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Since the 70s, Tunisia has opted for export-oriented economic model. In 1995, it launched a national industrial upgrading programme in order to increase the competitiveness of its enterprises and prepare them for international markets. In 2008, over 4 000 companies participated in this programme. By 2011, they should be 4 800. The funded projects have helped to increase the share of fully exporting industrial companies up to 45% in 2007. A special scheme of tax-free profits is provided for companies producing at least 85% for export. Industrial exports (excluding food) reported a 4-fold increase compared to 1996, reaching 12 billion Tunisian dinars (7 billion euros) in revenue (84% of national exports).

Taking advantage of its geographical and cultural proximity, Tunisia has progressively strengthened its relations with the European Union, which has become its first industrial partner and customer (80% of industrial exports). Since 1996, exports to member countries grew an average of 10% per year. This rapid rise was enabled by the country’s substantial efforts devoted to education and vocational training, transport and logistics infrastructure, creation of production platforms that meet international standards and the facilitation of trade.

Tunisia’s entry in a free trade area with the European Union in 2008 opened new opportunities but also new challenges. Heavily relying on exports and foreign direct investment, the Tunisian economy is very dependent to the global context. Faced with the emergence of countries offering unbeatable production costs, a change in its position has proven crucial.

The government adopted a new industrial strategy by 2016 to set a medium-term direction. It aims to differentiate Tunisia from its competitors, such as Asian ones, by adding "hubs" and "innovation" features to its positioning of "back office" / "industrial nearshore". On the one hand, the "Tunisia Location" shall be integrated in a regional and even global value chain by improving logistic efficiency. On the other hand, the promotion of innovation through education and training shall help to increase the value-added production. The main goal is to double exports up to 17.5 billion dollars by 2016.

In this perspective, 3 areas of development have been identified:
- "Upgrading historical industrial sectors": textiles, clothing, leather and footwear, agri-food, phosphates; building materials;
- "Diversifying the Tunisian industry and promoting the emergence of new sectors": electronics, automobile and aeronautics (also known as mechanical and electrical industries, MEI), engineering plastics, pharmaceuticals and biotechnology, ICT, service centres and other services related to industry;
- "Preparing for the next wave of industries and businesses that will regenerate the Tunisian economic fabric by promoting the development of niche markets at the crossroads of several Tunisian industrial sectors", such as mechatronics.

The success of this strategy requires the implantation of large Companies to lead the way. To attract them, competitiveness poles will be created in 4 key sectors: textiles and clothing; MEI, agri-food and ICT. By 2016, they should host 1 000 companies and 40 000 jobs. Another successful example is the recent creation of an aeronautical activity involving a group of sub-contractors or partners of the Airbus programme.

In addition to services related to industry, Tunisia is interested in developing trade, leisure and tourism. By diversifying its economy, the country hopes to reduce its vulnerability to the vagaries of the global context.

In the continuity of the past 40 years, the Tunisian strategy is focused on economic development for export. However, 80% of exports are made by foreign companies or firms with foreign capital operating in Tunisia. In late 2008, there were 2 966 foreign or mixed capital companies. FDI inflows, which grew from 347 million Tunisian dinars (208 million euros) in 2006 to 485 million (283 million euros) in 2007, helped to boost the industry. One half of the amount was invested in the engineering industries and in textiles and clothing.

This strong attractiveness is due to the adoption of a legal framework ensuring the freedom to invest in most sectors as soon as 1994. It applies to both domestic and foreign investors who can implement their project without necessarily associating with a local partner. Moreover, many measures improving the business environment and removing barriers to investment were taken in recent years: administrative simplification, tax preferences, dismantling of customs barriers, investment incentives, access to financing, etc. They are particularly favourable for exporters.

To achieve the objectives of the new industrial strategy, Tunisia should total 1.8 billion dollar industrial investment by 2016, equivalent to three times the amount of t2007. An important contribution of FDI is expected.

Historically oriented toward low value-added activities which are highly manpower-consuming, the country is now targeting a wider spectrum of projects, especially technology-intensive ones requiring a large R&D capacity and qualified labour. This new target implies a shift in policy vis-à-vis FDI which should be more focused on measures related to education, training, R&D and innovation.

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