Libya a fountain of new business opportunities. How did it all start? Why Libya?

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2 Libya a fountain of new business opportunities Often described as the hidden jewel of North Africa, 2011 saw Libya experience a seismic change as the country emerged from decades of dictatorship. Finally, the future now seems brighter as the political situation in Libya stabilises and it starts to redefine its position with its Arab neighbours and the wider world. As the country seeks to rebuild its government, institutions and infrastructure, it will inevitably need the support and assistance of the outside world in order to make up for lost time and provide a safe and prosperous environment for its citizens. Organisations wishing to help Libya on this difficult road will require an in-depth understanding of Libya and its people combined with the cross-cultural skill to successfully navigate the Libyan business environment. How did it all start? The events commonly referred to as the Arab Spring started in Tunisia when the street vendor Mohamed Bouazizi set himself alight in December 2010 in protest over a series of bureaucratic disputes with government officials. This led to a series of demonstrations by the wider Tunisian population against the lack of political freedom and poor living conditions imposed on citizens by their government, led by the long-serving President Zine El Abidine Ben Ali. Broad access to mobile telephones and the use of social media were pivotal in organising and accelerating protests against the unpopular government. When the President resigned and the government fell in January 2011, neighbouring populations began to find their voice and publically display their grievances. An unspoken but well understood taboo about publically displaying dissatisfaction with powerful regimes was broken throughout the Arab World and demonstrations, protests and civil unrest spread from Morocco to Bahrain. The Egyptian Revolution ousted the government of Hosni Mubarak, in power since 1981 and the ensuing Civil War in Libya led to the fall of the Gaddafi government and his subsequent death. Why Libya? Libya experienced its first unrest in January 2011 when a series of protests began over housing shortages, mostly in regions unfavourably treated by the Libyan government. The Libyan population had been living under Colonel Muammar Gaddafi since he seized control of the country in Colonel Gaddafi s leadership was absolute, controlled by an inner circle of extended family members, bloodline, tribal links and a few trusted individuals. This inner circle exhibited a strong distrust of outsiders and frequently tested the loyalty of its own members. While Libya undoubtedly benefitted from its oil wealth and the lifting of United Nations sanctions in 2003, this wealth failed to reach beyond the inner circle of Gaddafi loyalists.

3 As technology and social media became increasingly available, Libya s young, unemployed and often restless population started to break free of their isolation from the wider world. As governments collapsed in neighbouring Tunisia and Egypt, civil war in Libya became only a matter of time. In February 2011, the Arab Spring finally reached Libya. Unrest spread quickly over a number of longstanding grievances including human rights abuses, high unemployment and unfair access to basic social services such as health care. A civil war ensued, established along population divisions and loyalties, which saw several key members of the Gaddafi government defecting to support the rebels. February 2011 saw the establishment of the National Transitional Council (NTC), formed of Libyan opposition leaders and ex-gaddafi supporters. With its headquarters in Benghazi, the largest city in the east of Libya, the NTC laid claim to be the legitimate new government of Libya. After quickly receiving support from the Arab League and the United Nations, the NTC s army launched a strategic campaign to win control of the remaining regions of Libya and to remove Gaddafi from power. After many months of fighting and much bloodshed, Tripoli was finally taken in August Gaddafi was eventually killed near his home village of Sirte in October 2011, bringing an unceremonious end to his reign. Libya s future now hinges on the successful election and establishment of an interim government and the holding of free democratic elections. Cultural implications of doing business in Libya According to Oxford Business Group s The Report Libya 2010, significant opportunities exist for multinational organisations in the fields of oil, mining, banking and finance, construction, transport, telecommunication, retail, healthcare, education, agriculture and tourism. Despite the Arab Spring, these opportunities remain largely unchanged or even greater as Libya becomes more open to external influences and collaboration with western governments and companies. One of the main challenges for organisations considering doing business in Libya is the uncertainty of the government s future direction. Western organisations that were successful in Libya in recent years almost certainly had strong ties with Gaddafi government ministries. As is true throughout the Arab world, Libya s business environment functions on who you know more than what you know. With the fall of the Gaddafi government, returning organisations may need to restructure their business contacts. Both returning and new organisations may find they will need to invest significant amounts of time in building a series of new relationships. Westerners may plan to rely on Libyans returning from exile, but this strategy can create challenges as some returnees may no longer be familiar with the intricacies of how Libyan business works. Others may be suitable business partners, especially those who find themselves in line with any newly established government. Regional, family and tribal loyalties should never be underestimated, especially in the aftermath of the Libyan civil war where memories will no doubt be long. Westerners looking to enter or return to the Libyan market should also be aware that some groups of Libyans will be completely unwilling to work with others.

4 Infrastructure and bureaucratic difficulties should not be taken lightly. Regime change has had a significant impact on issues from banking infrastructure to import licences, port safety and security. The ability to tolerate uncertainty, frustrations, missed deadlines and increased costs is critical for any organisation working with Libya. Finally, as it is impossible to predict exactly what will happen in Libya in the near future, organisations who consider longer term strategies along with a healthy dose of patience will increase their chances of a successful venture into the Libyan market. Why understanding Culture is so important Intercultural competence is a critical skill that organisations and their employees operating internationally can no longer ignore. A lack of cultural intelligence and sensitivity to the local environment can prove costly for both the individual and the organisation. Poor working relationships, failed negotiations, and exposing employees to potential dangers are just some of the risks that unprepared organisations and their staff face. Libya is an unknown entity for most organisations and their employees. Understanding the local environment and people is vital if organisations are to be successful and their employees secure. How can Communicaid help you to find success in Libya? Being prepared for and addressing the often hidden and implicit values of Libyan culture that drive social and business behaviour will give you and your organisation the competitive edge when doing business in Libya. We can help you to anticipate, manage and harness the cultural differences you may face when operating in Libya through a series of training and consultancy solutions. By increasing your cultural awareness and understanding of the new ways of doing business in Libya, our solutions will: Provide you with a cultural framework for understanding Libyan business practices Increase your understanding of recent historical and political events and key players in Libya Enhance your awareness of who and how to influence in Libya Provide you with practical strategies for doing business and getting things done in Libya No matter what your international project or challenge, we will work in close partnership with you to understand your requirements and design a tailored solution to assist your organisation to achieve its international business objectives.

5 Some of the solutions we can provide to organisations doing business in Libya include: Images: istockphoto.com/x-drew, Sean Locke, Nicole Waring clipart.com Whether you are sending employees to Libya on an international assignment or short-term business travel, or if you have teams who will work virtually with Libyans from another location, we can provide targeted cultural and language training, consultancy and advisory services pre-departure or on arrival in Libya to individuals or teams. Key clients who have recently benefited from Communicaid s cultural awareness and language training and consultancy solutions include BP, Exxon Mobil, BNP Paribas, G4S, Barclays Bank, Rolls Royce, Technip and Safran. About Communicaid Communicaid is a culture and communication skills consultancy. We have more than twenty years' experience of assisting the world's leading corporate and public sector organisations to mitigate the risks and maximise the opportunities of working in a complex and ever-changing international environment. With training centres in London, Brussels, Paris, Frankfurt and New York, combined with a worldwide network of trainers, consultants and partner organisations, we are uniquely placed to meet your global requirements wherever they may be.

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