THE PAST, PRESENT, AND FUTURE OF TRADE WITH LIBYA
Murtaza Karanfil, Chairperson of DEİK/Türkiye-Libya Business Council, discusses Libya’s economic potential and the opportunities it offers for the Turkish business community, taking into account historical and cultural ties
Libya is a country that has preserved its significance throughout history, due to its strategic position on Mediterranean trade routes and its abundant underground resources. Shaped by the influences of various civilizations—from Ancient Rome to the Ottoman Empire—this region, and especially cities like Tripoli, Benghazi, and Sabha, has long served as a hub for commerce and culture. Our business relationship with Libya began in 1987, during a period of strict import controls, when we first engaged in “suitcase trade”. Back then, Libya itself was importing basic goods and distributing them to its citizens, and the twice-weekly flights and sea connections were the backbone of its trade. These limited conditions revealed both the market’s challenges and its potential.
LIBYA’S COMMERCIAL EVOLUTION: LIBERALIZATION OF IMPORTS POST
-1992 In 1992, trade with Libya underwent a pivotal transformation. Import liberalization paved the way for broader commercial opportunities. During this time, Benghazi was the commercial hub of Libya, yet Gaddafi’s decision to halt budgetary support for the city significantly diminished its role as a trade centre. By the early 2000s, Türkiye’s exports to Libya were only around USD 96 million, but this figure reached USD 1 billion in 2011 and USD 2.8 billion in 2013.
Following the 2011 Arab Spring, however, the initial surge in expectations gave way to political instability and economic uncertainty, causing trade volumes to settle around USD 4 billion. For economic relations between Libya and Türkiye to regain momentum today, building an atmosphere of trust is crucial. The main reason for this stagnation is that the prosperity expectations, which rose after the revolution between 2011 and 2013, gave way to domestic instability and economic uncertainty.
THE TURKISH CONTRACTING SECTOR AND ITS IMPACT IN LIBYA
Libya is one of the first international markets ventured into by Turkish construction firms. Starting in the 1970s, Turkish contractors took on a broad range of projects, from infrastructure works to residential developments, with major undertakings in Tripoli and Benghazi. Still, delays in contract payments and local bureaucratic barriers posed significant challenges. While the “Tomorrow’s Libya” economic initiative launched in 2005 helped keep certain projects afloat, many were left unfinished due to difficulties arising from the local business culture.
HOSPITALITY AND CULTURAL BONDS
Roughly 25–30% of Libya’s population is believed to have Turkish roots, a connection that fosters closer relations between the two societies. Grounded in an Ottoman heritage, these cultural bonds significantly influence both social interactions and commercial ties. Libyan hospitality and strong community solidarity have supported Turkish businesspeople in securing long-term success in this market. Although dining out has become more popular since 2005, these hospitable traditions remain robust. A personal experience in Benghazi illustrates this perfectly: we got lost on our way home from a friend’s wedding. The man we approached for directions insisted, “It’s evening already; I won’t let you go without a meal,” and invited us to his home.
OTTOMAN LEGACY AND POST-REVOLUTION
Libyan society is culturally shaped by its Ottoman legacy. During Ottoman times, the region was governed as the Province of Tripoli, and the effects of that connection are still evident in daily life. Under Gaddafi’s regime, public assemblies allowed citizens to participate in decision-making processes. Representatives elected from each neighborhood and region would weigh in on administrative and political matters. In practice, though, everything ultimately rested with the leader who had the final say. The Arab Spring of 2011 disrupted this setup, propelling Libya toward the pursuit of democracy. However, democracy is not merely a political structure; it requires economic, educational, and cultural foundations. During this process, Libya struggled with the transition to democracy.
HISTORY AND CULTURAL RICHES
Libya’s eastern and western regions each shine with their unique social and cultural structures, displaying a striking diversity between the two areas. The eastern part of Libya is deeply influenced by the Ottoman legacy, with its historical heritage more prominently visible. Conversely, the western region has developed distinct social dynamics, with local identities shaping its cultural landscape. Following the 2011 revolution, the Libyan people held great expectations from Türkiye. The close relationship between Türkiye and Libya, rooted in historical ties, underpins these expectations.
Achieving stability in Libya will not only impact the country’s internal dynamics but also open up new business and investment opportunities for Türkiye. Due to its geographical advantages, Libya serves as a strategic gateway for trade to countries like Egypt, Tunisia, Algeria, and Morocco. However, the country’s resource-based economy, along with shortcomings in its tax system and inadequate industrial investments, pose significant barriers to economic transformation. Beyond serving as a gateway to Africa, Libya is also notable for its rich historical and cultural heritage.
Ancient Roman cities like Leptis Magna and Sabratha are important not just to Libya’s history but to world history as well. Moreover, the stunning vistas of the Sahara Desert and traditional Berber villages highlight Libya’s significant tourism potential. Nevertheless, unlocking this potential demands substantial investments and long-term strategic planning.
2025 AND BEYOND: KEY INDUSTRIES
By 2025, Libya’s energy, petrochemical, and tourism sectors are anticipated to emerge as leading industries. The tourism sector, in particular, demands substantial infrastructure investments, making it a focal point for development. Currently, the scarcity of hotels and tourist facilities capable of catering to even domestic visitors highlights the vast potential for growth in this area. Also, the construction and industrial sectors also present significant opportunities for expansion. However, securing political and economic stability in Libya is essential for these opportunities to be fully realized. Stability will not only foster local development but also enhance economic collaboration between Türkiye and Libya. Libya, with its historical legacy and natural resources, holds a promising future in terms of economic and humanitarian relations. Realizing this potential, however, requires strategic actions at both regional and international levels.