ALGERIA JUNE2013

INTERNATIONAL SUPPORT KIT OF OPPORTUNITIES

The Country's Economic Context Industry Structure I International i lT Trade, d Bil Bilaterall T Trade d with ihP Portugall and dO Opportunities ii BES Group’s Internationalisation Support: International Premium Unit

BES Group's International Offering Contacts

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

ALGERIA

Business environment and key factors

Argel

B i Business environment i t

Ease of doing business

152/185

(Doing Business 2013 ranking)

Investor protection Cross-border trade Contract fulfilment Economic Freedom

82/185 129/185 126/185 145/177

(Economic Freedom 2013 ranking)

Competitiveness

110/144

(Global Competitiveness Index 2012-2013 ranking)

Basic Requirements Infrastructure Instituitions

89/144 100/144 141/144

Efficiency Enhancers

136/144

Innovation and Sophistication

144/144

Cosec (Risk group)

3

Grade 1 (lowest risk) to 7 (highest risk)

Capital: Algiers Population (Millions): 35.4 (2011) Time Zone: UTC + 1 Type of Government: Republic

Official Language: Arabic Surface Area: 2 400 thousand km2 Currency: Algerian Dinar (DZD) Religion: Muslim majority (99%)

S Sources: IMF World IMF, W ld B Bank, k COSEC COSEC, World W ld E Economic i F Forum, Gl Global b lH Heritage, it Bl Bloomberg. b

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

03

ALGERIA

Macroeconomic Indicators

GDP Current prices EUR billion

GDP real growth rate Percentage

Unemployment Rate

2011

2012

2013E

2014E

2015E

142.8

161.6

163.7

165.0

166.6

2.4

2.5

3.3

3.4

3.6

10.0

9.7

9.3

9.0

8.6

5.0

4.5

4.0

Percentage of working population

Inflation Rate

4.5

8.9

Percentage

Exchange Rate

101.4

100.1

104.0

101.0

101.0

10.0

5.9

6.1

4.5

3.8

-2.7

-1.2

-2.1

-1.9

DZD/EUR

Current Account Percentage of GDP

Fiscal Balance Percentage of GDP

-0.4

E Estimates Sources: IMF, Bloomberg.

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

04

ALGERIA

Economic summary

The results of the May 2012 general elections confirmed the continuity of the National Liberation Front’s (FLN) ample and stable majority led by President Abdelaziz Bouteflika. majority, Bouteflika These elections suggest a period of political stability in a region that has been particularly afflicted by the so-called Arab Spring. The Algerian economy remains highly dependent on the oil and gas sector, with exports of natural gas and oil representing the main sources of growth and state revenues. revenues In 2012, 2012 increases foreseen in natural gas and oil exports (8.9% (8 9% and 16.1%, 16 1% respectively) mean that the sector will continue to be the driver of growth and state revenues (in 2011, oil and natural gas exports accounted for 98% of total exports and 75% of state revenues). In 2012, Algeria’s economy grew by around 2.5% (as compared with 2.4% in 2011), and the economy is seen growing in excess of 3% from 2013 onwards, buoyed not only by a p dynamism y in both the service and construction sectors. The latter is expected p to recoveryy in the oil sector,, but also byy expected receive a strong boost from the Public Investment Programme launched by the Algerian Government. In 2012, the rate of inflation rose to 8.9% (as compared with 4.5%, in 2011, and 3.9%, in 2010), the highest reading in the last 15 years. This was due, above all, to a significant increase in the price of food. However, it is important to note that the Algerian Government sharply increased public expenditure in the wake of the regional instability resulting from the “Arab Spring” (e.g. increase in public sector wages), seeking to ensure internal socially stability. This, however, led to a deterioration in public finances and an increase in inflation, which the authorities are expected to seek to contain from 2013 onwards. The Algerian Alge ian government go e nment has established the “diversification “di e sification of the economy” econom ” as a priority p io it and has been promoting p omoting investment in estment in other areas, outside of the oil and gas sector, as well as a reduction in the unemployment rate (particularly among youth and women), which is equal to about 10% of the active population. The main challenge for the Algerian economy will be to create jobs for the younger generations, through diversification of the economy.

Sources: IMF, Bloomberg, ES Research – Research Económico. ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

05

ALGERIA

Internacional Integration

OPEC – Organization of the Petroleum Exporting Countries Is an oil cartel whose main objective is to stabilise the oil market and the revenue of oil- producing countries, relying on a quota system applicable to member countries oil to this end. www.opec.org

OPEC – Member M b States St t

ABEDA – Arab Bank for Economic Development in Africa Is a financial institution controlled by 18 countries belonging to the Arab League, whose objective is to increase economic, financial and trade relations among Arab and African countries. These relations include the elaboration of local development plans and technical assistance and knowledge transfer among member states.

www.badea.org AfDB – African Development Bank Founded in 1964, this financial institution emerged from 3 Africa development funds. Its objective is to contribute to sustainable economic development and poverty reduction on the African continent. Portugal is a non-regional member since 1982 www.afdb.org 1982. www afdb org

AFESD – Arab Fund for Economic and Social Development A regional economic development fund set up in 1972 under the auspices of the Arab League. It funds local projects and provides technical assistance and knowhow relating to these projects. Risk capital investment is also undertaken by this fund which covers North Africa and the Middle East. www.arabfund.org Sources: AICEP, ES Research - Sectoral Research.

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

06

The Country's Economic Context Industry Structure I International i lT Trade, d Bil Bilaterall T Trade d with ihP Portugall and dO Opportunities ii BES Group’s Support to Internationalisation: International Premium Unit

BES Group's International Offer Contacts

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

ALGERIA

Sectoral structure of GDP Growth prospects are good for non oil sectors, in particular for agriculture and construction.

Breakdown of GDP by sector (2007 and 2011) Industry

Industry

Agriculture

Agriculture

5%

6% Construction & Public Works

Government services

8%

Construction & Public Works Hydrocarbon

9%

2007

9%

9% 10%

46%

Nongovernment services

38%

2011 Government services

22%

Hydrocarbon

17%

21%

Nongovernment services

S Source: OECD IMF OECD, IMF, African Af i Economic E i Outlook O tl k, ES Sectoral S t l Research. R h

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

08

ALGERIA

The economy economy’s s sectoral structure (I) The financial system in Algeria, Algeria regulated by the Bank of Algeria, Algeria is small and characterised by a structural excess of liquidity and by prudent policies in terms of credit expansion. Reforms have been implemented in the financial system with a view to making it more t transparent t and d efficient. ffi i t Among A th main the i measures, the th implmentation, i l t ti i 2011, in 2011 off the th Conseil de la Monnaie et du Crédit (CMC), a system for monitoring domestic money markets, is of particular note. These reforms seek to reinforce the strength and stability of the Algerian banking system.

The largest banks operating in Algeria, 2011

FINANCIAL SYSTEM Bank

Assets (USD millions)

Banque Extérieure D´Algérie “BEA”

31 887

Banque Nationale D D’ Algérie "BNA" BNA

19 147

Banque de L’Agriculture Et Du Développement Rural "BADR"

11 525

Banque de Développement Local SPA "BDL"

4 869

Société Générale Algérie

2 131

Banque Al-Baraka d´Algérie

1 375

Gulf Bank Algeria

772

Arab Banking Corpoation-Algeria

566

S Sources: IMF “The IMF, “Th Banker”, B k ” World W ld E Economic i F Forum.

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

09

ALGERIA

The Economy Economy’s s Sectoral Structure (II) In 2011, the construction and public works sector accounted for 10% of GDP and is seen expanding sharply over the next few years, years driven by the public investment programme, programme with a total value of EUR 210 billion, which is to be implemented over the 2010-2014 period. Among the vast set of public contracts, of particular note are projects such as the East – West motorway, the Algiers metro system, dams and public works related to the oil sector, as well as the housing sector, where the government has taken the initiative in building new homes with a view to overcoming existing shortages. In this regard, noteworthy is the role of the four Portuguese consortia who are to build 75 thousand homes in Algeria. This projects, launched in February 2013, involve the formation of joint ventures with local state-owned companies, the latter holding 51% of share capital. The project to build 75 thousand homes, the total value of which is expected to be equal to around EUR 4 billion, will be awarded by the Algerian Government as part of a vast plan including education and health facilities, in addition to housing.

CONSTRUCTION As such, following a slight contraction in the construction sector in 2012, a recovery is foreseen this year and d is i expected t d to t continue ti over the th nextt few f years, driven di t a large to l extent t t by b the th high hi h number of projects in hand and by the award of new projects. The growth of this sector is seen having a positive impact on job creation, contributing, albeit in a modest fashion, to a reduction in the level of unemployment. The attraction of the construction and public works sector in Algeria and the range of opportunities that it holds is seen continuing over the next few years, attracting foreign companies, not only in the construction sector, but in all related industries, such as engineering, heavy equipment, construction materials, materials furniture, furniture amongst others. others

Sources: Business Monitor Internacional, OECD, Governo de Portugal, Câmara de Comércio e Industria Árabe-Portuguesa, Árabe Portuguesa, Algeria Infraestructure Summit, ES Sectoral Research.

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

10

ALGERIA

The Economy Economy’s s Sectoral Structure (III) Although Algeria has vast potential in tourism, the sector is still poorly developed. Beyond the coastal areas, areas endowed with Mediterranean beaches, beaches the country boasts a vast and rich heritage, heritage in particular, the seven sites classified as World Heritage by UNESCO: Al Qal'a of Beni Hammad, Djémila, Kasbah of Alger, M'Zab Valley, Timgad, Tipasa, Tassili n'Ajjer. The sector has been gaining increasing importance in the country, country due to the expansion of the hotel network, the improvement in the road and telecommunications networks, as well as an increase in accommodation capacity. Of particular note is the national tourism development strategy, which seeks to establish public policy focused on involving all entities in the development g In order to encourage g the development p of the sector,, the g government has of a tourist offering. launched a development plan (National Tourism Development Plan (SDAT)), seeking to attract foreign capital to invest in the sector.

TOURISM

In terms of the WTTC world ranking (comprising 184 countries), Algeria ranks 52nd in terms of the absolute size of the tourism sector, and 113th in terms of tourism’s contribution to the national economy. The country ranks 61st in terms of growth prospects for the sector in the 2013-2023 period. Direct contribution of tourism to GDP GDP, 2012 World

Country

(% of GDP)

Rank 26 32 36 76 81

2012

Morocco Tunisia Egypt World Average Turkey Algeria

8 70% 8.70% 7.30% 6.90% 5.20% 4.10% 3 70% 3.70%

Sources: World Tourism Organization; World Travel & Tourism Council (WTTC). ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

11

ALGERIA

The Economy Economy’s s Sectoral Structure (IV) The oil & gas sector has been the bulwark of the economy, contributing around 70% of budget revenues, 30% of GDP and over 95% of export revenues. In 2012, Algeria was the 9th largest producer of natural gas and the leading producer in Africa, with a daily production volume equal to 81.5 billion cubic metres. In terms of proven reser es Algeria is among the top 10 countries reserves, co ntries worldwide orld ide and is 2nd in Africa, Africa after Nigeria. Nigeria Due to large revenues from oil and gas, Algeria has comfortable foreign reserves and a sizeable hydrocarbon stabilization fund (Fund for the Regulation of Receipts – FRR). Natural gas production in Algeria, 1980-2012 (Billions of cubic metres).

OIL & GAS

100 90

81.5

80 70 60 50 40 30 20 10 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

0

Sources: OECD, AfDB, IMF, BP Statistics. ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

12

The Country's Economic Context Industry Structure I t International ti l Trade, T d Bilateral Bil t l Trade T d with ith Portugal P t l and d Opportunities O t iti BES Group’s Support to Internationalisation: International Premium Unit

BES Group's International Offer Contacts

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

ALGERIA

International Trade – Partners

Algeria’s imports by country, 2012

Algeria’s exports by country, 2012

Ranking

Country

2012 (EUR Million)

Share (%)

CAGR07-12 (%)

Ranking

Country

2012 (EUR Million)

Share (%)

CAGR07-12 (%)

1

France

4 737.8

12.8

7.1

1

Italy

8 953.4

16.0

9.0

2

China

4 638.9

12.6

21.6

2

USA

8 382.3

15.0

-8.7

3

Italy

3 551.1

9.6

15.1

3

Spain

6 073.4

10.9

9.3

4

Spain

3 261.7

8.8

23.0

4

France

4 762.8

8.5

9.8

5

Germany

2 015.2

5.5

9.1

5

Netherlands

4 088.2

7.3

4.4

6

Argentina

1 402.0

3.8

15.8

6

Canada

3 952.4

7.1

3.0

7

Turkey

1 398.6

3.8

15.8

7

United Kingdom

2 852.7

5.1

19.9

8

USA

1 309.7

3.5

-3.4

8

Brazil

2 640.7

4.7

14.7

9

Brazil

1 045.1

2.8

18.9

9

Turkey

2 041.1

3.7

6.5

10

South Korea

980.0

2.7

10.7

10

China

2 019.4

3.6

20.1





















17

Portugal

482.2

1.3

49.5

12

Portugal

1 330.6

2.4

14.0

Source: UNComtrade.

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

14

ALGERIA

International Trade – Goods Imports and Exports (World) Algeria’s top 10 exports, 2012

Algeria’s top 10 imports, 2012 2012 (EUR Million)

Share (%)

CAGR07-12 (%)

8703 - Motor Cars And Other Motor Vehicles Principally Designed For The Transport Of Persons

3 039.8

8.2

22.8

8704 - Motor Vehicles For The Transport Of Goods, Incl. Chassis With Engine And Cab

1 715.3

4.6

19.6

1001 - Wheat And Meslin

1 655.8

4.5

10.2

7214 - Bars And Rods, Of Iron Or Non-Alloy Steel, Not Further Worked Than Forged, Hot-Rolled, Hot-Drawn Or Hot-Extruded, But Incl. Those Twisted After Rolling

1 632.0

4.4

17.4

3004 - Medicaments

1 364.7

3.7

7.4

2710 - Petroleum Oils And Oils Obtained From Bituminous Minerals (Excl. Crude); Preparations Containing >= 70 % By Weight Of Petroleum Oils

1 220.7

3.3

113.4

0402 - Milk And Cream, Concentrated Or Containing Added Sugar Or Other Sweetening Matter

850.3

2.3

3.6

1701 - Cane Or Beet Sugar And Chemically Pure Sucrose, In Solid Form

747.3

2.0

1005 - Maize Or Corn

732.5

8517 - Telephone Sets, Incl. Telephones For Cellular Networks Or For Other Wireless Networks; Other Apparatus pp For The Transmission Or Reception p Of Voice

585.3

Products (H.S. 4)

2012 (EUR Million)

Share (%)

CAGR07-12 (%)

2709 - Petroleum Oils And Oils Obtained From Bituminous Minerals, Crude

25 570.5

45.8

0.7

2711 - Petroleum Gas And Other Gaseous Hydrocarbons

20 999.1

37.6

8.1

7 716.1

13.8

13.7

707.0

1.3

22.5

2814 - Ammonia, Anhydrous Or In Aqueous Solution

327.2

0.6

22.2

1701 - Cane Or Beet Sugar And Chemically Pure Sucrose, In Solid Form

161.7

0.3

164.5

2510 - N Natural t lC Calcium l i Ph Phosphates h t A And dN Natural t l Aluminium Calcium Phosphates, Natural And Phosphatic Chalk

118.9

0.2

23.3

19.9

2905 - Acyclic Alcohols And Their Halogenated, Sulphonated, Nitrated Or Nitrosated Derivatives

26.5

0.0

0.9

2.0

14.2

2202 - Waters, Incl. Mineral Waters And Aerated Waters, Containing Added Sugar Or Other Sweetening Matter Or Flavoured, And Other Non-Alcoholic Beverages (Excl. Fruit

24.2

0.0

14.5

1.6

15.1

0804 - Dates, Figs, Pineapples, Avocados, Guavas, Mangoes And Mangosteens, Fresh Or Dried

20.4

0.0

3.9

Products (H.S. 4)

2710 - Petroleum Oils And Oils Obtained From Bituminous Minerals (Excl. Crude); Preparations Containing >= 70 % By Weight Of Petroleum Oils 2707 - Oils And Other Products Of The Distillation Of High Temperature Coal Tar; Similar Products In Which The Weight Of The Aromatic Constituents Exceeds That Of

Source: UNComtrade. ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

15

International Trade – Bilateral relations with Portugal (I)

ALGERIA

Portugal – Algeria Balance of Trade, 2007, 2011 e 2012 (EUR millions) Compound Annual Growth Rate (CAGR) CAGR07-12 of exports = 38.5% CAGR07-12 of imports = 6.7%

Deficit EUR 361 million

14º (share: 0.9%)

14º (share: 1.4%)

Imports

807

783

In 2012, 313 companies exported goods to Algeria

8

Services (1%)

583

+18.6%

Exports 18 Services (4%) 428 Goods (96%)

446 376

87

2007

2011

Exports of goods and services

2012

2012

799

Goods (99%) In 2011, 264 companies exported goods to Algeria 2012

Imports of goods and services

Ranking and share as Portugal customer and provider (goods) S Sources: INE B INE, Banco de d P Portugal. t l

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

16

ALGERIA

International Trade – Bilateral relations with Portugal (Goods) (II)

Top 10 Portuguese imports from Algeria, 2012

Top 10 Portuguese exports to Algeria, 2012

2012 (EUR Million)

Share (%)

CAGR07-12 (%)

2709 - Petroleum Oils And Oils Obtained From Bituminous Minerals, Crude

734.7

91.9

10.9

2814 - Ammonia, Anhydrous Or In Aqueous Solution

45.1

5.6

2711 - Petroleum Gas And Other Gaseous Hydrocarbons

13.5

4501 - Natural Cork, Raw Or Merely Surface-Worked Or Otherwise Cleaned; Cork Waste; Crushed, Powdered Or Ground Cork 4503 - Articles Of Natural Cork

Products (H.S. 4)

4104 - Tanned Or Crust Hides And Skins Of Bovine "Incl. Buffalo" Or Equine Animals, Without Hair On, Whether Or Not Split (Excl. Further Prepared) 2510 - N Natural t lC Calcium l i Ph Phosphates h t A And dN Natural t l Aluminium Calcium Phosphates, Natural And Phosphatic Chalk 8604 - Railway Or Tramway Maintenance Or Service Vehicles, Whether Or Not Self-Propelled, E.G., Workshops, Cranes, Ballast Tampers, Trackliners, 8602 - Rail Locomotives (Excl. Those Powered From An External Source Of Electricity Or By Accumulators); Locomotive Tenders 4105 - Tanned Or Crust Skins Of Sheep Or Lambs, Without Wool On, Whether Or Not Split (Excl. Further p ) Prepared) Sources: INE, Banco de Portugal.

2012 (EUR Million)

Share (%)

CAGR07-12 (%)

7214 - Bars And Rods, Of Iron Or Non-Alloy Steel, Not Further Worked Than Forged, Hot-Rolled, Hot-Drawn Or Hot-Extruded, But Incl. Those Twisted After Rolling

128.0

29.9

696.2

78.9

7213 - Bars And Rods Of Iron Or Non-Alloy Steel, HotRolled, In Irregularly Wound Coils

45.8

10.7

78.9

1.7

-13.9

2523 - C Cement, t IIncl. l C Cementt Cli Clinkers, k Wh Whether th O Or N Nott Coloured

45.5

10.6

500.9

1.3

0.2

141.9

39.2

9.2

n.a.

1.0

0.1

-6.5

20.3

4.8

80.3

1.0

0.1

36.5

8419 - Machinery, Plant Or Laboratory Equipment Whether Or Not Electrically Heated (Excl. Furnaces, Ovens And Other Equipment Of Heading 8514), For The

19.8

4.6

20.2

0.8

0.1

n.a.

7308 - St Structures t A And dP Parts t Of Structures St t "E.G., "E G Bridges B id And Bridge-Sections, Lock-Gates, Towers, Lattice Masts, Roofs, Roofing Frameworks, Doors And Windows"

13.1

3.1

47.1

0.5

0.1

n.a.

9.2

2.2

56.2

0.3

0.0

n.a.

8.4

2.0

250.9

0.3

0.0

33.4

7.8

1.8

73.5

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

Products (H.S. 4)

4802 - Uncoated Paper And Paperboard, Of A Kind Used For Writing, Printing Or Other Graphic Purposes, And NonPerforated Punchcards And Punch-Tape Paper 8474 - Machinery For Sorting Sorting, Screening Screening, Separating Separating, Washing, Crushing, Grinding, Mixing Or Kneading Earth, Stone, Ores Or Other Mineral Substances, In Solid, Incl.

6902 - Refractory Bricks, Blocks, Tiles And Similar Refractory Ceramic Constructional Goods (Excl. Those Of Siliceous Fossil Meals Or Similar Siliceous Earths) 7010 - Carboys, Bottles, Flasks, Jars, Pots, Phials, Ampoules And Other Containers, Of Glass, Of A Kind Used For The Conveyance Or Packing Of Goods, 3004 - Medicaments

17

ALGERIA

Goods export opportunities (I) Set of products (merchandise) identified as needs (imports) of Algeria for which Portugal has production and export capacity, thus representing opportunities to increase the volume of Portuguese exports to Algeria.

Top 10 export opportunities to Algeria 8416 - Furnace Burners For Liquid Fuel,For Pulverised Solid Fuel Or For Gas;Mechanical Stokers, Incl.Their Mechanical Grates, Mechanical Ash Dischargers; 8531 - Electric Sound Or Visual Signalling Apparatus, E.G. Bells, Sirens, Indicator Panels, Burglar Or Fire Alarms

6405 - Footwear With Outer Soles Of Rubber Or Plastics; Leather Or Composition Leather; Wood, Cork, Twine, Paperboard, Furskin, Woven Fabrics, Felt, Nonwovens, Linoleum, Raffia, Straw, Loofah, Etc And Uppers Of Any Type Of Material, N.E.S.

8402 - Steam S Or O Other O h Vapour V G Generating i B Boilers il (E (Excl.l C Centrall H Heating i H Hot W Water Boilers Capable Also Of Producing Low Pressure Steam) 9023 - Instruments, Apparatus And Models Designed For Demonstrational Purposes, E.G. In Education Or Exhibitions, Unsuitable For Other Uses 9403 - Furniture And Parts Thereof Thereof, N N.E.S. E S (Excl (Excl. Seats And Medical Medical, Surgical, Dental Or Veterinary Furniture)

8481 - Taps, Cocks, Valves And Similar Appliances For Pipes, Boiler Shells, Tanks, Vats Or The Like, Incl. Pressure-Reducing Valves And Thermostaticallyy Controlled Valves

4011 - New Pneumatic Tyres, Of Rubber

0901 - Coffee, Whether Or Not Roasted Or Decaffeinated; Coffee Husks And Skins; Coffee Substitutes Containing Coffee In Any Proportion 8414 - Air Or Vacuum Pumps (Excl. Gas Compound Elevators And Pneumatic Elevators And Conveyors); Air Or Other Gas Compressors And Fans; Ventilating Or Recycling Hoods Incorporating A Fan, Whether Or Not Fitted With Filters S Sources: UNC t d OECD, UNComtrade, OECD ES R Research h - Sectoral S t l Research. R h

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

18

ALGERIA

Goods export opportunities (II) Top 10 export opportunities to Algeria (Amount and rank of Algeria’s world imports) 2006 (EUR Milions)

2011 (EUR Milions)

CAGR06-11 (%)

Rank 2011

Share (%)

8481 - Taps, Cocks, Valves And Similar Appliances For Pipes, Boiler Shells, Tanks, Vats Or The Like, Incl. Pressure-Reducing Valves And Thermostatically Controlled Valves

181.8

780.4

33.8

8

2.3

8414 - Air Or Vacuum Pumps (Excl. Gas Compound Elevators And Pneumatic Elevators And Conveyors); Air Or Other Gas Compressors And Fans; Ventilating Or Recycling Hoods Incorporating A Fan, Whether Or Not Fitted With Filters; Parts Thereof

149.5

518.6

28.2

10

1.5

901 - Coffee, Whether Or Not Roasted Or Decaffeinated; Coffee Husks And Skins; Coffee Substitutes Containing Coffee In Any Proportion

122.7

224.4

12.8

34

0.7

4011 - New Pneumatic Tyres, Of Rubber

101.7

221.5

16.8

35

0.7

9403 - Furniture And Parts Thereof, N.E.S. (Excl. Seats And Medical, Surgical, Dental Or Veterinary Furniture)

46.4

128.3

22.6

51

0.4

9023 - Instruments, Apparatus And Models Designed For Demonstrational Purposes, E.G. In Education Or Exhibitions, Unsuitable For Other Uses

15.3

111.4

48.7

59

0.3

8402 - Steam Or Other Vapour Generating Boilers (Excl. Central Heating Hot Water Boilers Capable Also Of Producing Low Pressure Steam)

15.2

110.7

48.7

63

0.3

8531 - Electric Sound Or Visual Signalling Apparatus, E.G. Bells, Sirens, Indicator Panels, Burglar Or Fire Alarms

13.0

85.1

45.6

80

0.3

6.8

57.5

53.2

111

0.2

15.9

38.0

19.0

154

0.1

Products (H.S. 4)

8416 - Furnace Burners For Liquid Fuel Fuel,For For Pulverised Solid Fuel Or For Gas;Mechanical Stokers, Incl.Their Mechanical Grates, Mechanical Ash Dischargers; 6405 - Footwear With Outer Soles Of Rubber Or Plastics; Leather Or Composition Leather; Wood, Cork, Twine, Paperboard, Furskin, Woven Fabrics, Felt, Nonwovens, Linoleum, Raffia, Straw, Loofah, Etc And Uppers Of Any Type Of Material, N.E.S. S Sources: UNC t d OECD, UNComtrade, OECD ES R Research h - Sectoral S t l Research. R h

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

19

ALGERIA

Goods export opportunities (III)

Cloud of Export Opportunities to Algeria Metals and articles thereof 7306 - Tubes, Pipes And Hollow Profiles "E.G., Open Seam Or Welded, Riveted Or Similarly Closed", Of Iron Or Steel 7307 - Tube Or Pipe Fittings "E.G. Couplings, Elbows Sleeves Elbows, Sleeves", Of Iron Or Steel 7309 - Reservoirs, Tanks, Vats And Similar Containers, Of Iron Or Steel, For Any Material 'Other Than Compressed Or Liquefied Gas' 7321 - Stoves, Ranges, Grates, Cookers, Incl. Those With Subsidiary Boilers For Central Heating Heating, Barbecues, Braziers, Gas Rings, Plate Warmers And Similar Non-Electric Domestic Appliances, And Parts Thereof Of Iron Or Steel

Machines and Apparatus 8418 - Refrigerators, Freezers And Other Refrigerating Or Freezing Equipment, Electric Or Other; Heat Pumps; Parts Thereof

6806 - Slag-Wool, Rock-Wool And Similar Mineral Wools; Exfoliated Vermiculite, Expanded Clays, Foamed Slag And Similar Expanded Mineral Materials; Mixtures And Articles Of Heat8432 - Agricultural, Horticultural Or Forestry Machinery For Soil Insulating Sound Sound-Insulating Insulating Or Sound Absorbing P Preparation ti O Or Cultivation; C lti ti L Lawn O Or S Sports-Ground t G d Rollers; R ll P Parts t Insulating, Mineral Materials) Thereof 8437 - Machines For Cleaning, Sorting Or Grading Seed, Grain Or Dried Leguminous Vegetables; Machinery Used In The Milling Industry Or For The Working Of Cereals Or Dried Leguminous

7616 - Articles Of Aluminium, N.E.S. 8301 - Padlocks And Locks "Key, Combination Or Electrically Operated", Of Base Metal; Clasps And Frames With Clasps, Clasps Incorporating Locks Locks, Of Base Metal; Keys For Any Of The Foregoing

6908 - Glazed Ceramic Flags And Paving, Hearth Or Wall Tiles; Glazed Ceramic Mosaic Cubes And The Like, Whether Or Not On A Backing

8544 - Insulated Ins lated "Incl. "Incl Enamelled Or Anodised" Wire Wire, Cable "Incl. "Incl Coaxial Cable" And Other Insulated Electric Conductors; Optical Fibre Cables

Other sectors

7411 - Copper Tubes And Pipes 7604 - Bars, Bars Rods And Profiles Profiles, Of Aluminium, Aluminium N.E.S.

Articles of Stone and Ceramic Products

1209 - Seeds, Fruits And Spores, For Sowing 3209 - Paints And Varnishes, Incl. Enamels And Lacquers, Based On Synthetic Polymers Or Chemically Modified Natural Polymers, Dispersed Or Dissolved In An Aqueous q Medium 3909 - Amino-Resins, Phenolic Resins And Polyurethanes, In Primary Forms 9028 - Gas, Liquid Or Electricity Supply Or Production Meters, Incl. Calibrating Meters Therefor

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

8705 - Special Purpose Motor Vehicles (Other Than Those Principally Designed For The Transport Of Persons Or Goods), E.G. Breakdown Lorries, Crane Lorries, Fire Fighting Vehicles, Concrete-Mixer Lorries, Road Sweeper Lorries, Spraying Lorries, M bil W Mobile Workshops k h And A dM Mobile bil R Radiological di l i l U Units it 9401 - Seats, Whether Or Not Convertible Into Beds, And Parts Thereof, N.E.S. (Excl. Medical, Surgical, Dental Or Veterinary Of Heading 9402)

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The Country's Economic Context Industry Structure I International i lT Trade, d Bil Bilaterall T Trade d with ihP Portugall and dO Opportunities ii BES Group’s Internationalisation Support: International Premium Unit

BES Group's International Offering Contacts

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

ALGERIA

BES Group's Group s Internationalisation Support (I)

BES is the largest national bank with international presence and with the best international offering: for the 7th consecutive ti year was awarded d d the th prize i "The "Th Best B t Trade T d Finance Fi Bank". B k"

Spain: Branch

United Kingdom: Branch BES and ESIB

France: Subsidiary BES Vénétie

Luxembourg: Branch

USA

New York: Branch BES and ESIB

Italy: Associated Banco delle Tre Venezie

Poland: Subsidiary BES and ESIB

Strategic Triangle: g Africa-Brazil– Iberia

China: Representative office

Miami: Subsidiary ES Bank of Florida

Hong Kong: Subsidiary ESIB Macau: Subsidiary BES Oriente

Mexico: Representative Office BES and ESIB

Mumbai: ESIB

Venezuela: Branch Brazil: Subsidiary and ESIB

Cape Verde: BES Cape Verde

Morocco: Associated Banque Marocaine du Commerce Extérieur

Libya: Algeria: Associated Subsidiary Aman Bank Banque Extérieur d'Algérie d Algérie

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

South Africa: Representative Office BES

Angola: Subsidiary BES Angola

Mozambique: Moza Banco

22

ALGERIA

BES Group's Group s Internationalisation Support (II)

International Premium Unit (IPU) offers Portuguese companies specialized services to aid and support their internationalization p process ((exports p or foreign g direct investment), ), finding g solutions for multiple p requests q in various foreign g markets. IPU is organized in 5 international desks, geographically specialized and consisting of experienced, multi-skilled international managers.

Mature Markets, China

Eastern Europe, Asia, Middle East

Latin America

Northern Africa, T k Turkey Africa

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

23

The Country's Economic Context Industry Structure I International i lT Trade, d Bil Bilaterall T Trade d with ihP Portugall and dO Opportunities ii BES Group’s Internationalisation Support: International Premium Unit

BES Group's International Offering Contacts

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

ALGERIA

BES Group's Group s International Offering

A Global and Innovative Offering to Support the Internationalisation of the Portuguese Companies ES Research: M k tD Market Data t

Investment Banking

Multipessoal Group

Macroeconomic surveys

Project Finance

Recruitment of specialists (M Search)

Sectoral surveys

M&A

Market research

Corporate Finance

Outsourcing, temporary work, training and consulting services with presence in Angola and Spain

Commercial Banking

Business Development Support to Account Opening / KYC Support to treasury monitoring / centralisation

Venture Capital

Support as partner in internationalisation projects

Tranquilidade

International Transport Insurance

ES Ventures

FX Risk Ri k Hedging H d i Support to Exports/Imports; Trade Finance; Import Financing Bank Guarantees / Stand By Letters of Credit International Factoring – agreement to use Eurofactor’s European network Support to business partners’ search

ES Capital 2bCapital Espírito Santo Rockefeller Global Energy Fund

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

25

The Country's Economic Context Industry Structure I International i lT Trade, d Bil Bilaterall T Trade d with ihP Portugall and dO Opportunities ii BES Group’s Internationalisation Support: International Premium Unit

BES Group's International Offering Contacts

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

Disclaimer Thi d This document was prepared db by Banco B E í i Santo Espírito S and/or d/ any off its i subsidiaries b idi i (“BES”) and d is i intended i d d solely l l for f release l by b BES to qualified lifi d iinvestors. IIts use iis restricted i d to qualified lifi d iinvestors, and d their h i representatives. All information contained in this document was compiled in good faith by BES, using sources of public information considered reliable, although its accuracy cannot be guaranteed. Accordingly, with the exception of information about BES makes no representation as to the accuracy or completeness of such information. The opinions expressed in this document reflect BES’s point of view as of the date of its release and may be subject to change without prior notice. BES does not assure the update of this document. This document is not a research report, neither represents any kind of advisory, nor is an offer to buy or sell or intends to solicit an order to buy or sell. The prices of any instruments described in this document are indicative prices only and do not constitute firm bids or offers. BES may choose to make a market for any instruments referred in this document, but are not obliged to do so. Any such market-making activities may be discontinued at any time without notice. The prices of any financial instruments described in this document are indicative prices only and do not constitute firm bids or offers. BES may trade for their own account or of their clients any instruments that may be referred to in this document, as well as they may have any business relationship with the entities referred on it. BES may act as market-makers of any instruments referred to in this document, although they are not obliged to do so and, if they do it, they may terminate that activity at any moment. BES may act as placement agent, advisor, lender or in other capacities in with respect to financial instruments or issuers referenced in this document. BES may trade for its own account and may also engage in securities transactions in a manner inconsistent with this document and with respect to financial instruments covered by this document. BES has no obligation to update, modify or amend this document or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. Prices and availability of financial instruments are also subject to change without notice. This document is provided for informational purposes only. BES will not accept any responsibility for any loss resulting from the use of the information or opinions referred in this document. The financial instruments discussed in this document may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. If a financial instrument is denominated in a currency other than an investor’s currency, a change in exchange rates may adversely affect the price or value of, or the income derived from the financial instrument, and such investor effectively assumes currency risk. In addition, income from an investment may fluctuate and the price or value of financial instruments described in this document, either directly or indirectly, may rise or fall. Furthermore, past performance is not necessarily indicative of future results. The financial instruments discussed herein may be subject to restrictions with regard to certain persons or in certain countries under national regulations applicable to said persons or in said countries. It is each investor’s responsibility p y to ensure that it is authorized to invest in those financial instruments. This document is confidential and addressed to a restricted number of entities. If you are not an addressee of this document, you should immediately destroy it. The dissemination or copy, in total or in part, of this document is not allowed. Additional information is available upon request.

Additional disclosures for US persons The enclosed document does not constitute any kind of research report or any kind of offer to sell any of the financial instruments discussed herein, nor is it soliciting an offer to buy such financial instruments. The financial instruments issued by Companies that may be discussed herein may be subject to restrictions with regard to certain persons or in certain countries under national regulations applicable to said persons or in said countries. It is each investor’s responsibility to ensure that it is authorized to invest in those securities. The financial instruments discussed in this material may not be suitable for all investors. Investors should make their own assessment of the risks from a legal, tax and accounting perspective prior to investing in such products. Past performance is no guarantee to future performance. This document is being distributed to, and is intended solely for the use of, institutional investors. Notwithstanding the generality of the preceding sentence, this document is intended solely for the use of the i tit ti institutional l iinvestor t tto which hi h it h has b been sentt b by BES and d such h recipient’s i i t’ agents, t employees, l advisors d i and d representatives. t ti If you have h received i d thi this d documentt iin error, you are urged d tto d destroy t it or return t it immediately to BES. The prices of any financial instruments described in this document are indicative prices only and do not constitute firm bids or offers. BES or its affiliates may choose to make a market for any such financial instruments, but neither BES nor any of its affiliates has an obligation to do so. Any such market-making activities may be discontinued at any time without notice. Certain information contained in this document has been derived from public sources that BES deems to be reliable. Neither BES nor any of its affiliates, however, have independently verified such publicly available information nor do they take responsibility for its accuracy or completeness. Any y U.S. person p receiving g this document and wishing g to effect transactions in any y financial instruments discussed herein should do so,, if applicable, pp , through g BES and not through g any y non-U.S. affiliate of BES.

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

27

International Premium Unit Head

North Africa & Turkey

Ricardo Bastos Salgado

Elisa David International business and financial institutions Director

[email protected]

Head

[email protected]

Desk Ana Rocha

[email protected]

ISKO Algeria International Premium Unit / ES Research – Sectoral Research/ International Development Department

Miguel Frasquilho

[email protected]

Francisco Mendes Palma Head Sectoral Strategist

f [email protected] l @b t

Susana Barros

[email protected]

Luís Ribeiro Rosa

[email protected]

Paulo Talhão Paulino

[email protected]

Conceição Leitão

[email protected]

João Pereira Miguel

[email protected]

Patrícia Agostinho

[email protected]

Salvador Salazar Leite

[email protected]

Miguel Bidarra

[email protected]

José Manuel Botelho

[email protected]

Celina Luís

[email protected]

Research Sectorial

28