Foreign Trade Imports.-$4,526.0 million, 1975; $3302.8 million, 1974. Major suppliers (1973): France (33%), Germany (14%), U.S. (8%), Italy (8%). Principal imports: industrial equipment, iron and steel products, motor vehicles, machinery and parts, aircraft, motor vehicles. From the U.S. (1975, $631.8 million): wheat, construction and mining machinery, mechanical handling machinery and parts, aircraft, motor vehicles. Exports. $3,461.0 million, 1975; $3,710 million, 1974. Major markets (1973): France (22%), Germany (22%), U.S. (11%), Italy (9%). Principal exports: crude petroleum, natural gas, petroleum products, wine. To U.S. (1975, $1,448.0): petroleum, liquified natural gas, chemicals, wine. Trade Policy.-The Government closely controls exports and imports. State enterprises, of which there are about 100, virtually monopolize most foreign trade. No preferential tariffs exist and all countries are subject to MFN treatment. Trade Prospects.-Favorable outlook for expanded sales of U.S. goods as Algeria seeks diverse sources of supply to decrease dependence on French products. Anticipated dollar earnings from pending sales of petroleum and natural gas to the U.S. market may accelerate trend. U.S. technology and associated services such as skill training are in demand. Foreign Investment Foreign investment is encouraged only under very special circumstances, mainly joint-venture with Government, of which there are nine with U.S. firms. Finance Currency.-4.1 Algerian dinars to U.S. $1.00 (June 1976). Domestic Credit and Investment.-Banking activity concentrated in small number of government-owned institutions. Substantial recent expansion of domestic credit. Minimal private direct investment. Total U.S. ExportImport Bank exposure over $750 billion. National Budget.-1975 budget of $10,221 million includes $6,755 million for investment. Estimated revenues, $10.1 billion, nearly 52% in petroleum earnings. Foreign Aid.-World Bank loans in 1974/75 for power, railroads, ports and industry. No U.S. AID program. In 1976 Algeria offered aid to less-developed nations. Economy Strong emphasis on state socialism. Agriculture is main source of livelihood for majority of population but petroleum and gas sectors are main supports of economy. GDP $12 billion in 1974. Agriculture. Principal crops are wine grapes, grain (wheat, barley, oats), vegetables, citrus fruits, olives, figs, dates, and esparto grass. Variations in production due to irregular climatic conditions. Industry. Public enterprises account for over 66% of industrial value added. Industry and energy received 55% of total investment 1970-73. Mainly food processing, building materials, chemicals, textiles, leather goods and metal works for domestic consumption. Major industrial complexes for petroleum refining, natural gas liquefac tion, plastics, petrochemicals, steel, cement and electronics planned or in progress. Mining.-1975 petroleum production 900 thousand b/d. 11.5% of estimated world reserves of natural gas: 1974 production 5.9 billion cubic meters. Other minerals include iron, phosphates, coal, lead, zinc, iron pyrites, copper, manganese, and mercury. Commerce.-Most of this sector has been nationalized, with Government monopolies handling the bulk of the country's export-import trade and wholesaling of consumer goods. Development Plan.-Four-Year Plan for 1974-77 foresees development expenditures of $26 billion, including $9 billion for industry. Emphasis on production of basic raw materials and equipment, education, agriculture, infrastructure, housing, construction industries, modernization of thirty principal towns. Basic Economic Facilities Transportation.-Highly developed transportation network: 30,233 miles of road, 20,740 paved. 2,423 miles railroad network, 100% government-owned, is most important means of land transportation. Nine well-equipped major commercial ports, including Algiers and Oran; petroleum pipeline terminal at Bejaia; petroleum and gas terminals at Arzeq and Skikda. Principal international airport near Algiers and smaller, jet airports at Oral, Annaba, and Constantine. Over 50 other medium-sized airfields. Communications.-State-owned and operated. Three radio broadcast centers; 1.3 million receivers, 350,000 televisions, 168,888 telephones. Telex and telegraphic services with most African nations, Europe. Two direct Algiers/ New York telephone circuits opened in 1971. Power.-Government owned. 2.3 billion KWH consumed in 1972. Installed capacity will exceed 5 billion KWH by 1977. Natural Resources Land.-920,000 square miles, four-fifths desert, mountains, wasteland. Climate.-Coastal region, moderate year-round climate with adequate rainfall; Saharan region, desert. Forestry.-12,000 square miles forested, mostly oak and evergreens. Except for cork oak (potential of 40,000 tons annually) little commercial value. Fisheries.-Average annual catch of 20,000 tons of tuna, sardines, and anchovies, one-third of which is processed. Population Size.-16.7 in 1975. 3.2% growth rate. 43% urban. Labor Force.-1.8 million in agriculture; 1.2 million other: of latter, 30% commerce, 27% public services, 21% industry, 16% construction, 6% transport. Nearly 60% of work force under 35 years of age. Unemployment and underemployment serious problems. Foreign Trade Imports.-$580 million, 1975; $440 million, 1974. Major suppliers 1975: UK 19%, U.S. 16%, Japan 12%. Main commodities: Machinery (other than electric), electrical machinery, apparatus and appliances, iron and steel, transport equipment, textile yarn and fabrics. Exports. Principally refined oil products (half of which is refined from Saudi Arabian crude petroleum), estimated 1975 value: $895 million. Total 1975 other exports and reexports: $210 million, primarily aluminum, and shrimp. Principal customers (non-oil): Saudi Arabia and Japan. Trade Policy.-Liberal. No licensing or exchange restrictions. Customs duties: 2% on food and other consumer products from domestic-industrial free zone (5% if not from zone), 10% to 70% on luxury products. No duty on other goods. Trade Prospects.-Heavy machinery, construction and materials handling equipment, furnishing (household and office), building materials and handling equipment, chemicals, clothing and foodstuffs. Foreign Investment Foreign Investment encouraged, particularly in licensing arrangements and joint ventures with private or public Bahraini interests. U.S. investments primarily in crude oil production and refining, aluminum smelter and banking. Government requires at least 51% local participation in almost all locally incorporated firms; sponsor is required for a branch office. No income or corporate taxes; no restrictions on repatriation of profits. Prospects good in joint ventures for light manufacturing and service industries supplying regional market. Investors can lease land on consessionary terms in free port industrial area (which is now full but will be expanded in the future). Finance Currency.-One Bahraini dinar (BD) equals $2.53 (one U.S. dollar equals .395 dinars). One BD equals 1000 fils, value pegged to dollar. Money supply September 1975, $397 million; currency in circulation April 1976, $68.5 million. Domestic Credit and Investment.-16 commercial banks including 2 U.S. branches; 12 more licenses approved. 32 banks have been licensed to open offshore facilities of which 16, with estimated assets of $3.5 billion, were open as of 7/76. National Budget.-Estimates for 1976: $385 million in revenues; $411 million in expenditures with deficit to be financed by loans from other Arab nations. Revenue, largely dependent on oil income (est 75% this year), declining as oil production drops. Economy Based primarily on oil extraction and refining, entrepot trade and service functions; slowly becoming more dependent on generosity of richer Arab nations to finance development projects. U.S. firms considering Bahrain's potential as regional center. Approximate 20% inflation rate in 1975-6. Agriculture. About 10% of land under cultivation. Suffers from shortage of arable land aggravated by expansion of the capital into main fertile area, shortage and increasing salinity of water supply, and movement of labor into urbanized sectors. Principal crop: dates; also fruits and vegetables for local market. Industry.—Principal industrial activity revolves around one of world's largest petroleum refineries (250,000 b/d) which produces products from Bahraini and imported Saudi crude; average daily 1975 crude oil production 59,000 barrels. Aluminum smelter plant produces 120,000 tons annually; expected to be basis for large industrial complex. Organization of Arab Oil Exporting Countries (OAPEC) dry dock to handle ships up to 500,000 dwt expected to be operational 1977. Pre-cast housing factory with production level of 2,000 units yearly recently opened; smaller companies include a 100 ton a day flour mill, the Bahraini Fishing Company, a paper processing plant, plastics plant, and air conditioner assembly plant. Projects under consideration: aluminum rolling mill and an extrusion plant, cable factory, and several plants to produce goods for the housing construction industry. Basic Economic Facilities Transportation.-Good system of paved roads and bus service. Bahrain International Airport is served by more than 16 international airlines. Gulf Air, provides service to the Gulf area. Only deep water port, Mina Sulman, is congested but two new temporary berths to handle ships up to 15,000 dwt will be installed shortly; 800,000 tons of cargo in storage at port clogs facilities. Communications.-One of most efficient telephone services in the Middle East (fully automatic exchange). Radio and telecommunications station provides reliable telephone and telex service via Intelsat III. Power.-Electricity available throughout island; power failures infrequent and limited to summer. Peak electricity demand in 1975 reached 142 megawatts and government confident has capacity to handle expected peak demand of 190 mw in 1976. New gas turbine power station with capacity 200 mw to be completed in 1980. Natural Resources Land.-Archipelago of 11 islands totaling 255 square miles, Bahrain largest island. Climate. Very hot with high humidity during summer; pleasant from November to early April. Scanty rainfall. Minerals.-Petroleum production 20.8 million barrels in 1975; large supply of natural gas; gross production 102 billion cubic feet in 1975. Fisheries.-Fish caught and processed for local and regional markets. Bahrain Fishing Company developing shrimping industry. Population Size. Estimated 270,000 in 1975. Principal city and capital: Manama (100,000). Language.-Arabic. English taught in schools and widely spoken in business circles. Education.-Over 50% literacy. Government provides free education through secondary school. Labor.-Shortage of labor of all types, particularly skilled; more than 60% of the labor force are expatriates. Foreign Trade Imports.-$2.4 billion (1974 actual); $4.7 billion (1975 est.). Major suppliers (1974): United States, 17%; France, 15%; Australia, 9%; U.S.S.R., 9%. Principal imports: food grains, edible oils, construction and road building machinery, chemicals, wood. Exports.-$1.5 billion (1974 actual); $1.5 billion (1975 est.). Major customers (1974): U.S.S.R., 33%; Japan, 10%; Czechoslavakia, 6%; Italy, 4%. Trade Prospects.-Egypt continues to import increasing amounts of U.S. goods, particularly food grains, edible oils, construction and mining machinery, trucks and cars, newsprint, and spare parts. As development efforts progress, imports of U.S. capital goods should far exceed agricultural commodities. In addition to income from exports, tourism and Suez Canal operations, Egypt continues to receive substantial aid from other countries. Egypt continues to discover oil and may become a significant oil exporter by 1980. Trade Policy.-Previously most importing done by government. New regulations allow private sector to import or export all but a small number of restricted commodities. Government has abolished its General Organization economic holding companies which had closely regulated the state-owned industrial companies. Some 130 state companies, representing 65% of the country's public sector, have been given more autonomy, opening the way to competition. New law permits private firms and individuals to qualify as representatives and agents for foreign firms. Foreign Investment 1974 investment code liberalized Egyptian policies and contains provisions for foreign ownership of businesses, the remittance of profits, tax exemptions and the establishment of free trade zones. Foreign investments are encouraged which generate exports, encourage tourism, reduce the need to import basic commodities, or introduce advanced technology. Finance Currency.-Egyptian pound (LE) equals $2.56 (official rate); 100 piastres equal LE 1.00; 10 milliemes equal 1 piastre. Domestic Credit.—Egyptian International Bank was created in 1972 to deal in foreign exchange transactions; the other five banks were reorganized for functional specialization. Commercial bank credit primarily goes for industrial loans and local development projects. Offices, branches, and joint ventures have been established in Egypt by several American banks. National Budget.-LE 6.2 billion in 1975, with over LE 1 billion for national security. Investment budget for 1975 was set at LE 1.2 billion. Balance of Payments.-Persistent current account deficit. Country's net foreign assets position is negative because of substantial foreign debt. Economy GNP.-$10.1 billion (1974 actual); $11.5 billion or $250 per capita (1975 est.). Agriculture, 30% of GNP; industry and mining, 21%; services, 28%. Petroleum industry stimulated by significant new oil finds. Textiles, food processing, iron and steel, and petrochemical industries also expanding. Agriculture.-Government plans to expand agricultural output through modernization and by land reclamation. Egypt plans to put an estimated 1.5 million acres of fringe Nile Valley land under cultivation by 1980. Industry.-Chief industries are cotton spinning and weaving, petroleum, cement, fertilizer, iron and steel. Industrial sector accounts for slightly over 20% of GNP and 13% of total employment. Development Plans.-Major programs call for reconstruction of the cities along the Suez Canal, reactivation and greater utilization of industrial capacity, and expansion of agricultural output. Basic Economic Facilities Transportation.-Suez Canal was reopened on June 5, 1975. Ships now pass through on a regular basis. Alexandria is main port. 1000-mile Nile River system and 1000-mile navigable canals are important to inland transport. Ground transportation is adequate in the inhabited areas (Nile Valley and Delta). 2,000 miles of rail route (4,200 miles of track). Over 14,000 miles of primary road of which 5,000 miles hard surfaced. Airports in major cities. Communications.-Well developed radio and TV facilities: telephones mainly in urban areas. International radiotelephone and cable services available. Power.-Aswan Dam power plant will double present capacity-to 14 billion kwh-by 1976. Power is distributed on 220 volt, 50 cycle system. Natural Resources Land.-386,000 square miles of which 95% desert. Cultivated area consists of Nile River Valley and Delta. Climate.-Semitropical. Annual rainfall less than 2 inches, except along coast, where it varies up to 7 inches. Minerals.-Petroleum production in 1975 estimated at 11.7 million metric tons, comprising the major portion of total mineral production. Balance mainly phosphate, iron ore, salt, manganese, and limestone. Population Size.-38 million (1975); rate of growth 2% annually. Density in Nile Valley and Delta ranges from 1,800 in rural areas to 250,000 per square mile in Cairo. Population of Cairo over 8 million; Alexandria, 2.5 million. Language.-Arabic; English important commercially. Labor.-Labor force 9 million in 1974. About 50% engaged in agriculture, 13% in industry. Foreign Trade Imports.-Iran's nonmilitary imports during 1975-76 (year ending March 20) totaled $10.3 billion, 87% above 1974-75 total. Major suppliers: U.S.A. (20%), West Germany (18%), Japan (17%), U.K. (9%). Major imports: industrial and agricultural machinery, automotive equipment, industrial raw materials, electrical apparatus, food grains, paper, fats and oils. Exports.-1975-76 exports valued at $19.5 billion; 1974-75 $17.5 billion. Major markets: West Germany, U.S.S.R., U.S.A., Japan. Oil and gas account for over 95% of export value. Other exports: handwoven carpets, cotton, knit goods, hides and skins; also significant exports of pistachio nuts, currants, caviar, chromite. Trade Policy. Increasingly liberal. Iran adopted Brussels Tariff Nomenclature (BTN) in 1973. Government has wide administrative discretion to revise import restrictions as deemed necessary to promote economic and social objectives. Trade Prospects.-Total market grew by 86% in 1975. Expected growth in 1976 will be well below 40% due to infrastructure bottlenecks and balance-of-payments limitations. Best prospects include machinery and equipment for construction, manufacturing, agribusiness, oil exploration and refining, oil and gas distribution, mining and metallurgy, education, health care, housing, materials handling, irrigation and power, transportation and communications. Foreign Investment As of end of 1975 the book value of U.S. private direct investment in Iran (excluding oil industry) was about $98 million (up from $63 million one year earlier). Government welcomes private venture capital but imposes equity ceilings (up to 35%) on foreign joint-venture partners; approved projects are given tax incentives and other benefits. Investment Guaranty Agreement between Iran and United States. Finance Currency.-US$1=69.5 rials (as of March 20, 1976). Domestic Credit.-Short-term credit available through 25 commercial banks. Medium- and long-term credit available through Industrial Mining & Development Bank of Iran (IMDBI) and 9 other investment banks. Loans and credits to private sector allowed to pass $10 billion mark in 1975. Reserves.-Gold and foreign exchange reserves as of March 1976 about $6.8 billion. No substantial change is foreseen as long as oil prices remain stable. Economy Gross National Product.-Per capita GNP as of March 1976 was $1,480 (annual basis). Real growth rate averaged 13% a year from 1964 to 1973 and 23% in 1974 and 1975. Continued growth at 11% rate predicted. Petroleum.-Iran is world's fourth largest producer, after U.S.A., U.S.S.R., and Saudi Arabia. Annual oil production: 2 billion bbls. Natural gas output: 1.8 trillion cu. ft./yr. (55% being flared). Agriculture.-Only 11% of total land area under cultivation or lying fallow; with irrigation this figure could be raised to 30%. Wheat, barley, rice, sugar beets and cane, cotton, tobacco, tea, nuts, dates. Industries and Mines.-Industrialization program enjoys top priority. Petrochemicals and fertilizers, textiles, foodstruffs, glass, cement, steel, aluminum, motor vehicles, farm tractors, tires, appliances, detergents, tobacco, matches, pharmaceuticals, footwear, paper, plastic products. Lead, zinc and chromite are being mined; iron and copper deposits being developed. Development Program.-Fifth Plan calls for "fixed" investments over 5 year period 1973-78 of $70 billion (one third of this is private sector). Due to infrastructure bottlenecks, Plan goals will not be met until 1980. Basic Economic Facilities Transportation.-3,700 km of railways, 12,500 km of paved roads in 1973, to increase to 19,000 km by 1980. Tehran lies on main air route between Europe and Far East. Growing volume of imports by rail and truck from Europe due to port congestion. Huge roadbuilding and port expansion projects being pushed. Communications.-Radio and TV broadcasting in major cities. Microwave network will eventually link all cities by telephone and telex. Power. Electricity consumption growing 21% a year, should reach 24 billion kwh by 1980. Natural gas will soon be important energy source in Tehran, Isfahan, Tabriz, Shiraz and other cities. Development of nuclear capability being pushed also. Natural Resources Area of Iran 628,000 square miles, much of it desert and mountain. Abundant rainfall only along Caspian seacoast. Overgrazing by sheep and goats, but reforestation being pushed around major cities. Good fisheries potential in Caspian and Persian Gulf. In addition to vast reserves of oil (60-70 billion bbls.) and gas (400 trillion cu. ft. or more), Iran has significant deposits of copper, iron, lead, zinc, chromite, gold, manganese. Population 35 million (1976), mainly concentrated in north and west. Growth rate 3%. Tehran 3.7 million. Two-thirds of people live in rural areas where illiteracy is widespread. Official language Farsi (Persian) main foreign language English. Shi'ite sect of Islam professed by 90% of population. Large labor force 10 million (86% male); widespread seasonal unemployment and underemployment. Foreign Trade Imports.-$5 billion (estimate), 1975. Principal suppliers according to exporter country F.O.B. statistics ($million): West Germany, 1,051; Japan, 819 France, 409; U.S.S.R., 377; U.S., 310. Major imports: foodstuffs, motor vehicles and parts, communications equipment, farm equipment, building materials, iron and steel, textiles, aircraft and railroad equipment. Exports. Over 95% is petroleum, three-fourths destined to Western Europe. Value of oil exports, 1975, $8.4 billion. Major non-oil exports: dates, cement, sulphur. Trade Policy. Most products purchased directly by government organizations or trading companies from foreign suppliers; licenses and exchange permits required. Some imported goods competing with locally produced items prohibited. Contracts with Iraqi private sector agents must be registered with Government. Trade Prospects.-Agricultural, industrial and power generating machinery; building materials; railway, port, subway, oilfield and irrigation equipment; foodstuffs and consumer goods. Contracts awarded principally to foreign firms offering early delivery or fixed price bids on "turn-key" projects. Foreign Investment Foreign equity investment not desired; foreign collaboration obtained through service contracts, "turn-key" contracts and licensing agreements. Finance Currency.-One Iraqi Dinar (ID) equals $3.40. Dinar divided into 1,000 fils. Money supply February, 1976, $2,154. Domestic Credit and Investment.-Credit policy restrictive. All banking and insurance institutions as well as 30 industries nationalized. 1976 budget allots $5.1 billion for investment. National Budget.-1976 budget allocates $17.2 billion for ordinary, and development expenditure and for public sector corporations, 3% higher than in 1975. Foreign Aid.-Heavy reliance on Communist bloc technical financial and military assistance diminishing; Iraq awards many development contracts to Western firms. Although now an aid doner, Iraq receives World Bank loans and UNDP grants. Balance of Payments.-Surplus on current account due chiefly to oil income. Official foreign reserves, February, 1976: $3.1 billion. Economy GDP.-$11 billion (1974). World's seventh largest petroleum producer. Socialistic and highly-centralized economy except for sizeable private activity in agriculture, construction, light industry, and tourism. Agriculture. Although potentially self-sufficient in basic foodstuffs, Iraq currently imports foodgrains and frozen chicken. Estimated 18% of land in agriculture but farms less than one half of cultivable land. World's largest date producer. Most land sown in wheat and barley. Other crops: rice, cotton, tobacco, wool, hides and skins. Industry.-Heavy industry includes petroleum refining, electrical equipment, glass, agricultural implements, paper, vehicle assembly, prefabricated housing, cement. First stage of iron and steel complex to be completed 1977. Light industry; food processing, cigarettes, textiles, drugs. Development Program.-New Five Year Plan (1976-80), not yet published, calls reportedly for investment expenditure $33 billion, quadruple the investment under the previous plan which ended in March, 1975. Basic Economic Facilities Transportation.-1,462 miles of railroad, government owned: 714 miles standard gauge, 748 miles meter gauge. Two ports: Basra and Umm Qasar. Also utilizing Aqaba Port, Jordan to relieve congestion. Rapid expansion programmed for port and rail facilities. Developing own tanker fleet. Communications.-Telephone system generally satisfactory but limited to major cities. Link with world improved by satellite connection mid-1975. All communications media owned or controlled by Government. Power.-3.4 billion KWH produced 1975. Considerable expansion of capacity underway. Natural Resources Land.-172,000 square miles. Desert west of Euphrates constitutes 47% of land area: broad, fertile valley between Tigris and Euphrates River: mountains in the northeast. Climate.-Three zones: arid, tropical and temperate. Long, hot summers (temperatures consistently over 120° in July, August) and short, often cold (below freezing) winters. Scanty rainfall. Minerals. Proven petroleum reserves 35 billion barrels but estimates run up to 100 billion barrels. Crude oil production 2.2 million barrels per day in 1975, expected to rise to 4 million by 1980. Others: natural gas, sulphur, phosphates, glass sand. Population Size. Estimated 11 million, 1976; 3.3% growth rate; more than 50% urban. Baghdad, capital, about 3 million. Other large cities: Mosul, Basra, Kirkuk. Education.-Free nominally compulsory for all children 612 years. Literacy estimated at 40%. Labor. Estimated 3.2 million labor force: 49% in agriculture, 10% in industry (including oil), 11% in trade and transportation. |