No Result
View All Result
Saturday, June 3, 2023
23 °c
Tripoli
24 ° Sun
24 ° Mon
23 ° Tue
22 ° Wed
  • Advertising
  • Contact
LibyaHerald
 
  • Home
  • Libya
  • Business
  • Opinion
  • Magazine
  • Advertising
  • Login
  • Register
SUBSCRIBE
  • Home
  • Libya
  • Business
  • Opinion
  • Magazine
  • Advertising
  • Login
  • Register
No Result
View All Result
LibyaHerald
No Result
View All Result
Home Business

Kick Starting the Libyan Economy – The Real Estate Catalyst

bySami Zaptia
July 3, 2012
Reading Time: 3 mins read
A A
12
SHARES
52
VIEWS
Share on FacebookShare on Twitter

Tripoli, 3 July:

By Husni Bey

Dear Editor,

With reference to your article entitled ‘900,000 housing units urgently needed: Housing Committee chairman’ dated 1 . . .[restrict]July, I wish to ask if the chairman of the Housing Committee realizes the following:

That we only have a total of 1.2 million dwellings/houses/flats in Libya today? Does he realize that an extra 900,000 units would amount to an 80 percent increase?

RELATED POSTS

Aldabaiba stresses need to activate agricultural projects in cooperation with private sector

Prime Minister orders the PPP reactivation of closed Social Security Fund hotels

Does he realize that to have an extra 900,000 including their basic infrastructure of roads, electricity, water etc will cost about US$ 180 billion (at about US$ 200,000 / unit)?

Where are we going to get this money from? We are already running an LD 10-15 billion budget deficit in 2012.

I therefore wish to put forward my vision for ‘Kick Starting the Libyan Economy using  The Real Estate Catalyst’:

The Pledge

  • The National Transitional Council, Temporary Government and related ministries pledged to engage with the private sector and support it to become the major driving force in the economic and financial growth of the country.
  • The current challenges being faced by the nation, particularly in the development of housing, utilities and infrastructure sectors can be turned into opportunities for the Libyan private sector to stimulate growth and make progress.
  • Potentially, actively involving the private sector in the housing, utilities and infrastructure sectors will increase the private sector contribution to the Libyan Gross Domestic Product by at least  75%.
  • Regrettably at this time, neither the Temporary Government nor the competent ministries have fulfilled this pledge. The prevailing sentiment is that the private sector remains incapable of performing.

Vision: ‘private Real Estate development’

The Government is to:

  • Concentrate on its primary role – which is to govern.
  • Stop switching and mixing roles, at times acting as the owner, at other times acting as the contractor, or both.
  • Focus on the provision of essential infrastructure needs of the nation. These include the provision of water, sewage services, roads, education, health, security, defense and border protection.
  • Become the guarantor  for housing mortgages and loans to be available and granted to all eligible citizens.
  • Issue laws that govern the dispensation of loans and mortgage guarantees. This must include the requirements for repayment either in full or in part, so as to encourage the localization of the economy, and stimulate the migration out of congested cities.

Encourage growth of local economies

The Government is to:

  • Provide the loan or mortgage facility to eligible citizens willing to buy only from authorized developers within zoned and planned areas. Set a national strategy and road map to finance, guarantee and recover loans and mortgages to be available to all eligible citizens.
  • Allow all eligible citizens the freedom of choice. Citizens should be able to chose between potential alternative urban, suburban and rural options.
  • The percentage of loans and mortgages to be repaid, and the terms of repayment, are to be determined in accordance with demand and the need for the localization of the economy and density in population. This is to undertaken in co-ordination and consultation with all Non Governmental Organizations.
  • Develop flexibility and options for eligible citizens. For example, repayment terms can be provided over periods ranging from  60 to 240 months.  Alternatively, repayment amounts can be discounted depending on location (urban/suburban/rural).

Potential Benefits

  • Developers, banks and land owners will get involved in, and stimulate the real estate investment market. The financing being guaranteed by the government loan guarantee scheme.
  • Competition will create higher quality performance, finish and standards through developers competing for business.
  • The Government can issue loan guarantees for 200,000 housing units in the first year. Thereafter, a further 100,000 housing per year.
  • Purchase prices can be extended in time as the developers raise  financing from local Libyan Banks. The Government need not pay upfront to any contractor.
  • The annual housing guarantee budget allocations will not exceed LYD 7 billion per year.  This scheme, within 10 years, can encompass the creation of one million new housing units.
  • The buyer will monitor and control the contractor’s performance, the quality of materials, work progress and efficiency .

The government will retain the right to monitor compliance, observe quality and develop the standards of the materials and construction

Strategies for planned outcomes

  • The loan and mortgage guarantee value can be set at a maximum of say LYD 150,000 for each eligible citizen.
  • A simple database will register eligible citizen borrowers to prevent abuse and fraud.
  • The installment payments to the developers can be  provided over a period of 60 to 120 months, with local banks willing to provide finance on the back of the Government guarantee.
  • Repayment discounted loans can be extended for up to  75% of the loan for rural areas, 50% for suburban and 25% for urban development areas (e.g. for centers with more than 500,000 inhabitants)
  • Citizens with their own independent resources can enjoy and abundance of better quality, higher standard properties.

Husni Bey,

Tripoli, Libya [/restrict]

 
Tags: Businessdevelopmenteconomyhousinginfrastructureprivate sectorpropertyreal estate
Share5Tweet3Share1

Related Posts

Benghazi Turkish Trade Exhibition postponed to 12-15 June
Business

Benghazi Turkish Trade Exhibition postponed to 12-15 June

June 3, 2023
HB Group opens Apple authorised I-Shop reseller in Tripoli’s Siyahia
Business

HB Group opens Apple authorised I-Shop reseller in Tripoli’s Siyahia

June 3, 2023
SPARK partners with Hive and Assaraya in Benghazi to implement training programme
Business

SPARK partners with Hive and Assaraya in Benghazi to implement training programme

June 2, 2023
REAoL opens Benghazi office – to open office in south soon
Business

REAoL opens Benghazi office – to open office in south soon

June 1, 2023
Shippex 2023 postponed to new date of 19 to 22 June
Business

Shippex 2023 postponed to new date of 19 to 22 June

June 1, 2023
Libyan eastern government to build 300k bpd Tobruk refinery with foreign investors on BOT basis
Business

Tunisian Companies Forum to be held in Benghazi on 4 June

June 1, 2023
Next Post

International Medical Exhibition and Conference will now be held in the Tripoli Fairgrounds from 9-12 July.

US ambassador to Libya says democratic transition still “on track” as anticipation grows ahead of 7 July vote

US ambassador to Libya says democratic transition still "on track" as anticipation grows ahead of 7 July vote

 

Advertise on LibyaHerald

Reach thousands of our site visitors daily

240 x 400px

Advertise Here
ADVERTISEMENT

Top Stories

  • State recognised militia and Libyan Army clash in central Tripoli

    State recognised militia and Libyan Army clash in central Tripoli

    228 shares
    Share 91 Tweet 57
  • The Tripoli Libyan Ministry of Transport confirms development plan for Libya-Tunisia Ras Jedir border crossing

    67 shares
    Share 27 Tweet 17
  • Members of illegal organizations given imprisonment and death sentences by Misrata Criminal Court

    52 shares
    Share 21 Tweet 13
  • Tripoli Libyan government conducts drone strikes against criminal hideouts in western coast

    143 shares
    Share 58 Tweet 36
  • Sirte Oil Company’s smart fields give it higher efficiency, more accurate real-time data for timely decisions

    45 shares
    Share 18 Tweet 11
LibyaHerald

The Libya Herald first appeared on 17 February 2012 – the first anniversary of the Libyan Revolution. Since then, it has become a favourite go-to source on news about Libya, for many in Libya and around the world, regularly attracting millions of hits.

Recent News

Benghazi Turkish Trade Exhibition postponed to 12-15 June

HB Group opens Apple authorised I-Shop reseller in Tripoli’s Siyahia

Sitemap

  • Why subscribe?
  • Terms & Conditions
  • FAQs
  • Copyright & Intellectual Property Rights
  • Subscribe now

Newsletters

    Be the first to know latest important news & events directly to your inbox.

    Sending ...

    By signing up, I agree to our TOS and Privacy Policy.

    © 2022 LibyaHerald - Powered by Sparx Solutions.

    No Result
    View All Result
    • Login
    • Sign Up
    • Cart
    • Libya
    • Business
    • Advertising
    • About us
    • BusinessEye Magazine
    • Letters
    • Features
    • Why subscribe?
    • FAQs
    • Contact

    © 2022 LibyaHerald - Powered by Sparx Solutions.

    Welcome Back!

    Sign In with Facebook
    Sign In with Linked In
    OR

    Login to your account below

    Forgotten Password? Sign Up

    Create New Account!

    Sign Up with Facebook
    Sign Up with Linked In
    OR

    Fill the forms bellow to register

    *By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
    All fields are required. Log In

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
    Are you sure want to unlock this post?
    Unlock left : 0
    Are you sure want to cancel subscription?