The Central Bank of Libya (CBL) has made a strong appeal to the country’s banks and financial institutions to take the lead in reviving long-abandoned housing projects and supporting urban development initiatives that have remained stalled for over a decade.
CBL Governor, Mr. Naji Mohammed Issa, made this call during a high-level workshop held on July 13, 2025, in Tripoli. The event, titled “The Role of the Banking Sector in Reviving Stalled Housing Projects and Promoting Urban Development”, brought together key figures from the public and private sectors. Among the attendees were senior government officials, banking executives, real estate developers, and urban planning experts.
Governor Issa acknowledged that the responsibility for the housing crisis lies mainly with the government. However, he pointed out that the banking and financial sectors have a critical role to play in rebuilding Libya’s urban infrastructure and addressing the country’s widespread housing shortage.
He described the workshop as a “starting point” for deeper collaboration, stating, “This marks the beginning of a long-term strategy to mobilise financial resources and unlock the potential of stalled housing projects. Our banks must move beyond traditional services and become drivers of national development.”
Many of Libya’s housing projects were launched during the pre-2011 era but have remained incomplete due to years of political instability, conflict, and economic stagnation. These abandoned construction sites—spread across Tripoli, Benghazi, Misrata, and other cities—represent both an economic loss and a missed opportunity to solve Libya’s housing deficit.
At the workshop, participants explored innovative financing models that would allow both public and private financial institutions to inject funds into dormant projects. One of the major recommendations was the development of mortgage-backed loans and long-term housing bonds that would enable banks to offer credit to developers and homebuyers alike.
Discussions also focused on establishing clear regulatory guidelines and improving coordination between various government agencies and the financial sector. This, they said, would help streamline project approvals, reduce risks for banks, and ensure accountability in housing delivery.
Although the Central Bank has not yet made a formal funding commitment, the tone of the discussions signaled a significant shift in policy. There is now a stronger push to involve banks in Libya’s wider reconstruction efforts—particularly in real estate, infrastructure, and urban renewal.
Experts noted that reviving abandoned housing projects will not only help reduce homelessness and overcrowding in urban areas but will also stimulate economic growth through job creation in construction, real estate, and related sectors.
Participants at the meeting concluded the session by agreeing to form a task force that will include key players from both the public and private sectors. This team will be responsible for drafting a comprehensive action plan that will prioritise key projects, identify funding gaps, and propose workable timelines.
The urgency of the issue is clear. Libya continues to face an acute housing crisis, with thousands of families living in informal shelters, damaged buildings, or in overcrowded conditions. Young people in particular struggle to afford homes, while inflation and a weak financial system have made it harder for private developers to secure funding.
Governor Issa also called on commercial banks to rethink their role in society. “Our banks cannot simply wait for perfect conditions. If we are serious about rebuilding Libya, the financial sector must step forward and provide leadership,” he added.
This new approach by the Central Bank reflects a broader trend in North African countries where financial institutions are being encouraged to support national development goals beyond the traditional focus on banking services.
For now, all eyes are on how Libya’s financial institutions will respond, and whether this initiative will finally breathe life into the housing projects that have remained silent witnesses to the country’s decade-long crisis.
