The Libyan Market

The Libyan Market Expectations:

In following up the process of the Libyan economy during the sixties to the nineties, one will notice many locations of stagnancy which became axis of economic policies adopted by the Government Institutions to start its new approach for revivification and development of the national economy.

Accordingly, it was important to reconsider the economic policies in Libya. A group of reformative programs have been prepared to transfer the economy to a better situation by allowing freedom and liberation of trade and services and participation of the private sector to gain confidence for performing the major role in the national economy. This was indicated in the reports of General People’s Committee for Economy and Commerce within its endeavor to achieve the following basic objectives:

• Expansion of the private sector role and further participation thereof in economic life.

• Removal of monopoly centers and opening the door for competition.

• Diversification of income sources from foreign currencies by promotion of export – originated production and transit trade, and construction of Free Zones.

• Provision of the suitable economic conditions for the production sector by providing the various production necessities, and creating suitable foreign competition for pushing it towards improving quality level and raising it to international levels.

• Abandonment gradually of the policy for direct commodity subsidy.

• To cancel the compulsory tariff pricing system and to leave the market mechanisms to operate naturally.

• Elimination of market irregularities, and the accompanying adverse / negative aspects.

• Raising efficiency of commercial activity in the fields of import and export by performing such activities freely through the licensed bodies within the general legislations.

• To achieve balance between supply and demand and relative stability of prices/rates.

• Diversification and expansion of Libyan exports and improvement of balance of payments situation.

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Libya also endeavors to promote / encourage foreign investments for transfer of modern technology and creation of work opportunities and achieving optional employment of material and natural resources and diversification of income sources.

Within the same concepts, it introduced laws for organizing transit trade and Free Zones, aiming at promotion of transit trade and the various industrial processes and manufacturing for achieving joint interest of the national economy and investors.

These procedures come to emphasize that the Libyan economy passes now through medical transformation stage. The application for joining of the Jamahiriya to the World Trade Organization is only an evidence on that. The joining file is being prepared at highest level.

The estimates of the International Information Centre indicate that Libya will be a promising country / State for investment and transit trade in the following fields:

• Mapping, planning and studies required for infrastructure, being in pressing need for the services of international companies and offices specialized in the various fields.

• Construction of airports and seaport and development and operation of the existent airports and seaports.

• Construction of roads, bridges, railways and light metro systems.

• Construction and development of power plants.

• Mapping and construction of industrial complexes and cities with integrated services and utilities (450 industrial zones).

• Planning and construction of free commercial and industrial zones in Tobruk, Zuwara, Ghat, Nalut, Kufra, Qatrun and Sirte.

• Planning study and construction of projects for oil, gas and petrochemical industries.

• Planning, study and construction of projects for building materials and glass industries.

• Planning, study and construction of tourist projects (tourist resorts, villages and hotels). Libya needs provision of about (50 – 100,000) beds in Tripoli, Tajura, Sabratha, Khoms, Garabulli, Misurata. Sirte, Ghademes, Ghat, Germa, Sebha, Benghazi, Wahat (Oases), El-Marj, Derna, Shahat (Cyrene) and Gubba.

• Sale of the existent factories to national and foreign investors or participate in a part of their capital and redevelopment thereof.

• Libya stated stock exchange activity under care and supervision of Central Bank of Libya at present.

• Construction of integrated services medial cities / centers, offering projects for investment and operation by investment companies specialized in the medical treatment field.

• Libya is in process of introducing supplementary and assemblage industries, offering international investments and companies, as well as construction of industrial complexes for export to African markets and neighboring countries.

• Offering for foreign investment, construction and operation of international transit airport and international aviation information Centre.

• Offering construction of international roads for connecting Libya with the countries located south of Libya (Sudan, Chad and Niger).

• Offering for foreign investment, model agricultural projects for utilizing the Great Man-Made River water.

• Offering for foreign investment project in the field of animal wealth (breeding and improvement of breeds).

• Offering for foreign investment project in marine wealth (fishing, canning and export).

• Offering for foreign investment construction of (35) Administrative complexes for Secretariats, bodies, institutions, companies and Banks for providing Administrative Offices to (10,000) institutions during (2005 – 2010).

• Libya is in process of updating electronic management systems. The international companies specialized in planning, study, construction, training and maintenance proposals to General People’s Committee in the Jamahiriya (as per the method adopted in certain advanced countries, e.g. The United Emirates State (Electronic Government).

• Libya is in process of restructuring the Banking sector under (Dasil 2) Agreement, as well as upgrading Banking services by using information technology, electronic mechanization and credit cards internationally and abroad.

• Libya is in process of privatization of the State-owned Commercial Banks, and offering their shares for sale and circulation after evaluation of their assets.

• Libya is in process of introducing the program for transfer of currency in one minute (Western Union). The International companies are invited to submit offers to Tourist Development Bank, a Bank under establishment and participation, the capital of General Posts and Telecommunications Company.

• Libya is giving due attention to human resources. It is envisaged to send (10,000) Libyans for study abroad in various specializations for obtaining M. Sc and Ph. D Degree, within the scope of development of human cadres and upgrading the educational and qualification structure.

• Libya is in the process of restructuring education and training sector, and introducing information technology and foreign languages in the study curricula, and opening the field to the private sector for investment in the field of education, and introducing foreign universities and Faculties program and diversification of specializations.

• Offering for investment construction of projects for processing of wastes and garbage in (30) areas in Libya, as well as medium projects related to environment and atmosphere.

The reports of National Authority for Information and Documentation indicate that Libya is in need for construction of (405,000) housing units by 2010. Actually, the Secretary of General People’s Committee announced laying the cornerstone for construction of (50,000) housing units on an area of (750) hectares in Tajura area adjacent to Tripoli City.

source : Libya Build Expo