Despite the fact that Tunisia does not have an abundance of natural resources, the economy has been performing well. Over the past decade growth has been strong, averaging 6% a year. As a result of the impact of global developments, Tunisia experienced a decline in GDP growth in 2008. Growth slowed to 4.7% and a further slowdown is expected for 2009.
Investment Climate
The Tunisian government is keen to attract foreign investment and actively encourages investors. In recent years, the amount of investment in high value added sectors of the Tunisian economy has increased dramatically. Foreign investment has been aimed predominantly at the manufacturing sector; however, energy is undoubtedly the most promising sector for UK companies. The largest UK and foreign investor in Tunisia is still BG Group (formerly British Gas) with a total investment of over £4 billion. There are currently 22 UK companies working in this sector taking advantage of its rapid expansion, either independently on exploration projects or with BG Group.
Tunisia is witnessing an exciting increase in large-scale infrastructure projects, creating a wealth of opportunities for those interested in investing in the country.
Telecommunications
In line with its commitments under the World Trade Organization basic telecommunications agreement, foreigners were granted access to the telecommunications market and were given the same treatment as domestic investors. The sector was also opened up to foreign competition for a private cellular network licence. This was followed in 2006 by the part privatisation of the state telecommunications agency Tunisie Telecom. The ICT sector is a priority sector for Tunisia. It is one of the more dynamic sectors of the economy and is predicted to see growth of 17.5% during the 2007-2011 period. The sector has expanded rapidly, today producing 8% of GDP compared to just 2.5% in 2002. This figure is expected to rise to 13.5% by 2011.
UK - Tunisia Trade
The UK is keen to broaden and deepen UK/Tunisian co-operation. Tunisia may be seen by many to be a small market but it holds a wealth of opportunities for British companies and investors. UK investors currently conducting business in the country cover a wide span from energy to textiles, electronics to transport; many taking advantage of Tunisia's key geographical location to make it their original base.
By the end of 2008, the UK had exported goods worth £217.6 million. Imports from the Country totaled £408 million. During the period covering January-August 2009, UK exports of goods to Tunisia had reached £101.48 million, while the UK imports of goods from Tunisia have risen to £320.45 million for the same period.
KEY FACTS
Official Name: Tunisian Republic
Capital: Tunis
Area: 163,610 sq km
Population: 10.75m (IMF 2010 est.)
Major languages: Arabic, French
GDP (current): US$42.03bn (IMF 2010 est.)
GDP growth: 4% (IMF 2010 est.)
GDP per capita: US$3,991 (IMF 2010 est.)
Inflation (consumer prices): 3.4% (IMF 2010 est.)
Labour force: 3.66 million (2008 est.)
Unemployment: 14.1% (2008 est.)
Monetary unit: 1 Tunisian dinar = 1,000 millimes
Exports to UK: £320.45m (HMRC yr to Aug 2009)
Imports from UK: £101.48m (HMRC yr to Aug 2009)
Main Industries
Petroleum, mining (particularly phosphate and iron ore), tourism, textiles, footwear, agribusiness, beverages.
Main Exports
Textiles, machinery and equipment, hydrocarbons, chemicals, foodstuffs.
Main Imports
Clothing, semi-finished goods and textiles, agricultural products, mechanical goods, phosphates and chemicals, hydrocarbons, electrical equipment.
CONTACTS
UK Trade & Investment
Kingsgate House
66-74 Victoria Street
London SW1E 6SW
Tel: 020 7215 4947
Email: lisa.weedon@ukti.gsi.gov.uk
Web: www.uktradeinvest.gov.uk
British Embassy
Rue du lac Windermere
Les Berges du Lac
Tunis 1053, Tunisia
Tel: 00 216 71 108 700
Email:Tuniscommercial.enquiries@fco.gov.uk
Web: www.ukintunisia.fco.gov.uk/en
Embassy of the Republic of Tunisia
29 Prince's Gate
London SW7 1QG
Tel: 020 7584 8117
Fax: 020 7225 2884
