Invesement in Libya
Doing Business in Libya
Market Overview
Libya is one of the largest countries in North Africa – boasts large oil and natural gas reserves and a consumer market of almost 6 million. Since the re-establishment of diplomatic relations with Libya in 2004, the United States has lifted economic sanctions against the country and has removed Libya from the U.S. list of states that sponsor terrorism. With these new developments, Libya is now more accessible to U.S. companies.
Libya is a challenging but potentially rewarding market. With proper planning and foresight, U.S. companies can take advantage of commercial opportunities in almost every sector, from oil and gas to agriculture to telecommunications and tourism. The Libyan economy depends primarily upon revenues from the oil sector, which contributes roughly 95% of export earnings, about one-quarter of GDP, and 60% of public sector wages. The recent highs in global crude prices have allowed Libya to accumulate foreign exchange reserves estimated at $50 billion. Oil production stands at 1.7 million barrels a day and the government plans to increase these figures to three million barrels a day by 2010. Libyan authorities estimate that it would take between $7-10 billion in new investments in the oil and gas sector to reach their stated production goals.
In part due to higher oil export revenues, Libya experienced strong economic growth during 2004 and 2005, with real gross domestic product (GDP) estimated to have grown by about 6.7% and 6.5%, respectively. For 2006, real GDP is expected to grow 6.7%, with consumer price inflation of 3.1%. Despite the country's recent economic growth, unemployment remains high. In addition, Libya's ambiguous legal structure, often-arbitrary government decision-making process, large public sector and various structural rigidities have posed impediments to foreign investment and economic growth.
Libyan officials in the past several years have made progress on economic reforms as
Market Overview
Libya is one of the largest countries in North Africa – boasts large oil and natural gas reserves and a consumer market of almost 6 million. Since the re-establishment of diplomatic relations with Libya in 2004, the United States has lifted economic sanctions against the country and has removed Libya from the U.S. list of states that sponsor terrorism. With these new developments, Libya is now more accessible to U.S. companies.
Libya is a challenging but potentially rewarding market. With proper planning and foresight, U.S. companies can take advantage of commercial opportunities in almost every sector, from oil and gas to agriculture to telecommunications and tourism. The Libyan economy depends primarily upon revenues from the oil sector, which contributes roughly 95% of export earnings, about one-quarter of GDP, and 60% of public sector wages. The recent highs in global crude prices have allowed Libya to accumulate foreign exchange reserves estimated at $50 billion. Oil production stands at 1.7 million barrels a day and the government plans to increase these figures to three million barrels a day by 2010. Libyan authorities estimate that it would take between $7-10 billion in new investments in the oil and gas sector to reach their stated production goals.
In part due to higher oil export revenues, Libya experienced strong economic growth during 2004 and 2005, with real gross domestic product (GDP) estimated to have grown by about 6.7% and 6.5%, respectively. For 2006, real GDP is expected to grow 6.7%, with consumer price inflation of 3.1%. Despite the country's recent economic growth, unemployment remains high. In addition, Libya's ambiguous legal structure, often-arbitrary government decision-making process, large public sector and various structural rigidities have posed impediments to foreign investment and economic growth.
Libyan officials in the past several years have made progress on economic reforms as