Current
Events
Washington's Oil Diplomacy
By Alessandro Bruno
The
announcement of normalized relations between the United States
and Libya - apart from whatever diplomatic and internal popularity
benefits the United States may gain on its own - will no doubt
contribute to increasing Libya's oil production. The country
currently produces 1.6 million bpd (less than it produced
in the 1970's). Normalized relations mean that it will be
much easier for the US and other countries to give Libya the
necessary technology to increase production such that Libya
may achieve its goal of producing some 3 million bpd by 2015.
Some of this technology includes steam injection into underground
reservoirs and horizontal drilling techniques (though the
Spanish Repsol had already pioneered this technique in Libya
at its Murzuq field in 1996) [read
here]
Corporate
Affairs
The Corporate Status in Morocco to Get a Facelift
Since
its official inception in 1996, the corporate status in Morocco
has been a controversial law that executives considered too
severe in light of the structure of the country's economy.
In such economy, the small and mid-size businesses have had
a dominant presence. Acknowledging these concerns, the Moroccan
parliament, through the finance commission has begun reviewing
the rules governing corporations. [read
here]
Economy/Trade
Algeria Speeds up Debt Reimbursement
After
clearing its debt with Russia, Algeria convinced the Paris
Club to allow it to prepay nearly $8 billion of its debt to
club members. The representatives of the Paris Club creditor
countries and of the Government of Algeria met in Paris on
10 and 11 May 2006 to examine the offer made by Algiers to
prepay its debts previously rescheduled in 1994 and 1995.
[read
here]
Corporate
Affairs
Dubai Holding to Pour Billions in Moroccan
Property and Travel Sectors
Dubai
Holding will invest $12 billion to develop tourism infrastructure
in Morocco over the next five years. The investment agreements
which involved the highest authorities of the two countries,
including King Mohamed, pave the way for Sama Dubai, the international
real estate investment arm of Dubai Holding, to develop a
series of projects in Morocco in partnership with CDG, one
of the biggest Moroccan companies. [read
here]
Economy/Trade
High Oil Prices Remain a Problem for Tunisia
Authorities
in Tunisia have been raising petroleum prices, as the country's
subsidy fund could not cope with the ever-increasing prices.
As of April 2006, the price of gasoline in gas stations was
increased five times since 2003. As of January 2006, the price
of electricity was raised six times since 2003. There is a
strong likelihood for further increases if the price of a
barrel of oil remains above $70. Analysts are even warning
of a possible $100 per barrel in the short term, while the
Tunisian finance law and the state budget were drafted on
the basis of a $60 per barrel of oil. [read
here]
Economy/Trade
Industry and Manufacturing in Libya are Petroleum-Centric
The
Libyan industrial sector is less dense and not as diversified
compared to its neighbors. Petroleum has taken a primary position
in the Libyan industrial environment leaving other sectors
behind the curve and with limited investment. Up to now, Libya's
industrial policy gave priority to the heavy industry such
as steel, metal and petrochemicals with the purpose of linking
these industries to the need of the petroleum sector. As such,
the manufacturing sector is so small that it is virtually
non-existent. The few activities led by state-owned companies
focus on auto assembly and textiles, while the private sector
has taken over the cement market. Other than these sectors,
there is not much happening. This weakness, however, is likely
to change in the future, as Libya's petrodollars will be used
to fuel industrial growth in the North African nation. Although
priority has been given to petroleum thus far, foreign investors
must not lose sight of other industrial sectors of potential
high return. [read
here]
Economy/Trade
Privatization in Algeria on the Fast Track
The
pace of privatization in Algeria has picked up a bit over
the past 15 months. In the first quarter of 2006, 63 state-owned
companies have shifted ownership to private interests, according
to government minister Abdelhamid Temmar. Still, Temmar recognizes
that 35 more companies could have been sold had the privatization
council met regularly. [read
here]
Industries/Markets
Sonatrach Hires a Japanese Firm to up Safety
in 14 Industrial Sites, to Spend $750M in Upgrades
Sonatrach
selected Ihi-Itochu to boost the safety of 14 industrial sites.
An audit which lasted 46 weeks and involved some 40 engineers
was conducted on the sites to identify the safety problems.
[read
here]
Industries/Markets
Old Vehicles Dominate in Morocco
A
substantial share of the Moroccan active automobile base is
oudated. The bulk of the automobiles in circulation are more
than a decade old. At least 75% of the cars are more than
10 years of age, while only 8% are less than 5 years of age.
These figures released by the CNEH (Centre National d'Essais
et d'Homologations) are alarming and efforts that began in
the early 1990s to rejuvenate the nation's cars and buses
have yet to pay off. [read
here]
Social/Labor
Affairs
Two Years After an Overhaul of the
Family Law, Gender Equality is far from Being Achieved in
Morocco
Two
years after the enactment of the family law in Morocco, gender
equality remains rather elusive. Though some limited progress
was achieved, there are major differences between the reality
in the Moroccan society and the stated goals of the law which
include social progress and equal rights for women. [read
here]
