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| INVEST IN THE
MEDITERRANEAN -
SELLING POINTS |
| A huge market |
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| The market of the MEDA countries is young and potentially powerful. In fact, while the population of the European Union is ageing, that of the countries of the Southern flank is young, in great majority educated and accustomed to European consumer products. Each point in growth indicates an increase in demand for goods and services. |
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| Photo : A huge market |
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A huge market
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Young demographics |
The countries of the South and East of the Mediterranean had 240 million inhabitants in 2001 for a Gross Domestic Product close to that of Central and Eastern Europe, half as populated with 104 million inhabitants. The percentage of those under fifteen years old in the MEDA countries is very high (from 28 % in Israel to 41 % in Syria ).
The demographic projections for 2025 indicate a population of 350 million inhabitants. The total population of the Mediterranean shore countries was 427 million inhabitants in 2000, with a projection of 523.7 millions inhabitants in 2025.
Projection of population, MEDA, 2000-2025 (Source : Plan Bleu Méditerranée) :
| Country |
Population
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Fertility rate
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| Algeria |
30 332 000
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42 329 000
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2.66
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2.10
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| Cyprus |
785 000
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900 000
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2
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1.90
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| Israel |
5 851 000
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7 861 000
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2.75
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2.20
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| Egypt |
66 007 000
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94 895 000
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3.03
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2.10
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| Lebanon |
3 206 000
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4 147 000
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2.1
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2.10
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| Malta |
389 000
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430 000
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1.92
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1.90
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| Morocco |
28 505 000
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38 174 000
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2.35
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2.00
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| Palestinian Authority |
3 150 000
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6 072 000
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5.29
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2.92
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| Syria |
15 936 000
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24 003 000
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3.19
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2.10
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| Tunisia |
9 615 000
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12 892 000
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2.28
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2.06
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| Turkey |
65 627 000
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87 303 000
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2.24
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1.87
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One of the powerful forces is the migration of the population towards the coastal areas, that may be seen on both shores, and the remarkable development of the coastal towns with more than 100,000 inhabitants, all with problems (and markets) for facilities, accommodation and employment that these involve. The coastal population will have been multiplied by 7.1 between 1950 and 2025! |
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The recent situation |
Between 1999 and 2002, the weighted regional average GDP growth was 1.8 %, a rate lower than the increase in the working population. The non-agricultural Gross Domestic Product has increased slowly but regularly in Egypt, Morocco and Tunisia, more unevenly in Turkey (financial crisis) and in Israel (consequence of the drop in the level of the Nasdaq on the high technology activities). Private consumption has contracted in Israel , but has been the main driving force for growth in the other countries where the contribution of investment and the external balance have been very low.
The region is not at all homogeneous in terms of population and living standards, however, all countries share a privileged relationship with the European Union which for the majority of them is their main trading partner. Turkey, Israel and Algeria were at the top of the list as trading partners of the EU in 2002. The European Union remains the main outlet for exports from the MEDA countries, with an overall average of 48.7 % and figures from 64 to 79 % for the Maghreb . With the exception of Israel , and to a lesser extent Turkey, the non-oil exports from these countries are concentrated on a limited number of products among which clothing manufacturing.
By taking into account the inflation differential with the European Union, the competitiveness of the Mediterranean exports improved considerably in 2002. However, with the exception of Turkey, the market share of the countries of the Mediterranean basin in the non-oil imports of the European Union (5.2 % of which 2.2 % for Turkey alone) has stagnated for 3 years while that of the Central and Eastern European countries has increased. In the first quarter of 2003, despite a relatively morose European economic situation, exports from Tunisia and Turkey were maintained.
MEDA countries currently have populations attracted by Europe and European products, especially because of the impact of satellite television. The aspiration to consume products manufactured in the West is very strong. It is supported by the traveling habits throughout the Mediterranean basin and by the strong impact of the life style of the emigrants. Though declining, the contribution of emigrants represents an important source of income for these economies (between 3 % and 25 % of the gross domestic product).
- The key sectors of the market Many more details on the market opportunities are to be found on the pages of this guide devoted to the individual countries. However, the following general indications may help give a perception of the overall orientations of the needs of the MEDA market.
- Consumer goods (food, white goods, etc.) are bound to undergo considerable development, because of the demographics.
- The agro-food sector has needs in terms of cold chain systems, dairy products, the wine market, irrigation and research.
- Distribution is a sector of the future (hyper-markets, storage, logistics, sales networks). Franchising is currently enjoying a boom period, it provides experience and an already established brand while remaining independent.
- The whole health sector represents an enormous potential market. It is the same for the habitat and construction domains (distribution of new techniques, social housing, etc.).
- Information technology offers innumerable possibilities of development, as much in the equipment for businesses and administrations as in personal computing and software.
- The requirements in telecommunications and internet remain considerable despite the recent progress made in the majority of countries around the mobile telephone and the development of the web.
- Services to businesses should be extended and become more sophisticated. Counseling, expertise, training are services likely to undergo enormous development.
- In the domain of tourism, the opportunities remain numerous. Countries like Algeria, Syria and even Egypt are still largely under-exploited.
- The environment is a sector in full expansion.
- Generally, the market for large infrastructure facilities presents numerous opportunities: port and airport infrastructures, public works and refuse processing and sewage treatment, for example.
- The modernisation of transport is a priority for the majority of the MEDA countries. The requirements here are considerable and foreign investment is often sought in this field. The example of the Cairo underground system is an illuminating example in this respect.
- The « classic » industrial sectors such as automobile and electronic sub-contracting, textiles and clothing sectors already present continue to offer possibilities of development. |
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Average income (PPP) of the EU countries and the Mediterranean countries (1967-2000) |
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