Exportlink special report – Libya
Libya was identified as a very important new market for North East exporters in the last Export Survey carried out by Business Gateway International in 2004, with 39 local exporters indicating their intention to capitalise on the rapid growth in one of the fastest-expanding Middle East economies.
Scottish Development International (SDI) is leading another of its popular trade missions to Tripoli in March, and the fact that it is already oversubscribed confirms the demand for market entry support into this market (it is likely that SDI will run one further mission later this year).
As with many other SDI missions to the Middle East and Africa, the mission is led by Glasgow-based SDI Senior Executive in Energy and Engineering Hadi Fawzy (right) , who has worked with hundreds of Scottish exporters in the last 13 years.
Hadi is a regular visitor to Aberdeen city and shire, and can be contacted for a personal consultation on your Middle East or African plans or aspirations at 0141 228 2684, email hadi.fawzy@scotent.co.uk.
Exportlink caught up with Dr Fawzy recently and asked him to update us on opportunities in Libya...
“Libya is already the second-largest oil producer in Africa with an output of over 1.5 million barrels per day, and it has the capacity to double that output. What really sets it apart from many of the other African and Middle East producers, however, is the pace of its oil and gas modernisation programme following the lifting of sanctions in June 1999.
SDI, or Scottish Trade International as it was then, led the first post-sanctions UK trade mission into Libya in 2000, since when we have worked hard – and very successfully – to build partnerships with the Libyan oil and gas sector.
We have done this partly through leading regular outward trade missions of interested, and well-briefed, Scottish oil service companies, and also by encouraging large numbers of Libyan technicians to come to Scotland to develop their energy-related skills. These trainees have a very high opinion of Scottish education and training, and I believe they will form a bedrock of technology transfer “ambassadors” which will serve us well in years to come.
At SDI, one of the services we provide is to identify priority markets for Scottish businesses to access, and in the case of Libya there are two high priority sectors with really significant potential – education/training, and pipeline-orientated services.
Rapid growth
As I have already noted, what distinguishes the Libyan market is the pace of its planned modernisation programme following years of technological isolation.
Libya’s state-owned National Oil Corporation (NOC) is very satisfied with its past experience of skills development in Scotland, and it is now seeking pro-active partners to build a wide-ranging infrastructure at a higher level in in-market training. This is clearly a major opportunity for technology transfer for our service providers in the training and education sectors, allowing them to build on Libyan confidence in our technological capabilities.
Many Scottish businesses have noted the cultural accessibility of the Libyan market. Libya has a long, historic tradition of trade with Europe – there are spectacular remains to this day of major Roman cities. Libyan business people genuinely appreciate the personal element, and the well-deserved Scottish reputation for sociability. Within a short period of time, you will find yourself being invited back to your contacts’ houses as a friend, which is a thoroughly pleasant – not to mention effective - opportunity to develop successful long-term business relationships.
Further potential
But it’s not just Libya’s recent growth rate which is so impressive – its potential for further growth is every bit as significant.
NOC has just issued concessions on another 50 blocks for further exploration, both offshore and onshore, and this is attracting widespread interest in the international exploration and production community.
This means that major operators and service companies with whom we are already doing business in other territories may well be stepping up their requirements for support services.
In particular, SDI has identified pipeline-related technologies as holding huge potential. With Libya’s plans to double production, we will see major expansion in pipeline projects – both internal and cross-border, since Libya is a major oil exporter.
This not only applies to companies directly involved in pipeline manufacture – it will also extend to many other related elements like monitoring software and hardware, production controls, inspection services, corrosion services and many more.
To help Scottish businesses maximise on these opportunities, SDI offers a tailored service ranging from initial research to focussed missions and attending formal events.
We can provide overviews of various market sectors, formal reports, market intelligence on international competitors and even high-quality business contacts gleaned from our contacts with the local commercial UK embassy staff.
If this data confirms your interest in the market, we proceed to pre-market briefings, possible introductions to our local business contacts, and assistance with either group or individual trade missions. Group missions have a lot to commend them – missioners often get better access to high quality contacts, and you invariably find that you can benefit from group synergies of shared intelligence and contacts.
Working in partnership
SDI works in close partnership with many local export support agencies, including councils and chambers of commerce, and together, through BGI, we can deliver active, integrated support packages which help you get results.
I personally participate in around 6-8 trade missions or events each year in Middle East and African markets, and I believe I have a fairly good handle on current export opportunities in these territories.
Despite the tone of this article, my remit is not exclusively oil and gas – I also cover other industries like power generation, chemicals, water, construction and aerospace. Although I am based in Glasgow, as has already been noted, I am a regular to North East Scotland, and I am very happy to meet with local businesses who are targeting markets in Libya, UAE, Iran, Egypt and other fast-emerging markets like Morocco, Tunisia and Turkey.
My contact details are : Dr Hadi Fawzy, tel 0141 228 2684, email hadi.fawzy@scotent.co.uk. The SDI website can be visited at http://www.scottishdevelopmentinternational.com/pages/index.asp ”
Click here to download a pdf copy of a 2005 report on the Libyan oil and gas market prepared by UK Trade and Investment, the UK government organisation jointly operated by the Foreign Office and the Dept of Trade and Industry which promotes international trade.
Click here to download details of Project Libya 2006 – The International Exhibition and Conference for Libya’s Infrastructure and Economic Development, which is set for 4 - 7 December 2006.
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