Libya, with a population of five million and the biggest oil reserves in Africa, is moving to modernise, but faces an uphill struggle in a command economy where cash is still king, firms battle to get credit and politics dictate the progress of reform.
Visiting Qatari ruler Shaikh Hamad bin Khalifa Al Thani and Libyan leader Muammar Gaddafi watched as officials from both countries finalised the accords, according to officials.
Barwa Real Estate Company, an affiliate of the Qatar Investment Authority’s $ 40 billion property wing, agreed a $ 2bn deal with state-owned Libyan Development and Investment Company to develop leisure, commercial and residential facilities, the officials said.
Separately, Barwa said in a regulatory filing on the Doha bourse website yesterday its international arm would invest in an energy project.
The two countries also agreed to set up a $ 2bn joint investment fund, a $ 600 million Libyan-Qatari bank and a $ 300m sport and services project, the officials said, declining to give further details.
Libya and Qatar also signed other accords on energy and water projects.
The deals are the latest between Qatar and Libya.
The GCC state, the world’s largest exporter of liquefied natural gas and an oil exporter is looking to diversify its economy from hydrocarbons.
Qatar National Bank and Masraf Al Rayan, two of Qatar’s largest lenders, have either opened or are planning to open offices in Libya.
In February, Qatari Diar Real Estate Development, the real estate arm of the country’s sovereign wealth fund, set up a joint venture real estate firm with the Libyan government to invest in the country.
Libya is undertaking a 150 bn dinar ($ 126.5bn) five-year infrastructure redevelopment plan to modernise water and sanitation facilities and build airports, schools and houses.
