Investment Policy Review of Tunisia

Tunisia has long been a destination for significant foreign direct investment, driven by its offshore regime and trade policies introduced in the 1970s. These investments have played a key role in integrating the country into global value chains and diversifying its exports. However, in recent years, foreign direct investment inflows have stagnated, private investment has declined, and economic growth has become uneven, contributing to rising unemployment. Economic activity remains concentrated in coastal regions, despite considerable untapped potential in sectors such as agriculture, renewable energy as well as and export-oriented products and markets. Administrative complexity, limited digitalization, legal ambiguities and restrictive policies further impede private investment and equitable regional development.

The Investment Policy Review of Tunisia offers targeted recommendations to overcome these challenges and align with national development objectives and the Sustainable Development Goals. It evaluates the legal and facilitation framework for investment, including ongoing reforms, and proposes concrete short-, medium-, and long-term actions to streamline processes and improve the business climate. Additionally, the IPR highlights opportunities to boost production for both domestic consumption and exports, emphasizing the importance of strengthening investment sources, including local and from the diaspora.