Libya's $2.5 Billion Steel Project Aims to Transform Industry

Sep 22, 2026

76 min

Sep 22, 2026 12:32

Libya’s $2.5bn steel project puts industry in focus

## Major Investment in Benghazi

Libya is advancing with a significant industrial project in Benghazi, valued at $2.5 billion. The Tosyali-SULB steel initiative, a collaboration between Turkey's Tosyali Holding and Libya United Steel Company, is set to commence production by early 2028. This venture is expected to produce 8.1 million tonnes of direct reduced iron annually, with 90% destined for export. Additionally, rebar and pipes will be manufactured for local use.

## Economic Diversification

The project represents about 5% of Libya's GDP, highlighting its economic significance. It aims to diversify Libya's economy, traditionally reliant on oil, by enhancing the private sector's role in large-scale projects. Ahmed Gadalla, associated with Alushibe Holding Group, leads the initiative, which will require expertise in various fields such as engineering, logistics, and industrial services.

## Local Opportunities and Skills Development

The steel project is poised to create opportunities for local suppliers and service providers. It will enable contractors to gain experience in large-scale procurement and international standards, while logistics firms can develop skills in handling industrial materials. The project also promises to train workers in advanced equipment operation, benefiting other industrial sectors in Libya.

## Regional and Domestic Impact

While the immediate goal is to start production, the project's broader impact could extend to infrastructure, logistics, and manufacturing. The focus on exports adds a regional dimension, while domestic production of construction materials could meet local demand. The long-term success of the project will depend on its integration with Libyan companies and the development of a robust industrial base.

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