The construction industry in North Africa: Lybia

The grave security situation in Libya is hindering the launch of projects and investment strategies, while state revenues have been severely hit by the fall in oil production and exports (crude oil exports dropped to just 300,000 barrels per day compared to a capacity of 1.4 million).

According to the January figures published by the Libyan Central Bank, in 2014 the state collected just 33 billion dinars (20.9 billion euros) compared to the expected revenues of 57 billion dinars (36.3 billion euros).

This has seriously impacted investments, which are essential in a country that needs to build or rebuild much of its building stock and infrastructure in virtually every sector. Public investments dropped to just 4.5 billion dinars (2.9 billion euros), while foreign private investments are now entirely absent.

Against this backdrop, the agency BMI has forecast a 25% contraction in the construction industry in 2015. Many of the contracts signed before the Arab Spring are awaiting review or have not been resumed.

Although the lack of government figures makes it virtually impossible to gain an accurate overall picture of the building market, according to local press reports the value of projects to be carried through over the next ten years totals about $140 billion with interventions planned in all segments, including energy.

According to sources at the Ministry of Building and Public Works, a total of around 500,000 new housing units are required to meet current needs. In the years immediately preceding the Arab Spring, the building boom mainly involved medium to low-quality housing projects, but four years since the onset of the conflict many of these projects remain unfinished.

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