open | 21 April, 2016
TRIPOLI.
Foreign business delegations are flocking to Libya for the first time in a decade.
A Swedish business delegation, led by State Secretary Yvonne Gustafsson, this week ended the first visit to Libya of its kind since 1989.
What has caused a virtual congestion of foreign business delegations in Tripoli's byzantine corridors of power is the fact that
Libya can pay for themselves thanks to their - compared to its population
5.6 million inhabitants - huge oil reserves.
The Swedish companies were, during the week long visit, invited to participate in numerous tenders worth billions of dollars.
"Sweden was very positive against Libya in connection
med Lockerbiekrisen, the Swedish view was balanced and it accepted our position. We also admire the Swedish entrepreneurs because they did not leave but stayed on, said Deputy Industry and Mining Minister Ali Faris to DI."
The Swedish trade delegation visit was made possible after United Nations in April relaxed
sanctions against Libya after the country's
leader Moammar Gadhaffi agreed to disclose the
the two Libyan nationals suspected of having caused a Pan
Am plane crashed in Lockerbie, 1988.
Among the major projects that the Libyans now want in the Swedish companies
in, hear a gigantic water project called the Great Man-Made River
Project, construction of a subway in the city of Tripoli, the rehabilitation of
the country's airlines and airports in anticipation of the tourist invasion,
and a billion investment in its promising oil and
energy industry.
Both NCC and Skanska, represented by the Regional Directors Göran Olofsson
and Lars Nihlén, showed an interest in the prestigious
Water project, which Libya is already estimated to have invested more than 25
billions of dollars since the early 1980s.
In the current third
phase expected additional $ 5 billion at stake for the big
international construction companies.
ABB, which was represented by Lars Elvhage ABB Västerås, showed
interest in going into any underground construction.
ABB could
pointing out that the delivered locomotives and wagons to similar projects in
Istanbul.
Swiss ABB is also already in possession of a tender for the construction of
a new gas power plant.
Libyans said to be interested in buying Saab aircraft
2000, although production of the plane put down, but Saab had
no representative of who could answer that question.
The Swedish truck manufacturers Scania and Volvo have also attracted
the Libyan interest.
Both have a modest presence for the day, but are interested in either start installation or local service.
Swedish exports to Libya have stood still in the 1990s.
This
the past five years has fluctuated between 600 and 800 million, last
year, exports were 712 million crowns.
They drew ABB, Ericsson and trading house Elof Hansson most of
load.
ABB sold the power equipment of about 300 million,
Ericsson's exports stood at around 200 million and Elof Hansson exported
paper and pulp for approximately SEK 100 million.
Swedish companies have not therefore ceased to have business with
Libya.
Most cautious, however, companies in the aerospace, energy and finance
had to be, then the United States, which has kept its own sanctions, not looking
kindly to companies that moved in and taken over the markets
Americans were forced to leave in the 1980s.
The atmosphere in Libya, where Moammar Gadhaffi and his Arab socialist
theses in the so-called Green Book is still a public
precept, is on the surface more relaxed than a few years ago.
Libyans now wants foreign investment, well aware that
they then have to compromise with their socialist dogma.
An example
is the country's sole mobile operator, where Ericsson supplies
equipment, which is owned by the state and half by
private interests.
The greatest potential
Libya, with its vast oil reserves, the market in North Africa
has the greatest potential to grow quickly, that is, if Moammar
Gadhaffi release rein further.
Its oil revenues of approximately
70 billion is expected to double in the coming years.
One of the players in the Libyan oil market, Lundin Oil, which plans
to start oil production from its El Naga deposit, located
in the middle of the country, at the end of next year.
What can stop a thawing of the business with Libya is for the UN to
all expectations, does not abolish its sanctions, or
Secretary-General in July, a report on the subject.
Even the United States,
which along with Britain was behind the isolation of Libya
after the Lockerbie disaster, began talks with the Libyans in the last
week.
To Libya to be attractive, it must make substantial
economic reforms.
Its double exchange is costly for
foreign companies.
It must adhere to the official
the exchange rate that is ten times higher than the black rate.
Bureaucracy and corruption are other problems that entrepreneurs suffer when
doing business in the country.
WRITER: Christer L PETTERSSON
18 June, 1999
CAPTION:
Fastest growing: A Swedish business delegation visited Libya for the first
time since 1989. The country, with its vast oil reserves, the
market in North Africa with the greatest potential to grow rapidly.
Previously published in Dagens Industri
open | 19 March, 2014
open | 09 March, 2014
open | 17 January, 2014
> ARMS DEAL-FRAUD INVESTIGATION: Saab's agent in South Africa under investigation by British Serious Fraud Officeopen | 03 July, 2013
> Emerging economies hardest hit if oil price manipulatedopen | 06 June, 2013
> Emerging economies hardest hit if oil price manipulatedopen | 05 December, 2010
open | 04 February, 2010
> NUKE REACTORS & JET FIGHTERSsubscriber | 19 October, 2008
subscriber | 09 December, 2007
open | 08 December, 2007
open | 28 February, 2007
open | 11 December, 2006
open | 28 October, 2006
open | 07 April, 2004
subscriber | 28 October, 2012
> HIGH RISK, SECRECY, NOT NECESSARILY HIGH REWARDsubscriber | 15 February, 2010
> INDIA'S NATIONAL PSYCHE AND THE GAMESsubscriber | 31 January, 2006
subscriber | 24 January, 2006
subscriber | 15 January, 2006
subscriber | 15 January, 2006
open | 15 January, 2006
subscriber | 20 December, 2005
subscriber | 13 November, 2005
open | 04 June, 2013
> An old rebel in search of a new cause