04.01.2007
Libyaninvestment.com

The Libyan government concentrated on encouragement of investment and attracting investors from different countries to participate in various sectors. The newly formed government headed by prime minister, Dr. Albagdadi, will resume the development method which started before 3 years and will concentrate on non employment issue and will improve infra structure. Arrangements were taken in 2006 to attract investors and organize investment operations. Regulations, rules and decisions were issued to grant facilities regarding entry visas for investors.

Foreign banks and investment corporations were allowed to open branches in Libya . Machineries, equipments and necessary requirements for execution of investment schemes were exempted from customs duty and fees for import during a period up to 5 years from starting date of execution of the scheme as well as facilities for investors especially if they enter in partnership with Libyan citizen. 140 investment schemes were granted approval to work in important fields of industry, tourism, health, services and real estate investment, an international investment location of special nature which is 120 km from west Tripoli will be constructed. It will include industrial utilities, free zone, airport and sea port and in future more than one town will be constructed. In December 2006, an understanding agreement was signed with Emirates real estate (Emaar) company for development of part of this location. Its area exceeds 200 Sq.Km. the aim is to reduce dependence an oil revenues and to create advanced growth by constructing tourism, heath and industrial complexes. This location will depend mainly on the foreign investor as well as the Libyan investor as it is a free zone which is open for any investor in the world who can invest with any capital without limitation.

Libya intends to open 1,385,000 Sq. Km. for exploration of oil and gas for Libyan and foreign companies working in the field of energy on the bases of absolute free competition. Future plans aim is to drill at least 500 wells for exploration during 2007/2011. NOC announced last month results of the third round for granting licenses for oil and gas in which 70 major international oil companies participated so that production will reach two million barrels daily in the middle of next year and production will reach three million barrels daily at the end of 2011 and 2012.

The government encouraged Libyan citizens to invest in individual or collective schemes or partnership with foreign companies. The government attracted national citizens and will grant loans with very low interest rate as well as tax facilities and other incentives. Benefits were decided for officials who desire to retire from public jobs and establish investment schemes in industry or agriculture or animal and marine wealth or health, education and training or advisory services and services in the field of environment or export. Priority was given last month for number of Libyan companies to construct 30 housing buildings.

31 billion Libyan dinars are for the present year budget. The bigger part will be assigned for infra structure, education, heath and other social services. The private sector will have an important role in execution of schemes.

Sidik Hassan

[arab on line]