INVEST IN TUNISIA

join the growingsuccEss

invest in Tunisia

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GENERAL INFORMATIONcapital tunis

Official Language Arabic

Other Languages French, english, italian and german

currency tunisian Dinar (tnD)

Average Exchange Rate 2015 1tnD = 0.459 euro = 0.510 USD

Time gMt+1

climate Mediterranean, average 12° C in winter, 30° C in summer

Population 10.982 million inhabitants

urban Population 67.8%

Human Development Index (from 0, very poor to 1, outstanding)* 0.721

Source: National Statistics Institute, 2015*Source: United Nations Development Programme, 2014

EcONOMIc AGGREGATEs Gross Domestic Product (at current prices) 82,964 MtnD

GDP growth (annual % 2014) 2.5Source: Central Bank of Tunisia, 2015

TRADEExports in 2014 (at current prices) 28,406.7 MtnD

Imports in 2014 (at current prices) 42,042.6 MtnD

coverage Ratio 67.6%

Main clients France, italy, germany and USA

Main suppliers France, italy, germany, China and Spain Source: National Statistics Institute, 2015

WAGEs The Guaranteed Inter-Professional Minimum Wage (sMIG) 289.639 tnD (40 working hours regime)

The Guaranteed Agricultural Minimum Wage (sMAG) 13 tnD (hourly wage)

TUNISIA IN A NuTsHELL

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TUNISIA: LEADER IN NORTH AFRIcA

TUNISIA iS the 1st

NORTH AFRICAN cOuNTRY

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EASE OF DOING BUSINESS

Doing Business 2016, world Bank

QUALITY OF THE EDUCATION

SYSTEMthe global Competitiveness

report, 2015-2016

POPULATION WELLBEING AND SOCIAL

PROGRESSSocial Progress index 2015,

Social Progress imperative

INNOVATIONglobal innovation index

2015, wiPo, Cornell University & inSeAD

CORRUPTION PERCEPTION IN

THE PUBLIC SECTORCorruption Perceptions

index 2014,transparencyinternational

INTERNET FREEDOM

Freedom on the net 2014, Freedom house

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tunisia has initiated a shift in its economic development policy by encouraging the participation of foreign partners in its investment efforts. the implementation of the offshore regime, adopted in 1972, led to the increase of the number of foreign companies operating in tunisia exceeding 3,200 businesses and providing more than 340,000 jobs and enabled tunisia to move up in the global value chains.

tunisia is today the:

¡ 1st world exporter of dates and olive oil, (2014-2015)

¡ 2nd African exporter of organic products,

¡ 2nd African manufacturer of automotive components,

¡ 7th world producer of phosphates and triple superphosphate,

¡ 8th european Union supplier of clothing,

¡ 8th country accredited as organic exporter to the european Union

market.

Foreign Direct investment is mainly predominant in manufacturing industries.

FDI Breakdown by sector (energy excluded) FDI Breakdown by sector in industry

emerging sectors such as electronics, aerospace and pharmaceutical industries are also on the rise and contributing for the emergence of new branches like mechatronics and applied biotechnologies…

¡ AKZo noBeL ¡ ASteeL ¡ AUtoLiV ¡ AVentiS SAnoFi ¡ BAXter ¡ Benetton ¡ Bg groUP ¡ BiC ¡ BnP ¡ Crown CorK ¡ DAnone ¡ DrÄXLMAier ¡ eLeCtroLUX

¡ eSSo ¡ FAUreCiA ¡ FrAM ¡ generAL eLeCtriC ¡ gM ¡ groUPe BPCe ¡ hAier ¡ heineKen ¡ henKeL ¡ hUtChinSon ¡ johnSon ControLS ¡ KASChKe ¡ KBe eLeKtroteChniK

¡ KroMBerg & SChUBert ¡ LACroiX eLeCtroniCS ¡ LAteCoere ¡ LeAr CorPorAtion ¡ Leoni ¡ LUCent teChnoLogieS ¡ MiCroSoFt ¡ MirogLio ¡ neStLe ¡ orAnge ¡ PFiZer ¡ PhiLiPS ¡ PhoeniX

¡ rieKer ¡ SAFrAn ¡ SCAniA ¡ Sewon ¡ SieMenS ¡ Sioen ¡ SoCiete generALe ¡ SoMFY ¡ St MiCroeLeCtroniCS ¡ SteLiA ¡ StreAM ¡ SUMitoMo ¡ teLePerForMAnCe

¡ thoMSon MULtiMeDiA ¡ totAL ¡ toYotA tSUSho ¡ UniLeVer ¡ VALeo ¡ VAn De VeLDe ¡ VAn LAACK ¡ VoLVo ¡ YAMAiChi eLeCtroniCS ¡ YAZAKi ¡ YUrA CorPorAtion ¡ ZoDiAC AeroSPACe ¡ 3 SUiSSeS

ILS ONT INVESTI EN TUNISIE

Source: FIPA-Tunisia, 2015 Source: FIPA-Tunisia, 2015

35.67

13.79

2.550.06

2.624.02

4.54

5.44

7.81

10.29

13.21

Construction materials

Electrical and electronic industries (EEI)

Textile & clothing

Mechanics, metal and metallurgy (IMM)

Chemicals and rubber

Agribusiness

Plastics industry

Pharmaceutical industry

Miscellaneous industries

Leather and footwear

Civil engineering

Industry

Agriculture

Services

57.16

1.05

41.79

35.67

13.79

2.550.06

2.624.02

4.54

5.44

7.81

10.29

13.21

Construction materials

Electrical and electronic industries (EEI)

Textile & clothing

Mechanics, metal and metallurgy (IMM)

Chemicals and rubber

Agribusiness

Plastics industry

Pharmaceutical industry

Miscellaneous industries

Leather and footwear

Civil engineering

Industry

Agriculture

Services

57.16

1.05

41.79

TUNISIA: FAVOuRABLE FDI DEsTINATION

NORTHSEA

RED SEA

MEDITERRANEAN SEA

PERSIAN GULF

Strait ofGibraltar

CISJORDANIE

AUSTRIA

PAYS-BASALLEMAGNE

DENMARK

ITALIE

SPAIN

ANDORREVATICAN

S.M

LIECHT.

LUX.

SWITZERLAND

TURKEY

FINLAND

ROYAUME-UNI

IRELAND

PORTUGAL

NIGERIA

ALGERIALIBYA

EGYPT

SUDAN

ETHIOPIEREPUBLIQUECENTRAFRICAINECAMEROUN

NIGER

SIERRA LEONE

COTED'IVOIRE

DJIBOUTI

ERITREA

MOROCCO

HONGARY

CZECH REPUBLIC SLOVAQUIA

POLAND

FRANCE ROMANIA

ALBANIA

BOSNIA

BULGARIA

IRAN

KINGDOMOF SAUDI ARABIA

IRAQSYRIA

JORDAN

QATAR

ESTONIA

LATIVIALITHUANIA

BELARUS

UKRAINE

BAHRAIN

SERBIAMONTENEGRO

GUINEE

OMAN

YEMEN

U.A.E.

ARMENIA

NORWAYSWEDEN

CHAD

GHANA

TOGO

BENIN

BURKINA FASO

MALI

SENEGAL

PARIS

GENEVA

MADRID

BRUSSELSLONDON

COPENHAGEN

ROME

BOLOGNA

CAIRO

TOBRUK

JEDDAH

FRANKFURTMUNICH

VIENNA

ALGIERS

AMMAN

DUBAI

AMSTERDAM

BEIRUT

BAMAKO

BELGRADE

CASABLANCA

DOHA

ISTANBUL

KUWAIT

LISBON

MARSEILLE

MILAN

OUGADOUGOU

TUNIS

0H55

1H171H21 1H30

2H24

1H15

2H00

2H33

2H26

3H574H35

1H46/2H08

1H30

1H23

2H35

1H32 3H27

4H24

5H036H11

2H47

3H40

2H17

1H591H47

1H54

3H30

2H00

2H15

TUNISIA

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FAVOuRABLE GEOsTRATEGIc POsITION

Tunisia is just 140Located at the northern tip of Africa and only 140 km far from europe, tunisia is at the heart of the euro-Mediterranean logistics chain which makes the country an ideal hub providing access to several major markets.

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Eu ADVANcED PARTNER

500Tunisia is the first country in the southern Mediterranean to have signed an Association and Free trade Agreement with the european Union.

in 2012, tunisia was granted the status of Advanced Partner with the eU strengthening its trade liberalization and economic integration. Currently, negotiations for the signature of a Deep and Comprehensive Free trade Agreement (DCFtA) are underway to ensure the progressive integration of tunisia in the eU domestic market and to build a common Economic Area.

TOWARDs AN INTERNATIONAL INTEGRATION OF TuNIsIAAs part of its trade promotion and diversification policy, tunisia signed several bilateral and multilateral preferential agreements:

¡ A bilateral agreement establishing a free trade zone with turkey,

¡ A free trade area agreement with eFtA countries,

¡ the Agadir free trade agreement between jordan, egypt, Morocco and tunisia,

¡ Bilateral agreements establishing a free trade zone with Libya, egypt, Morocco, jordan and iraq,

¡ An agreement on establishing the Pan Arab Free trade Area with 18 countries of the League of Arab States.

tunisia is also a member of the IcsID and joined in 2012 the OEcD Declaration on International Investment and Multinational Enterprises.

TUNISIA signed 52 double taxation agreements and 54 bilateral agreements on investment promotion and protection.

Km far from Europe

kilometers of coastline

Million European consumers

TUNISIA: EcONOMIc OPENNEss

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THE EDucATION sYsTEM: A NATIONAL FLAGsHIP A pioneer in this field in the MenA region, tunisia has always assigned a place of prominence to education, as a unique tool for adaptability and employability.

the free nature of the education system in tunisia, its quality and its accessibility resulted in the following :

¡ 99% school enrolment rate,

¡ 6,528 educational institutions,

¡ 200 higher education institutions,

¡ 7% of gDP allocated to education,

¡ over 332,000 enrolled students (2014/2015).

Education is the main spending item in the public budget with the integration of information and communication technologies at all levels.

in this regard, tunisia is one of the first countries in North Africa and the Arab world to engage in the field of distance education and e-Learning.

POOL OF TRANsFERABLE sKILLstunisia has very qualified, competitive and successful human resources at all levels. Consistently in line with business needs, they represent a huge pool of talent which is one of the major assets of the country thanks to their foreign language skills, sense of adaptation and creativity.

tunisia is considered as a talent geyser in the Mediterranean region with:

¡ over 70,000 new graduates each year.

¡ 35% of students graduating in engineering, computer science, communications and other technical fields.

¡ over 1,000 vocational training centres providing training for 140,000 trainees in hundreds of specialties covering all economic sectors.

Availability of scientists and engineerson the labour market

1- Low availability, 7- high availability

Ranking country score

15 germany 5

19 France 4.9

26 italy 4.8

48 Tunisia 4.3

50 turkey 4.2

51 hungary 4.2

56 Morocco 4.1

Source: Global Competitiveness Report 2015-2016, WEF

REsEARcH AND INNOVATION ORIENTED sKILLs recognising that the success of a knowledge-based strategy depends on the creation of an enabling environment for innovation and creativity, tunisia has adapted its academic offer to the needs of scientific research and skills development.

tunisia has an interfacing structure between the socio-economic world and the research community in order to identify and meet supply and demand from the university and the business world.

TUNISIA has a diversified fabric of universities and colleges to ensure the best training in different areas.

Many international companies have their expertise centres in tunisia employing hundreds of tunisian engineers and managers:

- AcTIA

- ALcATEL

- KROMBERG & scHuBERT

- LEONI

- sAGEM

- sIEMENs

- sT MIcROELEcTRONIcs

- ZODIAc EQuIPEMENTs TuNIsIA… TUNIS IA p r o v i de s t he l abou r ma r ke t w i t h o ve r 6,000 engineers every year.

TUNISIA: TALENT POOL

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EFFEcTIVE AND DIVERsIFIED LINKs

tunisia offers a modern infrastructure connecting all parts of the country with each other and with the rest of the world. tunisia has:

¡ a road network of about 20,000 km of roads and 360 km of motorways across the country,

¡ a 2,167 km long rail network covering all the country,

¡ 9 international airports located throughout the country and served by about a hundred foreign airlines ensuring over 2,000 weekly flights to the rest of the world,

¡ 7 commercial ports and an oil terminal.

AcTIVE AND INNOVATING cLusTERs

¡ 12 operational competitiveness clusters and technology parks spread across several areas,

¡ 15 cyber parks dedicated to communication technologies,

¡ 2 business parks in Bizerte and Zarzis created as part of the national strategy to promote foreign direct investment,

¡ a park dedicated to the aerospace industry in el Mghira,

¡ more than 300 industrial zones spread throughout the country, covering about 10,000 ha.

DEVELOPING ENERGY INFRAsTRucTuRE

tunisia offers easy access to electricity comparable to that of developed countries.

in 2014, a new law on the production of 30% of its electricity needs from renewable energy by 2020 has been passed in tunisia.

ADVANcED DIGITAL cONNEcTIVITY

tunisia offers the possibility of establishing international communication links at very competitive costs thanks to its internet highways based on a fibre optic network ensuring speed and quality of data transmission.

tunisia has one of the most advanced broadband infrastructures in the Mediterranean basin with broadband terrestrial and submarine network which is an international gateway to the largest global networks.

Acting as a real vehicle for social development and economic growth, the network provides:

¡ 2,988 fixed VoiP subscriptions,

¡ 127,7% penetration rate of mobile telephony,

¡ 7,8% annual growth of outgoing voice traffic in mobile networks for international calls,

¡ 50,7% internet penetration rate,

¡ 507 000 ADSL subscriptions.

FuTuRE-ORIENTED sTRATEGYAs part of its digital development, the strategic plan 2018 Digital Tunisia aims to make tunisia an international reference in the field and enhance iCt as an even more important tool for socio-economic development.

TUNISIA ranks 38th out of 189 countries in terms of access to electricity.

Doing Business, 2016

2018 Digital Tunisia aims to make broadband available to 100% of homes and to establish a ‘‘green it’’ framework.

TUNISIA is leader in North Africa and is the most welcoming country for new information and communications technology.

World Economic Forum, 2015

TUNISIA is ranked 2nd in the Arab world in terms of production of renewable energies.

International Atomic Energy Agency (IAEA), 2014

TUNISIA: DEDIcATED INFRAsTRucTuRE cAPITAL

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AN ENABLING ENVIRONMENT FOR BusINEss‘‘Doing Business 2016’’ report ranked tunisia at the 74th position among 189 countries, placing it ahead of North African countries.

Ease of doing business in the worldRanking country score

27 France 75.96

33 Spain 74.86

55 turkey 69.16

74 Tunisia 64.88

75 Morocco 64.51

130 india 54.68

131 egypt 54.43Source: Doing Business, 2016

ADAPTED REGuLATORY FRAMEWORKthe tunisian legislation grants:

¡ freedom of investment in most sectors,

¡ freedom of repatriation of profits and capital gains,

¡ simplified administrative procedures,

¡ ease of import and export,

¡ protection of intellectual property,

¡ protection of foreign investors.

MuLTIPLE INcENTIVEs AND BENEFITstunis ia is a valuable dest inat ion for foreign investment thanks to the multitude of incentives and benefits it offers.

Foreign companies can benefit from multiple tax and financial incentives including:

¡ 10% reduced tax rate on profits from exports,

¡ total exemption on reinvested profits and income,

¡ coverage of employers’ contribution to social security schemes and of infrastructure expenses in regional development areas,

¡ deductions from the tax base of income or profits from investments in regional development areas for the majority of sectors:

- total deduction for the first 5 or 10 years of activity respectively in the 1st and 2nd group zones,

- For the priority areas, in addition to the total deduction during the first 10 years, a deduction up to a limit of 50% of such income or profits for the following 10 years.

¡ investment grant for industrial projects in regional development areas and for projects in tourism and agriculture,

¡ investment subsidies for environmental protection, technology and r&D promotion, and regional or agricultural development,

¡ coverage of vocational training expenses up to 50% of the initial training cost.

¡ An investment premium up to 15% of the investment cost for promising activities with high integration rate granted to investment operations carried out under the investment incentives code.TUNISIA is ranked 2nd in Africa as having the best working

environment according to the ranking ‘‘African Countries of the Future 2013/2014’’.

’’TUNISIA is our first partnering country where it is possible to invest because we find many positive things: the availability of labour at a competitive cost and tax benefits’’.

Mr. Salvatore MARGIOTTA Prochimica Director, June 2014

TUNISIA: FAVOuRABLE BusINEss ENVIRONMENT

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TUNISIA: PLEAsANT LIVING cONDITIONs

LAND OF HOsPITALITY, PAcIFIsM AND FREEDOM

the age-old reputation of tunisia as a country of hospitality and tolerance is undoubtedly linked to its history rooted in diversified successive civilisations over the centuries. Berber, Phoenician, roman, Byzantine, Arab, turkish or French civilisations have shaped the personality of tunisians who inherited across generations, not only a legacy of hospitality and tolerance, but also the spirit of creativity and initiative, the determination to succeed and, above all, adaptability.

FRIENDLY LIVING cONDITIONs

with its Marhaba, tunisia is a country that stands out for its quality of life and its people’s openness and “Joie de vivre”.

it provides the essential amenities to ensure an ideal comfort:

¡ a rich cultural, artistic, historical and archaeological heritage,

¡ modern high standing residential areas at competitive costs,

¡ several shopping centres and hypermarkets of international brands,

¡ foreign schools: French, American, Canadian, russian, english and italian ...

¡ tourism infrastructure, various and developed recreation and sports faci l i t ies,

¡ highly advanced medical care in terms of medical expertise and health infrastructure to international standards;

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TUNISIA is the North African leader in terms of well-being of its population.

Social Progress Index, 2015

TUNISIA is positioned as the 4th cheapest country in the world.

Country Expat Cost of Living, july 2015

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succEssFuL POLITIcAL TRANsITION the year 2014 was marked in tunisia by a further step towards democracy with the adoption of a new constitution which resulted in the organisation of successful parliamentary and presidential elections.

the formation of a new coalition government in February 2015 is a historic coronation for the country.

tunisia is ranked:

1st in Africa and in the MenA region and, 25th on a global scale in

terms of elections integrity according to Sydney and oxford Universities report.

TOWARDs A PROMIsING EcONOMIc TRANsITION new horizons are open and the future outlook is promising bringing a new impetus to the socio-economic life of the new tunisia thanks to:

¡ the launch of major projects involving infrastructure, inclusive development and human development,

¡ the opening of new sectors to foreign investment, such as finance, renewable energies, health and cultural and creative industries,

¡ the overhaul of the legal and regulatory framework related to investment.

TUNISIA is the only free country in the Arab world.

Freedom House, 2015

TUNISIA achieved the best democratic progress in the world.

‘‘Democracy Index’’ (Global Democracy Ranking), 2014

‘‘investing in Tunisia means having the possibility to be very close to europe and to work in the Middle eastern and north African areas, and through tunisia acccess the entire African continent. it therefore represents a major regional basis close to all our target markets’’.

Mr. Pier Luigi D’AGATA Chief Executive of Confindustria Assafrica & Mediterraneo

June, 2015

CONSTITUTIONDE LA REPUBLIQUE TUNISIENNE

TUNISIA: succEssFuL sHIFT

2015noBeLPeACeP r i Z e

nAtionAL DiALogUe Q U A rt e t"for its decisive contribution to the building of a pluralistic democracy in Tunisia in the wake of the Jasmine Revolution of 2011"

2015 Edition

Foreign investment Promotion agency

Rue Salaheddine El Ammami Centre Urbain Nord, 1004 Tunis - Tunisie Tel. : (216) 71 752 540 • Fax : (216) 71 231 400

E-mail : fipa.tunisia@fipa.tn

www.investintunisia.tn

TUNIS

MADRID

MILAN

PARIS

BRUXELSCOLOGNELONDON

ANKARA

DOHA

TOKYO

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