Top 6 Reasons to Invest in Libya Before 2027

Investing in Libya offers a unique opportunity to tap into a market rich in natural resources and strategic significance. As the country continues to stabilize, sectors like energy, infrastructure, and tourism present promising prospects for those looking to expand their investments.

Qabas Consulting & Training is the leading authority in the Libyan market. With unparalleled expertise and a deep understanding of the local landscape, Qabas ensures their investment strategies are both informed and effective.

We’re excited to explore the vast potential Libya holds and guide their partners through every step of the investment journey. Let’s uncover the opportunities that await in this dynamic and evolving market.

Overview of the Libyan Market

Libya’s economic landscape has evolved significantly since the early 1990s. In 1994, Qabas established their presence, navigating through periods of both challenge and growth. The nation’s economy has been predominantly driven by the oil and gas sector, which contributes approximately 95% of export revenues and 60% of GDP. As of 2023, Libya boasts proven oil reserves of around 48.4 billion barrels, underscoring its importance in the global energy market.

In recent years, the Libyan government has initiated economic reforms aimed at diversifying the market. The infrastructure sector, valued at £2 billion, offers substantial opportunities, particularly in transportation, utilities, and construction. Concurrently, the tourism industry, with potential annual revenues exceeding £500 million, is gradually recovering as security improves and historical sites become more accessible to international visitors.

Our analysis indicates a steady increase in foreign direct investment, which reached £1.2 billion in 2022. This growth reflects rising investor confidence driven by Libya’s strategic initiatives and economic incentives. The regulatory framework is evolving to support business ventures, with recent amendments simplifying procedures for foreign investors and offering tax incentives in key sectors.

Libya’s strategic location enhances its role as a gateway to North Africa and the Mediterranean. The country’s geographical position facilitates access to emerging markets, fostering trade and investment opportunities. Ongoing infrastructure projects, such as the expansion of the Tripoli Port and the development of industrial zones, are expected to boost economic activity and create a favourable environment for investors.

Since their inception in 1994, they have honed their expertise in the Libyan market, providing comprehensive insights and tailored strategies for successful investments. Qabas’ deep understanding of local regulations, economic trends, and sector-specific dynamics enables them to guide their partners effectively. By leveraging their extensive experience, they ensure that investments are both profitable and sustainable.

As the Libyan economy continues to stabilize and diversify, sectors such as renewable energy, agriculture, and telecommunications emerge as promising areas for investment. They remain committed to identifying and nurturing these opportunities, supporting their clients in building a robust and profitable presence in Libya.

Economic Landscape

Libya’s economic landscape is shaped by its rich hydrocarbon resources and ongoing recovery efforts since the early 1990s. Established in 1994, Qabas has navigated Libya’s evolving economy, supporting investment initiatives that leverage the country’s strategic assets.

GDP Growth and Economic Indicators

Libya’s GDP is predominantly driven by the hydrocarbon sector, accounting for approximately 60% of the GDP and 95% of export revenues. In 2024, the GDP is projected to contract by 2.7% due to challenges within the Central Bank of Libya impacting oil production. However, oil production has shown resilience, rebounding to support economic stability. Non-oil GDP growth is expected to reach 1.8% in 2024, with projections indicating significant growth averaging around 9% in 2025 and 2026. Specifically, oil output is anticipated to increase to 1.2 million barrels per day (Mbpd) in 2025 and 1.3 Mbpd in 2026, driving GDP growth to 9.6% in 2025 and 8.4% in 2026. Recent data from the fourth quarter of 2023 highlights a 12% expansion in GDP, reflecting a volatile yet optimistic economic trajectory.

Inflation and Currency Stability

Libya has made strides in stabilizing its currency and controlling inflation, which are critical for maintaining investor confidence. The Libyan Dinar has experienced fluctuations; however, recent government measures aim to enhance monetary stability. Inflation rates have been managed through fiscal policies and central bank interventions, ensuring a more predictable economic environment. These efforts contribute to a stable investment climate, making Libya an attractive destination for foreign investors seeking long-term opportunities.

At Qabas, their extensive experience since 1994 equips them with the expertise to navigate Libya’s economic dynamics effectively. They provide comprehensive insights and strategies that align with the country’s growth trends, ensuring their clients make informed and profitable investment decisions.

Key Sectors for Investment

Libya offers lucrative opportunities across several key sectors, underpinned by its strategic resources and ongoing economic development.

Energy and Natural Resources

Since the early 1990s, Libya has established itself as a formidable player in the global energy market. Their expertise in the energy sector is built on decades of experience, managing Libya’s vast oil and gas reserves effectively. In 2025, a new licensing round targets the Sirte, Murzuq, and Ghadames basins, aiming to elevate production to 1.6 million barrels per day. This initiative enhances Libya’s influence within OPEC and the global energy landscape. Their comprehensive services include refining, exploration, and production strategies, ensuring optimal exploitation of hydrocarbons, which account for approximately 95% of Libya’s exports and government revenue. By leveraging their deep industry knowledge, they support sustainable growth and increased market presence for their investors.

Agriculture and Infrastructure

Libya’s agricultural sector holds significant potential, supported by their long-standing commitment since 1994. They facilitate investments in modern farming techniques and infrastructure development, essential for boosting productivity and food security. The infrastructure sector, valued at £2 billion, benefits from their strategic planning and project management expertise. Their initiatives focus on enhancing transportation networks, energy supply, and water management systems, critical for sustaining economic growth. Additionally, their work in developing agricultural infrastructure promotes efficient resource utilization and export capabilities. With their professional guidance, investors can navigate Libya’s agricultural landscape, capitalizing on opportunities that drive both profitability and sustainability.

Legal Framework and Investment Regulations

Governing Laws

Libya’s investment landscape is shaped by robust legal frameworks established to attract and regulate both national and foreign investments.

Law No. 9 of 2010 on Promoting Investment serves as the cornerstone for investment activities in Libya. Enacted in 2010, this law aims to foster an investment-friendly environment by providing incentives and protections for investors. It outlines the procedures for investment registration, ensures equal treatment for foreign and local investors, and establishes mechanisms for dispute resolution.

Executive Regulation No. 499 of 2010, issued by the Council of Ministers, complements Law No. 9 by detailing the implementation guidelines. This regulation specifies the administrative processes, documentation requirements, and compliance standards necessary for investors to navigate the Libyan market effectively.

Commercial Law (Law No. 23 of 2010) regulates the formation, operation, and dissolution of companies in Libya. It provides a clear framework for establishing different types of business entities, addressing ownership structures, and outlining corporate governance standards. This law is pivotal for foreign investors seeking to establish or operate businesses within Libya, ensuring legal clarity and operational transparency.

Investment Objectives and Structure

The Libyan Investment Authority (LIA), established under Law 13 of 2010, plays a critical role in shaping investment strategies and supporting economic diversification. The LIA operates with full autonomy, focusing on the development and expansion of Libya’s national economy. Its objectives include enhancing investment opportunities, promoting sustainable economic growth, and managing state assets effectively.

Since its inception in 2010, the LIA has been instrumental in attracting investments across various sectors, including energy, infrastructure, and tourism. By providing strategic guidance and facilitating investment projects, the LIA ensures that Libya remains an attractive destination for investors seeking long-term growth and stability.

Qabas’ expertise since 1994 enables them to navigate these regulations seamlessly, ensuring that their clients benefit from Libya’s evolving legal landscape. They leverage their deep understanding of these laws to provide comprehensive support, guiding investors through every step of the investment process.

Risks and Opportunities

Investing in Libya presents a landscape of both significant challenges and promising prospects. Understanding these risks and opportunities is crucial for making informed decisions in the Libyan market.

Political Stability

Libya has experienced prolonged political instability since the overthrow of Muammar Gaddafi in 2011. The ongoing conflict between the UN-recognised Government of National Unity (GNU) in Tripoli and the eastern-based Government of National Stability (GNS), supported by the House of Representatives (HoR) and the Libyan National Army (LNA), has led to a persistent political impasse. The indefinite postponement of elections originally scheduled for December 2021 has exacerbated this stalemate, hindering political, security, and economic stability. This division impacts investor confidence, as uncertainty in governance can affect regulatory consistency and the execution of investment projects.

Security Considerations

Security concerns remain a critical factor for investors in Libya. The presence of extremist groups such as Daesh poses a constant threat through terrorist attacks targeting foreign and diplomatic personnel, international hotels, oil facilities, and government institutions. Additionally, localized violence between rival armed factions is frequent, with clashes often occurring without warning. These security challenges can disrupt business operations and pose risks to personnel and assets. Comprehensive risk assessments and robust security strategies are essential for navigating the Libyan investment environment safely.

Conclusion

Libya stands as a compelling destination for investors looking to tap into its rich resources and strategic location. Their expertise at Qabas Consulting & Training ensures navigating the evolving landscape is seamless and profitable. As the country continues its path to stability and economic diversification, opportunities in energy infrastructure and tourism are expanding rapidly.

They are committed to supporting your  investment journey in Libya, providing tailored strategies that align with the nation’s growth trends. By partnering with them, you can leverage Libya’s potential and contribute to its sustainable development. Together, we can achieve substantial returns and foster long-term success in this dynamic market.