OVERVIEW
Tunisia is a small, politically stable country on the North African Coast with a population of more than 10 million. Due to its limited natural resources, the government is focused on strengthening human capital and developing the manufacturing, tourism and agriculture sectors.

A large part of the national budget goes to education, healthcare, housing and social services. The private sector plays an important role in economic growth and as a result, Tunisians have created a modern, diversified and market- oriented economy. In 2008, the average annual income per capita was USD4,000 and the country literacy rate was at 75%, one of the highest in North Africa.

ECONOMY
Tunisia’s economy grew at an average of 5% from 2004 to 2007 and is expected to grow at an average of 6% over the next five years although this may decrease due to the global economic crisis. The average inflation rate in 2008 was 5%. The export-driven manufacturing industry is the country’s backbone of economic growth. Sectors such as textile industries and automobile components create employment for the Tunisians.

Tourism is the next source of foreign currency for Tunisia – over 7 million tourists visited Tunisia in 2008 and brought in nearly USD3 billion in convertible currencies. Agriculture is another key sector and employs about 20% of the population. Last year, Tunisia exported USD1.7 billion worth of agricultural products, mainly olive oil, seafood and dates. Tunisia’s thriving economy creates an attractive environment for investors. More than 2700 foreign firms have an investment or joint venture in Tunisia. Many were attracted by Tunisia’s close proximity with European countries and also by its preferential trade agreement with the EU. Foreign investors are allowed 100% capital ownership and repatriation of capital and profits.

EXTERNAL TRADE
A founding member of the World Trade Organization (WTO), Tunisia is committed to a free trade regime and export-led growth. In 2008, over 70% of Tunisian foreign trade was with Europe, but the government would like to expand trade and investment beyond Europe. Principal Tunisian exports are crude oil, minerals, manufactured goods and agricultural goods including its internationally renowned olive oil. Major trading partners are France, Italy, German, Belgium and also Maghreb countries.

Tunisia was the first North African country to sign an Association and Free Trade Agreement with the EU. The country also signed regional cooperation agreements to provide greater access of their products. In 2008, total exports stood at USD20 billion and imports were worth USD25 billion. Tunisia’s import pattern is dominated by the needs of its manufacturing sectors.

BI-LATERAL TRADE WITH MALAYSIA
In 2008, Malaysian exports to Tunisia were worth RM47.5 million. Major export products were palm oil, chemicals & chemical products and electrical & electronic products. During the same period, Tunisia’s exports to Malaysia was only RM20 million. One of the challenges for our products to enter Tunisia is that imports from EU enjoy a price advantage over other products as many EU products are totally exempted from import duties.

MARKET OPPORTUNITIES
The awareness on Malaysia and Malaysian products is low as we do not have a direct representative here. However, lots of opportunities are available, especially in sectors involving processed food, medical equipments and supplies, pharmaceuticals products and building materials. It is strongly advised for Malaysian companies to visit Tunisia prior to entering into a business relationship with local partners.

TIPS ON DOING BUSINESS IN TUNISIA
Business etiquette in Tunisia is reminiscent of Arab customs. It is, however, one of the more liberal and tolerant Muslim countries. Dress smart and conservatively always. A suit and tie is appropriate for men; a suit for women. Be respectful of the culture and religious customs. Avoid making business appointments during the month of Ramadan. Tunisians are courteous people. Regular visits and personal contact are essential to maintain and strengthen business relationships. Reconfirm appointments in advance and allow ample time between meetings. Be punctual. Businessmen generally speak Arabic or French, so have an experienced interpreter on hand. Shake hands when entering and leaving meetings. If you are invited to someone’s home, bring a gift as a token of appreciation.

Contact Details:
Malaysia External Trade Development Corporation
Embassy of Malaysia
Commercial Section (MATRADE)
17th Floor, North Tower
Nile City Building
Cornish E1-Nil Street
Cairo, Egypt

Telephone : +2-02 (2) 461 9063 / 461 9064
Fax : +2-02 (2) 461 9065
Email : cairo@matrade.gov.my