Tunisia Way

T unisia has enacted several laws to encourage foreign investment in the industrial, agricultural and tourism sectors. Legislation promoting foreign investment in the service sector has been drafted and may be adopted by the Government.

Foreign investors wishing to invest in these sectors under the enabling legislation may do so through the form of a partnership (Association of Person) or as either a public or private company (Association of Capital).

In order to promote economic growth, narrow existing trade imbalances and increase exports, Tunisia offers extensive investment incentives. These incentives have been available since the 1970s. The Investment Incentives Code, which became effective in January 1994, promotes these goals. The Investment Incentives Code offers two types of incentives. The first kind of investment incentives is applied to all investment projects, except projects relating to mining, energy and finance. The second kind of investment incentives is reserved for projects engaged in specified fields or projects of a special nature.

Tunisia's thriving economy creates an attractive atmosphere for investors from the European Union, Japan and the United States in 2004. More than 2,659 foreign firms have direct investments in or joint ventures with Tunisian companies they employ 243,125 people. Many of these firms were attracted by Tunisia's proximity and preferential trading relations with the European Union and the Arab Maghreb Union, as well as by the newly revised Investment Code which offered tax and customs concessions to foreign investors and reduced the administrative "red tape" required for project approval. A particular incentive for U.S.

Investors is the Tunisian-U.S. Bilateral Investment Treaty (BIT), signed in January 1993, that guarantees the safety of investments and profit repatriation.
Foreign Direct Investment flow (privatization excluded) increased by 11% in the first 2 months 2001 as compared to the same period in 2000 and portofolio investment grew by 14% .