, this document must be surrendered to
customs.customs.
It is difficult to reconvert Dinar into hard currency.It is difficult to reconvert Dinar into hard currency.
Customs authorities require that visitors changeCustoms authorities require that visitors change
foreign currency on first arrival up to the sum offoreign currency on first arrival up to the sum of
DA1000. Oct 5, 2004 Rates for 1 US$ = DA 77.989DA1000. Oct 5, 2004 Rates for 1 US$ = DA 77.989

16. Said Cherkaoui, Ph.D. E-mail:
ALGALGERIERIAA
Import ControlsImport Controls
Some 41 categories of imported goods are at presentSome 41 categories of imported goods are at present
prohibited, in some cases because they are luxuries, inprohibited, in some cases because they are luxuries, in
other cases to protect local industry.other cases to protect local industry.
In case of protection of local product an AlgerianIn case of protection of local product an Algerian
company may be able to obtain a license to import thecompany may be able to obtain a license to import the
goods if it can be shown that they cannot be suppliedgoods if it can be shown that they cannot be supplied
locally. There are no other quantitative restrictions onlocally. There are no other quantitative restrictions on
imports.imports.
In all cases the importer must open a domiciliation.In all cases the importer must open a domiciliation.
File with one of the banks. This includes a pro-formaFile with one of the banks. This includes a pro-forma
invoice and/or a contract when available and all paymentsinvoice and/or a contract when available and all payments
must arrange via the bank.must arrange via the bank.

17. Said Cherkaoui, Ph.D. E-mail:
ALGALGERIERIAA
Import FormalitiesImport Formalities
The larger the order, the more likely it is that state-allocated foreignThe larger the order, the more likely it is that state-allocated foreign
exchange will be required to fund it and the importer will have to make a caseexchange will be required to fund it and the importer will have to make a case
to the ministerial committee, or to the bank, based on the importance of theto the ministerial committee, or to the bank, based on the importance of the
import to the nation.import to the nation.
a)a) The same will be for imports over US$100,000, they must receiveThe same will be for imports over US$100,000, they must receive
authorization of an ad-hoc interministerial committee. Credit terms of over 18authorization of an ad-hoc interministerial committee. Credit terms of over 18
months are normally required.months are normally required.
b) Imports under US$100,000 can be paid for, on a cash basis, by the banks outb) Imports under US$100,000 can be paid for, on a cash basis, by the banks out
of their monthly foreign exchange allowance. The amount of such imports areof their monthly foreign exchange allowance. The amount of such imports are
restricted to certain types of goods (eg spare parts and additional rawrestricted to certain types of goods (eg spare parts and additional raw
material) and they are subject to the availability of limited foreign exchange atmaterial) and they are subject to the availability of limited foreign exchange at
the banks.the banks.
Both the above only apply when state foreign exchange is required.Both the above only apply when state foreign exchange is required.
c) Importations sans payment. These are imports paid for out of the importer’s ownc) Importations sans payment. These are imports paid for out of the importer’s own
foreign currency through their account devise (Foreign currency account). No limitationforeign currency through their account devise (Foreign currency account). No limitation
exists on the value of such imported goods.exists on the value of such imported goods.

18. Said Cherkaoui, Ph.D. E-mail:
ALGALGERIERIAA
DocumentationDocumentation
The Customs authorities in Algeria request the form EX-1The Customs authorities in Algeria request the form EX-1
from all exporters to Algeria.from all exporters to Algeria.
In the event that this form is unobtainable in the country ofIn the event that this form is unobtainable in the country of
origin, an attestation can be obtained from the nearestorigin, an attestation can be obtained from the nearest
Algerian consulate/embassy.Algerian consulate/embassy.
This document certifies that the goods in question areThis document certifies that the goods in question are
being exported from that country towards Algeria. Thebeing exported from that country towards Algeria. The
attestation, in fact, will be in lieu of the EX-1 exportattestation, in fact, will be in lieu of the EX-1 export
document.document.

19. Said Cherkaoui, Ph.D. E-mail:
GenericGeneric ObservationsObservations on Algerianon Algerian
BusinessBusiness CultureCulture
Economy and Society are respectively moving away gradually from centralized andEconomy and Society are respectively moving away gradually from centralized and
state ownership and male-dominated structure with more women are entering the workstate ownership and male-dominated structure with more women are entering the work
force.force.
Handshaking is the customary form of greeting but some people may brush cheeks orHandshaking is the customary form of greeting but some people may brush cheeks or
kiss.kiss.
Greetings usually include inquiries about one's health and family.Greetings usually include inquiries about one's health and family.
Many of the manners and social customs emulate French manners.Many of the manners and social customs emulate French manners.
French is the language of business, but the use of English is increasing. Spanish is alsoFrench is the language of business, but the use of English is increasing. Spanish is also
spoken.spoken. Product information should be in French.Product information should be in French.
Business people should be dressed professionally and conservatively, but a suit is notBusiness people should be dressed professionally and conservatively, but a suit is not
necessary in very hot weather. Dress like locals to get better acceptance.necessary in very hot weather. Dress like locals to get better acceptance. Meetings tendMeetings tend
to be slow-paced, beginning with long amenities and gradually approaching theto be slow-paced, beginning with long amenities and gradually approaching the
purpose.purpose. Negotiations often involve a lot of bargaining, and a visitor should expect toNegotiations often involve a lot of bargaining, and a visitor should expect to
deal with many people.deal with many people.
Most businesses close for a two and a half-hour during midday.Most businesses close for a two and a half-hour during midday.

20. Said Cherkaoui, Ph.D. E-mail:
Acting in AlgeriaActing in Algeria
Do’s:Do’s:
Be patient but firm.Be patient but firm.
Do be sensitive to religious holidays.Do be sensitive to religious holidays.
Appointments should be made in advance.Appointments should be made in advance.
Don’ts:Don’ts:
Be careful not to give a sense of urgency.Be careful not to give a sense of urgency.
Do not discuss Christianity or try to engage Moroccans in a debate about it.Do not discuss Christianity or try to engage Moroccans in a debate about it.
Avoid offering alcohol to Muslims during Ramadan.Avoid offering alcohol to Muslims during Ramadan.
Do not try to enter a religious building if you are not Muslim.Do not try to enter a religious building if you are not Muslim.

21. Said Cherkaoui, Ph.D. E-mail:
Email us your Questions
THANK YOU
FOR YOUR ATTENTION