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.
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.
Health
Construction of hospitals
Laboratories, analysis and diagnosis centres
Manufacturing of medicines & medical requirements
Manufacturing & maintenance of medical equipments.
Transportation
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
Industry
Cement industry
Electro-industries
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
Education
Construction of universities & education institutes
Training & vocational centres
Schools & International institutes
Agricultural & Maritime
Cultivation of farm crops & fodders
Operation of poultry parents station
Aquaculture
Fish canning
Tourism
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 nationalisation
Advise, support and assistance
An opportunity to achieve serious financial rewards
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
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.
Tripoli's LIA Logo
Libyan Investment Authority (LIA)
The Libyan Investment Authority (LIA) (المؤسسة الليبية للاستثمار) was created
by Gaddafi's government in 2006. It was established by the GPC's Decree 208.
As Africa's largest sovereign wealth fund the LIA manages Libya's investments
in various sectors of the economy including shares, bonds, oil, gas,
real estate and agriculture. Nearly 50% of LIA’s assets
are held in cash and equities.
During the UN-bombing campaign the
fund was managed by an executive group appointed by the self-appointed NTC.
In January 2012 the NTC appointed a "board
of trustees" for the $65 billion Libyan Investment Authority, but
no details were given.
After 2015 the UN-imposed PC took over control of Tripoli's
LIA and installed its own Chairman for the board. It is widely reported now
that the LIA is drowned in corruption and divided between three offices.
Nearly 80% of LIA's funds had been frozen by the UN
sanctions after the 2011 February Operation. Some sources say the fund is
far larger than the estimated $65 billion. By 2014 the fund was said to worth
around $67 billion. The fund was reported
to consists of:
About $21 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.
Subsideries
LIA is a consortium of over 550 companies. The chairman of Bayda's LIA said
some of these companies were taken (or stolen) by some countries, which according
to other sources include Uganda and Chad.
The LIA has five
subsidiaries:
Libyan Foreign Investment Company (LAFICO) - market value: around 5 billion (http://lafico.ly/)
The Libya Africa Investment
Portfolio (LAP) - market value: around 4.1 billion
The Long Term Portfolio (LTP - market value: around 10 billion
The Oil Invest Group (Oil Invest) - market value: around 1.4 billion
Libyan Local Investment & Development Fund (LLIDF) - market value:
around 11 billion
The Libyan African Investment Company (LAICO) (http://www.laico.ly/), which
was established in 1990, was later acquired
by the Libya Africa Portfolio (LAP).
Who Controls LIA?
Legally and constitutionally speaking the only legislative authority in Libya
is the parliament (The House of Representatives: HoR) and thus its transitional
government based in Bayda. This means that all decisions coming from the UN-imposed
PC (and its illegal and unapproved GNA) are illegal and unconstitutional. It
is strange however to see the international community abandon the elected and
legitimate government and instead deal with the illegal government they
imposed via the so-called Skhirat agreement (LPA). Ironically the whole world
speaks of the GNA as the internationally-recognised government of Libya despite
the fact that the GNA does not exist at all. See our GNA
Ministries for detail.
Therefore, like many Libyan institutions,
it seems there is the tendency to duplicate government departments, probably
for future division of Libya. Hence, the LIA is also controlled by a number
of competing bodies:
Tripoli office: Mr. Abdulmagid
Breisha: Chairman of LIA - illegally replaced by the illegal PC (Presidency
Council) with Mr. Ali Mahmoud
Bayda office: Dr. Adbussalam Alkezza: Chairman of LIA
Malta: according to a website claiming to be the website of the LIA
but with .mt domain extension (lia.com.mt) the Tripoli's LIA's Board of Directors
has approved the relocation of the general office to a temporary
headquarters in Malta in November 2014.
London: a number of sources also speak of a London office that deals with
legal cases.
The Bayda office says the approximate one billion invested in Bahrain, mostly
in the majority Libyan-owned ABC (Arab Banking Corporation), is not sanctioned
by the UN, and that Tripoli's LIA's Chairman Mr. Ali Mahmoud's recent
visit to Bahrain comes as an attempt to claim some of these funds (that is
the interest from the funds) to fund the PC in Tripoli. Dr. Adbussalam Alkezza urges
and even warns the
ABC to protect Libya's funds by dealing only with the legitimate LIA that is
approved by the elected government of Libya [see Updates
tab for details].
However, according to the political
analyst and writer Mr. M. Baayou the PC's president, Mr. Sarraj, has promised
some of his officers to buy them weapons, and that Mr. Sarraj is surrounded
by rouge advisors who are attempting to claim some of these funds to sponsor
their forthcoming election campaigns [see Updates
tab for details].
Interim Steering Committee (ISC)
In August 2016, the UN-imposed PC appointed an "Interim Steering Committee" (ISC)
to control the LIA. Apparently the ISC was created to protect and preserve
all LIA's assets and investments. The president of the ISC is Dr. Ali Mahmoud.
Members of the ISC include:
Abdulazeez Khaled Ali
Alhadi Najimeddin Kaba
Khaled Khalifa Altaher
Ahmed Abdullah Amar.
Investment Documents & Procedure
Approval of Investment Projects
The Libyan Foreign Investment Board will process the application, and after
the decision of the Secretary of the General People’s Committee for Economy
and Trade the Board will provide the investor with the licence to commence
work. The first five years of business are exempt of tax.
The application to establish an investment project must be submitted to
the Libyan Foreign Investment Board.
The application form is obtained from the Libyan Foreign Investment Board.
The application must be accompanied by:
certificate of nationality
memorandum detailing the capital to be invested
technical specifications and timetable
raw materials to be used in the project
workforce to be employed
official abstract of the commercial register from country of origin
and its Arabic translation.
Requests and information relating to investment in Libya are obtained from
the Libyan Foreign Investment Board. Requests to open a business branch in
Libya must be addressed to the Department of Business Registration at the Ministry
of Economy
&
Trade. Business and businessmen information and resources are obtained from
the Libyan Businessmen.
The Investment Register
Foreign investors and businesses have a number of investment options available
to them.
Joint Stock Company.
Limited Liability Company.
Branch of a foreign company.
Individual project .
Documents required for the registration
The memorandum and articles of association for the project.
Document of empowerment of the formal delegation to administer the project.
Samples of the project’s manager's signature.
Bank statement showing at least 10 % of the capital to be invested.
Registration Fees to Represent a Foreign Company in Libya
The fees for a Libyan company to become an agent of and register a commercial
foreign agency or company are as follows:
It costs approximately $25,000 to register a branch of a foreign company
in Libya.
This is the office that deals with all the matters relating foreign businessmen
and business opportunities in Libya.
Tel:
(+ 218) 21 3350213
(+ 218) 21 3350214
Fax:
(+ 218) 21 3350374
(+ 218) 21 3350439
الاستثمارات الليبية في الخارج . . . المؤامرة الكبرى
Libyan investment abroad: the big conspiracy
August 2017
Why is there a cash crisis in Libya?
May 2017
Societe Generale (SOGN.PA)
The LIA accused SocGen of “fraudulent"
and "corrupt" activity involving
five trades worth $2.1 billion. The deals were executed between 2007 and
2009. In May 2017 the LIA and Societe Generale
have signed a secret deal, which they called a "confidential agreement"
to settle the dispute. Societe Generale had apologised to LIA and regretted
the affair which it said was due to "lack of caution of some
of its employees". FT said Societe Generale "said
it was paying €963m as part of the Libyan settlement."
October 2016
Goldman Sachs
The LIA lost its case against Goldman Sachs. The LIA claimed that Goldman
Sachs
forced LIA into nine "risky derivative trades" that cost the LIA $1.2 billion
but made profit for Goldman Sachs totaling $200 million.
The LIA said Goldman exploited the LIA’s limited financial experience. The
High Court judge, Mrs Justice Rose, dismissed the case.
