Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Hopes pinned on private sector as Libya economy slumps  Join our daily free Newsletter

MENAFN - AFP - 16/02/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - AFP) Small businesses are prospering in Libya's major cities even as the economy at large is being throttled because of security problems and industrial action which has shrunk lifeline oil revenues.Its financial woes combined with lawlessness has so far discouraged the return of multinationals, three years after the outbreak of an armed revolt which toppled long-time dictator Moamer Kadhafi.Post-war reconstruction has been slow, with major infrastructure projects on the back-burner even as Libyans endure more and more frequent power cuts, especially in the west of the country.Small businesses have been leading the way in post-Kadhafi Libya, with shops and boutiques in Tripoli and other cities boasting the latest in luxury brands."These investments are thanks to partnerships with foreign investors," said chamber of commerce chief Idriss Abdelhadi.Such joint ventures have "promoted investment in the private sector at a time when the oil crisis has slashed the state budget, not allowing spending on planned development projects," he said.Economic experts, however, stress that trade and services play a secondary role in the overall Libyan economy, with only little value added.

The oil crisis dates back to last July when striking workers and pro-autonomy demonstrators in eastern Libya began blockading the country's main terminals.The action sent production shooting down to as low as 250,000 barrels per day, compared with 1.5 million bpd before the strike.In early January, launch of production at Al-Sharara field in the south after protesters in the area lifted their blockade allowed the country's total output to recover to 570,000 bpd.The oil sector accounts for 7 percent of GDP, 95 percent of state revenues and as much as 98 percent of Libyan exports.
Only last week, protesters shut down oil and gas pipelines to the Millitah plant from Al-Wafa field in southwest Libya.Their action brought output back down to 460,000 bpd, National Oil Company spokesman Mohamed al-Hrari told AFP.- Diversification and private sector -The World Bank, in a report issued last month, stressed "the urgent need for economic diversification in order to ensure long-term financial and economic stability".

It called for reforms "to generate a vibrant private sector", warning that "lack of access to financing, uncertainty in the legal environment and a fragile security situation" were key obstacles.Ahmed Belras Ali, director of Libya's stock market, warned of "a climate of fear among businessmen"."The stock market has lost an estimated 30 percent of its value because of falling share prices," he told AFP.Ali said hopes were pinned on the private sector, "which can serve as an engine of the economy, what with the current weakness of state structures".Libya has lost more than 10 billion in revenues because of the crisis, according to estimates from the oil ministry and the World Bank. Prime Minister Ali Zeidan has even warned that "the government could have difficulties paying salaries".Revising its forecasts, the World Bank said a 2012 fiscal surplus is now expected to turn into a deficit of about five percent of GDP for 2013 and four percent this year."The government has had to dig deeper into its large stock of foreign reserves, which stood at 124 billion at end 2012, to finance its budget deficits in 2013 and 2014," it said.

 


AFP




  MENA News Headlines
 Jul 28 2016 - Syrian Pres. offers amnesty to those who lay down armsKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) AMMAN, July 28 (KUNA) -- Syrian President granted amnesty for those who lay down their weapons and turn themselves in to the authorities, said a news source ...

 Jul 28 2016 - France to form forces to protect citizensKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) PARIS, July 28 (KUNA) -- French President Francois Hollande confirmed that a National Guard would be formed from existing reserve forces to better protect ...

 Jul 28 2016 - EU calls for pause in fighting in AleppoKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) BRUSSELS, July 28 (KUNA) -- The EU called Thursday for an immediate "humanitarian pause" in fighting in Aleppo in Syria to ensure medical evacuations and the ...

 Jul 28 2016 - PKK kills 2 Turkish policemen in Hakkari southeast regionKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) ISTANBUL, July 28, (KUNA) -- Two Turkish policemen were killed and 15 others were injured after a car bomb exploded in the southeast province of Hakkari, said a ...

 Jul 28 2016 - Syrian Pres. offers amnesty to those who lay down armsKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) AMMAN, July 28 (KUNA) -- Syrian President granted amnesty for those who lay down their weapons and turn themselves in to the authorities, said a news source ...

 Jul 28 2016 - Kuwait- KSE ends Thursday trading with mix boardsKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, July 28 (KUNA) -- The trading at Kuwait Stock Exchange (KSE) ended Thursday with the benchmark going down by 1.17 points, hitting 5,460.73 points. The ...

 Jul 28 2016 - Kuwait- KRCS launches food project for refugees in LebanonKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) BEIRUT, July 28 (KUNA) -- Kuwait Red Crescent Society (KRCS), in cooperation with the Lebanese Red Cross, launched Thursday the 13th campaign to provide food for ...

 Jul 28 2016 - Kuwait- Al-Ghanim receives Acting chief of Audit Bureau, U.S. envoyKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, July 28 (KUNA) -- National Assembly Speaker Marzouq Al-Ghanim received, in his office Thursday, Acting chief of the Audit Bureau Adel Al-Sarawi. The ...

 Jul 28 2016 - France to form forces to protect citizensKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) PARIS, July 28 (KUNA) -- French President Francois Hollande confirmed that a National Guard would be formed from existing reserve forces to better protect ...

 Jul 28 2016 - Sadafco solar power system sees the lightMENAFN
(MENAFN) Sadafco has given the go-ahead for its new photovoltaic-diesel hybrid system that delivers up to 40% of its Riyadh Regional Distribution Centre's daytime energy requirements.Saudia Dairy and ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help