Research and consulting in Libya

Country overview:

IOA has considerable experience in research and consulting projects on Libya. Our political and economic analysts have worked hand in hand, documenting the revival of the desert country’s oil industry as the post-civil war governance has brought signs of stability. Oil is the basis of the national economy, which grew an impressive 19% in 2023 and a robust projected 8% in 2024, buoyed by higher energy prices. However, the economy has greater potential than the fossil fuel industry, if Libya cares to harness its sunlight for solar power like other North African countries.

Agriculture, livestock and tourism all have promising futures in the country. While IOA economists consider Libya’s economic growth rate of 177% achieved in 2021 to be an anomaly, stable growth seems assured now that peace has been restored. Libya’s oil resources and oil industry infrastructure are intact and exporting revenue-earning oil. The rebuilding of infrastructure damaged by civil war will continue to boost the construction, industrial and investment sectors for years to come.

Key opportunities in Libya:

The country’s large oil reserves will remain viable well into the future
Solar energy production is an investment with potential, while post-civil war infrastructure rebuilding will engage several industries for the immediate future
Once travel advisories are removed, tourists will bring a revival to the tourism sector

Key concerns/risks in Libya:

Armed groups – still desirous for power or national governance conducted on their own terms – are an obstacle to the complete return of security
Much national infrastructure rebuilding is required for normal economic life to resume
Poverty remains a primary societal ill

Find out about how IOA can help you with research and consulting services in Libya

Tips on doing business in Libya:

Starting a business:

Ownership of property in Libya is limited to local nationals and companies with fully local ownership
Foreigners have the right to establish wholly owned LLCs in Libya only if they are prepared to invest a minimum of US$ 3.7m. Interested investors have four types of legal entities to choose from
(Read more at: https://euroly.org/invest-in-libya/)

Doing business:

The Libyan government has instituted a host of incentives for foreign firms willing to invest in the domestic economy
Tax exemptions available to companies include: a five-year exemption from income tax; an exemption from tax on distributions and gains arising from a merger, sale, or change in the legal form of the enterprise; and an exemption for profits generated from the activities of the enterprise
The biggest present hurdle to business in the country is the fractured political situation, with the country presently split between two administrations, each claiming sovereignty over the country. This, along with militant group activity, creates significant security and compliance risks

Culture and society:

Arabic is the main language spoken locally, and interpreters able to communicate in the language are essential for potential investors who aren’t fluent themselves. Libyan managers are known for being direct negotiators
Though the country has stabilised somewhat since the end of its civil war a number of years ago, it remains a highly dangerous environment due to the risk of crime, kidnapping, terrorism and violence between armed militant groups in the country’s urban centres