The document discusses Libya's growing construction sector, using the Burj Al Baher Complex office building project as a case study. It outlines Libya's strong economic growth fueled by oil and gas reserves. Several major office and mixed-use building projects are currently under construction or planning in Tripoli, including the Burj Al Baher Complex which will feature an office tower, hotel, and apartments totaling 27,000 square meters. The project overview provides details on the project components, location, financing, and construction progress.

1. LIBYA DESIGN AND ENGINEERING CONSULTANCY AND CONSTRUCTION TRIPOLI OFFICE BUILDING DEVELOPMENT CASE STUDY

2. Overview In the midst of the global economic crisis Libya remains amongst the few countries that continues to develop and grow due to its untapped oil and gas reserves, which are fueling expansion in all sectors of the economy. This presentation will focus on the booming Libyan construction sector, taking office building construction as a case study, to illustrate the diverse nature of the development of the Libyan economy and will comparatively highlight growth in other sectors such as tourism, housing and infrastructure.

4. Economic Overview Revenues from the oil sector contribute about 95% of export earnings, about one-quarter of GDP, and 60% of public sector wages. Libya has one of the highest per capita GDPs in Africa, making it an attractive choice for investors. Substantial progress has been made in recent years on economic reforms as part of a broader campaign to reintegrate the country into the international community.

5. Libya recently awarded “A-” sovereign credit rating by Standard & Poor’s, one of the best credit ratings in Africa. Manufacturing and construction sectors, which account for more than 20% of GDP, have expanded to include manufacturing of foodstuffs, consumer products, construction materials and the construction of administrative centers and public housing units.

6. Economic Indicators GDP (purchasing power parity): $92.01 billion (2008 est.) GDP (official exchange rate): $108.5 billion (2008 est.) GDP - real growth rate: 7.3% (2008 est.) GDP - per capita (PPP): $14,900 (2008 est.) GDP -composition by sector: agriculture: 1.5% , industry: 61.7% , services: 36.8% (2008 est.) Labor force: 1.916 million (2008 est.) Public debt: 3.6% of GDP (2008 est.) Inflation rate (consumer prices): 10.5% (2008 est.) Central bank interest rate: 4% (31 December 2007) Commercial bank prime lending rate: 6% (31 December 2007) Capital reserves: $ 18.04 billion (31 December 2007) .

7. Oil – proven reserves: 41.46 billion bbl (2008 est.) Natural gas – proven reserves: 1.419 trillion cu m (Jan 2008 est.) Current account balance: $43.33 billion (2008 est.) Exports: $66.13 billion f.o.b. (2008 est.) Exports - commodities: crude oil, refined petroleum products, natural gas, chemicals Exports – partners: Italy 40.5%, Germany 12.2%, US 7.4%, Spain 7.4%, France 6.3% (2007) . Imports: $20.64 billion f.o.b. (2008 est.) Imports - commodities: Machinery, semi-finished goods, food, transport equipment, consumer products Imports - partners: Italy 18.9%, Germany 7.7%, China 7.3%, Tunisia 6.8%, France 5.7%, Turkey 5.4%, US 4.3% (2007) Reserves of foreign exchange and gold: $99.45 billion (31 December 2008 est.) Exchange rates: Libyan dinars (LYD) per US dollar - 1.2112 (2008 est.), 1.2604 (2007), 1.3108 (2006), 1.3084 (2005), 1.305 (2004) Telephones - fixed lines in use: 852,300 (2005) Telephones - mobile cellular subscribers: 4.5 million (2007)

8. State budget for 2009 development set at 21.5 Billion Libyan Dinars. Ministry of Planning estimates public spending of 318 Billion Libyan Dinars spent in the next five years . Development also to be financed through foreign investment, loans from local and international commercial banks and private equity funds. Reports emerging from the Libyan authorities are positive, drawing a picture of Libya being transformed into a big workshop. If congested harbors, cranes and cement silos are signs of extensive building activities, then Libya is entering a construction boom.

9. Legal Overview Law No.5/1997 Encouragement of Foreign Capital Investment provides legal framework for foreign capital investors, including tax and customs exemptions, protection from expropriation and foreign arbitration. Law No.7/2004 Tourism Investment replicates the above in relation to the tourism sector. GPC Decree No.443/2006 (and its amendments) provides for minimum 35% Libyan equity participation in joint venture companies carrying out certain activities such as construction.

10. Current Construction Development Projects BURJ AL BAHER COMPLEX BAB AL MADINA TRIPOLIS TOWER COMPLEX TWIN TOWER INVESTMENT PROJECT ALGATHAFI TOWER INVESTMENT OFFICE TOWER OFFICE and HOTEL TOWER TRIPOLI OASIS INVESTMENT ALANDALOS TOURISTIC COMPLEX AFRICA TOWERS BAB TARABULAS RESIDENTIAL AND COMMERCIAL COMPLEX

12. CASE STUDY Case Study is the Burj Al Baher Complex. This study will also present general overview of Tripoli’s current office building projects planned for construction in the city. Some already under construction. Some are waiting for financial backing Others in the planning stage.

13. OFFICE DEVELOPMENT PROJECTS 1. BURJ AL BAHER COMPLEX Owner, Investor and Developer: Hashoo Group Ltd. Contractor: Summa Libya for construction for the early work package. Shamel is the Engineer on Record, and provides local design input and technical support.

14. Project Components: Office Tower 18 stories high and a 4-storey commercial building with a combined total floor area of 27,000.00 SQ.M of office and retail space. Parking of 700 spaces. Hotel Tower of 29 stories high and 369 rooms. Service apartments tower of 25 stories high and 100. apartments of 1, 2 and 3 bedrooms. Banquette hall for 800 persons and 8 conference rooms. 5 restaurants and a spa of floor area of 1,450 SQ.M.

15. Location: Semi Urban. The project is located on a 7 hectare plot, 4 KM east of Tripoli Centre. The site is located on a major coastal thoroughfare running between Tripoli and Tajoura to the east. This road will be connected to Tripoli by the under-construction 3 rd. Ring Road. Estimated completion date: end of 2011 . Remarks: Construction has started by digging 144 piles for the three towers. Hotel & banquet hall are complete of the plinth level . Financing is being formalized with local and international bank. The site is leased from the government for 70 years .

16. 2- BAB AL MADINA Owner: Bab Al Madina for Development and Management of Business Centers; a joint venture between NUH, Qatari Diar and Al Futtaim Group.

17. 3- TRIPOLIS TOWER COMPLEX Owner: Economic and Social Development Fund (ESDF) (Government) Investor / Developer: ESDF Contractor: L.C.C.C.

18. 4. TWIN TOWER INVESTMENT PROJECT Owner: Simi Public Investor / Developer: Contractor : L.G.N.C – LAVALIN Project components:- Office tower. Parking: no. of spaces not yet determined. Others: Hotel tower.

19. 5- ALGATHAFI TOWER Owner: Watasemo Organization for Charity Work and Magna Holdings Ltd. Investor / Developer: Watasemo Charity for Work Contractor : MAN ENTERPRISE

20. 6- BURJ BOLIALA OFFICE TOWER Owner: Atadamon Co. for Real Estate Investment. Investor / Developer: Atadamon Co. for real estate Investment. Contractor: Summa Libya for construction. Under construction:15 fl.

21. 7- HYDRA OFFICE and HOTEL TOWER Owner: Real Estate Investment Company and Hydra (U.A.E). Contractor: Suma Libya.

22. 8- TRIPOLI OASIS INVESTMENT PROJECT Owner: ESDF, Tijrhi Group and Olympic Committee. Investor / Developer: Same as above. Contractor: not yet known.

23. 9- ALANDALOS TOURISTIC COMPLEX Owner: BEROKO Libya for Tourist Real Estate; Joint venture between ESDF and the Swiss company Beroko. Investor / Developer: same as above. . Project components:- Office Building Parking: no. of spaces not yet determined.

24. 10- AFRICA TOWERS Owner: United Libyan Tourist Investment Company Investor / Developer: United Libyan Tourist Investment Company Contractor : not yet known.

25. 11- BAB TARABULAS Owner: (LIDCO) ESDF. Investor / Developer: Same as above. Contractor: JV of (LIDCO) and RAMCO.

26. 12- RESIDENTIAL AND COMMERCIAL COMPLEX Owner: (LIDCO) ESDF. Investor / Developer: Same as above. Contractor: (LIDCO)

27. Tips For Doing Business in Libya Develop strong local connections and network Rely on experienced and well renowned local professional advisors such as consultants, lawyers and accountants Awareness of local culture and business practices Patience and flexibility for doing business in a developing country