Benghazi- Benghazi plans to launch the Al-Marissa Free Zone project, which is the largest of its kind in Libya and North Africa. The project extending along the North African coastline – one of the busiest shipping routes – will drive growth, and move the economy from its rentier state to a diversified state, in addition to saving tens of thousands. Of job opportunities.
An African gateway to European markets
The total area of the Al-Marissa Free Zone project, located southwest of Benghazi, is 1,200 hectares (12 square kilometers), and includes 8 development areas, most notably the main port, industrial, tourism, smart, media, financial and transformational areas, in addition to a special area for the National Oil Corporation.
Those in charge of the project are counting on transforming the main port of the region, the city of Benghazi, due to its geographical location and its proximity to the Suez Canal, into a commercial gateway linking the markets of Europe, Africa and the Middle East, as it represents the land route linking Benghazi, Ajdabiya and the oases to the city of Kufra in southern Libya, extending Even Chad and Sudan are part of a regional transportation network that transports goods from Africa to European markets and vice versa.
Infrastructure and design
The Al Mraiseh Free Zone project includes a main port with an area of 650 hectares (6.5 square kilometers), and 8 service centers.
Dr. Ahmed bin Amer, Chairman of the Economic Committee of the Al-Marissa Free Zone, explained that the zone mainly focuses on attracting foreign direct investments, localizing local industries, and achieving the desired benefit from the transfer of modern technology.
Regarding infrastructure, Bin Amer pointed out that Mott MacDonald International Consulting Company was commissioned to develop the general plan for the region, while adhering to the highest standards of design and construction, and DLA Paper was also used to develop the regulatory regulations for the region, stressing that adherence to specifications The high technical level, in terms of establishment and provision of a flexible legal environment suitable for investment, will attract major international companies to invest in the region.
Vision 2040.. Libya is a vibrant commercial center
Osama Al-Jahani, head of the Al-Marissa Free Zone, explained in his interview with Al-Jazeera Net that the project dates back to 2007, and was approved by the Libyan General Committee, but the project faltered, and in 2012 a board of directors was appointed for the region, followed by the formation of a founding committee and the region’s authority.
Al-Jahani pointed out that the project serves Libya’s 2040 vision to diversify sources of income, reduce dependence on oil as a major source of revenue collection, and supports the tourism, trade and industry sectors, in addition to strengthening Libya’s position as a regional trade center.
Al-Jahani talked about merging the Tika Airport – to be established – and the Al-Mreisa Free Zone, which are separated by a distance of 10 kilometers, with the road linking Benghazi and the south-east, which also connects to the road linking Benghazi and Sirte, and then Sirte to Tamanhent, all the way to Agadez in Niger. Pointing out that if Libya is able to establish a major port that is characterized by rapid handling, ease of procedures and issuance of licenses, and is active in transporting goods by air and land, the prices of goods transported from Africa to Europe and vice versa will decrease by 40% to 50%.
Al-Jahani says that financial transactions within the region will be in US dollars only, and the annual rent for one meter inside the port, which is being designed and constructed by the Emirati company Global Builders, will be between 5 and 7 dollars, and the port design and construction project is expected to be completed in an estimated period of 3 years. From the signing of the contract that took place last August
Cost and job opportunities
The total cost of the project is estimated at about 10 billion dollars, and it is expected to provide 60,000 direct job opportunities and 420,000 indirect job opportunities. In the technological sector alone, the Work Foundation for Economics and Development Ltd. estimated that it will provide between 5,000 and 15,000 job opportunities, by The year is 2030.
The project will also contribute to GDP growth of up to 15% of GDP by 2050.
Economist and academic Dr. Sulaiman Al-Shahoumi believes that the Al-Marissa Free Zone can play a prominent role in reducing dependence on oil, by encouraging the growth of other sectors, such as light manufacturing, technology, agriculture, and logistical services – with priority – indicating that these sectors will help create… New job opportunities, an increase in non-oil GDP, and the tourism sector could also become a promising sector, if the coastal location of the region is exploited and tourism and commercial projects are developed there.
In this regard, Osama Al-Jahani, head of the Al-Mraysa Free Zone, revealed to Al-Jazeera Net a strategic plan to build a tourist area within the project that includes: hotels, commercial and entertainment centers, as well as an area for real estate investment.
How will Al Marissa outperform its competitors?
Although Al Mreissa offers several advantages, namely its geographical location that provides direct access to European and African markets, low operating costs, and access to natural raw materials such as oil and gas, which makes it a haven for energy-related industries, it needs to submit more bids, and it may Al-Shahoumi summarized the most prominent ones as:
- Providing financial incentives such as tax and customs exemptions.
- Adopting a flexible legal framework that enables investors to obtain licenses and manage projects.
- International marketing and promotion of the region as an attractive investment destination.
Regarding Al Jazeera Net’s question to the Libyan businessman Hosni Bey, can Al-Marissa enter the competition line and break the dominance of the Suez Canal? He answered: “The market cannot enter the competition line,” pointing out that the region is in dire need of a fundamental change in vision and strategy, explaining this by the lack of funds from the general budget to finance this ambitious project that has been proposed for two decades.
In turn, the head of the economic committee for the zone project, Ahmed Bin Amer, believes that the Al-Mreissa Free Zone works on the line of transporting goods from Europe to Africa and vice versa. The percentage of goods transported through the Suez Canal, which constitutes competition for European goods via Al-Mreisa, is low, as African countries that want to import from Asian and Pacific countries. Cargo ships coming from these countries will dock in East African countries, and do not need to pass through the Suez Canal and unload their goods in the ports of the northern Mediterranean.
Ibn Amer spoke about a number of challenges that will face the Al-Marissa Free Zone in the future, including: competition from neighboring countries. Egypt and Algeria are working to develop sustainable routes for transit trade, and organize transit trade through their territories in professional ways, which requires regional integration, not competition, between Libya. Egypt and Algeria.
Bin Amer added that the biggest challenge is the organizational challenge, as the Al-Mraysa Free Zone must operate in accordance with the latest international standards for operating in free zones, which requires the assistance of major private companies to operate the free zones.
Ibn Amer pointed out the security aspect. The real concern of investors, merchants, and businessmen is the safety of their goods, on their way from European ports to African countries. Therefore, establishing a successful transit trade requires a tight protection system, in which merchants can secure the transit of their goods.
Economist Suleiman Al-Shahoumi recommends a set of recommendations to achieve optimal benefit from the Al-Mraysa Free Zone project:
- Investing in education and training, to provide the local workforce with the necessary skills to work within the project.
- Establishing international partnerships to increase the volume of investments and benefit from advanced technology and expertise.
- Encouraging local industries and exploiting resources instead of relying on exporting raw materials only.
- Developing development plans and projects in line with environmental sustainability standards.
- Speeding up legal procedures and reducing administrative complications.
