2025, the price of cement in Libya has soared unprecedentedly, causing concern among the public and contractors. This is particularly true in the context of the blocked national reconstruction projects and the lack of sound economic planning. According to Libya's National Trade Network (under the Ministry of Economy of the Government of National Accord), the price of cement has soared from 71 Libyan dinars per quintal (100 kg) to 91 dinars in the past two months. The increase in
cement price is mainly attributed to the serious shortage of domestic supply and the substantial increase in demand. In addition, the cement plant faces a number of operational challenges, such as fuel shortages and frequent power outages, which have led to the shutdown of some production lines. Among them, the factories owned by the Arab Contractor Company have been in a state of shutdown since mid-July, further exacerbating the supply crisis. According to official data, the price of cement from the Arab Contractors Company has risen to 91 dinars per quintal; while the price of cement produced by the National Company is between 82 and 83 dinars. The price of imported cement also rose to 89 dinars.
Market practitioners believe that price increases are the result of an interplay of factors, including speculation, a decline in local production, and a lack of effective government intervention to control prices or provide import substitution. Jamal Zaintani, a contractor overseeing a residential project near Tripoli's airport road, said: Costs have increased by 25% in the past two months. We have temporarily stopped work and wait for the price to stabilize or get subsidized cement, otherwise the project may be completely stalled.
Another contractor, Ali Misurati, pointed out that demand has increased dramatically since the Central Bank of Libya announced financing for real estate housing projects. But he added: There is clear speculation behind it. Even the price of imported cement has gone up. In this case, people expressed their dissatisfaction with the price increase, pointing out that the crisis is no longer confined to the construction industry, but directly affects their daily lives. Mohamed Shebani, an
economic analyst, believes that this phenomenon reflects the confusion of the market and the lack of economic policies. "If the government had quickly adopted measures such as strategic stockpiling, boosting imports or regulating local production, the price hike could have been avoided," he said. If prices continue at these levels, Sheibani warned, they could lead to a marked slowdown in reconstruction projects and a rise in inflation, undermining efforts to boost the local economy, especially in the face of weak purchasing power and a lack of direct support for basic goods.