The refinery buildings category in Libya is projected to remain the fastest-growing category during 2011 to 2015, once political stability is established in the country, due to continuous upgrading and expansion. Between 2011 and 2015, industrial construction is expected to record a CAGR of 8.69% with the „Industrialization Development Programme 2010 to 2013‟ to drive growth during the period

After the complete removal of the UN and US economic sanctions from Libya in 2006, the country has recorded strong GDP growth, which has also been reflected in the country's construction industry. However, as oil revenues represent a primary part of Libya's economy, the Libyan government has embarked on economic diversification to insulate the Libyan economy from the high volatility of international oil prices.

Accordingly, the Libyan government has made significant investments in the country's infrastructure sector, to attract foreign capital. Libya is promoting itself as the 'gateway to Africa' and has proposed several projects to develop the Libyan capital of Tripoli into an international financial hub for the North African region by 2012. As a result of the country's economic development and a rising population, Libya is facing a housing shortage. In response, the Libyan government is trying to provide social housing for the low income segment to enhance the living standard of the country's population and increase expenditure on healthcare and education.

In Libya, the rising middle class population and the growing tourist inflows subsequent to the lifting of UN and US economic sanctions are contributing to the growth in the commercial construction market. As a result of these developments, the Libyan construction industry recorded a strong compounded annual growth rate, although the rate of growth slowed more recently, as a result of the global financial crisis.

In 2011, Libya was mired in political conflict and consequently, the construction industry is expected to stagnate during the year. However, owing to the strong macroeconomic conditions, growth is anticipated to recover subsequent to the resumption of political stability by the end of the year. During the forecast period, economic diversification efforts are expected to continue to support growth across all the Libyan construction markets.