LEAD FEATURE
Engineering left it until the last minute to leave. After arranging safe transit for his remaining colleagues in a Russian convoy, he hitched a ride on a Ukrainian warship bound for Malta. On his return it took a while to take in the scale of the disruption that the revolution had wrought on the country’s oil fi elds and infrastructure. Unexploded ordnance, minefi elds and the after effects of widespread looting are just some of the problems he and other companies in the region now face in getting back to work. Libya’s National Transitional Council has yet to assert clearly its authority everywhere and regional uncertainty over who is in charge makes even simple processes such as securing visas or getting internet access diffi cult, says Austin. “Things are slowly coming back [to normal], but it’s going to take some time,” he states. The good news, it seems, is that UK companies are well liked, thanks in no small part to Britain’s military role in protecting Libyan civilians. “There’s a great deal of affection for Brits,” says Austin. “I’ve never been invited to drink so many coffees. We are being very well received.”
A ✷
OPPORTUNITIES EXIST IN AREAS SUCH AS HEALTH, TELECOMS AND INFRASTRUCTURE
OTHER
s Libya descended into civil war in 2011, Paul Austin of oil services business First
His ground-level view of Libya’s
reconstruction challenge is a reminder of the work to be done, but also underscores the opportunities on offer to UK fi rms hoping to help rebuild the country. According to Charles Gurdon, managing director of strategic risk consultancy Menas, Libya’s oilfi elds will be one of the top priorities for the new government. “The oil industry is the milch cow of Libya and will remain so,” he states. “Getting production up to pre-
revolution levels of 1.6m barrels a day will be the most important thing for the country in the short term. National Oil Company subsidiaries are likely to have more autonomy now. Any fi rm able to assist them in getting production back on stream will be very welcome.” Other opportunities exist in areas such as health, telecoms and infrastructure. UK Export Finance was one of the fi rst major international export credit agencies to resume cover for Libya and since November the UK’s diplomatic mission in Tripoli has been expanded, with UK Trade & Investment offering support from London. Gurdon predicts that Libyan
government priorities are likely to change from Gaddafi -era vanity projects to health and welfare programmes that improve the general living standards of the population. Happily, Libya’s considerable wealth gives it a huge advantage in the challenges it faces, he adds. The UK Government has acted quickly to help UK companies resume trading in Libya and the other countries affected by the ‘Arab spring’. They are markets that arguably present even
greater opportunities for trade now that more open, democratic economies look to be emerging in the region. Lord Marland is leading a trade mission to North Africa in January 2012, while Minister for Trade and Investment Lord Green visited Libya in late September with a delegation that included the construction groups Amec, Mott Macdonald and Arup, plus BP, Shell and Serco. More companies attended conferences held in September and December in London. “My visit underlined the enormous potential for further collaboration with UK companies, both from Libyan counterparts and international partners,” said Lord Green. During his visit, he met with ministers from the National Transitional Council responsible for the economy, education, transport and communications, as well as opening talks with the central bank and the Libyan Businessmen Council. “Getting the Libyan economy up and running is a crucial factor in achieving political progress and stability,” he said. Egypt, the Arab world’s most populous country whose 80m population is forecast to double in 25 years, and a High Growth Market in the UK Trade & Investment strategy, offers perhaps the greatest opportunity in the region. Its exports are rising rapidly, signifi cantly narrowing its trade defi cit. Egypt’s new government is set to be in place by March following elections in December and January. Keeping a close eye on political developments is important, but some concerns may be overblown. The Muslim Brotherhood, which looks set to be a key political bloc in any new
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