Overview

City of bridges: Full of natural and historical wonders, Constantine is a hidden gem
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Home to almost 450,000 people, Constantine is Algeria’s third-largest city after Algiers and Oran, and is known as the city of suspended bridges. It was selected in 2012 by the Arab League Educational, Cultural and Scientific Organisation (ALECSO) to be the Arab Capital of Culture in 2015. The city, once known as Cirta, the capital of the Kingdom of Numidia, was given its name in 313 by Emperor…

Overview

Stable environment: The Algerian tax regime saw few changes in the 2013 financial year
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Unlike in prior years, the annual finance act for 2013 has not been amended by a mid-year complementary act impacting the tax laws. The Algerian tax system maintains its stability, while the finance act has mainly introduced a few adjusting provisions, together with a significant upgrade to procedures related to the documentation of transfer pricing. Both direct taxes (mainly corporate income…

Overview

One for the books: Efforts to reform the book trade have seen mixed reactions
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Following years of public debate on the book industry’s need for a stronger regulatory framework, the government has announced far-reaching reforms affecting the importation and distribution of books across Algeria. The Council of Ministers passed a law in September 2013, mandating stronger state support for the owners of bookstores as well as a fixed pricing regime for imports, wholesale…

Overview

The road ahead: Modernisation in progress for land, sea and air infrastructure
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Efforts to gradually open its economy are leading Algeria to enhance its infrastructure, with the transport sector an obvious centrepiece. Under the current five-year plan, the government has put aside $286bn for infrastructure development. These efforts are hoped to compensate for decades of underinvestment, to address the increased stress on existing infrastructure caused by the rising population…

Analysis

A helping hand: Many staple products receive either direct or indirect government subsidies
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As they are throughout North Africa – and indeed, much of the emerging world – subsidies remain a major driver of fiscal expansion in Algeria and have become a balancing act between minimising hardship for lower-income groups and avoiding a large rise in fiscal deficits. Algeria is luckier than most countries, with significant hydrocarbons revenues that give it greater flexibility, allowing…

Analysis

Reaching out: Taking on a broader role on the regional and global stage
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Algeria’s foreign relations are transforming as the country expands its trade and economic partnerships outside of Europe and North America and assumes a greater role in regional political and security issues. From the 1960s until the mid-1980s, Algeria’s economic development policy focused on hydrocarbons exploration, state centralisation and self-sufficiency. The new state’s foreign…

Analysis

Consolidation, not austerity: Prudent measures are being taken to help restrain government spending
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Following three years of rapid fiscal expansion, in 2013 Algeria’s government began attempting to consolidate its budget spending and raise domestic revenue. While the outlook for the non-hydrocarbons segment remains somewhat uncertain, authorities plan to continue limiting government expenditures to help guarantee the country’s fiscal sustainability over the medium term. This presents a challenging…