Ahmed Gadalla: Alushibe, Tosyalı-SULB and Libya’s Industrial Growth

How Ahmed Gadalla’s investments in steel, cement and food manufacturing are expanding Libya’s productive capacity.

Ahmed Gadalla is a Libyan businessman, founder and chairman of Alushibe Holding Group and chairman of Tosyalı-SULB, the joint venture developing a major direct reduced iron complex east of Benghazi.

His business career began on a much smaller scale. According to his official profile, Gadalla started with an automotive-parts business in Benghazi before expanding into distribution and establishing Alushibe Holding Group in 2008. The group subsequently moved into manufacturing, engineering, healthcare, consumer goods, retail and industrial production, with its current operations spanning sectors ranging from food manufacturing to heavy industry.

The most important change in that development has been the shift from distributing products toward investing in productive assets. Alushibe Holding Group now describes an industrial portfolio covering steel, cement, building materials, packaging and industrial processing, alongside a consumer division that combines distribution with domestic manufacturing.

That transition places Gadalla within one of the central questions facing Libya’s private economy: whether established commercial businesses can move beyond importing and distributing goods and begin building the factories, technical capabilities and supply chains needed to produce more inside the country.

Who Is Ahmed Gadalla?

Ahmed Gadalla is the founder and chairman of Alushibe Holding Group, a diversified business group operating across Libya and the United Arab Emirates. He also serves as chairman of Tosyalı-SULB, the steel-industry partnership between Tosyalı and Libya United Steel Company for Iron and Steel Industry.

Gadalla’s official biography traces his entrepreneurial career to a small automotive-parts business in Benghazi. The operation developed into a broader distribution network before Alushibe Holding Group was formally established in 2008. Over the following years, the group expanded into sectors including consumer goods, manufacturing, engineering, healthcare and retail.

The group says it now employs more than 6,000 people across its wider operations and has invested in factories, logistics networks, food production, healthcare infrastructure and other commercial and industrial assets.

This development is notable because many large private businesses in Libya have historically grown through trade and distribution. Manufacturing requires a different business model. Factories demand fixed capital, specialized equipment, technical workers, maintenance systems, quality control and long-term operating commitments that extend far beyond the purchase and resale of imported goods.

Alushibe’s expansion increasingly reflects that second model.

Tosyalı-SULB and the Move Into Heavy Industry

The clearest example is Tosyalı-SULB, the iron-industry joint venture being developed at Ras Al-Mangar, east of Benghazi.

In 2024, Turkish steel producer Tosyalı Holding announced that it had formed Tosyalı-SULB with Libya United Steel Company for Iron and Steel Industry. The original announcement described a three-phase investment with total planned direct reduced iron capacity of 8.1 million tonnes per year.

The project has since been defined more specifically. Its current official website describes a development covering approximately 380 hectares with planned annual capacity of up to 7.5 million tonnes. The company currently lists the project as approximately 40% complete.

These figures should not be treated as contradictory versions of the same number. The 8.1 million tonnes comes from Tosyalı’s original 2024 investment announcement, while the 7.5 million tonnes reflects the project’s current official planned capacity.

The first phase is more concrete. In February 2025, Midrex Technologies and SMS group announced that Tosyalı-SULB had awarded them the contract for a 2.5-million-tonne-per-year cold direct reduced iron plant using MIDREX Flex technology.

This means the project can be understood at three levels: an original 8.1-million-tonne investment vision, a current planned total capacity of up to 7.5 million tonnes, and a contracted first phase of 2.5 million tonnes per year.

Why Direct Reduced Iron Matters

Direct reduced iron, or DRI, is an intermediate iron product rather than finished steel. It is produced by removing oxygen from iron ore without using the traditional blast-furnace process and can then be used as feedstock in steel production, particularly in electric arc furnaces.

That distinction has become increasingly important as the global steel industry searches for ways to reduce emissions.

The technology selected for Tosyalı-SULB reflects this transition. Midrex says the MIDREX Flex system can initially operate with natural gas and progressively increase the use of hydrogen if hydrogen becomes commercially available. This creates a pathway toward lower-emission iron production without requiring the project to depend on hydrogen from its first day of operation.

For Libya, the opportunity is particularly relevant because the country already possesses significant natural-gas resources and sits close to European and Mediterranean steel markets.

A successful DRI industry would therefore represent something different from the traditional model of exporting energy resources in their raw form. Natural gas would become an input into a manufactured industrial product, allowing more economic activity to occur before the product leaves Libya.

The project would not remove the country’s dependence on energy resources, but it could move part of the economy further down the industrial value chain.

Tosyalı-SULB Has Moved Into Physical Construction

The significance of Tosyalı-SULB has increased as the project has moved beyond agreements and site preparation into visible industrial construction.

A September 29, 2026 construction update reported that the project’s piling programme had been completed and that steel frames, concrete structures and operating facilities were increasingly taking shape across the complex.

Work was progressing across areas including the pipe rack, raw-water facilities, CDRI passivation silos, compressor buildings, cooling infrastructure and other parts of the future production system. Earlier updates had documented concrete works, structural-steel installation, transmission infrastructure and the development of a CDRI storage facility.

The project’s official website currently lists overall progress at approximately 40%.

This distinction between announcement and construction is important in Libya, where ambitious projects have sometimes remained at the memorandum or planning stage for extended periods. Once foundations, structural steel, electrical infrastructure and production equipment begin appearing on site, capital is being converted into an industrial asset rather than remaining an investment proposal.

There is still significant work ahead before commercial production begins, but the project has clearly moved beyond its initial announcement phase.

International Partnerships Are Central to the Project

Tosyalı-SULB also demonstrates how Libyan private investment can be combined with international industrial expertise.

Tosyalı brings substantial experience in steel and DRI production, including major operations in Türkiye and Algeria. Midrex provides direct-reduction technology, while SMS group contributes engineering and equipment expertise. The Libyan side of the partnership is represented through SULB, with Gadalla serving as chairman of the joint venture.

This structure is important because a modern DRI complex requires capabilities that would be difficult for a new domestic industrial company to develop independently. Technology licensing, detailed engineering, industrial equipment, project management, commissioning and workforce training all involve highly specialized expertise.

The long-term value to Libya will therefore depend on more than the production capacity of the plant itself. It will also depend on whether engineers, technicians, contractors and suppliers inside Libya accumulate experience through participation in the project.

When international expertise becomes embedded in local operations, a major industrial investment can leave behind capabilities that remain useful long after construction ends.

Can Tosyalı-SULB Build a Wider Libyan Supply Chain?

The economic effect of a large industrial complex extends beyond the people employed directly inside it.

A DRI facility requires maintenance, transport, industrial gases, spare parts, engineering services, safety systems, utilities, construction support and logistics. Once commercial operations begin, many of those requirements become recurring rather than temporary.

This creates an opportunity for Libyan suppliers, but the size of the domestic economic effect will depend on how much of that demand local businesses are eventually able to meet.

If most specialized services, technical inputs and industrial components continue to be imported, the plant can still create exports and direct employment, but its wider effect on the domestic private sector will be smaller.

If Libyan contractors and suppliers progressively become capable of serving the complex, the project could support a broader industrial ecosystem.

The Tosyalı-SULB project description explicitly identifies employment, skills development, local supply-chain opportunities and stronger links with international industrial partners among its intended long-term contributions.

These objectives will ultimately be measurable through procurement patterns, workforce development and the share of project activity that Libyan companies are able to perform.

Alushibe’s Industrial Strategy Goes Beyond Steel

Tosyalı-SULB is the largest industrial project associated with Gadalla, but it is not the only example of Alushibe’s movement toward manufacturing.

The group is also active in food production and cement, two sectors closely connected to Libya’s dependence on imports and its reconstruction needs.

In food manufacturing, Alushibe subsidiary Zulfa is developing a major production facility in Benghazi in cooperation with Tetra Pak. Arab Finance reported that Tetra Pak Egypt Area and Zulfa launched a €14 million greenfield project covering approximately 140,000 square metres.

The first phase includes integrated processing and packaging infrastructure for milk and juice production, including mixing systems, UHT and pasteurization equipment and three production and filling lines.

Construction has continued into 2026. A September project update described work on the plant’s electrical, security and technical infrastructure, including transformers and the medium-voltage systems required before the facility can move toward production.

The economic logic is straightforward. Libya may continue importing some of the raw materials used by the food industry, but processing, packaging, employment and distribution can increasingly take place inside the country.

That allows a larger share of the value chain to remain domestic.

Cement and Libya’s Reconstruction Economy

Alushibe’s industrial exposure also includes the cement sector through Libyan Cement Company.

The Libyan Cement Company operates major cement assets around Benghazi and is working to rehabilitate existing production capacity. The company’s own website features Gadalla in his capacity as chairman of Alushibe Holding Group and describes a strategy centered on restoring production, improving facilities and investing in employees.

A September 2026 update reported progress on the rehabilitation of the Hawari 2 production line, including preparation of the plant’s electrical transformer for energization following inspections and testing.

This matters because Libya’s reconstruction requires substantial quantities of cement and other building materials. Every road, housing development, industrial complex, hospital and commercial project creates demand for basic construction inputs.

Restoring domestic cement capacity can therefore reduce reliance on imported materials while allowing a larger share of reconstruction expenditure to circulate inside Libya.

Steel, cement and food manufacturing may serve very different markets, but they share the same underlying industrial principle: building or restoring physical production capacity rather than depending entirely on finished imports.

Why the Shift From Distribution to Manufacturing Matters

Alushibe Holding Group developed from trading and distribution, but manufacturing produces a fundamentally different economic footprint.

A distributor organizes products between suppliers and customers. A manufacturer must operate machinery, maintain production lines, manage industrial workers, procure raw materials, implement quality control and keep complex facilities operating consistently.

The capital commitment is larger, the operating risks are different and the skills required are generally more specialized.

This is why the shift toward steel, cement and food manufacturing should not be viewed simply as diversification within a corporate portfolio.

It represents a movement toward productive assets.

For Libya, this matters because factories and industrial plants are long-term commitments. They require infrastructure, workers and supplier networks, and once operational they can create recurring demand throughout the surrounding economy.

A distribution network supports trade.

A functioning industrial plant adds production capacity.

Developing Industrial Skills

Heavy industry also creates demand for a different range of skills from conventional trading businesses.

Electrical engineering, mechanical maintenance, industrial automation, safety, quality control, plant operations and technical logistics all require specialized workers.

The value of this employment is not limited to the individual company.

Engineers who participate in construction and commissioning can later apply that experience elsewhere. Technicians trained to maintain complex production equipment develop skills that can move between steel, cement, food processing and other industries.

Alushibe says its wider group employs thousands of workers and has emphasized workforce development as part of its investment strategy. The Tosyalı-SULB project also identifies development of local technical capabilities as one of its intended long-term contributions.

For Libya, the real measure will be whether these projects produce a larger pool of engineers, technicians and managers capable of operating increasingly sophisticated industrial facilities.

That is how industrial experience begins to compound across an economy.

Ahmed Gadalla and Libya’s Private Industrial Economy

Ahmed Gadalla’s business trajectory illustrates a larger question facing Libya’s established private sector: whether commercial groups built around trade and distribution can evolve into industrial investors.

Alushibe’s expansion provides one example of that transition.

The group developed from commerce and distribution into a wider structure that increasingly commits capital to physical production. Steel represents the largest example, but cement rehabilitation and food manufacturing show the same strategy at different scales.

If successfully completed, Tosyalı-SULB would create substantial new DRI capacity and connect Libya more closely with Mediterranean iron and steel supply chains. Zulfa could replace part of the finished-food import chain with domestic processing and packaging, while additional cement production would support Libya’s reconstruction requirements.

No individual company or industrial project can diversify an economy as dependent on hydrocarbons as Libya’s.

That is not the appropriate standard.

The more relevant question is whether private capital is beginning to create productive assets outside the traditional oil economy, and whether those assets can develop skills, suppliers, employment and export capacity around them.

That is where Ahmed Gadalla fits into the wider story of Libyan entrepreneurs building the private economy beyond oil.

His contribution is best evaluated through measurable outcomes: whether the steel complex reaches commercial production, whether food and cement facilities operate at scale, whether Libyan suppliers participate in their supply chains, whether workers acquire new industrial skills and whether more manufactured products eventually leave Libya for foreign markets.

Those tests are more meaningful than the size of any announcement.

They are also the tests that will determine whether these investments become part of a deeper Libyan industrial economy.

Frequently Asked Questions

Who is Ahmed Gadalla?

Ahmed Gadalla is a Libyan businessman and the founder and chairman of Alushibe Holding Group. He also serves as chairman of Tosyalı-SULB, the joint venture developing a major direct reduced iron complex east of Benghazi.

What is Ahmed Gadalla known for?

Gadalla is known for leading Alushibe Holding Group and for his role in industrial investments spanning steel, cement and food manufacturing. His most prominent current industrial project is Tosyalı-SULB.

What is Tosyalı-SULB?

Tosyalı-SULB is a joint venture between Tosyalı and Libya United Steel Company for Iron and Steel Industry. It is developing a large direct reduced iron complex at Ras Al-Mangar, east of Benghazi.

How large is the Tosyalı-SULB project?

Tosyalı’s original 2024 announcement described total planned capacity of 8.1 million tonnes per year. The project’s current official website lists planned capacity of up to 7.5 million tonnes, while the contracted first phase consists of a 2.5-million-tonne-per-year CDRI plant.

How far has construction progressed at Tosyalı-SULB?

The project currently reports approximately 40% completion. A September 2026 construction update also confirmed completion of piling works and continuing progress on structural steel, concrete buildings and operational infrastructure.

Why is DRI important to Libya?

Direct reduced iron gives Libya an opportunity to use natural gas as an input into an industrial product rather than exporting energy alone. DRI can be supplied to steelmakers in Mediterranean and international markets, while the selected technology also provides a future pathway toward greater hydrogen use.

What is Alushibe Holding Group?

Alushibe Holding Group is a diversified business group founded by Ahmed Gadalla. Its current activities span consumer goods, industrial manufacturing, healthcare, engineering, retail and other services, with industrial interests including steel, cement, building materials, packaging and food production.

Is Ahmed Gadalla involved in food manufacturing?

Yes. Alushibe subsidiary Zulfa is developing a food-processing and packaging facility in Benghazi in cooperation with Tetra Pak. The €14 million project includes systems for milk and juice processing, UHT and pasteurization, and three production and filling lines.

Is Ahmed Gadalla involved in Libya’s cement industry?

Yes. Alushibe is involved with Libyan Cement Company, where current work includes rehabilitation of production capacity in Benghazi, including the Hawari 2 line.

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