Egypt-Libya: Economists say stability in Libya will benefit Egypt

Egyptian economic experts, who gathered on Tuesday for a meeting on the effects of developments in Libya on their country's economy, have agreed that a stable Libya could spark a resurgent demand for Egyptian labour and rebuild a strong and reliable market for Egyptian products. As the Libya end-game fast approaches, with Moummar Kadhafi's downfall, major powers are already jockeying for stakes in the energy-rich north African nation’s main industries. Western firms look set to be first in line when the oil begins pumping again, while countries that opposed NATO intervention, like China and Russia, expect to be left out in the cold.

The stance of Egypt’s interim rulers, the Supreme Council of the Armed Forces (SCAF), to the Libyan rebels may have been equivocal but Egypt’s troubled economy also stands to benefit should stability return to its western neighbour, according to business experts.

SCAF's recognition of the Libyan National Transitional Council (NTC) came late, due to the sensitivity of the fact that almost a million Egyptians live in Libya, with many threatened to lose their jobs and some their lives by the defunct Kadhafi regime.

Egypt, going through a transitional period after the success of the 25 January revolution that toppled president Hosni Mubarak, had assisted rebels through mainly humanitarian aid through its western border with Libya.

Egyptian business experts asserted that the largest and most direct benefit to Egypt’s economy is likely to come in terms of employment, as Egypt's north African neighbour will need labour in great numbers, both skilled and unskilled, to rebuild the war-torn country, in almost all sectors in the coming period.

No firm statistics are available but estimates show that despite evacuations, more than half of Egyptian immigrants remain within Libya's borders.

This workforce was indispensable to Egypt too, providing the country with a flow of remittances, which - along with tourism and Suez Canal revenues - are some of the country's key sources of foreign reserves.

Egyptian companies could stand to benefit at least as much as job seekers, according to analysts.

Home to one of Africa's largest oil reserves, Libya’s abundant natural resources could theoretically put it among the world's most developed countries - yet economic activity remains under-developed and undiversified.