Tunisia

Tunisia
Country Profile
Contents
1
Background
2 Population
2.1
Population figures
2.2
Population growth rate
2.3
Age structures (2011 estimates)
2.4
Gender ratios (2011 estimates)
2.5
Life expectancy (2011 estimates)
2.6
Ethnic groups
6.10 Competition from state-owned enterprises
14
6.11 Corporate social responsibility
15
6.12 Political violence
15
6.13 Corruption
15
6.14 Bilateral investment agreements
15
6.15 Foreign trade zones/free trade zones
16
6.16 Foreign direct investment statistics
16
6.17 Procedures for starting a business in Tunisia
16
2.7 Religions
2.8 Language
17
2.9 Education
3 Economy
3.1
Latest Economic indicators
3.2
Five-year forecasts
4
4.1
Government and Politics

Political structure
Transport and Communications
10
10
10
5.1 Railways
10
5.2 Roadways
10
5.3
Ports and harbours
10
5.4 Communications
10
11
Doing business in Tunisia
6.1
Openness to foreign investment
11
6.2
Conversion and transfer policies
12
6.3
Expropriation and compensation
12
6.4
Dispute settlement
12
6.5
Performance requirements and incentives
12
6.6
Right to private ownership and establishment
13
6.7
Protection of property rights
13
6.8
Transparency of regulatory system
13
6.9
Efficient capital markets and portfolio investment
13
Country Risk Rating
7.1
Sovereign risk
17
7.2
Currency risk
17
7.3
Banking sector risk
17
7.4
Political risk
17
7.5
Economic structure risk
17
8
8.1
Country Outlook: 2012 2016

External sector
17
17
8.2
Political stability
17
8.3
Election watch
17
8.4
International relations
17
8.5
Policy trends
17
8.6
Economic growth
18
8.7 Inflation
18
8.8
18
Exchange rates
Appendix sources of information
2012 KPMG Services Proprietary Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss
entity. All rights reserved. MC7204 KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (KPMG International), a Swiss entity. The foregoing information is for general use only. NKC does
not guarantee its accuracy or completeness nor does NKC assume any liability for any loss which may result from the reliance by any person upon such information or opinions.
18
1 Background
2 Population
Rivalry between French and Italian

interests in Tunisia culminated in
a French invasion in 1881 and the
creation of a protectorate. Agitation
for independence in the decades
following World War I was finally
successful in getting the French to
recognise Tunisia as an independent
state in 1956.
2.1 Population figures

Tunisia has a population of 10,732,900 (July 2012 est.).
The countrys first president, Habib

Bourgiba, established a strict
one-party state. He dominated the
country for 31 years, repressing
Islamic fundamentalism and
establishing rights for women
unmatched by any other Arab
nation. In November 1987,
Bourguiba was removed from office
and replaced by Zine el Abidine Ben
Ali in a bloodless coup.
Street protests that began in
Tunis in December 2010 over
high unemployment, corruption,
widespread poverty, and high food prices escalated in January 2011,
culminating in rioting that led to hundreds of deaths. On 14 January
2011, the same day Ben Ali dismissed the government, he fled the
country, and by late January 2011, a national unity government
was formed. Elections for the new Constituent Assembly were
held in late October 2011, and in December it elected human rights
activist Moncef Marzouki as interim President. The Assembly began
drafting a new constitution in February 2012, and is aiming to have it
ratified by the end of the year.
2.2 Population growth rate

0.964% (2012 est.).
2.3 Age structures (2011 estimates)
Total percentage
Male
Female
0 14 years
23.2%
1,274,348
1,193,131
15 64 years
69.3%
3,638,014
3,728,294
65 years and
over
7.5%
390,055
405,344
Source: CIA World Factbook
2.4 Gender ratios (2011 estimates)

Under 15 years
1.07 male / female
15 64 years
0.97 male / female
65 years and over
0.96 male / female
Total population
0.99 male / female
Source: CIA World Factbook
2.5 Life expectancy (2011 estimates)

Total population
Male
Female
75.24 years
73.2 years
77.42 years
2.6 Ethnic groups

Some 98% of modern native Tunisians are from a sociological,
historical and genealogical standpoint mainly of Arab and Berber
descent, but the overwhelming majority simply identify themselves
today as Arabs.
The small European population (1%) consists mostly of French and
Italians. There is also a long-established Jewish community in the
country, the history of the Jews in Tunisia going back some 2,000
years.
The first people known to history in what is now Tunisia were
the Berbers. Numerous civilizations and peoples have invaded,
migrated to, and been assimilated into the population over
the millennia, with influences of population via conquest from
Phoenicians/Carthaginians, Romans, Vandals, Alans, Arabs,
Spaniards, Ottoman Turks and Janissaries, and French. There was a
continuing inflow of nomadic Arab tribes from Arabia.
Additionally, after the Reconquista and expulsion of non-Christians
and Moriscos from Spain, many Spanish Moors and Jews also
arrived. According to Matthew Carr, As many as eighty thousand
Moriscos settled in Tunisia, most of them in and around the capital,
Tunis, which still contains a quarter known as Zuqaq al-Andalus,
or Andalusia Alley. In addition, from the late 19th century to after
World War II, Tunisia was home to large populations of French
and Italians although nearly all of them, along with the Jewish
population, left after Tunisia became independent.
2.7 Religions
The constitution declares Islam as the official state religion and
requires the President to be Muslim. Aside from the President,
Tunisians enjoy a significant degree of religious freedom, a right
enshrined and protected in its constitution, which guarantees the
freedom to practice ones religion.
The country has a secular culture that encourages acceptance of
other religions and religious freedom.
The majority of Tunisias population (around 98%) are Muslims
while about 1% follow Christianity and the remaining 1% adhere
to Judaism or other religions.[93] The bulk of Tunisians belong
to the Maliki School of Sunni Islam and their mosques are easily
recognizable by square minarets. However, the Turks brought with
them the teaching of the Hanafi School during the Ottoman rule
which still survives among the Turkish descended families today,
their mosques traditionally have octagonal minarets.
Tunisia has a sizable Christian community of around 25,000
adherents, mainly Catholics (22,000) and to a lesser degree
Protestants. Berber Christians continued to live in Tunisia up until
the early 15th century. Judaism is the countrys third largest religion
with 1,500 members. One-third of the Jewish population lives in
and around the capital. The remainder lives on the island of Djerba,
with 39 synagogues, and where the Jewish community dates back
2,500 years.
2.8 Language
Arabic is the official language, and Tunisian Arabic, known as Derja,
is the local, vernacular variety of Arabic and is used by the public.
There is also a small minority of speakers of Shelha, a Berber
language.
Due to the former French occupation, French also plays a major role
in the country, despite having no official status. It is widely used
in education (e.g., as the language of instruction in the sciences
in secondary school), the press, and in business. Most Tunisians
are able to speak it. Due to Tunisias proximity to Italy and the large
number of Italian Tunisians, Italian is understood and spoken by a
small part of the Tunisian population.
2.9 Education
Education is given a high priority and accounts for 6% of GNP.
A basic education for children between the ages of six and 16
has been compulsory since 1991. Tunisia ranked 17th in the
category of quality of the [higher] educational system and 21st
in the category of quality of primary education in The Global
Competitiveness Report 2008-9, released by The World Economic
Forum.
While children generally acquire Tunisian Arabic at home, when
they enter school at age six, they are taught to read and write in
Standard Arabic. From the age of eight, they are taught French
while English is introduced at the age of 12.
Colleges and universities in Tunisia include:
cole Polytechnique de Tunisie
International University of Tunis
Universit Libre de Tunis
Universit de lAviation et Technologie de Tunisie
Institut National dAgronomie de Tunis
Universit des Sciences de Tunis
3 Economy
Tunisia has a diverse, market-oriented economy, with important
agricultural, mining, tourism, and manufacturing sectors but
faces an array of challenges. Following an ill-fated experiment
with socialist economic policies in the 1960s, Tunisia successfully
focused on bolstering exports, foreign investment, and tourism.
Key exports now include textiles and apparel, food products,
petroleum products, chemicals, and phosphates, with about 80%
going to the European Union. Tunisia achieved four decades of
4-5% annual GDP growth.
As the presidency wore on, cronyism and corruption under former
President Zine el Abidine Ben Ali (1987-2011) stymied economic
performance and unemployment rose among the universitys
graduates. In January 2011 Ben Ali was overthrown, sending
Tunisias economy into a tailspin.
The countrys newly elected government faces immediate
challenges stabilising the economy. It must reassure businesses
and investors, bring budget and current account deficits under
control, shore up the countrys financial system, bring down high
unemployment, and reduce economic disparities.
3.1 Latest Economic indicators

2010
3 Qtr
Output
Industrial production index (2000=100)
Industrial production (% change, year on year)
Prices
Consumer prices (2000=100)
Consumer prices (% change, year on year)
Producer prices (2000=100)
Producer prices (% change, year on year)
Financial indicators
Exchange rate TD:US$ (av)
Exchange rate TD:US$ (end-period)
Money market rate (av; %)
M1 (end-period; TD m)
M1 (% change, year on year)
M2 (end-period; TD m)
M2 (% change, year on year)
TunIndex (December 31 1997=100)
TunIndex (% change, year on year)
Sectoral trends
Mining production index (2000=100)
Mining production index (% change, year on
year)
Energy production index (2000=100)
Energy production index (% change, year on
year)
Crude oil production (000 barrels/day)
Iron ore production (000 tonnes)
Calcium phosphate production (000 tonnes)
Tourism, visitors (000)
Tourism, nights spent ('000)
Foreign trade and reserves
Exports fob (TD m)
Petroleum & products
Imports cif (TD m)
Trade balance
Reserves excl gold (end-period; US$ m)
2011
4 Qtr
1 Qtr
2 Qtr
2012
3 Qtr
4 Qtr
1 Qtr
2 Qtr
119.4
6.6
120.2
6.5
106.1
-9.1
122.6
-0.1
117.2
-1.8
115.5
-3.9
112.9
6.4
n/a
n/a
122.5
4.1
131.8
5
124.2
4
132.8
5.4
124.2
3.1
134.9
5.8
125.2
3.1
136.9
5.4
127
3.6
140.2
6.4
129.6
4.4
143.6
8.1
130.9
5.4
145.8
8.1
132.5
5.8
n/a
n/a
1.47
1.42
4.55
16,472
15.6
39,484
11.6
5,681
39.8
1.42
1.44
4.76
16,454
10.6
40,415
11.3
5,113
19.1
1.42
1.39
4.65
18,015
20.1
41,767
13.8
4,386
-6.4
1.37
1.37
4.47
18,035
15.5
41,674
10
4,297
-12.6
1.39
1.43
3.75
19,111
16
43,038
9
4,666
-17.9
1.45
1.5
3.24
19,733
19.9
44,236
9.5
4,722
-7.6
1.51
1.51
3.35
19,597
8.8
44,584
6.7
4,820
9.9
1.6
1.58
3.67
n/a
n/a
n/a
n/a
4,984
16
98.8
37.8
123.1
27
20.8
-76.8
32.8
-65.3
45.8
-53.6
41.6
-66.2
51.8
149
n/a
n/a
127.6
2.4
114.3
-2.6
115
-6.3
122.3
-6.6
129
1.1
111.5
-2.4
117.4
2.1
n/a
n/a
77
49
2,129
2,564
10,135
65
33
2,132
1,430
10,135
61
28
508
614
1,154
66
76
523
1,154
3,813
64
40
821
1,821
7,489
n/a
n/a
n/a
1,192
n/a
n/a
n/a
n/a
938
n/a
n/a
n/a
n/a
n/a
n/a
5,823
995
-7,729
-1,906
-9,461
6,341
708
-8,293
-1,953
-9,459
5,907
785
-7,456
-1,549
-9,199
7,010
1,011
-9,061
-2,051
-7,712
5,870
941
-8,175
-2,305
-7,998
6,312
913
-9,021
-2,708
n/a
6,440
936
-9,052
-2,611
n/a
7,051
1,219
-9,907
-2,856
n/a
Sources: IMF, International Financial Statistics, Direction of Trade Statistics (DOTS); Oil Market Intelligence; International Energy Agency (IEA), Monthly Oil Market Report; Office national des statistiques,
Statistiques Algrie
3.2 Five-year forecasts

Gross Domestic Product at current market prices
2007 (a) 2008 (a) 2009 (a) 2010 (a) 2011 (a) 2012 (b) 2013 (b)
Expenditure on GDP (TD bn at current market prices)
GDP
49.8
55.1
58.7
63.3
64.6
69.3 74
Private consumption
30.7
33.7
36.4
39.7
42.8
45.2 47.6
Government consumption
8.2
8.9
9.5
10.3
11.5
12.6 14
Gross fixed investment
11.5
13
14.2
15.6
14.1
17.3 19
Exports of goods & services
25.5
30.8
26.5
30.9
31
34.9 38.7
Imports of goods & services
26.4
32.4
28.2
34.2
35.8
40.7 45.5
Stockbuilding
0.3
1.2
0.2
1.1
0.9
0 0.2
Domestic demand
50.7
56.8
60.4
66.7
69.3
75.2 80.8
Expenditure on GDP (US$ bn at current market prices)
GDP
38.8
44.7
43.4
44.2
45.9
44.8 45.9
Private consumption
24
27.4
26.9
27.8
30.4
29.2 29.5
6.4
7.2
7.1
7.2
8.1
8.2 8.7
9
10.6
10.5
10.9
10
11.2 11.8
19.9
25
19.6
21.6
22
22.5 24
20.6
26.3
20.9
23.9
25.4
26.3
28.2
Stockbuilding
0.2
0.9
0.2
0.7
0.6
0
0.1
Domestic demand
39.6
46.1
44.7
46.6
49.2
48.5
50.1
Economic structure (% of GDP at current market prices)
Private consumption
61.7
61.2
62
62.7
66.4
65.1
64.3
16.5
16.1
16.3
16.3
17.8
18.2
18.9
23.1
23.6
24.2
24.6
21.8
25
25.7
Stockbuilding
0.6
2.1
0.4
1.7
1.4
0
0.2
51.2
55.8
45.1
48.8
48.1
50.3
52.3
53.1
58.9
48
54.1
55.4
58.7
61.5
Memorandum items
National savings ratio (%)
23.7
25.7
24.6
26.3
23.2
25
25.9
2014 (b)
2015 (b)
2016 (b)
78
50.2
15.2
20.7
41.9
50.3
0.3
86.4
81.9
52.6
16.7
22.5
45.7
56
0.5
92.3
85.7
55.2
18.4
24.5
51.5
64.6
0.7
98.9
48.1
31
9.4
12.8
25.8
31.1
0.2
53.4
51.5
33.1
10.5
14.1
28.7
35.2
0.3
58.1
54.1
34.9
11.6
15.5
32.5
40.8
0.5
62.4
64.3
19.6
26.6
0.4
53.7
64.5
64.2
20.3
27.4
0.6
55.7
68.4
64.4
21.5
28.6
0.8
60.1
75.3
26.9
28
29.4
2014 (b)
2015 (b)
2016 (b)
55.3
58.2
a) Actual; b) Economist Intelligence Unit forecasts.

Source: Economist Intelligence Unit
Gross Domestic Product by sector or origin

2007 (a)
2008 (a)
2009 (a)
2010 (a)
2011 (b)
2012 (b) 2013 (b)
Origin of GDP (TD bn at constant 1993 prices)

GDP at factor cost
Agriculture
42.9
44.6
46.2
47.9
47.3
48.9 50.6
52.8
4.2
4.2
4.5
4.1
4.5
4.7 4.8
5.1
5.3
Industry
5.1
5.3
5.1
5.3 5.5
5.7
5.8
Services
27.1
29
30.7
30.2
34.7
35.8 37.1
38.8
40.8
43.1
Origin of GDP (real %

change)
Agriculture
0.2
0.1
8.2
-9.9
11
3.5 3
Industry
12.1
-0.5
0.8
5.2
-4.4
3.3 4
3.3
3.4
3.4
Services
6.7
7.1
5.7
-1.7
15
3.3 3.5
4.6
5.2
5.6
9.4
8.8
9.1
9.1 9.1
8.9
8.8
8.6
Industry
12.9
14.1
12.9
14.3
13.9
14 14.1
13.9
13.7
13.5
Services
61.1
60.4
61.2
61.4
60.8
60.7 60.7
60.9
61.1
61.5
9.6
3.3
-4.5
7.7
-3.7
3.3
3.4
3.4
Origin of GDP (% of factor cost GDP)

Agriculture
Memorandum item
Industrial production (%
change)
3.3 4
a) Actual; b) Economist Intelligence Unit forecasts
Growth and productivity

2007 (a)
2008 (a)
2009 (a)
2010 (a)
2011 (a)
2012 (b) 2013 (b)
Labour productivity growth
3.5
2.2
1.7
1.2
-3.9
0.4 1.1
Total factor productivity

growth
4.2
2.6
0.9
0.9
-4.4
Growth of capital stock
3.7
4.2
3.8
3.5
Growth of potential GDP
7.2
5.6
3.7
Growth of real GDP
6.3
4.5
3.1
Growth of real GDP per

head
5.2
3.5
Services
7.7
2014 (b)
2015 (b)
2016 (b)
1.8
2.3
2.7
0.5 1.1
1.9
2.4
2.7
3.1
3.1 3.2
3.4
3.5
3.8
3.5
-1
2.7 3.2
3.9
4.3
4.7
3.7
-2.2
2.8 3.5
4.3
4.8
5.2
2.1
2.7
-3.2
1.9 2.5
3.4
3.8
4.2
9.3
2.4
0.3
-0.2
3.9 3.5
4.6
4.7
5.9
6.9
11.7
12
12
11.9 11.6
11.3
10.9
10.6
Industry
61.3
62.1
54.5
55.3
56.5
56.1 56.7
57.2
57.5
57.4
Services
30.7
31
33.7
32.6
31.5
32 31.6
31.6
31.6
32
Growth and productivity (%)
Agriculture
a) Economist Intelligence Unit estimates; b) Economist Intelligence Unit forecasts

Economic structure, income and market size

2007 (a) 2008 (a) 2009 (a) 2010 (a) 2011 (b) 2012 (c) 2013 (c) 2014 (c)
2015 (c) 2016 (c)
Population, income and market size

Population (m)
10.1
10.2
10.3
10.4
10.5
10.6
10.7
10.8
10.9
11
GDP (US$ bn at market exchange

rates)
38.8
44.7
43.4
44.2
45.9
44.8
45.9
48.1
51.5
54.1
3,857
4,399
4,230
4,266
4,378
4,233
4,298
4,468
4,741
4,936
GDP per head (US$ at market

exchange rates)
Private consumption (US$ bn)
Private consumption per head (US$)
GDP (US$ bn at PPP)
GDP per head (US$ at PPP)
24
27.4
26.9
27.8
30.4
29.2
29.5
31
33.1
34.9
2,380
2,693
2,624
2,677
2,905
2,758
2,765
2,875
3,046
3,178
77.3
82.6
86
90.2
90.1
94.4
99.7
106.1
113.4
121.7
7,673
8,118
8,375
8,700
8,605
8,929
9,334
9,845
10,428
11,096
Memorandum items
Share of world population (%)
0.15
0.15
0.15
0.15
0.15
0.15
0.15
0.15
0.15
0.15
Share of world GDP (%; market

exchange rates)
0.07
0.08
0.08
0.07
0.07
0.06
0.06
0.06
0.06
0.06
Share of world GDP (%; PPP)
0.11
0.12
0.12
0.12
0.11
0.11
0.11
0.11
0.11
0.11
Share of world exports of goods (%)
0.11
0.12
0.12
0.11
0.1
0.1
0.1
0.1
0.1
0.11
a) Actual; b) Economist Intelligence Unit estimates; c) Economist Intelligence Unit forecasts

Fiscal indicators
2007 (a)
2008 (a)
2009 (a)
2010 (b)
2011 (b)
25
25.8
26.3
28.8
2012 (c)
2013 (c)
2014 (c)
2015 (c)
2016 (c)
29.9
29.6
Fiscal indicators (% of GDP)

Government expenditure
Interest
24.5
33.4 33.7
31.5
2.4
2.1
1.8
1.5
1.8 2.1
2.2
2.2
2.1
Non-interest
22.1
22.9
23.8
24.5
27.2
31.5 31.6
29.3
27.7
27.5
Government revenue
21.9
24.2
23.1
23.5
23
24.3 25.4
25.9
26.5
26.6
Budget balance
-2.6
-0.7
-2.7
-2.9
-5.8
-9 -8.3
-5.6
-3.4
-3
Primary balance
-0.2
1.3
-0.7
-1
-4.3
-7.2 -6.1
-3.4
-1.2
-0.9
Government debt
46.2
43.4
42.9
42.6
47.1
52.7 56.7
58.3
57.7
56.9

Monetary indicators
2007 (a) 2008 (a) 2009 (a)
2010 (a)
2011 (a)
2012 (b) 2013 (b) 2014 (b)
2015 (b) 2016 (b)
Monetary indicators
Exchange rate TD:US$ (av)
1.28
1.23
1.35
1.43
1.41
1.55 1.61
1.62
1.59
1.58
Exchange rate TD: (av)
1.76
1.81
1.88
1.9
1.96
1.97 2.04
2.03
1.97
Real effective exchangerate index (av; CPI-based,

1997=100)
81.13
80.57
79.65
79.24
77.87
79.1 78.25
79.71
83.02
82.85
Purchasing power parity

TD:US$ (av)
0.64
0.67
0.68
0.7
0.72
0.73 0.74
0.74
0.72
0.7
Money supply (M2) growth

(%)
12.4
14.8
12.5
11.3
9.5
6.4 9.3
3.4
1.4
-0.4
Domestic credit growth (%)
9.8
13.1
10.3
16.1
14.9
9.5 12
8.6
Deposit rate (av; %)
3.3
3.3
2.4
2.4
2.3
2.4 2.5
3.3
Money-market rate (av; %)
5.2
5.2
4.3
4.4
3.9 4.3
4.6
4.4
4.8
a) Actual; b) Economist Intelligence Unit forecasts

Employment, wages and prices

2007 (a) 2008 (a) 2009 (a)
2010 (a)
2011 (b)
2012 (c) 2013 (c)
2014 (c)
2015 (c)
2016 (c)
The labour market (av)

Labour force (m)
3.5
3.6
3.7
3.8
3.9
4.1
4.1
4.2
Labour force (% change)
2.5
2.3
2.4
2.2
3.6
1.6
1.5
1.2
1.1
1.1
Employment (%)
3.1
3.2
3.2
3.3
3.2
3.3
3.3
3.4
3.5
3.6
Employment (% change)
2.6
2.3
1.3
2.5
-2.4
1.9
2.6
2.6
2.1
3.1
Unemployment (m)
0.4
0.4
0.5
0.5
0.7
0.7
0.7
0.6
0.6
0.6
12.4
12.4
13.3
13
18
17.8
17
15.8
15
13.3
4.4
3.5
5.8
4.6
3.5
3.3
3.4
Unemployment rate (%)
Wage and price inflation (% except labour costs per hour)

Consumer prices (av)
3.4
4.9
3.5
Consumer prices (year-end)

Producer prices (av)
5.1
4.1
4.1
4.2
3.4
3.4
3.4
3.4
3.4
12.1
3.1
6.5
5.8
3.3
3.6
3.5
3.9
GDP deflator (av)
2.4
3.2
4.1
4.2
4.4
3.1
0.3
-0.5
Private consumption deflator

(av)
3.1
5.3
3.4
5.2
9.8
3.4
3.6
2.5
1.3
0.9
deflator (av)
3.3
1.8
2.9
9.9
6.2
5.3
3.7
3.6
3.7
Fixed investment deflator (av)
5.2
3.7
9.3
8.9
-9.1
19.4
5.3
3.7
Average nominal wages
3.5
3.5
3.6
3.5
3.5
3.4
3.2
3.2
2015 (c)
2016 (c)
a) Actual; b) Economist Intelligence Unit estimates Economist Intelligence Unit forecasts

Current account and terms of trade

2007 (a)
2008 (a)
2009 (a)
2010 (a)
2011 (b)
2012 (c)
2013 (c)
2014 (c)
Current-account balance
-0.9
-1.7
-1.2
-2.1
-3.1
-3.6 -3.6
-4.2
-4.1
-2.8
Current-account balance (%
of GDP)
-2.4
-3.8
-2.8
-4.8
-6.7
-8 -7.9
-8.6
-8
-5.1
Goods: exports fob
15.1
19.2
14.4
16.4
17.7
18 19.2
21
23.6
27.6
Current account (US$ bn)
Goods: imports fob
-18
-23.2
-18.1
-21
-23.5
-28.9
-32
-35
Trade balance
-2.9
-4
-3.7
-4.6
-5.9
-24.6 -26.1
-6.5 -7
-8
-8.4
-7.4
Services: credit
4.9
5.5
5.8
5.5
5.8 6.4
7.9
8.8
Services: debit
-2.8
-3.4
-3
-3.3
-3.3
-3.3 -3.5
-3.8
-4.2
-4.6
Services balance
2.1
2.6
2.5
2.5
2.3
2.5 2.9
3.2
3.7
4.2
Income: credit
0.6
0.5
0.3
0.4
0.4
0.3
0.4
0.4
Income: debit
-2.3
-2.8
-2.3
-2.4
-1.9
-2.1 -2.5
-2.8
-3
-3.1
Income balance
-1.8
-2.3
-2
-1.9
-1.5
-1.7 -2.2
-2.4
-2.5
-2.7
Current transfers: credit
1.7
1.9
2.1
2.2 2.6
3.1
3.2
Current transfers: debit
0 0
1.6
1.9
1.9
2.2 2.6
3.1
3.2
117.5
143.6
122
128.1
140.2
148.9
157.8
Current transfers balance
0.3
0.4
2.9
Terms of trade
Export price index (US$based; 2005=100)
137.1
139.1
141.8
Export prices (% change)
12.4
22.1
-15
9.4
-2.2
1.4
1.9
Import price index (US$based; 2005=100)
119.5
144.8
123.7
136.6
151
149.8
153.5
161.6
172.9
185.8
Import prices (% change)
14.2
21.2
-14.6
10.4
10.5
-0.8
2.5
5.3
7.5
Terms of trade (2005=100)
98.3
99.1
98.6
93.8
92.8
91.6
90.6
87.7
86.1
84.9
5.5
-11.4
11
2.3
1.9
2.5
3.5
4.4
4.5
Memorandum item
Export market growth (%)
a) Actual; b) Economist Intelligence Unit estimates; c) Economist Intelligence Unit

Foreign Direct Investment

2007 (a) 2008 (a) 2009 (a)
2010 (a)
2011 (b)
2012 (c) 2013 (c)
2014 (c)
2015 (c)
2016 (c)
2,320
2,365
Foreign direct investment (US$ m)

Inward direct investment
Inward direct investment (%
of GDP)
1,532
2,639
1,595
1,401
1,143
1,108 1,655
1,981
3.9
5.9
3.7
3.2
2.5
2.5 3.6
4.1
4.5
4.4
17.1
25
15.2
12.9
11.4
9.9 14
15.5
16.4
15.3
-17
-38
-70
-66
-25
-35 -40
-50
-55
-55
Inward direct investment (%

of gross fixed
investment)
Outward direct investment
Net foreign direct investment
1,515
2,601
1,525
1,335
1,118
26,193
29,083
31,857
31,411
32,554
2,601
2,860
3,102
3,029
3,107
67.4
65
73.3
71
71
Share of world inward direct

investment flows (%)
0.08
0.18
0.2
0.16
0.11
0.09
0.12
Share of world inward direct

investment stock (%)
0.18
0.2
0.2
0.19
0.18
0.18
Stock of foreign direct

investment
investment per head (US$)
investment (% of GDP)
1,073 1,615
1,931
2,265
2,310
33,662 35,317
37,298
39,618
41,983
3,183 3,308
3,461
3,644
3,828
76.9
77.5
0.13
0.14
0.14
0.17
0.17
0.17
0.18
2012 (c) 2013 (c)
2014 (c)
2015 (c)
2016 (c)
26.2
24.9
24
54.4
75.2 77
77.5
Memorandum items

External debt
2007 (a) 2008 (a) 2009 (a) 2010 (a)
2011 (b)
External debt
Total external debt (US$ bn)
20.4
20.8
Total external debt (% of GDP)
52.6
93
11.3
Debt/exports ratio (%)

Debt-service ratio, paid (%)
21.7
21.6
23.2
24.4 25.4
46.4
50
48.8
50.6
54.6 55.4
48.2
44.4
76
99
88
93
95 92
87
73
62
7.3
9.6
9.6
9.3
10 10.2
10.1
9.7
8.1

4 Government and Politics

4.1 Political structure
Official name
Republic of Tunisia
Legal system
The Tunisian legal system is based on the constitution of 1959.
Legislature
The regime of the former president, Zine el-Abidine Ben Ali,
was ousted in January 2011. Elections for a National Constituent
Assembly (NCA) were held in October 2011. Cabinet positions were
announced in December 2011. The NCA will also be responsible
for rewriting the constitution and organising parliamentary and
presidential elections.
National elections
The next elections (presidential and parliamentary) were due to be
held in mid-2013 but are now expected to be delayed, perhaps until
early 2014. The constitution will need to be completely rewritten. It
is likely that Tunisia will have a semi-parliamentary system with the
president being elected by parliament.
Head of State
Mr. Ben Ali stepped down on 14 January 2011, amid widespread
protests. The interim head of state is Moncef Marzouki, the leader
of the secular party, the Congrs pour la rpublique. However,
unlike in the regime of Mr. Ben Ali, the role of the president seems
to be largely symbolic.
Executive
The cabinet is dominated by Hizb al-Nahda. The system of
governance will outlined in the new constitution, which is to be
rewritten by the NCA.
Main political parties
The major political parties include
Hizb al-Nahda, an Islamist party
Congrs pour la rpublique (CPR)
Forum dmocratique pour le travail et les liberts (Ettakatol)
Aridha Chaabia (Popular Petition)
Mouvement des dmocrates socialistes (MDS)
Parti dmocratique progressiste (PDP); Pole dmocratique
moderniste (PDM)
The government
Prime Minister: Hamadi Jebali
Key ministers
Agriculture: Mohammed Ben Salem
Culture: Mehdi Mabrouk
Education: Abdellatif Abid
Environment: Memia Banna
Equipment and Housing: Mohammed Salmane
Finance: Slim Besbes
Foreign Affairs: Rafik Abdessalem
Higher Education: Moncef Ben Salem
Health: Abdellatif Mekki
Industry and Trade: Mohammed Lamine Chakhari
Interior: Ali Laarayedh

Justice: Noureddine Bhiri
National Defence: Abdelkarim Zebidi
Regional Development and Planning: Jamel Eddine Gharbi
Religious Affairs: Noureddine Khadmi
State Property and Real Estate: Slim Ben Hamidene
Tourism: Elyes Fakhfakh
Training and Employment: Abdel Waheb Maatar
Transport: Abdelkarim Harouni
Womens Affairs: Sihem Badi
Youth and Sports: Tarek Dhiab
Central Bank Governor: Chedly Ayari
5 Transport and
Communications
5.1 Railways
Tunisia inherited much of its rail transport system from the French
and the Tunisian Government has developed infrastructure further.
The railways are operated by the Socit Nationale de Chemins de
Fer Tunisiens (SNCFT), the Tunisian national railway.
A modernisation programme is currently underway. It has a total of
2,152 km consisting of 468 km of 1,435 mm (4 ft 8 12 in) standard
gauge rail ways and 1,674 kilometres of 1,000 mm (3 ft 3 38 in)
metre gauge. Tunis has a light rail system. In the south of Tunisia,
there is a narrow gauge railway called the Sfax-Gafsa Railway
which delivers phosphates and iron ore to the harbour at Sfax.
Tunisia has rail links with the neighbouring country of Algeria via the
Ghardimaou-Souk Ahras line, and another connection to Tbessa,
however, the latter link is currently not used.
5.2 Roadways
Total: 2,165 km
Standard gauge: 471 km 1.435-m gauge
Narrow gauge: 1,694 km 1.000-m gauge (65 km electrified)
5.3 Ports and harbours
Tunis is the most significant port in Tunisia with other significant
ports on the Mediterranean Sea including Bizerte, Gabs, La
Goulette, Sfax, Sousse and Zarzis.
5.4 Communications
Tunisia has developed a diverse, market-oriented economy which
escaped the global economic crisis virtually unscathed, but the
events of the Arab Spring drove the country into a mild recession
in 2011. However, GDP growth is expected to climb steadily over
the coming years to reach 6% in 2015.
As a result of heavy investments in the telecom sector
since the mid-1990s, Tunisia has one of the most developed
telecommunications infrastructures in Northern Africa and sports
some of the continents highest market penetration rates.
Offering a full range of services, Tunisie Telecom is the countrys
fixed-line incumbent. The company was partly privatised in 2006
when a 35% stake was sold to Dubai-based Tecom and DIG. It also
operates a mobile network under the name Tunicell.
The mobile sector has experienced exceptional growth since the
introduction of a second GSM network in 2002, operated under
the name Tunisiana first by Egypts Orascom and now by Kuwaits
Wataniya in which Qatar Telecom (Q-Tel) holds a majority stake.
Information Technology and Communication: Mongi Marzouk

10
Competition between eleven ISPs, supported by a nationwide fibre

optic backbone network and international access via submarine
and terrestrial fibre, has led to one of the most developed Internet
markets in the region and some of the lowest broadband prices in
Africa. The former government encouraged and promoted Internet
use but at the same time kept tight control by restricting access
to certain websites. Laws supporting e-commerce and digital
signatures have been passed, which has led to one of the most
active e-government and e-commerce sectors in Africa.
France Telecom-owned Orange entered the market as the second
fixed-line and third mobile operator in 2010 and launched Tunisias
first commercial 3G mobile service. Tunicell followed in August
2011, Tunisiana in July 2012. HSPA+ services with up to 42Mb/s
using dual carrier technology are now available. This is expected
to deliver a further boost to the Internet and broadband market
by taking broadband Internet access to a much wider part of the
population, considering that the countrys mobile networks reach
close to 100% of the population while Tunisie Telecoms fixed-line
network reaches only about one-third of households.
6 Doing business in Tunisia

6.1 Openness to foreign investment
The Tunisian Government actively encourages and places a priority
on attracting foreign direct investment (FDI) in key industry sectors,
such as call centres, electronics manufacturing, aerospace and
aeronautics, automotive parts, and textile manufacturing. The
Government encourages export-oriented FDI and screens any
potential FDI to minimise the impact of the investment on domestic
competitors and employment.
Foreign investment in Tunisia is regulated by Investment Code (Law
1993-120) which was last amended on January 26, 2009. It covers
investment in all major sectors of economic activity except mining,
energy, the financial sector and domestic trade. Government of
Tunisia officials have indicated that a review of the Investment
Code is slated for mid-2011, with an aim to foster job creation and
developing infrastructure in the south-central regions of Tunisia.
These reforms may liberalise the onshore sector and
relax requirements for foreign investors wishing to serve the
Tunisian market.
The Tunisian Investment Code divides potential investments into
two categories:
Offshore, in which foreign capital accounts for at least 66% of
equity and at least 70% of production is destined for the export
market (with some exceptions for the agricultural sector)
Onshore, in which foreign equity is limited to 49% in most nonindustrial projects. Onshore industrial investment can have up to
100% foreign equity
The legislation contains two major hurdles for potential FDI:
Foreign investors are denied national treatment in the agriculture
sector. Foreign ownership of agricultural land is prohibited, although
land can be secured through long-term (up to 40 years) lease.
However, the Government actively promotes foreign investment in
agricultural export projects.
For onshore companies outside the tourism sector, government
authorisation is required if the foreign capital share exceeds 49%
and can be difficult to obtain.
The Investment Code is currently under re-examination by the
government and the distinction between the offshore and onshore
sectors may be abolished in the course of 2012.
The Government of Tunisia allows foreign participation in its

privatisation programme and a significant share of Tunisias FDI
in recent years has come from the privatisation of state-owned
or state-controlled enterprises. Privatisation has occurred in
telecommunications, banking, insurance, manufacturing, and
petroleum distribution, among others.
In March 2011, the Government of Tunisia issued a decree (Law
2011-13) confiscating the assets of former President Ben Ali and
his close family members. The list of assets touches upon every
major economic sector. Some of Tunisias largest companies, such
as Zitouna Bank (banking), Karthago Airlines (aviation), Carthage
Cement (construction), Tunisiana (telecom), Orange Tunisie
(telecom), Bricorama (home goods), Banque de Tunisie (banking),
Ennakl (automotive), and Alpha Ford (automotive), were included on
the list. It is unclear what percentages of shares in each company
were appropriated by the state. Experts estimate that up to US$2
billion worth of Ben Ali assets were leveraged by Tunisian banks.
To date, the Government of Tunisia has appointed conservators for
these companies so that they can continue to operate on a dayto-day basis. According to members of the GOT Commission to
Investigate Corruption and Malfeasance, a commission convened
to investigate corruption claims during the Ben Ali regime, a court
order will be necessary to determine how the frozen assets are
handled. Some public statements have suggested shares will be
sold on the stock exchange, while other conversations with GOT
counterparts indicate the GOT will make case-by-case decisions on
privatisation of the shares.
Significant prior privatisations include the 2006 TECOM
Investments and Dubai Investment Group purchase of a 35% stake,
valued at US$2.25 billion, in state-owned Tunisie Telecom. In July
2008, French company Groupama won a bid to purchase 35% of
the Socit Tunisienne dAssurances et de Reassurances (STAR) for
70 million Euro (around US$100 million). In 2008, the French bank
Caisse Gnrale dEpargne purchased 60% of the Tunisian Kuwaiti
Bank (BTK), valued at US$249 million.
Until recently, the Government discouraged foreign investment
in service sectors such as restaurants, real estate, and retail
distribution. Many of these issues are expected to be addressed
in the context of ongoing negotiations between Tunisia and the
European Union over liberalisation of the services sector under the
EU/Tunisia Association Agreement.
FDI in retail distribution is gradually expanding. French multinational
retail chain Carrefour opened its first store in 2001, followed by the
entry of French retail company Gant in 2005. Until then, Monoprix,
a French grocery franchise, dominated the retail grocery market.
Although Geant and multiple branches of Monoprix were looted
and burned in January 2011, Carrefour and most branches of
Monoprix remain operational.
In August 2009, the Tunisian Government adopted a new law
to regulate domestic trade (Law 2009), which includes a new
legislative framework for franchising. Until recently, franchise
status was only granted to businesses on a case-by-case basis. A
July 2010 implementation decree outlined a list of sectors in which
franchises would need no prior authorisation to operate in the
Tunisian market. Sectors not on the list, such as food franchises,
still need approval to operate. However, thanks to this new law,
many franchises now have the ability to set up shop like any other
business serving the Tunisian market. In general, the law is set to
encourage investment, create additional jobs, and boost knowledge
transfer. Many Tunisian business groups have already started
looking for international franchisors and are confident the market
exists for franchises to thrive.
Investment in manufacturing industries, agriculture, agribusiness,

public works, and certain services requires only a simple
declaration of intent to invest. Other sectors can require a series of
Government of Tunisia authorisations.
11
Since 2007, there have been numerous announcements of

significant Arabian Gulf company investments in the real estate
sector but due to the international economic crisis, some
investments have been postponed and possibly cancelled. Sama
Dubai, which was set to build the Mediterranean Gate megaconstruction project, halted its operations in 2009. Investment
has not come to a complete standstill, however: Another such
investment, the Bukhatir Groups Tunis Sports City, a sports
and recreational complex, as well as Gulf Finance Houses
Tunis Financial Harbour, are moving forward, albeit slower than
planned and with new delays associated with Tunisias political
transformation.
FDI in certain state monopoly activities (electricity, water,
postal services) can be carried out following establishment of
a concession agreement and with certain restrictions on trade
activities. With few exceptions, domestic trading can only be
carried out by a company set up under Tunisian law, in which the
majority of the share capital is held by Tunisians and management
is Tunisian. An additional barrier to non-EU investment results from
Tunisias Association Agreement with the European Union. The
EU is providing significant funding to Tunisia for major investment
projects, but clauses in the agreement prohibit non-EU member
countries from participation in many EU-funded projects.
6.2 Conversion and transfer policies
The Tunisian Dinar is not a fully convertible currency, and it is illegal
to take dinars in or out of the country. Although it is convertible
for current account transactions (i.e., most bona fide trade and
investment operations), Central Bank authorisation is needed for
some foreign exchange operations. Prior to the 2011 revolution, the
Government of Tunisia had publicly committed to full convertibility
of the dinar by 2014. This timeline is now widely regarded as
unrealistic given Tunisias political transition and other, more
pressing financial sector reforms.
Non-residents are exempt from most exchange regulations. Under
foreign currency regulations, non-resident companies are defined
as having:
Non-resident individuals who own at least 66% of the capital
Capital financed by imported foreign currency
Foreign investors may transfer returns on direct or portfolio
investments at any time and without prior authorisation. This
applies to both principal and capital in the form of dividends or
interest.
There is no limit to the amount of foreign currency that visitors can
bring into Tunisia and exchange for Tunisian Dinars (TND). Amounts
exceeding the equivalent of 25,000 TND (approximately US$17,250)
must be declared at the port of entry. Non-residents must also
report foreign currency imports if they wish to re-export or deposit
more than 5,000 TND (roughly US$3,450). Tunisian customs
authorities may require production of currency exchange receipts
on exit.
The Tunisian Dinar is pegged to a basket composed of currencies,
using weighs that reflect the importance of these currencies in
Tunisias external trade (including among others, the U.S. dollar, the
Japanese yen and the heavily weighted euro). It is adjusted in real
effective terms to the fluctuations of these currencies, taking into
consideration inflation differentials. The currency is freely quoted
by Tunisian banks and is published on a daily basis by the central
bank. The BCT can intervene in the market to stabilise the currency.
The TND follows a managed floating exchange rate regime and is
officially convertible for current account transactions.
6.3 Expropriation and compensation

The Tunisian Government has the right to expropriate property by
eminent domain.
6.4 Dispute settlement
There is no pattern of significant investment disputes or
discrimination involving foreign investors. However, to avoid
misunderstandings, contracts for trade and investment projects
should always contain an arbitration clause detailing how eventual
disputes should be handled and the applicable jurisdiction. Tunisia
is a member of the International Centre for the Settlement of
Investment Disputes and is a signatory to the 1958 New York
Convention on the Recognition and Enforcement of Foreign Arbitral
Awards.
The Tunisian legal system is based upon the French Napoleonic
code. There are adequate means to enforce property and
contractual rights. Although the Tunisian constitution guarantees
the independence of the judiciary, the judiciary is not fully
independent of the executive branch. Local legal experts assert
that courts are susceptible in some measure to political pressure,
although courts generally handle commercial cases objectively.
The Tunisian Code of Civil and Commercial Procedures does allow
for the enforcement of foreign court decisions under certain
circumstances.
6.5 Performance requirements and incentives
Performance requirements are generally limited to investment
in the petroleum sector or in the newer area of private sector
infrastructure development. These requirements tend to be specific
to the concession or operating agreement (e.g., drilling a certain
number of wells or producing a certain amount of electricity). More
broadly, the preferential status (offshore, free trade zone) conferred
upon some investments is linked to both percentage of foreign
corporate ownership and limits on production for the domestic
market.
The Tunisian Investment Code and subsequent amendments
provide a broad range of incentives for foreign investors, which
include tax relief on reinvested revenues and profits, limitations on
the value-added tax on many imported capital goods, and optional
depreciation schedules for production equipment. With
the expected upcoming 2011 review of the Investment
Code, further incentives may be put in place to attract foreign
investment to Tunisia.
In April 2011, the Tunisian Governments Foreign Investment
Promotion Agency (FIPA) announced a series of new incentives
to draw investment to Tunisias interior regions. These incentives
extend current advantages already available to the offshore
sector, such as the 10-year tax exemption on profits for onshore
investments in priority development areas. According to FIPA,
companies investing in these regions will be able to import raw
materials, semi-finished products, and equipment duty and tax-free
or purchase those same items locally without paying the valueadded tax (VAT). In addition, the Tunisian Government will provide
an 8-25% investment subsidy on the total value of the investment
(up to US$230,000 in general,US $715,000 in priority regional
development areas).
For labour costs, the Tunisian Government will also assume up
to 16% of social security costs for the first seven years of the
investment for new college graduates employed, with an extension
of up to 10 years for investments in the interior regions. FIPA also
announced a US$178 per month stipend provided to the company
by the Tunisian Government for every college graduate hired, plus a
credit for 50% of training costs, with a total US$178.000 ceiling.
12
Large investments with high job creation potential may benefit,

under certain conditions determined by the Higher Commission
on Investment, from the use of state-owned land for a symbolic
Tunisian dinar (less than US$1). Investors who purchase companies
in financial difficulty may also benefit from certain clauses of the
Investment Code, such as tax breaks and social security assistance;
these advantages are determined on a case-by-case basis.
Additional incentives are available to promote investment in
designated regional investment zones in economically depressed
areas of the country, and throughout the country in the following
sectors: health, education, training, transportation, environmental
protection, waste treatment, and research and development in
technological fields.
Further benefits are available for investments of a specific nature.
For example, companies producing at least 70% for the export
market receive tax exemptions on profits and reinvested revenues,
duty-free import of capital goods with no local equivalents, and full
tax and duty exemption on raw materials and semi-finished goods
and services necessary for the business.
Foreign companies resident in Tunisia face a number of restrictions
related to the employment and compensation of expatriate
employees. Tunisian law limits the number of expatriate employees
allowed per company to four. There are lengthy renewal procedures
for annual work and residence permits. Although rarely enforced,
legislation limits expatriate work permit validity to a total of two
years. Central Bank regulations impose administrative burdens
on companies seeking to pay for temporary expatriate technical
assistance from local revenue. For example, a foreign resident
company that has brought in an accountant would have to
document that the service was necessary, fairly valued, and
unavailable in Tunisia before it could receive authorization to transfer
payment from its operations in Tunisia. This regulation prevents
a foreign resident company from paying for services performed
abroad.
6.6 Right to private ownership and establishment
Tunisian Government actions clearly demonstrate a strong
preference for offshore, export-oriented FDI. Investors in that
category are generally free to establish and own business
enterprises and engage in most forms of remunerative activity.
Investment which competes with Tunisian firms or on the Tunisian
market or which is seen as leading to a net outflow of foreign
exchange may be discouraged or blocked.
Acquisition and disposal of business enterprises can be
complicated under Tunisian law and depend on the nature of the
contract specific to the proposed transaction.
Disposal of a business investment leading to reductions in the
labour force may be challenged or subjected to substantial
employee compensation requirements. Acquisition of an onshore
company may require special authority from the Government if it is
an industry subject to limits on foreign equity shareholding (such as
in the services sector).
6.7 Protection of property rights
Secured interests in property are both recognised and enforced
in Tunisia. Mortgages and liens are in common use. Tunisia is a
member of the World Intellectual Property Organsation (WIPO)
and has signed the United Nations (UNCTAD) Agreement on the
Protection of Patents and Trademarks. The agency responsible for
patents and trademarks is the National Institute for Standardization
and Industrial Property (INNORPI - Institut National de la
Normalisation et de la Proprit Industrielle). Foreign patents and
trademarks should be registered with INNORPI.
Tunisias patent and trademark laws are designed to protect only

owners duly registered in Tunisia. Tunisia updated its legislation to
meet the requirements of the WTO agreement on Trade-Related
aspects of Intellectual Property (TRIPS). Copyright protection is
the responsibility of the Tunisian Copyright Protection Organisation
(OTPDA - Organisme Tunisien de Protection des Droits dAuteur),
which also represents foreign copyright organizations. New
legislation now permits customs officials to inspect and seize
goods if copyright violation is suspected.
The new Customs Code, which went into effect on January 2009,
allows customs agents to seize suspect goods in the entire country
for products under foreign trademarks registered at INNORPI.
Tunisian Copyright Law (Law 1994-36) has been amended by
Law 2009-33, and includes literary works, art, scientific works,
new technologies, and digital works. However, its application
and enforcement have not always been consistent with foreign
commercial expectations. Print audio and video media are
considered particularly susceptible to copyright infringement, and
there is evidence of significant retail sale of illegal products in these
media. Illegal copying of software and entertainment CDs/DVDs is
widespread.
Although the concept and application of intellectual property
protection is still in the early stages, the Government is making an
effort to build awareness and has increased its enforcement efforts
in this area. These efforts have led a major supermarket chain to halt
the sale of pirated audio and video goods.
6.8 Transparency of regulatory system
While the Tunisian Government has adopted policies designed to
promote foreign investment, it continues to enact legislation and
implement protectionist measures to safeguard domestic industry.
Some amendments to the Investment Code have substantially
improved, standardised, and codified incentives for foreign
investors. However, some aspects of existing tax and labour laws
remain impediments to efficient business operations.
The 2012 World Bank Doing Business, report published in October
2011, ranked Tunisia 46 - down six places compared to the previous
year, in view of the ongoing political transition. Despite the down
ranking, Tunisia remained the highest-rank country in North Africa.
Some bureaucratic procedures, while slowly improving in some
areas, remain cumbersome and time-consuming. Foreign
employee work permits, commercial operating license renewals,
infrastructure-related services, and customs clearance for imported
goods are usually cited as the lengthiest and most opaque
procedures in the local business environment.
Investors have commented on inconsistencies in the application
of regulations. These cumbersome procedures are not limited to
foreign investment and also affect the domestic business sector.
6.9 Efficient capital markets and portfolio investment
The mobilisation and allocation of investment capital are still
hampered by the underdeveloped nature of the local financial
system. Tunisias stock market Bourse de Tunis is under the
control of the state-run Financial Market Council and lists 57
companies. The Government offers substantial tax incentives
to encourage companies to join the exchange, and expansion is
occurring.
On 13 December 2011 the stock market capitalisation of listed
companies in Tunisia was valued at US$9.751 billion, approximately
21.25% of 2011 GDP, down 8.24 percent from US$10.627 billion
in 2010. On 13 December 2011, the Tunindex, the stock markets
benchmark index, fell (in USD) by 10.28% compared to the same
period in 2010. Capital controls are still in place. Foreign investors
are permitted to purchase shares in resident firms (through
authorised brokers) or to purchase indirect investments through
established mutual funds.
13
Tunisia hosts 29 banks, of which 18 are universal banks (that are

both commercial and investment banks), eight are offshore, two
are business banks, and one is an Islamic bank.
Although some bank branches were damaged during civil unrest
in December 2010 and January 2011, the impact of this damage on
the banking sector was minimal.
After the fall of the Ben Ali government, companies, banks, and
real estate that belonged to the ousted President Ben Alis family
were brought under GOT receivership. Since January 21, 2010, the
Zitouna bank, formerly owned by the former presidents son-in-law
Sakher El-Materi, is currently operating under the supervision of
the Tunisian Central Bank. The final disposition of the assets of the
former president and his family will be decided by Tunisian courts.
In addition to the traditional banking system, the GOT started
developing microfinance. In November 2011, the GOT issued a
decree law No. 117 that aims at upgrading microfinance activity in
Tunisia through the setting of microfinance institutions that comply
with international standards. The mentioned law targets primarily
regional development by providing lower income populations with
easy access to financial services.
The banking system is considered generally sound and is
improving, as the Central Bank has begun to enforce adherence
to international norms for reserves and debt. Due to its relative
insulation from international markets, the banking sector actually
weathered the international economic crisis and resisted serious
adverse effects visible in other countries.
Other recent measures include actions to strengthen the reliability
of financial statements, enhance bank credit risk management,
and improve creditors rights. Revisions to banking laws tightened
the rules on investments and bank licensing, and increased the
minimum capital requirement. The required minimum risk-weighted
capital/asset ratio has been raised to 8%, consistent with the Basel
Committee capital adequacy recommendations.
Despite the strict new requirements, many banks still have
substantial amounts of non-performing or delinquent debt in their
portfolios. The Government has established debt recovery entities
(socits de recouvrement de crances) to buy the non-performing
loans (NPLs) of commercial banks. According to official figures,
the sharp increase in nonperforming loans (NPLs) in 2010, along
with the events that took place in Tunisia in 2011 after closing the
financial year, were reflected in the quality of banks portfolio. In
effect, the outstanding balance of NPLs went up in 2010 by 17.2
percent or TND 927 million (approximately US$647 million), 49
percent of which was attributable to classification of businesses
tied to the former regime. Nonetheless, because of the sharp
increase in loans, NPLs ratio fell to 13 percentage.
In 2011, the Central Bank decreased three times banks reserve
requirement ratio (from 12.5% down to 2.5%) in order to provide
enough financing to the economy and prevent liquidity squeeze at
banks. Although in recent years the Government has undertaken
a number of banking privatisations and consolidations, the
Government is the controlling shareholder in 10 of the 20 major
banks. On June 2011, the estimated total assets of the countrys
five largest banks were 28.650 billion TND (roughly US$19.77
billion). Foreign participation in their capital has risen significantly
and is now well over 20%.
In the last five years regulatory and accounting systems have
been brought more in line with required international standards.
Most of the major global accounting firms are represented in
Tunisia. Tunisian firms listed on the stock exchange are required to
publish semi-annual corporate reports audited by a certified public
accountant.
On 12 June, 2009 the GOT passed legislation addressing access

to financial services for non-residents (Law 2009-64). Financial
authorities aimed essentially to address regulatory gaps in the
existing system by giving an appropriate framework for financial
transactions between non-residents, introducing new financial
tools attractive to foreign investors, defining new rules for
monitoring and supporting the creation of the Tunis Financial
Harbour project (a US$3 billion Bahraini project inaugurated on
13 June 2009 and envisioned to include banks, real estate firms,
investment companies, commercial centres, housing units
and tourism areas). The code allows non-resident individuals
or companies to use financial products and services as well as
perform other relevant financial operations. Non-resident financial
service providers may, in some cases and under certain conditions,
provide services to residents.
Regarding financial products, the code distinguishes between two
types: securities and financial contracts. Both must be issued in
Tunisia or negotiated on a foreign-regulated market member of the
International Securities Commissions Organisation.
Concerning financial service providers, the code established
two categories regarding of activities: banking (deposits, loans,
payments and exchange operations, acquisition of capital in
operating companies or companies in current creation) and
investment services (reception, transmission, order execution;
and portfolio management). Non-resident financial entities,
namely lending institutions authorised to act as banks, investment
companies and portfolio management companies, are considered
by the code non-resident investment service providers.
Among the conditions required, non-resident financial service
providers must present initial minimum capital (fully paid up at
subscription) of 25 million TND (US$17.25 million) for a bank, 10
million TND (US$6.9 million) for a financial institution, 7.5 million
TND (US$5.175 million) for an investment company, and 250,000
TND (US$172,500) for a portfolio management company.
6.10 Competition from state-owned enterprises
Since the implementation of the IMF Adjustment Programme at the
end of 1986, Tunisia has undertaken many reforms aimed at limiting
the States intervention in economic activities in the domestic
market. These reforms have cantered on:
Re-structuring of the national economy as part of the programme
for the comprehensive upgrading of private and public
enterprises
Liberalising trade through the removal of import and export
licenses, dismantling customs duties on imported goods in
line with Tunisias international commitments (especially within
the World Trade Organisation and the European Union), and
establishing bilateral and/or multilateral free-trade agreements
with Arab countries such as Morocco, Egypt, Jordan, Libya and
Algeria. However, imports of the most basic products such as
cereals, sugar, oil, and steel have remained under the control
of State-Owned Enterprises (SOE) due to their socio-economic
impact and to protect against inflation.
Providing incentives to the private sector through a unified
investment code for public and private enterprises, reforms in
financial and tax systems, trade policy reforms, and privatisation
of a number of sectors, such as telecommunications.
SOEs are active in many sectors and compete alongside private
enterprises (such as the telecom and insurance sectors). However,
SOEs retain monopoly control in other sectors considered sensitive
by the government, such as railroad transportation, water and
electricity distribution, postal services, and port logistics. In
these companies, senior management is appointed by the GOT
and reports to the respective minister. The board of directors is
mainly formed by representatives from other ministries and public
shareholders.
14
Like private companies, SOEs are required by law to publish

independently-audited annual reports whether their capital is
publicly traded on the stock market or not.
Tunisia does not have a Sovereign Wealth Fund (SWF).
6.11 Corporate social responsibility
The concept of corporate social responsibility is developing
progressively through governmental campaigns but has not yet
taken firm hold in Tunisia. The most successful campaigns to date
have focused on preserving the environment, energy conservation,
and combating counterfeiting.
To date, most corporate social responsibility initiatives come from
foreign multinationals that incorporate Tunisia into worldwide
campaigns. Examples include supporting an educational program
related to childrens nutrition, supporting a clean water initiative, and
creation of a program aimed at discouraging emigration of skilled
workers from Tunisia. Such programmes are viewed favourably by
the GOT.
6.12 Political violence
Tunisia has a history of stability, and incidents involving politicallymotivated damage to economic projects or infrastructure were
extremely rare. In December 2010 and January 2011, however, civil
unrest erupted in the underserved interior regions of Sidi Bouzid,
Kasserine, and Le Kef; in other interior towns in the country, as
well as in Tunis. These protests, fuelled by economic grievances
and public resentment of corruption and lack of political freedom,
spread and eventually forced former President Ben Ali and some
members of his family to flee Tunisia on 14 January.
Immediately after his departure, there was looting and damage to
holdings of the Ben Ali extended family network, including grocery
chains, individual residences, and other symbols of the Ben Ali clan.
There were also reported cases of looting and property damage
to companies unaffiliated to the former ruling family, although
American companies were not specifically targeted. There were
also clashes between former Ben Ali loyalists and military forces in
major urban areas of Tunisia, although these lasted only a few days
and occurred immediately after the former presidents departure.
Within one week of Ben Alis departure, the military and police
had quelled the violence and looting had stopped in Tunis. As of
December 2011, the general security situation in Tunis and most
areas of the country remains relatively calm and business is back to
normal. One government official noted up to 10-20% of businesses
had been directly or indirectly impacted due to disruptions in
port operations, customs, and transportation networks since the
revolution.
The government has enacted a series of assistance measures
designed to compensate companies who have suffered losses due
to the civil unrest.
The security situation remains calm in southern and central areas
of Tunisia, although demonstrations and other incidents generally
related to domestic political concerns can occur.
Until the December 2010-January 2011 period, there were only a
handful of incidents of politically-motivated violence.
6.13 Corruption
Exporters and investors should be aware that generally all countries
prohibit the bribery of their public officials, and prohibit their officials
from soliciting bribes under domestic laws. Most countries are
required to criminalise such bribery and other acts of corruption
by virtue of being parties to various international conventions
discussed above.
After several years of steady improvement, Tunisias ranking on

Transparency Internationals (TI) Corruption Index dropped from
43 in 2005 with a CPI score of 4.9, to 65 in 2009 with a score of
4.2, but improved to 59 in 2010 with a score of 4.2. At the regional
level, Tunisia is ranked 8th among MENA countries, before its
direct competitor, Morocco (9), and its neighbours Algeria (11) and
Libya (13). According to the TI Corruption Index scale, a score of ten
indicates extremely little corruption and a score of zero means very
serious corruption.
Tunisias penal code devotes 11 articles to defining and classifying
corruption and to assigning corresponding penalties (including fines
and imprisonment). Several other legal texts also address broader
concepts of corruption including violations of the commercial or
labour codes, which range from speculative financial practices to
giving or accepting bribes. D
etailed information on the application of these laws or their
effectiveness in combating corruption is not publicly available. There
are no statistics specific to corruption. After the departure of former
President Ben Ali, the interim government created the Independent
Commission to Investigate Corruption focused on abuses of
power during the Ben Ali era. Before January 2011, the Tunisian
Ministry of Commerce published information on cases involving the
infringement of the commercial code, but these incidents generally
covered relatively low level abuses such as non-conforming
labelling procedures, as well as price/supply speculation.
The Governments recent efforts to combat corruption have
concentrated on the seizure of assets belonging to former
President Ben Alis family members, ensuring that price controls
are respected, enhancing commercial competition in the domestic
market and harmonising Tunisian laws with those of the European
Union. The transition government has also created a commission to
investigate corruption, which is working in tandem with the court
system to bring to light corruption incidents during the Ben Ali era.
6.14 Bilateral investment agreements
Tunisia has concluded bilateral trade agreements with
approximately 81 countries, including its neighbours Libya and
Algeria. In January 2008, Tunisias Association Agreement with the
EU went into effect, eliminating tariffs on industrial goods with the
eventual goal of creating a free trade zone between Tunisia and the
EU member states. Tunisia is currently negotiating services and
agriculture provisions with the EU. In addition, Tunisia is a signatory
of the multilateral agreements with the Multilateral Investment
Guarantee Agency (MIGA). Tunisia has signed the WTO Agreement,
bilateral agreements with the Member States of the European Free
Trade Association (EFTA), bilateral and multilateral agreements with
Arab League members, and a bilateral agreement with Turkey.
Labour
Tunisian labour is readily available. Tunisia has a labour force of
approximately 3.5 million and a national literacy rate of about
75%. Around 90% of the work force under 35 is literate. The 2011
official unemployment rate is 19%. This figure reaches 25% to
35% among university graduates, although some experts believe
it is as high as 40%. The official employment rate does not count
underemployment and does not disaggregate geographically,
which would show a distortion favouring the coastal tourist regions
over central and southern Tunisia. Unemployment is Tunisias most
pressing economic issue.
Nearly 80,000 new jobs must be created each year to keep
unemployment at current levels. Sustained annual GDP growth
of about 8-9% would be required in order to make significant
inroads into chronic unemployment. The structure of the workforce
has remained stable over the past 20 years (19% agriculture,
32% industry, and 49% commerce and services). Tunisia has
been successful in developing the industrial sector and creating
employment for low-skilled jobs, but has not been able to keep up
with new educated entrants into the job market.
15
The right to form a labour union is protected by law. Currently, there

are three national labour confederations, the oldest and largest
is the General Union of Tunisian Workers (UGTT - Union Generale
des Travailleurs Tunisiens) and the two new ones are the General
Confederation of Tunisian Workers (CGTT Confederation Generale
des Travailleurs Tunisiens) and the Tunisian Labor Union (UTT
Union Tunisienne du Travail), created in May 2011.
The UGTT claims about one third of the labour force as members,
although more are covered by UGTT-negotiated contracts. Wages
and working conditions are established through triennial collective
bargaining agreements between the UGTT, the national employers
association (UTICA - Union Tunisienne de lIndustrie, du Commerce
et de lArtisanat), and the Government of Tunisia. These agreements
set industry standards and generally apply to about 80% of the
private sector labour force, whether or not individual companies are
unionised.
Since the January 2011 change in government, labour groups have
called for reform in labour law and have increased demands on
employers. The latest wage increase agreement was signed in July
2011. In the meantime, an emboldened labour movement increased
its demands for private sector reforms.
The private sector saw a proliferation of wildcat strikes in the first
half 2011, but the labour movements approval of the government
formed by then-Prime Minister Cad Essebsi in March 2011
appeared to reduce the momentum of such actions. However,
as recently as December 2011, labour unrest was still in issue for
state-owned companies in Gafsa and Gabes.
According to the GOT statistics, in 2010, 3,135 foreign or joint

capital companies are operational in Tunisia and employ 324,821
people. Foreign investments generate about one-third of exports
and one-fifth of total employment. In recent years, however, FDI
in real estate, infrastructure, and the energy sector has been a
significant source of growth.
Tunisias largest single foreign investor is British Gas, which has
developed the Miskar offshore gas field (US$650 million) and
is investing a further US$500 million for new development. The
largest single foreign investment was Turkish company TAVs
550 million euro (US$792 million) construction of the Enfidha
International Airport, which is operating on a 40-year concession.
Major foreign presence in other key sectors includes
telecommunications and electronics (Lucent, Lacroix Electronique,
Sagem, Alcatel, Stream, Siemens, Philips, Thomson), the
automotive industry (Lear Corporation, Draxlmaier, Valeo, Toyota
Tsusho, Pirelli), food products (3 Suisses, Danone) and aeronautics
(Zodiac Aerospace, Eurocast, SEA Latelec).
6.17 Procedures for starting a business in Tunisia
The table below outlines the procedures involved when setting up a
business in Togo. It also indicates the time involved and associated
costs:
No Procedure
Time to
complete
Associated
costs
1.
No charge
The official minimum monthly wage in the industrial sector is 246.3

TND (about US$178.5) for a 40 hour week and 286 TND (about
US$207.25) for a 48 hour week.
Deposit capital in a bank

1 day
opened in the name of the
company to be incorporated
2.
TND 100
6.15 Foreign trade zones/free trade zones

Tunisia has two free trade zones, one in the north at Bizerte, and
the other in the south at Zarzis. The land is state-owned, but the
respective zones are managed by a private company. Companies
established in the free trade zones, officially known as Parcs
dActivits Economiques, are exempt from most taxes and
customs duties and benefit from special tax rates. Goods are
allowed limited duty-free entry into Tunisia for transformation and
re-export. Factories are considered bonded warehouses and have
their own assigned customs personnel.
1 day
Register the Articles of
Association with the tax
administration in Guichet
Unique (API) desk and
obtain a certificate attesting
that a declaration has been
filed
3.
File declaration of existence 1 day

with the Tax Control Desk
(Contrle des Impts) and
obtain carte didentification
fiscal
No charge
4.
Deposit documents at the

Greffe du Tribunal
1 day
TND 15
5.
Advertise in the Official

Gazette (JORT) with the
Government Printing Office
7 days
TND 100
6.
Register with the Registre

du Commerce at the Greffe
du Tribunal
1 day,
simultaneous
with
procedure 5
TND 5 per
excerpt, 3
excerpts are
needed
7.
Register for social security
1 day,
simultaneous
with
procedure 5
TND 5
8.
Get inspected by the

National Social Security
Fund (CNSS)
1 day,
simultaneous
with
procedure 5
No charge
9.
File a declaration with the

labour inspectorate
1 day,
simultaneous
with
procedure 5
No charge
10.
Make company seal
1 day,
simultaneous
with
procedure 5
No charge
However, companies do not necessarily have to be located in one

of the two designated free trade zones to operate with this type of
business structure. In fact, the majority of offshore enterprises are
situated in various parts of the country. Regulations are strict, and
operators must comply with the Investment Code.
6.16 Foreign direct investment statistics
Foreign direct investment inflows for the first eleven months of
2011 declined by 31.7 percent compared to the same period in
2010 due to the political transition and Tunisias downwardly revised
credit ratings by major agencies due to the civil unrest in January
2011.
Total foreign investment during the first eleven months of 2011
was TND 1.436 billion (US$990.84 million), which represents a
35.5 percent decrease compared to the same period last year.
This decrease in foreign investment is the result of a 31.7 percent
decrease in foreign direct investment, TND 1.36 billion (US$938
million) in 2011 down from TND 1.992 billion (US$1.39 billion) in
2010, and a 67.6 percent decrease, in portfolio investment, TND
76.1 million (US$52.5 million)in 2011 down from 235.1 million TND
(US$164.1 million) in 2010.
This sharp downward trend in FDI is attributable to a drop in
investment flows for the sectors of tourism and real estate
(-87.5%), industry (-43.8%), energy (-28%) and agriculture (-11.5%).
16
7 Country Risk Rating

Sovereign Currency Banking Political Economic Country
risk
risk
sector risk
structure risk
risk
risk
Sep-12
CCC
CCC
CCC
CCC
(AAA = least risky, D = most risky)
7.1 Sovereign risk

Stable. The trade deficit is expected to widen over the remainder
of the year, as sectors such as textiles and phosphates are hit by a
reduction in demand for Tunisian products caused by the euro zone
crisis. The government will find it challenging to meet its external
debt obligations as the external accounts weaken, but Tunisia will
receive substantial foreign aid.
7.2 Currency risk
Negative. The Tunisian dinar has been depreciating against the US
dollar as the dollar has strengthened against the euro, to which the
dinar is partly pegged. The ongoing crisis in the euro zone will put
more pressure on the dinar in 2012.
7.3 Banking sector risk
Stable. Non-performing loans are likely to increase owing to
domestic uncertainty as well as a contraction in the euro zone in
2012. Investors will keenly watch how the government deals with
stakes in banks held by relatives of the former president.
7.4 Political risk
Tensions between extremist Islamic groups and secularists remain
high as the former seek to impose sharia (Islamic law). The risk
of an escalation of protests is high if economic conditions do not
improve.
7.5 Economic structure risk
Economic structure risk remains high owing to Tunisias
dependence on the EU for trade, remittances and tourism.
8 Country Outlook: 2012

2016
8.1 External sector
The current account is expected to remain in deficit over the
forecast period, as a persistent trade deficit is only partly offset
by an improving non-merchandise position in the latter half of the
forecast period.
Export revenue in the first seven months of 2012 increased by 3.7%
year on year. However, earnings from textiles, phosphates and food
have continued to decline since April, reflecting weaker demand
in the EU. The economic contraction in the euro zone this year will
depress demand for Tunisian goods. In contrast, import costs have
risen by just over 36% in the past seven months. This has resulted
in a significant widening of the trade deficit. Stronger domestic
demand and economic development will increase the import bill
further from 2013 onwards. Exports will rise gradually in 2013, but
will only register robust growth from 2015 onwards, assuming an
improvement in the economic situation in the EU.
8.2 Political stability

The political situation will remain uncertain until a permanent
government is in place. As the debate over certain articles in the
draft constitution rages between the members of the coalition, the
risk of large-scale demonstrations, of the kind witnessed in the
lead-up to and immediately after the ouster of the former President,
Zine el-Abidine Ben Ali, has increased. The constitution needs to be
rewritten as it contains tailor-made amendments by Mr. Ben Ali that
made it virtually impossible for someone who was not a member
of the ruling party to stand for president. If the three parties in
the coalition are unable to agree, they may seek to form outside
alliances, which could be divisive and could even lead to a collapse
of the interim coalition government.
8.3 Election watch
Presidential and parliamentary elections are likely to be delayed
beyond June 2013 (probably until early 2014) as the deadline for
completing the constitution has been pushed back by six months
to April 2013. This will prolong the political uncertainty facing the
country. Assuming that elections are fair and peaceful and that
a stable government is in place, there should be some political
stability from late 2014 on, provided economic conditions improve.
8.4 International relations
Western powers will remain uncertain about the direction of foreign
policy under the current leadership. Tunisia, under Mr. Ben Ali, had
long cultivated good relations with the West, especially the EU, its
main trading partner. It is likely that the current leaders of Tunisia
will strengthen ties with the Gulf and the wider Arab region, but
Europe will remain an important trade partner. Qatar, for example,
provided US$500m to support government spending in April, and
a two-day visit by the crown prince in mid-July led to the signing
of agreements to develop a number of projects. The Gulf Cooperation Council is seen as an important source of foreign aid,
but Tunisia will also strengthen ties with Libya, which is among its
top five trade partners. The Economist Intelligence Unit expects a
substantial amount of international aid to flow into Tunisia. The G8
group of major economies has doubled its aid pledge (to US$38bn)
to North African countries making the transition to democracy. The
World Bank recently released its interim strategy for 2012-13 for
Tunisia, thereby indicating its commitment to support the country
through the transition phase. It has already lent Tunisia US$500m
in the form of a development policy loan, which is part of a larger
US$1.5bn commitment to Tunisia over the next two years.
8.5 Policy trends
The government has published a wide-ranging plan that covers
everything from democratic reform to building a balanced society. It
has been criticised by opposition parties who deem it to be a series
of aspirations rather than a realistic and pragmatic strategy. The
government will focus on job creation, development of the interior
regions and economic growth. The plan assumes economic growth
of 3.5% in 2012, and although this has been reduced from 4.5%, it
is still a challenging target.
The broader five-year development plan (2012-16) targets average
GDP growth of 6.3% a year over the next five years, a target that
clearly needs to be revised down in light of the euro zone crisis and
domestic instability.
There is little confidence in the coalition government, as it has
been unable to tackle the worsening economic situation. The
government is keen to stress that its policies are business-friendly
as it seeks to attract foreign direct investment foreign investment
picked up by 45% to TD1.06bn (US$695m) in the first half of 2012,
compared with the same period last year, according to the Foreign
Investment Promotion Agency. However, the rising possibility of
more protests in the second half of 2012 could hinder investment
for the remainder of the year. This will inevitably slow down the
economic recovery needed to reduce unemployment and revitalise
the deprived interior regions.
17
8.6 Economic growth

Official estimates put the economic contraction in 2011 at 2.2%
owing to the political unrest, strikes and sit-ins. The Ministry of
Finance forecasts that the economy will grow by 3.5% in 2012
(down from a previous forecast of 4.5%). Growth will continue to
be modest in 2013 but will pick up significantly from 2014 onwards,
assuming a smooth transition and an improvement in the euro zone
debt crisis, reaching 5.2% in 2016.
8.7 Inflation
It is forecast that inflation will increase significantly in 2012 to an
average of 5.8% owing to the dismissal of Mr. Nabli who wanted
to increase interest rates to control inflation as well as to our
expectation that the Tunisian dinar will depreciate further against
the US dollar.
A Appendix sources of
information
Economist Intelligence Unit
CIA World Factbook
Bloomberg
World Bank
Wikipedia
US Department of State
Although non-oil commodity prices are forecast to fall in 2012,

oil prices will remain high owing to fears over supply as regional
tensions persist. Inflation will broadly decline from 2013 to reach an
average of 3.4% in 2016 as the rise in domestic demand and high oil
prices are offset by stabilising food prices and the maintenance of
subsidies across a range of sectors.
8.8 Exchange rates
The strain on the dinar, which in 2011 remained resilient in spite of
the protests, is starting to show, as it depreciated by over 5% year
on year against the dollar from January to April 2012. An escalation
of protests or a further strengthening of the dollar may put added
downward pressure on the dinar. In addition, a rapid depreciation
of the euro would have a significant impact on the dinar, which is
pegged to a basket of currencies, of which the euro accounts for
around two-thirds. The problems in the euro zone and domestic
instability will lead to a weakening of the dinar against the US dollar
in 2012-14 but the currency will strengthen in 2015-16, averaging
TD1.58:US$1 in 2016.
18

Tunisia - Country Profile: 1 Background 2 2 Population 2

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Tunisia - Country Profile: 1 Background 2 2 Population 2

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Population growth rate

Age structures (2011 estimates)

Gender ratios (2011 estimates)

Life expectancy (2011 estimates)

6.10 Competition from state-owned enterprises

6.11 Corporate social responsibility

6.12 Political violence

6.14 Bilateral investment agreements

6.15 Foreign trade zones/free trade zones

6.16 Foreign direct investment statistics

6.17 Procedures for starting a business in Tunisia

Latest Economic indicators

Government and Politics

Transport and Communications

Ports and harbours

Doing business in Tunisia

Openness to foreign investment

Conversion and transfer policies

Expropriation and compensation

Performance requirements and incentives

Right to private ownership and establishment

Protection of property rights

Transparency of regulatory system

Efficient capital markets and portfolio investment

Country Risk Rating

Banking sector risk

Economic structure risk

Country Outlook: 2012 2016

Appendix sources of information

Rivalry between French and Italian

2.1 Population figures

The countrys first president, Habib

2.2 Population growth rate

Source: CIA World Factbook

2.4 Gender ratios (2011 estimates)

1.07 male / female

0.97 male / female

65 years and over

0.96 male / female

0.99 male / female

Source: CIA World Factbook

2.5 Life expectancy (2011 estimates)

2.6 Ethnic groups

3.1 Latest Economic indicators

3.2 Five-year forecasts

a) Actual; b) Economist Intelligence Unit forecasts.

Gross Domestic Product by sector or origin

2012 (b) 2013 (b)

Origin of GDP (TD bn at constant 1993 prices)

Origin of GDP (real %

Origin of GDP (% of factor cost GDP)

a) Actual; b) Economist Intelligence Unit forecasts

Growth and productivity

2012 (b) 2013 (b)

Labour productivity growth

Total factor productivity

Growth of capital stock

Growth of potential GDP

Growth of real GDP

Growth of real GDP per

Growth and productivity (%)

a) Economist Intelligence Unit estimates; b) Economist Intelligence Unit forecasts