Untapped potential

Ancient berber granary in Libya.

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A development frenzy is underway in Libya. The oil-and-gas-rich-country has been largely unaffected by the global economic crisis, and is busy burying its fortunes into infrastructural and economic development.

According to the International Monetary Fund (IMF), the country’s economy could grow as much as 5.4% this year.

“Libya is a growing market and from our experience over the last two years, it is a market with huge potential. The government is keen on investing heavily in all of its infrastructure, from roads to hotels and schools, and that brings excellent opportunities for architectural and design companies,” noted Isabel Pintado, head of the interior design, Godwin Austen Johnson (GAJ).

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While there is opportunity in the office and retail segments, it is Libya’s massively under-developed tourism industry that could represent a potential goldmine. “Libya offers a niche market for tourism that is based on historic and cultural interest. It has one of the world’s best examples of Roman architecture, which has been preserved due to isolation from high impact tourism,” said Margaret Palmer, design director, Wilson Associates, Abu Dhabi.

Hotel chains from around the world are already queuing up to make their move. Turkish hospitality group, Rixos Hotels, opened the 120-room Rixos Al Nisr in Tripoli in March. Marriott is also planning its Libya debut, with a 270-room hotel that is due to open in 2011.

Meanwhile, Wilson Associates is working on an InterContinental in Tripoli, and GAJ is working with the Libyan government on a seven-star hotel, also in Tripoli. The property is nearing completion and will be set amongst a mixed-use development in the Regatta area of the city. “Another project that is in the final design stage is a mixed-use development with a strong office component located a few kilometres southwest of Tripoli,” Pintado revealed.

Yet another mixed-use project on the cards is Medina Tower, a joint venture between Mediterranean Investments Holding (MIH), IHI, which is a sister company of the Corinthia Group, and the Libyan Economic Development Real Estate Company, a sovereign wealth fund.

The 40-storey, mixed-use Medina Tower will offer 242 apartments, 23,000m² of office space, 20,000m² of retail space, a conference and exhibition centre and four floors of underground parking.

Construction will commence shortly and is expected to be completed within four years.