Economic forum discusses Tunisia's role in the Mediterranean

2008-11-18

Tunisia hosts $50 billion in foreign investments and is reaching out for more. Foreign investment grew by 38% in the last nine months.

By Mona Yahia for Magharebia in Tunis – 18/11/08

[Mona Yahia] Al-Iktissad Wal-Aamal Group General Manager Raouf Abou Zaki (left) poses with Tunisian Prime Minister Mohamed Ghannouchi at the forum on Saturday.

The two-day Second Tunisian Economic Forum concluded Saturday (November 15). Business leaders and observers from 21 Arab and foreign countries attended the forum.

Attendees discussed the development of Tunisia's economy, the climate for investment and mega-projects, the role of Arab and foreign investment in Tunisia, and Tunisia's role in the Mediterranean.

"Tunisia's geographic location is indeed unique," said Adham Moubarek Touri, general director of the Tunisian Kuwaiti Development Group, "because of its proximity to neighbouring rich markets such as Algeria and Libya, as well as markets in southern Europe. We, in the Gulf, are very distant from those markets. Tunisia can act as a gateway for the Gulf toward other regions."

Investors encouraged Tunisia to play its role as a Maghreb country and make sure regional countries have access to the resources of development in the country. They also noted that Tunisia has potential for co-operation on the African level.

A number of participants stressed the importance of Arab integration as a vital tool in facing the global financial crisis currently affecting major stock markets in the world, which Tunisia is trying to contain through further pan-Arab and foreign investments.

Ahmed Mouhamed Ali, head of the Islamic Development Bank (IDB), said that the impact of the global financial crisis on the flow of investments into Tunisia will be limited.

In the last few years, $50 billion worth of investments and projects have been launched in Tunisia.

According to official figures, Arab investments in the country are expected to reach 2.8 billion dinars in 2008, compared to 2.2 billion dinars in 2007.

UAE investments are flooding into Tunisia after TECOM-DIG, an affiliate of Dubai Holding Co., won a 35% stake in Tunisie Telecom worth $2.82 billion.

Direct foreign investment in Tunisia grew by 38% over the last nine months, according to Tunisian Minister of Development Mohamed Nouri Jouini, making it 1.68 billion dinars, compared to 1.22 billion dinars for the corresponding period last year.

However, the biggest and most significant investment project in Tunisia now "Tunisia, Gate of the Mediterranean", known in Tunisia as the "project of the century". It is a joint endeavour between Tunisia and Sama Dubai with a budget of $14 billion.

The "Gate of the Mediterranean" project comprises world-class resorts and attractions to be built on the southern lake in Tunis. The project, which will also include 120 private clinics, is scheduled to open in 2016 to attract more tourists from around the world.

"Since 1995," said Hedi Jilani, head of the Tunisian Industry, Trade and Crafts Union, "Tunisia's economy has integrated into the global economy. Tunisia was the first state to sign a partnership deal with the EU."

"Tunisia is a growing state on the road to development," he said.