ZIAD ADHAM AL MUNTASSER Chairman of Arab Union Contracting Company

United World: Could you please give us some background information on the Arab Union Contracting Company?

Eng. Muntasser: This is one of the leading construction companies in the country today. It was established more than twenty-five years ago. We are involved in various activities, like real-estate and more recently, manufacturing of building materials, however our main activity is construction. We have our own plants that produce these building materials, which satisfy usage levels and we sell the rest to local companies or individuals. In the construction field, we have undertaken various projects. These include five hospitals in the southern region of the country each with 120 beds, 10 schools for medical students, which are attached to hospitals in various parts of Libya. In the housing sector, we have built thousands of houses throughout the country. Currently, we are engaged in the construction of 2,870 flats in Tripoli; we have completed about 60% of this project, we hope to finish another 25% by the end of this year, with a view to complete the project by the end of next year. We have also taken part in the construction of sewage networks in some municipalities, as well as administrative buildings, etc. As you can see, we have been very busy in the area of construction. However, our board of directors in the mid-1980's decided to diversify our activities and invested in the manufacture of the building materials. Another project coming up soon is the construction of the Al-Fateh's twin tower in downtown Tripoli. We are of course looking for partners to join us in this endeavor.

As for our other activities, like the manufacture of building materials, we are currently one of the market leaders in selling ready-made concrete. We sell to contractors and individuals. We have two plants for floor tiles, a plant for cement hollow blocks, and a plant for pre-stressed beams, which are used for the roofs of houses or other buildings. AUCC is also the biggest producers of aggregate, which is used for construction (we have eight crushers for that purpose). All these activities depend on cement; and due to the numerous infrastructure projects underway in Libya, there has been a strong rise in demand for cement. This is precisely why AUCC decided to take part in this field. Recently, our leader, Muammar Quadhafi, personally inaugurated the first line of the AUCC cement plant, which entered into full production of 1,400,000 tpa (tons per annum). At the same time, our leader laid down the foundation stone for the second line of the cement plant with a production capacity of 1,800,000 tpa. AUCC is currently engaged in mapping out the construction of this second line, with the aim of reaching a total cement production of 3,200,000 tpa. AUCC hopes to start the construction of this line in early 2006. We hope that with the completion of the second cement plant, Libya will be self-sufficient in its needs for cement. This plant will be one of the biggest in the North African region and the Middle East.

United World: Why did you not decide to invest in already existing cement companies that are in need of enhancing their productivity rather than building another cement plant?

Eng. Muntasser: Libya has all the raw materials necessary for producing cement; it should be more than self-sufficient and able to export large quantities. Therefore, AUCC decided to build its own plant in order to meet local and external demand. AUCC is cooperating with existing companies and I'm certain that they are doing a good job, however the market for cement in Libya is big enough for all of us to contribute to it separately. AUCC is in a better position to expand on its construction activities because it has its own supply of cement. This allows us to control our own construction projects.

United World: In terms of partnership, could you give us an idea of the criteria you are looking for in potential foreign investors?

Eng. Muntasser: No country can be self-sufficient in everything, and we realize the need to cooperate with the rest of world. There are so many positive things happening rapidly in the country, and in order to meet our ambitions, we have to cooperate with both local and foreign companies, particularly with those who have the technology that will be beneficial to our activities. So far AUCC has been cooperating with companies from Europe and Asia. Unfortunately, we have not had the opportunity to cooperate with American firms so far. AUCC is ready to make use of local knowledge and experience to combine it with foreign technology, expertise and know-how. AUCC could even work with foreign investors on small-scale projects for short trial periods to assess compatibility of operations. We do realize the need for us to look to the future and compete with others, rather than bury our heads in the sand and say, "we are self-sufficient." Naturally, foreign companies in the recent past, were a little uncertain of the Libyan market due to the embargo. Libya today is one of the ideal places for investment; this is what everyone is saying. Foreigners here feel as safe as locals; there are no security issues either in the form of religious extremism or local political differences, or even racial problems. AUCC is optimistic about the new era that Libya is entering. Libya is an oil producing country, which is an asset. Additionally, there are a lot of local resources that are under-exploited; therefore we need the help of our friends in Europe and the United States to provide us with the technology to develop these resources.

United World: What sectors would you identify as worthy of attention for foreign investors?

Eng. Muntasser: Recently, we have been focusing on tourism; we have most of the ingredients needed for a potentially fruitful tourism sector. We have a Mediterranean coastline, the Sahara desert, the Green Mountain in the eastern part of Libya and many archeological sites all over the country. Naturally, we do need to improve our services in terms of providing better hotels of all ranges. This is particularly true in the south of the country.

United World: Is tourism an area that AUCC is interested in tapping into?

Eng. Muntasser: Our priority at the moment is to invest in the second production line of our cement production, as well as building the Al-Fateh twin tower that I mentioned earlier. However, if we find the right partners who would like to invest in such tourism projects, then we would be ready to discuss it with them; why not? Libya has a shortage of hotels; sometimes we have difficulties accommodating business delegations, particularly at the present time when we have so many foreigners visiting the country. Therefore, it is a very interesting sector with a lot of investment opportunities for both local and foreign businessmen.

United World: As the chairman of the AUCC, how do you see the future development Tripoli and Libya in the coming years?

Eng. Muntasser: I feel very optimistic. This is reflected everywhere, even on individual Libyans. Our economy is rapidly expanding; the local projects undertaken so far may not be big but the investors are very enthusiastic. Tripoli is the biggest city in Libya and there are numerous projects underway in it, however the rapid growth can be noticed everywhere throughout Libya. Today, the government is encouraging the private sector to increase its involvement in the economy; this will make a difference. With the global demand for oil, we hope to make good use of our income in all sectors, including industry, agriculture and tourism.

United World: On a personal note, would you please give our audience some insight into your career and your role as the Chairman of AUCC?

Eng. Muntasser: I graduated from London in 1970. I have a BSC in Engineering. I worked for a short period of time with a local consultant in the UK and then moved back to Libya, where I worked for a construction company. After that, I moved to the National Housing Corporation as an engineer. I worked as a site engineer for a while and then I was appointed by the employees as the head of the organization. This lasted from 1973 to 1976. I then moved to the Ministry of Housing, as the director of construction. Finally, since 1980, I have been in my current position. When I arrived here, the company was facing lots of difficulties but we overcame them thanks to the hard work and determination of the AUCC employees. When we decided to build the Al-Fateh Tower, we went to the bank to get a loan and they were laughing at us because we had this huge project and no money. At the end, we finally managed to get the loan and we were successful. So looking back at those years, I would say I'm satisfied with what AUCC has achieved so far. Our biggest achievement was surviving the embargo period; this was a time when most local companies in the construction field and other sectors couldn't provide the spare parts and equipment on time; it affected their performance. I think we were able to survive because we diversified our activities. I feel I am just starting with my work here; there is a certain satisfaction you get when the work you do is properly organized and producing results.

United World: Is there any message in particular that you would like to convey to our audience?

Eng. Muntasser: From my short experience with Americans, most of them are very friendly and sociable people and we look forward to working together for our mutual benefit. The United States today is a leader in most fields, particularly economically and we would like to make use of the technology and know-how. We hope we have a lot to offer if they decide to invest in Libya; there are so many fields in which we could cooperate.

United World: Thank you very much for your comments.

Eng. Muntasser: Thank you.