Libya A country of warm, welcoming people, eye-catching vista and remarkable sites, not over-run with mass tourism. It is a place which has a great potential in it regarding tourism, hotel industry, construction industry etc. The combination of culture with 'sun, sand and sea' has already attracted a number of international hotel groups and investors to come to Libya and invest there. The country suffered a lot because of the sanctions imposed by UN, but now as they are lifted; it is the most attractive place for the investors to invest in the country. The Libya is going to generate a lot of opportunities and Billions of dollars are anticipated to be invested in the oil and gas industry, power generation, and water projects. Airports, ports, railways, and roads need to be built and upgraded, and new hotels and resorts are required to establish the fledgling tourism industry.
Libya is an oil producing country, as the international embargo has been lifted, the country is aiming high to grow fast and eyeing a vision ahead to excel in different industries and try to make up for what it could not achieve while sanctions. After the revolution of 1969 and during the oil boom that followed in the 1970s, the construction industry played a key role in social and economic development processes. As a result, the country experienced a tremendous increase in the scale and volume of construction activities. For instance, at the end of the 1970s Libya was the world's leading per capita consumer of cement in the world. This trend continued until early 1980s, when the construction industry suffered several setbacks, including the elimination of local private construction companies and their incorporation into the public sector. The construction industry came to a halt in the mid-1980s due to the huge drop in oil revenues. The above considerations reflect the problematic circumstances of the Libyan construction industry, which can be attributed, in general, to several factors, including the consequences of rapid social, economic, political and technological changes, and a lack of local managerial, financial and technical capabilities.
In addition, the political problems facing Libya during the last two decades contributed to economic difficulties that affected the industry greatly, however now Libya has improved big time as
o Revenues from the oil sector contribute about 95% of export earnings, about one-quarter of GDP, and 60% of public sector wages.
o Libya has one of the highest per capita GDPs in Africa, making it an attractive choice for investors.
o Substantial progress has been made in recent years on economic reforms as part of a broader campaign to reintegrate the country into the international community.
Libya is going to be the country with full of opportunities in different sectors. With an area of almost 1,800,000 square kilometers (694,984 sq mi), 90% of which is desert, Libya is the fourth largest country in Africa by area, and the 17th largest in the world. The 2009 estimated population of Libya is 6,420,000 which live on the remaining 10% of the area left which is other than desert [1].
The opportunity of producing solar energy is huge there in Libya as the 90% of the area is desert with no rain falls (once in a blue moon). The country fulfills the requirement of energy quite sufficiently but still there is a plan to develop wind and solar power to provide energy for remote places. Other than that the idea of transporting power from Libya to other countries which are lower in production and higher in demand is very much in the cards. Experts have calculated that each square kilometer of desert receives solar energy equivalent to 1.5 million barrels of oil every year which is enormous. To fulfill the requirement of solar energy in countries which are lower in production and higher in demand, Libya can really play its part. Yes this is costly but still the amount of energy that Libya would produce is good enough to bear that cost and wastage while supplying to other countries and the better precautionary measures can be taken to avoid this loss.
Taking the example of Sahara desert with less cloud cover and a better solar angle, one can obtain closer to 83 W/m². The unpopulated area of the Sahara desert is over 9 million km², which if covered with solar panels would provide 750 terawatts total. Libya has an area of 1,800,000 square kilometers and 90% of which is desert, which means 1,620,000 square kilometers is desert area. If this area covered with solar panels would come up with 135 terawatts in total which can be an immense achievement. There would be a need of big solar towers to construct and it will open up gates for construction companies as well.
The country has abandoned its nuclear weapons programme and now decided to invest in to the infrastructure and other developmental programmes. The lifting of UN sanctions is a real morale booster for Libya. Libya is eyeing to match Dubai and wants the country the hub of business but for that matter it has to evolve big time. For example there is no proper railway system; there are poorly maintained roads and shortages of houses. The business visitors prefer flying within the cities than using the roads. There is an urgent need to upgrade the Libyan airports, it has 13 airports and all of them need improvements. Same is the case with ports; all of them are underdeveloped and needs improvement.
A very interesting fact is that the population of Libya is growing by 3.5% annually which is considered to be one of the fastest in the world. Around 85 % of the population is urban and there is an urgent need for new homes, schools, and hospitals. The country's population is set to almost double to 10 million by 2025.This not only encourages the foreign investors to invest in the country but also creates a lot of job opportunities. The reason of global changes and of course the big one "removal of sanctions" from Libya's perspective is a bright sign for the construction industry to nurture. The Re establishment of private construction company that were close down in the mid 1970s is one plan the country is undertaking. This will create a huge boost in the industry and create a lot of job opportunities as there are not many local labors, technicians and other skilled people. A research states that around 500,000 housing units are planned for the next ten years. Their cost is expected to be more than 25 billion dollars and other than that the railroad project is in the pipe line too. Hotel industry is set to increase as well.
Water is very scarce which has given rise to the £20 billion, 25-year Great Man Made River project which is ongoing. Available water is predicted to drop to 330 cu meters by 2025 - down from over 4000 cu meters after the Italians left in the 1950 [2]. All an all it invites the construction opportunity as well, with all the problems construction opportunity, and elimination of unemployment is a bi product.
Libya has massive potential for a tourism boom. Straddling between the Middle East and Africa, and having lived under Italian colonial rule, Libya could also offer a rich cultural experience. However, years of international segregation and its delineation as a 'rogue' state - it was on the US list of 'state sponsors of terrorism means that it lacks both the infrastructure and the image. Now that Libya has stabilized relations with Washington and re-establish full diplomatic ties, things are set to change. According to a joint report released by consultancy group Monitor and Cambridge Energy Research Associates, Libya currently attracts a meagre 300,000 visitors annually, compared to its eastern neighbor Egypt's 8.5mn. The country has only around 120 hotels and only one, the Corinthia Group hotel that is not run by the state and is up to international standards. So it is a great opportunity not only for the local construction companies but foreign companies as well to come to Libya, as it is going to offer too many opportunities.
References
1. U.N. Demographic Yearbook, (2003), "Demographic Yearbook (3) Pop., Rate of Pop. Increase, Surface Area & Density", United Nations Statistics Division, Accessed July 15, 2006.
2. http://www.cnplus.co.uk/intelligence/winning-work/winning-construction-work-libya/5200690.article.
With more than 15 years of experience and expertise, Manzoor Hasan MBA, MST, CPA, is CEO at e-Health Vision Inc. and a seasoned consultant in healthcare and other corporate entities. He has extensive expertise in medical management, physician recruitment and as a liaison in negotiations with hospitals, managed care organizations, group practices, HMOs and others.
Hasan has also earned a host of professional designation and honors including Certified Fraud Examiner (CFE), Certified Valuation Analyst(CVA), Certified Professional Manager(P. Mgr), designated (ALHC) (Associate Life & Health Claims) awarded by international claims association with distinction; a fellow of the Life Management Institute(FLMI), awarded by LOMA with distinction; a health insurance associate (HIA) and a Managed Health Professional (MHP), both designations awarded by health Insurance of America.
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