Tunisia’s construction materials industry is reaping the benefits of the country’s location and trade deals, both of which serve to boost its exports to help meet increased demand from abroad. The cement sector is particularly dynamic, and has attracted several foreign firms, notably from Spain and Italy. However, the introduction of a new law that requires the majority of domestically produced cement to be kept for the internal market may act as a disincentive to others who have been looking to set up plants over the next few years. Foreign cement manufacturers have been attracted to Tunisia because of its proximity to growing markets in the Mediterranean basin, and the relatively low cost of raw materials, with prices 20-30% below those elsewhere in the region. A free trade agreement with the European Union will come into full effect on industrial products at the beginning of this year, further increasing the
