Egypt to gain $100B from bringing peace to Libya: ESCWA

CAIRO – 23 June 2021: The United Nations Economic and Social Commission for Western Asia (ESCWA) said that bringing peace to Libya will lead to significant economic gains for the countries of the region, amounting to about $162 billion until 2025.

ESCWA added in a study issued, Wednesday, entitled “Peace in Libya: Benefits for Neighboring Countries and the World,” that by 2025, economic gains in Egypt will reach about $100 billion, in Sudan to about $22 billion, and in Tunisia to about $10 billion, and in Algeria to about $30 billion.

It pointed out that bringing peace to Libya will launch reconstruction efforts, which will generate significant economic gains for these countries in light of the linkage of their economies to the Libyan economy.

The study adds that peace in Libya will present opportunities at the international level, which will generate economic gains for Libya’s main trading partners such as Italy, Germany, France and Turkey, where gains in these countries are expected to reach $13 billion, $7.5 billion, $6 billion, and $5.5 billion, respectively.

The study emphasized the importance of the recent positive developments taking place in the country, which will translate into a rise in economic growth rates, an increase in investments, and job creation within Libya and in neighboring countries.

Tarek Al-Alami, the supervisor of the study team, said that that the study analyzes the quantitative impact of peace through a set of main indicators, including the expected growth following the reconstruction process, the desired results on investments and the resumption of exports to Libya, in addition to the impact of all this on employment levels in neighboring countries.

He stressed the possibility of unemployment in Sudan to decrease by 14 percent until 2025, by 9 percent in Egypt, 6 percent in Tunisia, and 2 percent in Algeria.

The study focuses on the results of the second phase of the ESCWA project concerned with measuring the impact of peace in Libya on the reconstruction of the country, which falls within the framework of the Libyan social and economic dialogue implemented by ESCWA to discuss the alternative social and economic frameworks required to achieve sustainable development in Libya.

ESCWA had previously issued a study entitled "The Economic Cost of the Conflict in Libya", in which it warned of the aggravation of the economic losses caused by the war in Libya.