I wish to submit this article on the footnote of national conference concerning foreign investment in Libya .

Deputy president of international bank and senior expert in economy said that good investment climate is main factor to achieve growth and diminish poverty pointing that the active private sector achieves employment chances and makes available required commodities and services to improve standard of living and provides necessary income so that the government will spend on health, education and other services.

Chinese foreign trade and economic cooperation minister ascertained that it is necessary to stop illegal activities such as contraband, smuggling and local monopoly and support government efficiency to find a climate which attracts foreign investment.

A unit was established as unit for improving environment investment in Saudi Arabia despite Saudia is classified the first by the Arabi corporation for investment guarantee.

Saudia was the first among Arabs as it facilitates performance of work, the Arab Emirates in competitiveness, Bahrain in free economy, Jordon in capability, Saudia in obtaining finance easily and Oman in transparency.

In the 2005 international growth report, it was pointed that there is great improvement in the climate of investment requiring amendment of bases and policies as follows:-

•  To prevent Corruption and other means for obtaining illegal profit.

•  To support government policies credibility.

•  To develop peoples support for improvements in policy.

•  To guarantee response in policies so that it matches local status.

The main principles for investment climate are:-

•  Provocation and security.

•  Organizing laws and taxes.

•  Finance and infra structure.

•  Laborers and labor market.

Investment leads to economic growth and is the path to better future and success in attracting local, Arab and international investments. It needs provoked investment climate.

Looking at Libyan state trial for improvement of investment climate, we suggest the following:-

•  To establish special unit in investment authority or investment management to be named unit for improving investment climate and its duties are to make surveys and execute suggestions for improvement of investment climate.

•  To make periodical surveys on investment climate.

•  To extend incentives for different companies to invest and create new employment chances.

•  To face risks related to policies and other fears which include unexcitation of economy and randomly organizational regulations and weak protection of ownership rights.

•  Costs to reduce expenses in front of companies as chances of investment become inconvenient.

•  To remove complications against competition.

•  Transparency.

•  To create credibility for state policies.

•  To encourage assistance of citizens in economic improvements.

•  Organizational rules and taxes in most cases create risks, expenses and complications in competitiveness and causes unofficial economic inflation.

•  To increase capability in Libya regarding financing and to facilitate mechanism.

•  To encourage individual and private sector.

•  To encourage professional man power.

•  Continuation of operation of entry of improvements and remedies.

•  To benefit from trials of other countries in this field.

•  To improve administrative systems.

Best regards

Eng. Mohamed Attia Mohamed Sulaiman Almansori
Tobruk

29.04.2006
Libyaninvestment.com