INVESTMENT INCENTIVES

Tunisia could within little time achieve a tremendous come back on the way to economic openness and the social welfare of its people.

In fact, as a result of multiple reforms engaged over the last two decades, Tunisia has achieved considerable improvements in the political, economic and social domains.
These results have drawn the interest and consideration of the international community, also reflected in the GDP growth levels or the improvement of citizens’ life standards (a very high increase of the GDP per capita in constant Tunisian dinars was registered mainly between 1995 and 1999, as the then 4.4% average annual growth rate now exceeds 5.6%).

Such performance is presenting the Tunisian model as a success story for developing countries. A model relying on the constant search for the best balance between economic growth requirements and a harmonious social development.

The Governmental control over economic activities, though still important, has considerably shrunk over the last decade with the increase of privatizations, the softening of the fiscal structure and a well thought-of debt management.

Tunisia relies on a diversified economy: important agricultural and mining fields, energy, tourism and manufacturing. The partnership agreement between Tunisia and the European Union entered into force on March 1st, 1989; it represents the first agreement of its type between the EU and a Mediterranean country. According to this agreement, Tunisia shall progressively remove its commercial barriers with the EU over the next ten years.

The annual 2003-2004 report on global competitiveness designed by the Davos World Economic Forum and the American Harvard University, ranks Tunisia in the 38th position in terms of global competitiveness before the Czech Republic (39th), Italy (41st), Poland (45th), Morocco (61st), and Turkey (65th).

The same report ranks Tunisia 33rd in terms of micro-economic competitiveness before the Czech Republic (35th), Portugal (36th), Poland (47th), Morocco (49th), and Turkey (52nd).

This ranking concerned 102 countries and was based on objective indicators related to the economic framework in general, technological evolutions, business environment, legislation in force, capacity to mobilize foreign direct investments and major financial balances.