Alberta, Canada – A Place for Business

Alberta is one of the most attractive places to invest in Canada and North America. Its diverse economy, competitive tax structure, and young, educated and productive workforce combine to create steady, reliable growth and exciting investment opportunities throughout the province.

Thriving Economy

While the foundation of its economic wellbeing of Alberta is rooted in oil and gas, Alberta has made it a priority to diversify its economy.

Alberta had the highest economic growth rate among Canadian provinces at 3.3% per year over the last 20 years, and is poised to lead economic growth by 2011. The province consistently has the highest investment per capita in Canada. At $18,024 in 2009, it was almost double the Canadian average of $9,174 per capita. Total investment in Alberta for the same year was $66 billion.

Alberta exported $69.1 billion in commodities to 189 countries in 2009, representing an increase of 8.4% from five years ago. Alberta has a rapidly growing manufacturing base with shipments worth $55.1 billion in 2009.

Alberta has the second largest petroleum reserves in the world, after Saudi Arabia, and total crude oil and equivalent production is expected to reach 3.1 million barrels per day by 2018. Alberta produced 68% of Canada’s crude oil and 81% of its natural gas in 2009.

Research & Innovation

Alberta consistently has among the highest research and development (R&D) expenditures per capita in Canada.

In order to attract, retain and grow knowledge-intensive companies, Alberta introduced a provincial Scientific Research and Experimental Development (SR&ED) tax credit in 2009. It is worth 10% of a company’s eligible expenditures, up to $4 million, for a maximum credit of $400,000.

Alberta offers one of the most competitive tax environments in North America and is the only province in Canada that does not have a provincial retail sales tax. Alberta also has no provincial capital taxes, payroll taxes, or machinery and equipment taxes.

Alberta’s corporate income tax rate for general businesses is 10%, and 3% for small businesses. The combined federal/provincial corporate income tax rate for general business in Alberta is 28%, and it is expected to decrease to 25% by 2012.

Albertans have a low personal flat tax rate of 10%, combined with the federal rate of 29%, and have the highest basic and spousal exemptions in Canada. Alberta’s fuel taxes are among the lowest in Canada, at 9¢ per litre for gasoline or diesel.

Strategic Location

Alberta’s transportation infrastructure plays a critical role in the province’s economy. Alberta’s strength as a major exporter of primary commodities and manufactured products to the global marketplace is supported by a highly efficient and competitive transportation and logistics system. As a result, Alberta has emerged as the warehouse and distribution hub for Western Canada and the Pacific Northwest region of the United States.

Alberta has direct connections to two of North America’s largest highway corridors, the CANAMEX and the Trans- Canada, which allow quick access to the southern U.S., Mexican and Canadian markets.

Canada’s transcontinental railway companies operate in Alberta, offering efficient and competitive service in the movement of export commodities to major ports throughout Canada, United States and Mexico.

Alberta has two of its five regional and local airports in Grande Prairie and Peace River, both centers in close proximity to the Clear Hills.

Strong Labour Market

Alberta’s population of 3.7 million is the youngest of all Canadian provinces, with a median age of 35.6 years. Alberta’s labour force consists of more than two million well educated workers. The province has a knowledge-based workforce, with approximately 61.6% of the population aged 25 years and older having a university degree, post-secondary diploma or certificate.

In 2008, Alberta’s economic productivity was the highest in Canada. Defined as GDP per hour worked, Alberta’s labour productivity exceeded the Canadian average by 17%. More than 440,000 new jobs were created in Alberta between 1999 and 2009.

Machinery Manufacturing and Metal Fabrication

The robust Alberta energy sector has led to a multitude of opportunities for the province’s metal fabrication and machinery manufacturing companies. Tens of billions of dollars are being spent in both the oil sands and conventional oil and gas sectors each year. Alberta is one of Canada’s major metal manufacturing centres. The enormous size of this market and tremendous growth potential has attracted the attention of the world, and global supply chains are constantly expanding.

(Source: Alberta Government publications)