LIBYA DESIGN AND ENGINEERING CONSULTANCY AND CONSTRUCTION

TRIPOLI OFFICE BUILDING DEVELOPMENT CASE STUDY

Overview

• In the midst of the global economic crisis Libya remains amongst

the few countries that continues to develop and grow due to its

untapped oil and gas reserves, which are fueling expansion in all

sectors of the economy.

• This presentation will focus on the booming Libyan construction

sector, taking office building construction as a case study, to

illustrate the diverse nature of the development of the Libyan

economy and will comparatively highlight growth in other sectors

such as tourism, housing and infrastructure.

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Economic Overview

• Revenues from the oil sector contribute about 95% of export

earnings, about one-quarter of GDP, and 60% of public sector

wages.

• Libya has one of the highest per capita GDPs in Africa,

making it an attractive choice for investors.

• 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.

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• Libya recently awarded “A-” sovereign credit rating by

Standard & Poor’s, one of the best credit ratings in Africa.

• Manufacturing and construction sectors, which account for

more than 20% of GDP, have expanded to include

manufacturing of foodstuffs, consumer products, construction

materials and the construction of administrative centers and

public housing units.

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Economic Indicators

• GDP (purchasing power parity): $92.01

billion (2008 est.)

• GDP (official exchange rate): $108.5

billion (2008 est.)

• GDP - real growth rate: 7.3% (2008 est.)

• GDP - per capita (PPP): $14,900 (2008

est.)

• GDP -composition by sector: agriculture:

1.5% , industry: 61.7% , services: 36.8%

(2008 est.)

• Labor force: 1.916 million (2008 est.)

• Public debt: 3.6% of GDP (2008 est.)

• Inflation rate (consumer prices): 10.5%

(2008 est.)

• Central bank interest rate: 4% (31

December 2007)

• Commercial bank prime lending rate:

6% (31 December 2007)

• Capital reserves: $18.04 billion (31

December 2007) .

• Oil – proven reserves: 41.46 billion bbl

(2008 est.)

• Natural gas – proven reserves: 1.419 trillion

cu m (Jan 2008 est.)

• Current account balance: $43.33 billion

(2008 est.)

• Exports: $66.13 billion f.o.b. (2008 est.)

• Exports - commodities: crude oil, refined

petroleum products, natural gas, chemicals

• Exports – partners: Italy 40.5%, Germany

12.2%, US 7.4%, Spain 7.4%, France 6.3%

(2007) .

• Imports: $20.64 billion f.o.b. (2008 est.)

• Imports - commodities:

Machinery, semi-finished goods, food,

transport equipment, consumer products

• Imports - partners: 

Italy 18.9%, Germany 7.7%, China 7.3%,

Tunisia 6.8%, France 5.7%, Turkey 5.4%,

US 4.3% (2007)

• Reserves of foreign exchange and

gold: $99.45 billion (31 December 2008

est.)

• Exchange rates: Libyan dinars (LYD) per

US dollar - 1.2112 (2008 est.), 1.2604

(2007), 1.3108 (2006), 1.3084 (2005),

1.305 (2004)

• Telephones - fixed lines in use: 852,300

(2005)

• Telephones - mobile cellular

subscribers: 4.5 million (2007)

• State budget for 2009 development set at 21.5 Billion Libyan

Dinars. Ministry of Planning estimates public spending of 318

Billion Libyan Dinars spent in the next five years .

• Development also to be financed through foreign investment, loans

from local and international commercial banks and private equity

funds.

• Reports emerging from the Libyan authorities are positive, drawing

a picture of Libya being transformed into a big workshop.

• If congested harbors, cranes and cement silos are signs of extensive

building activities, then Libya is entering a construction boom.

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Legal Overview

• Law No.5/1997 Encouragement of Foreign Capital Investment

provides legal framework for foreign capital investors,

including tax and customs exemptions, protection from

expropriation and foreign arbitration.

• Law No.7/2004 Tourism Investment replicates the above in

relation to the tourism sector.

• GPC Decree No.443/2006 (and its amendments) provides for

minimum 35% Libyan equity participation in joint venture

companies carrying out certain activities such as construction.

Current Construction Development Projects

1. BURJ AL BAHER COMPLEX

2. BAB AL MADINA

3. TRIPOLIS TOWER COMPLEX

4. TWIN TOWER INVESTMENT PROJECT

5. ALGATHAFI TOWER

6. INVESTMENT OFFICE TOWER

7. OFFICE and HOTEL TOWER

8. TRIPOLI OASIS INVESTMENT

9. ALANDALOS TOURISTIC COMPLEX

10. AFRICA TOWERS

11. BAB TARABULAS

12. RESIDENTIAL AND COMMERCIAL COMPLEX

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CASE STUDY

• Case Study is the Burj Al Baher Complex.

• This study will also present general overview of Tripoli’s

current office building projects planned for construction in the

city.

Some already under construction.

Some are waiting for financial backing

Others in the planning stage.

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OFFICE DEVELOPMENT PROJECTS

1. BURJ AL BAHER COMPLEX

• Owner, Investor and Developer:

Hashoo Group Ltd.

• Contractor: Summa Libya for

construction for the early work

package.

• Shamel is the Engineer on

Record, and provides local design

input and technical support.

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• Project Components:

Office Tower 18 stories high and a 4-storey commercial

building with a combined total floor area of 27,000.00

SQ.M of office and retail space.

Parking of 700 spaces.

Hotel Tower of 29 stories high and 369 rooms.

Service apartments tower of 25 stories high and 100.

apartments of 1, 2 and 3 bedrooms.

Banquette hall for 800 persons and 8 conference rooms.

5 restaurants and a spa of floor area of 1,450 SQ.M.

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• Location: Semi Urban. The project is located on a 7 hectare plot, 4

KM east of Tripoli Centre. The site is located on a major coastal

thoroughfare running between Tripoli and Tajoura to the east.

This road will be connected to Tripoli by the under-construction

3rd. Ring Road.

• Estimated completion date: end of 2011.

• Remarks: Construction has started by digging 144 piles for the

three towers.

• Hotel & banquet hall are complete of the plinth level .

• Financing is being formalized with local and international bank.

The site is leased from the government for 70 years .

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2- BAB AL MADINA

• Owner: Bab Al Madina for

Development and

Management of Business

Centers; a joint venture

between NUH, Qatari Diar

and Al Futtaim Group.

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3- TRIPOLIS TOWER COMPLEX

• Owner: Economic and

Social Development

Fund (ESDF)

(Government)

• Investor / Developer:

ESDF

• Contractor: L.C.C.C.

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4. TWIN TOWER INVESTMENT PROJECT

• Owner: Simi Public

• Investor / Developer:

• Contractor: L.G.N.C – LAVALIN

• Project components:-Office tower.Parking: no. of spaces

not yet determined.

• Others: Hotel tower.

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5- ALGATHAFI TOWER

• Owner: Watasemo

Organization for Charity

Work and Magna Holdings

Ltd.

• Investor / Developer:

Watasemo Charity for Work

• Contractor : MAN

ENTERPRISE

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6- BURJ BOLIALA OFFICE TOWER

• Owner: Atadamon Co. for

Real Estate Investment.

• Investor / Developer:

Atadamon Co. for real

estate Investment.

• Contractor: Summa Libya

for construction.

• Under construction:15 fl.

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7- HYDRA OFFICE and HOTEL TOWER

• Owner: Real Estate

Investment Company and

Hydra (U.A.E).

• Contractor: Suma Libya.

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8- TRIPOLI OASIS INVESTMENT PROJECT

• Owner: ESDF, Tijrhi Group and Olympic Committee.

• Investor / Developer: Same as above.

• Contractor: not yet known.

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9- ALANDALOS TOURISTIC COMPLEX

• Owner: BEROKO Libya for Tourist Real Estate; Joint venture between ESDF and the Swiss company Beroko.

• Investor / Developer: same as above. .

• Project components:-

Office Building

Parking: no. of spaces not yet determined.

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10- AFRICA TOWERS

• Owner: United Libyan Tourist Investment Company

• Investor / Developer: United Libyan Tourist Investment Company

• Contractor: not yet known.

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11- BAB TARABULAS

• Owner: (LIDCO) ESDF.

• Investor / Developer: Same

as above.

• Contractor: JV of (LIDCO)

and RAMCO.

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12- RESIDENTIAL AND COMMERCIAL COMPLEX

• Owner: (LIDCO) ESDF.

• Investor / Developer: Same

as above.

• Contractor: (LIDCO)

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Tips For Doing Business in Libya

• Develop strong local connections and network• Rely on experienced and well renowned local

professional advisors such as consultants, lawyers and accountants

• Awareness of local culture and business practices

• Patience and flexibility for doing business in a developing country