Investment In Libya
Foreign investment in Libya is regulated by the Libyan Foreign Investment Board (LFIB). The board implements the various procedures required, like processing application and licence forms, offering advise and funding. Among the most lucrative sectors of the Libyan economy are oil & natural gas, construction, tourism, health, finance, technology and industry. However, foreign investors are authorised by laws (5) and (7) of year 2003 to invest in most of the above sectors including oil related services but not in drilling and exploration. Libya has shown serious interest in opening its gates to international investors and as a result a number of foreign contracts, worth nearly 40 billion US dollars, have been signed since 2006. Libya has also announced that it will open the capital of a number of state-owned companies to foreign investors. The aim of the LFIB is to improve and benefit the national economy by creating opportunities and jobs for local people, and to create a competitive investment environment capable of attracting serious foreign investors.
Libyan Foreign Investment Board (LFIB)
The LFIB was established as a key component of investment law (5) of 1997 to facilitate investment procedures for foreign investors, simplify application forms, and accelerate the process of creating businesses in Libya. Law (5) provides incentives and exemption from corporate income tax for up to eight years for foreign investors who invest in joint ventures with Libyan businesses, as well as exemption from customs duty and taxes on import of equipment to launch and sustain investment initiatives in the country.
Address & Contact Details of The Libyan Foreign Investment Board:
20 Ben Gheshshir Road
Tel: (+218) (21) 3608183, 3609613
Fax: (+218) (21) 3617918
The Objectives of LFIB:
- Receive & consider applications for foreign capital investment.
- Issue licenses & approvals required for investment projects.
- Provide advice, information and support to investors.
- Identify & promote investment opportunities.
- Develop investment programs & promotional activities to attract foreign investors.
- Recommend or renew exemptions, facilities and incentives for investment projects.
- Examine complaints by investors without affecting investors' right to legal action.
New Libyan Investment Board:
LIA: January 2012: the NTC has appointed a "board of trustees" for the $65 billion Libyan Investment Authority (LIA), but no details were given. LIA's funds had been frozen by the UN Sanctions after the February Uprising. During the war the fund was managed by an executive group appointed by the NTC. According to Reuters the fund consists of:
- About $29.5 billion in cash.
- $10.8 billion in equities.
- $9.7 billion in bonds.
- $8.3 billion in strategic shareholdings.
- $4 billion in hedge funds, structured products and derivatives.
- And the remainder in other investments.
The Main Sectors of Investment In Libya:
Law 147 of 2004 specifies the following fields in which foreign companies can invest in Libya. Some of the following projects must be undertaken in association with the corresponding Libyan authority, such as educational exams (to meet Libyan standards), and the health authority to meet Libyan food standards.
- Construction of hospitals
- Laboratories, analysis and diagnosis centres
- Manufacturing of medicines & medical requirements
- Manufacturing & maintenance of medical equipments.
- Construction & management of airports
- Handling & land services in airports
- Building & application of civil aviation systems
- Air transportation
- Construction of roads, highways, subways and railroads
- Construction, improvement & operation of seaports
- Cement industry
- Household articles
- Plastic industry
- Leather industries
- Fodders industry
- Flour milling & packing
- Food industries
- Mechanical industries
- Chemical industry
- Manufacturing & maintenance of fishing equipment
- Manufacturing of machines, equipment and spare parts
- Iron & steel industry
- Waste recovery industry
- Construction of universities & education institutes
- Training & vocational centres
- Schools & International institutes
· Agricultural & Maritime
- Cultivation of farm crops & fodders
- Operation of poultry parents station
- Fish canning
- Hotels, tourist resorts, property and tourist villages
- Administration of tourism structures
- Construction of yachting utilities
- Construction of leisure & entertainment utilities
· Public Utilities
- Construction of residential properties
- Construction & development of domestic gas network
- Water desalination plants
- Waste water purification & drainage
- Waste recycling factories
· Oil & Gas
- Oil and gas production and exploration projects are governed by oil law (25) and its amendments.
Benefits & Incentives For Foreign Investors:
- Very low energy costs
- Strategic location (linking Africa with the world)
- Exemption from custom duties and tax on reinvested earnings
- Free repatriation of earned profits
- Free transfer of capital between countries
- New and liberal social laws
- Opportunities to invest in the Free Trade Zones
- Ownership of property & project ownership transfer
- Guarantees against nationalization
- Advise, support and assistance
- An opportunity to achieve serious financial rewards