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 70 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
 Jan 26 2015 - GCC Secretary General Receives France AmbassadorSaudi Press Agency
(MENAFN - Saudi Press Agency) Secretary General of Gulf Cooperation Council (GCC) Dr. Abdullatif bin Rashid Al-Zayani received here today the French Ambassador to the Kingdom of Saudi Arabia, ...

 Jan 26 2015 - Guinean President Arrives in Riyadh to Offer Condolences on Death of Late King AbdullahSaudi Press Agency
(MENAFN - Saudi Press Agency) Guinea's president Alpha Conde arrived here today to offer condolences on the death of late King Abdullah bin Abdulaziz Al Saud. At Riyadh Air Base Airport, Guinean ...

 Jan 26 2015 - Russia's Putin says Kiev refuses political solution to crisis in eastSaudi Press Agency
(MENAFN - Saudi Press Agency) Russian President Vladimir Putin said on Monday that the Kiev government was refusing a political solution to violence in the eastern Ukraine where fighting has flared ...

 Jan 26 2015 - Alexis Tsipras sworn in as Greek prime ministerSaudi Press Agency
(MENAFN - Saudi Press Agency) Athens, Rabi'II 6, 1436, Jan 26, 2015, SPA - Leftist SYRIZA leader Alexis Tsipras is sworn in as Greece's new prime minister, hours after his party's landslide win in ...

 Jan 26 2015 - Côte d'Ivoire's President Arrives in Riyadh to Offer Condolences on Death of Late King AbdullahSaudi Press Agency
(MENAFN - Saudi Press Agency) Riyadh, Rabi'II 06, 1436, January 26, 2015, SPA - President of CØ£´te d'Ivoire Alassane Ouattara arrived here today to offer condolences on the death of late King ...

 Jan 26 2015 - FGB announces deal with Dalma EnergyEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI, 25th January, 2015 (WAM) - FGB looks to maintain strong growth in 2015 having already closed a USD 313.7 million secured syndication facility on ...

 Jan 26 2015 - Kuwait projects $24 bn deficit despite spending cutsAFP
(MENAFN - AFP) Kuwait on Monday projected a $24-billion deficit in its new fiscal year budget despite a massive spending cut due to plunging oil prices. Revenues for 2015-2016 are projected at $41.1 ...

 Jan 26 2015 - New Saudi leaders to press economic diversificationAFP
(MENAFN - AFP) Saudi Arabia's new leadership will push forward efforts to diversify the growing but oil-dependent economy, while easing procedures for investors, senior officials said on ...

 Jan 26 2015 - Dubai Islamic Bank Group net profit up by 63 per cent to AED 2.8 billion in 2014Emirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) DUBAI, 25th January, 2015 (WAM)-Dubai Islamic Bank (DFM: DIB), today announced that its net profit surged by 63 per cent to AED 2.80 billion, up 63 per cent in ...

 Jan 26 2015 - FCCI organises first Serbian Business and Investment ForumEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI, 25th January 2015 (WAM) -- Federation of UAE Chambers of Commerce and Industry (FCCI) on Sunday organised the First Serbian Business and Investment ...

more...


 






Google

Internatinal Property Show

 
 

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