Algeria

Algeria is the largest country in North Africa and one of the largest on the African continent.

The country has great perspectives for boosting its economic growth. The backbone of the Algerian economy is the hydrocarbons sector. It amounts to approximately 60% of the country’s budget earnings, almost 30% of GDP, and more than 97% of export revenue. Certainly, Algeria’s biggest exports in regards to financial value are petroleum and natural gas. The country is the fourth-largest gas exporter in the world and is ranked ninth for natural gas reserves (2.7% of estimated world total).

Algeria’s economy is centrally planned, although recent years have noted a major change in the policy of the state, resulting in the creation of a number of privatization programs. They stimulate the economic growth, providing new employment opportunities and development. The country’s main gas and oil customers are Germany, Italy, France, Spain, the Netherlands, the United Kingdom, and the United States.

Another advantage of Algeria is the fertility of its soil. Algeria has established and developed a stable agricultural sector, many factories and enterprises were built, and there is constant inflow of foreign investment. About 25% of Algerians work in the agricultural sector.

Tips for Doing Business in Algeria

• There is no formal ritual dictating how business cards should be exchanged in Algeria. It is a good idea to have them translated into French or Arabic. Whenever exchanging business cards, do so with the right hand only.
• Business dress is formal in Algeria. Men will wear a suit and a tie, while women will wear a long dress or skirt that covers their legs at least below the knee. Women should avoid wearing revealing clothes.
• Do not use your finger to point something out or show something to your Algerian partners. This is seen as disrespectful.
• Always accept coffee, pastries or other hospitality Algerians offer you. They put great value on hospitality.
• Business meetings in Algeria are usually held in offices. It’s not common, as in the west, to discuss business over a meal at a restaurant or bar.
• Personal space in Algeria is significantly smaller than it is in the west. It is not uncommon for men to stand close to each other and hold each others’ arms while in conversation. If an Algerian comes close to you and makes physical contact, do not back up as it will be disrespectful.
• Decisions in Algerian companies usually go through three levels of management. First through senior management, then to middle management on their own and then to middle management and less senior staff together.

Cost of Living

The following table compares the costs of some basic products in Algiers, Algeria and Sofia, Bulgaria.

Official Holidays in Algeria

1 January – New Year’s Day
15 February – Mouloud (Birth of the Prophet)
1 May – Labour Day
19 June – Revolutionary Readjustment
5 July – Independence Day
30 August – Ramadan
30 September – Eid al – Fitr (End of Ramadan)
1 November – Anniversary of the Revolution
6 November – Eid al-Adha (Feast of the Sacrifice)
26 November – Islamic New Year
5 December – Ashoura