Libya’s urban population has been rising rapidly, with urbanisation rates climbing from 49% in 1970 to 79% in 2016. As of 2019 around 85% of Libyans resided in the major cities of Tripoli, Benghazi, Misrata and Bayda. With the population predicted to increase in the coming years, access to housing, food, clean drinking water and employment opportunities – as well as health care, education and transport – remain essential priorities.
In May 2021 Salama Al Ghwail, the minister of state for economic affairs, announced that the country would need $134bn over the next 10 years to facilitate its reconstruction, underscoring the $600bn in total losses that civil conflict has inflicted on the economy. The minister identified companies from Egypt, Germany Italy, Tunisia and Turkey as the most likely participants in the reconstruction projects that are set to create job opportunities. Private investment is expected to drive these developments and account for 60% of project financing, with the remainder coming from the public sector. Driven by these trends, Misrata’s construction sector has experienced significant growth in recent years, marked by increased activity and new residential, commercial and industrial developments that have contributed to the local economy and provided employment opportunities for thousands of workers.
Despite these developments, conflict remains a significant challenge for the construction industry. While the security situation in Misrata has improved, concerns about instability in other parts of the country persist.
In 2021 the Housing and Infrastructure Board (HIB) proposed releasing 17,000 suspended housing projects for potential public-private partnership (PPP) investment. However, the projects remain unfinished due to foreign contractors’ continued security concerns, as well as challenges related to generating sufficient finance at the government level. Spread across seven regions – including Janzur, Sidi Sayeh, Garabuli and Misrata – the projects are part of 300,000 housing units whose construction has been on hold since the 2011 revolution.
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