When thinking about Libyan national unity, people tend to view it primarily through a lens of politics, historical happenings and institution building. A viable alternative approach however, may be viewing Libyan unity through the prism of economic cooperation. Private enterprises can serve as a strong mechanism to bring people together considering the potential that businesses has to create shared interests between individuals from different regions, backgrounds and communities.
The UAE can serve as a good regional example of this. Following its formation in 1971, Abu Dhabi leveraged shared investment in infrastructure and economic development to create strong cooperation between its seven distinct emirates. Furthermore, Sheikh Zayed's initiative of distributing Abu Dhabi's oil wealth to encourage pan-federation development fostered a sense of shared economic interest. One could argue that a similar blueprint of creating shared economic interdependence in Libya could form the bedrock for lasting national cohesion.
Examining the potential vis-a-vis a local agricultural production is very telling. Libyan dates, which are grown across different regions, require processing and packaging, and possess tremendous export potential. Consider the journey a box of exported dates would take from farms in Southern Libya, to processing and packaging facilities in the center of the country, and further on to transporters, retailers and exporters in Benghazi and Tripoli. Each part of this process creates employment as well as connects businesses and communities across different regions. The success of one entity affects and depends upon the participation of the whole thereby creating a more symbiotic relationship.
Rather than relying on imported products, Libya can aim to build its own food supply chain all the while developing its capacity to process and manufacture essential consumer goods. An example of a company already operating with this mindset is Zulfa Food Industries. Our Alushibe Holding Group subsidiary is currently developing a milk and juice processing facility in Benghazi at a cost of approximately 14 million Euro, demonstrating a significant commitment to Libya's domestic food industry. The plant is using advanced Tetra Pak technology including Ultra High Temperature Technology (UHT) enabling juice and milk to be preserved for longer without refrigeration. Manufacturing initiatives like this help create industrial expertise, skilled employment as well as increased opportunities for local businesses positioned along the food supply chain.
The wider economic impact of a manufacturing facility such as this permeates the economy beyond its own employees. It helps create demand for things like packaging, transportation, cold storage, distribution and retail. This in turn supports other Libyan businesses and workers, creating a positive ripple effect. It follows that successful domestic industry initiatives create an interconnected business ecosystem. Economic relationships that are built on mutual benefit will necessarily strengthen cooperation between ethnic groups that may have otherwise been more reluctant to work together.
Beyond food manufacturing, Libya also stands to benefit from large scale industrial developments. Currently Libya United Steel Company (SULB) is partnering with Turkish industrial giant Tosyalı Holding, creating a joint venture called Tosyalı-SULB. The project entails an investment of approximately $2.5 billion making it one of the largest industrial investments in the Libyan economy in recent decades. The project is building a Direct-Reduced-Iron (DRI) complex which is essentially an advanced method of producing iron using natural gas. The target is reaching 8.1 million tonnes of annual production capacity by early 2028.
The significance of this project for Libya is creating an opportunity for the country to become an important iron and steel producer and exporter, as well as diversifying its economy beyond oil and gas. This project will also help the country position itself as an industrial producer with access to international markets while bringing foreign expertise, investment and technology into the local economy.
For young Libyans such projects mean access to new skillsets that are in high demand globally without having to leave the country for vocational training. The initiative is set to generate employment across construction, engineering, metallurgy, automation, logistics and plant management, while creating demand for local contractors, equipment suppliers, transport operators and maintenance companies. Tosyali-SULB estimates a total of 7,000 jobs will be created over the course of the project highlighting the value of transferring knowledge through international partnerships.
The wider Gulf and Middle East regions stand to benefit from similar economic diversification strategies, and might learn from this budding Libyan model. International investment, and industrial partnerships for Libya can also mean stronger regional trade connections and a more diversified regional economy.
None of this can reach its full potential without a modern financial system. Businesses that trade across regions need a reliable banking systems that can integrate into the global system. Wahda Bank’s new partnership with Backbase, the Dutch banking technology company, provides this critical inroad. Starting in 2027, Wahda Bank in a first of its kind partnership with Dutch banking technology company Backbase, will roll out digital banking to Libyans. A date farmer in the south and an exporter in Benghazi or Tripoli should be able to settle a payment in mere moments and every transaction made digitally is easy to account for. Modernisation of this kind makes it easier for Libyans in different regions to do business with one another while brining Libya’s banking sector in line with international standards. It is a major leap forward in attracting investment and catalyzing economic growth.
Examining everyday commercial life in Libya, Alushibe is partnering with a Turkish ice cream brand called MADO opening ten branches across Libya. Beyond heavy industry, it is important to acknowledge the benefit of consumer facing businesses in the development of the Libyan economy. Businesses such as restaurants, cafes as well as other retailers help create employment and revive both commercial and residential districts. But beyond that, these initiatives present a particular social dimension, as they offer spaces for families and communities to gather. This is especially important in a place like Libya after experiencing years of hardship, restoring ordinary commercial and social activities can help citizens regain a sense of normality. There is also a direct correlation between the revival of public spaces and a stronger shared national experience.
Building the future of Libya would however not be complete without adequate investment in its human capital. For the next generation of Libyans, the country needs to create opportunities for young people to build careers at home, preventing a brain drain of the country’s most promising citizens. Vocational and skills training can be an effective direct path to employment in growing sectors such as engineering, technical trades, management, hospitality and retail. Where local institutions or businesses may lack the resources or knowhow, partnering with international corporations can contribute to local talent development and expertise building.
Admittedly no single company can solve Libya’s challenges. The truth is that meaningful economic development happens incrementally. Manufacturing, industrial projects, training programmes and consumer businesses each contribute to a stronger economy. It is important to remember that these types of investments will have the greatest impact when they generate opportunities across different cities and regions.
Looking forward, Libya will benefit most by focusing on its strengths, namely its strategic geographical location, domestic market and entrepreneurial population. The private sector has an important role to play in turning these advantages into sustainable businesses, creating shared interests across Libyan society and economics. Libya's future will depend not only on its natural resources, but on its ability to turn these into shared opportunities for its people. By building businesses that create jobs, develop skills and connect communities across every region, we can lay the economic foundations for a more prosperous, resilient and united Libya.
Ahmed Gadalla is Chairman of Alushibe Holding Group
