On the mid-term horizon, the construction of a hotel can take years, and business can grow faster than the capacity.
Of course and this is one problem that we will face in Libya very soon. I think that the construction of hotels should have started sooner because we are going to have a shortage; there is no doubt about it.
What is the return on investment that a hotel company can achieve in this environment?
I think in 5 to 6 years you can have a full return on your investment in the hotel sector here in Libya. I think this is one of the best rates in the world.
Regarding the construction industry, you are one of the leaders in the construction sector, although I imagine that you are facing competition from Turkish, Lebanese and Chinese companies. How do you compete with these players?
Well first of all, being a local company gives us a very big advantage; we know how to manage our prices and business much better than foreign companies. Secondly, I think that we have better construction knowledge than the Turkish or the Chinese. We have many joint ventures with European companies which give us an advantage because that way we are local and have some of the best knowhow in construction. We are able to compete because we are a local company but with European standards.
What would you identify as your major strength and also you main weakness or challenge that you face in your construction business?
In Libya right now in terms of construction there is the possibility to grow very quickly. I think the government will have to spend a lot of money in construction and public housing etc. so there is no shortage of projects.
Our weakness would be the lack of personnel. One of the biggest challenges in Libya right now is finding the right managers, especially managers who are really skilled in doing business. Also the banking system in Libya is terrible.