Research and consulting in Tunisia

Country overview:

IOA has conducted extensive research and consulting across various sectors in Tunisia. Our analysts have closely tracked the country’s recovery, particularly in tourism, after a series of terrorist attacks, as well as the political reforms that led to democracy following public demands. Despite this progress, business investment is hindered by low economic freedom. Tunisia’s coastline continues to be a major departure point for illegal migration to Europe, leading to numerous fatalities each year due to the perilous sea journey.

The country boasts a well-developed industrial sector, producing refined petroleum products and textiles, though it remains heavily reliant on imports for consumer goods, fuel, and machinery. The agricultural sector requires improvements to reduce the need for food imports, and income inequality contributes to widespread poverty. However, Tunisia’s natural beauty and cultural heritage sustain a thriving tourism industry.

Key opportunities in Tunisia:

Tourism, drawing visitors from Europe and the Middle East, is once again a key driver of the economy
The industrial base is well-established and presents opportunities for expansion to better meet local consumer demand
Olive oil continues to be a long-standing and highly sought-after export

Key concerns/risks in Tunisia:

The management of natural resources needs significant improvement, particularly in upgrading infrastructure related to water resources
Ongoing human rights violations by security forces remain a barrier to societal progress
The government is increasingly becoming more authoritarian

Find out about how IOA can help you with research and consulting services in Tunisia

Tips on doing business in Tunisia:

Starting a business:

Foreigners are generally allowed to own local companies, except in certain industries where special permits are needed to own more than 49% of the business
Common business structures include Joint-Stock Companies, Private Limited Liability Companies, and International Trading Companies, with the latter being the most popular option for foreign investors in the export sector. Foreigners can also purchase real estate, but this requires specific permits

Doing business:

Local authorities provide several incentives for foreign investors, including a reduced income tax rate of 10% for exporting companies, full VAT and customs duty exemptions on inputs for re-exported products, and a complete tax exemption on benefits for up to 10 years for companies in regional development zones. Investment grants are also available for priority sectors
Challenges faced by local firms include slow and inefficient bureaucracy, burdensome regulations, and ongoing political instability
(Read more at: http://www.investintunisia.tn/En/home_46_33)

Culture and society:

Arabic and Berber are the primary languages of communication, though French is also widely used in business and administrative settings. Local business culture tends to be hierarchical, with decision-making typically concentrated in the hands of a small group of senior leaders
It is generally advisable to avoid urgent business activities during June and July, as this period coincides with both holidays and the peak of the local hot season. Similarly, reaching local business owners during Ramadan can be challenging due to the increased activity and schedule changes during this time