Saremia

Saremia, officially the Federal Kingdom of Saremia (French: Royaume Fédéral de Sarémie, Arabic: اتحادي المملكة الساهريم Athady al-Mamlakah al-Sahrim) is a North African country that has a coastline on both the North Atlantic Ocean and the Mediterranean Sea. It has borders with Morocco to the south, Algeria to the east and Fairview in the north, just across the Strait of Gibraltar. Plassans is the capital of Saremia and the largest city.

Politics
Saremia is a federal parliamentary constitutional monarchy, in which King Mustafa I is head of state, head of the federal government and head of the Royal Cabinet. For any change in the constitution, a referendum is mandatory; for any change in a law, a referendum can be requested. Through referenda, citizens may challenge any law voted by a regional parliament or by the Royal Cabinet and through initiatives introduce amendments to the national constitution.

Administrative divisions
The 7 regions of Saremia are the member states of the Federal Kingdom of Saremia. Each region was a fully sovereign state with its own borders, army and currency before the French colonization of the territory. After the independence of Saremia, the regions united to form the Federal Kingdom of Saremia.

Government
Saremia has a strong democratic tradition, upheld through a parliamentary system within the context of a constitutional monarchy, the monarchy of Saremia being the foundation of the executive, legislative, and judicial branches. The Federal Government is composed of the Royal Cabinet as legislative and executive powers for federal matters.

Foreign relations
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Military
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Economy
Saremia has a service-based economy. In 2009, economic output was dominated by the service sector which accounted for 73.6% of GDP, followed by the industrial sector with 20.5% and agriculture accounting for 5.9% of GDP. According to 2004 data, 2.7% of the workforce were employed in agriculture, 32.8% by industry and 64.5% in services. The industrial sector is dominated by shipbuilding, food processing, pharmaceuticals, information technology, biochemical and timber industry. In 2010, Saremian exports were valued at $8.65 billion with $14.7 billion worth of imports. The largest trading partner is the European Union.

Saremia is one of Africa's most stable and prosperous nations, leading African nations in human development, competitiveness, globalization, economic freedom, but medium perception of corruption. It has a low economic inequality, as measured by the Gini index.

During the mid 1990s, Saremia's reputation as a role model for economic reform was strengthened when the reign of King Mustafa I deepened the economic reform initiated by his father. Growth in real GDP averaged 8% from 1996–2000, but fell to half that level in 2001 because of tight monetary policies (implemented to reduce the national dedbt) and because of lower export earnings. Saremia's economy has since recovered and has seen growth rates of 5–7% over the past several years.

Unemployment hovered at 8%–10% after the start of the economic slowdown in 2001, above the 7% average for the 1990s. Unemployment finally dipped to 7.8% in 2006, and continued to fall in 2011, averaging 5.4% in agust. Wages have risen faster than inflation as a result of higher productivity, boosting national living standards. The percentage of Saremians with per capita household incomes below the poverty line—defined as twice the cost of satisfying a person's minimal nutritional needs—fell from 45.1% in 1987 to 11.5% in 2009, according to government surveys.

Policy
Sound economic policies, maintained consistently since the 1980s, have contributed to steady economic growth in Saremia and have more than halved poverty rates. The reign of King Ahmed V has been marqued by many nationalisations because the economy is a fededral matter and King Mustafa I has continued in his father's steps by recently nationalised SolSar as a crown federal corporation. Saremia is strongly committed to free trade and has welcomed large amounts of foreign investment. Saremia has signed free trade agreements (FTAs) with a whole network of countries, including an FTA with the European Union that was signed in 2003 and implemented in January 2004.

Faced with an international economic downturn the government announced a $4 billion economic stimulus plan to spur employment and growth, and despite the global financial crisis, aimed for an expansion of between 2 percent and 3 percent of GDP for 2012. Saremia maintains one of the best credit ratings (S&P A+) in Africa.

Foreign trade
The main destinations for Saremian exports were the European Union, the Americas and Asia. Seen as shares of Saremia's export markets, 42% of exports went to the European Union, 30% to the Americas and 20% to Asia. Within Saremia's diversified network of trade relationships, its most important partner remained the European Union. Since the E.U.–Saremia Free Trade Agreement went into effect on 1 January 2004, E.U.-Saremian trade has increased by 154%. Total trade with the Americas also grew in 2006, expanding by 42%. The United States and Brazil were Saremia's main American trading partners. Total trade with Asia also grew significantly at nearly 31%. Trade with Korea and Japan grew significantly, but China remained Saremia's most important trading partner in Asia. Saremia is the world's 9th largest exporter of wine and the 5th largest producer. It is also an important agricultural producer and exports mainly to the European Union but also in the rest of Africa.

Finance
Most of Saremia's financial institutions are state owned and governed and 100% of banking assets are state owned. The chief instruments of financial and fiscal control are the Banque Royale du Peuple (BRP) and the Ministry of Finance, both under the authority of the Federal Government of Saremia. BRP gradually took over private banks. It fulfills many of the functions of other central and commercial banks. It issues the currency, controls circulation, and plays an important role in disbursing budgetary expenditures. Additionally, it administers the accounts, payments, and receipts of government organizations and other bodies, which enables it to exert thorough supervision over their financial and general performances in consideration to the government's economic plans. BRP is also responsible for international trade and other overseas transactions.

Tourism
Tourism dominates the Saremian service sector and accounts for up to 9% of Saremian GDP. Its positive effects are felt throughout the economy of Saremia in terms of increased business volume observed in retail business, processing industry orders and summer seasonal employment. The industry is considered an export business, because it significantly reduces the country's external trade imbalance. The most numerous are tourists from Germany, Spain, France, United Kingdom as well as other North African countries itself.

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Ethnic groups
Saremians are predominantly Sunni Muslims of Arab, French, or mixed Arab-French ancestry. The Arabs brought Islam, along with Arabic language and culture, to the region from the Arabian Peninsula during the Muslim conquests of the 7th century. Today, a small Danish community remains as well as a large Christian population; both enjoy religious freedom and full civil rights.