HUSNI BEY Chairman of the Husni Bey Group

United World: Could you give us a brief history of your company and tell us how it has expanded?

Mr. Bey: The group was established in 1944. We started in logistics and then expanded by diversifying our services in fields like import-export, trading, and most recently tourism. Our main activities are import and distribution of most consumer products. We are also involved in shipping; however, this is still underdeveloped because up until 2000, the market was monopolized by the state. We also provide bonded warehousing for the oil industry. We are working on getting a concession from the government to move ahead with an expansion of our tourism business. We have had our ups and downs. We were one of the first companies to get nationalized in the 1970s, but I have no grudges or bad sentiments. Some individuals took advantage of the system and stripped others of their property. I don't think the government was entirely responsible for this. However, those who committed these criminal acts should be persecuted.

United World: How did your business get back on its feet after getting nationalized in the 1970s?

Mr. Bey: We applied the policy of rebuilding by not risking more than we can afford to lose. We left the country in the period of the nationalization process but we came back in 1986 when the liberalization of the economy began; people think that this process began a year ago, but that is not the case. This is how we managed to maintain our business and continue operating successfully. We were one of the very few who believed in the change from day one, and we capitalized on that. I think the big change came when our current Prime Minister Shukri Ghanem became the Economy and Trade minister in the year 2000. His message was very clear; he said the business community in general can do whatever it wants and the main interest is to allow the country to move forward and prosper through a transparent economy. They changed the taxation law for example, which has become very fair and encouraging for new businesses. I would hope that people recognize these changes and work within the framework of transparency to allow our economy to progress.

United World: Taking everything you mentioned in terms of positive changes in the economy, what does the future hold for the HB Group?

Mr. Bey: Our vision as a group is that Libyans have to get along. I am concerned for the younger generation. I don't like seeing tribalism; it has a negative impact on the country and breeds nepotism. As a business, we are quite content with our development. Whatever business venture we are involved in, in reality, it is only by 30% due to regulations in the country. I would hope that we diversify further in the economy. I look at law number 4 for Libyans and wish that it precedes law number 5 for foreign investors. I do not think it is fair that a foreigner has more privileges in setting up a business in our country in comparison to a local who wants to do the same. I take offense to that. We should be granted the same incentives. I feel a degree of responsibility towards contributing to the changes taking place. Nowadays, many business people share my philosophy on the private sector; however, we need to talk to each other more and deepen our trust. We should start thinking of business not just as an opportunity but also as a long-term responsibility. We need to invest more in the people rather than enslave them.

United World: In tourism, what kind of activities would you like to communicate to our readers?

Mr. Bey: I think Libya is very ripe for what I call scientific tourists; in archeology, and desert adventures.

United World: As a businessman, you have obviously led an exemplary career in your field of work. What would you say has been your greatest achievement till this day?

Mr. Bey: I feel that my greatest achievement today is having accumulated so many local managers and partners, and employees who are very dedicated to the development of the business, rather than how much money I have left. In Libya today, some of the wealthiest people are not contributing to the economy in any shape or form.

United World: The private sector in Libya seems to be increasingly maturing to attract foreign investment. What fields would you say are golden opportunities for American investors?

Mr. Bey: Libya has a very small economy and our population is even smaller, therefore, it is not particularly mass-consumer based. For Americans in particular, I think their best opportunities are in oil-related businesses and management and know-how in transforming the civil service in the country. The association between Libyan banks and US banks for developing the financial structure of the country and creating more products to sell in Libya is another lucrative activity. These are the areas that are ripe for American investors; enhancement, and education in financial institutions.
Tourism is also a very important sector and we feel that what it desperately needs at this point in time is the development of its infrastructure, like building more hotels and transportation services. Personally, I am very committed to this sector but things are moving much slower than we expected. Opportunities are huge in housing and construction, but in every sector, the mentality is that the government has a larger stake in everything. This contributed to disagreements and mismanagement at times because there are differences in understanding the economies of scale. Investment guarantees are insufficient and need to be improved to encourage both local and foreign investors. The potential for change is there however.

United World: What are your greatest challenges?

Mr. Bey: I look towards the country becoming truly transparent with clear signals throughout the business community. I would like to see the restructuring of state-wages for the people; they are quite low. I'd like to see the government go after the corrupt people who are abusing the system. We are not looking towards becoming another Dubai because we simply cannot be it. We should invest in opening trade routes with the rest of Africa. I am confident in the government but I feel there is a lot of resistance towards economic change within the legal framework of things. One of the country's major concerns is corruption and it needs to be addressed.

United World: What is your message to foreign investors?

Mr. Bey: While Libya is gradually opening up to the rest of the world and business opportunities do exist in the private sector, there are still a number of obstacles that foreign investors, particularly Americans, will face. Visa restrictions are at the forefront of these obstacles. I am more concerned today with the local investors than with the foreign ones. We need to convince the local private sector of change and stimulate them for business if we want to attract the outside world. We enjoy a peaceful culture, which makes this country very safe for the business community; it's a start.