12.11.2005
Libyaninvestment.com

During the last three decades, the Great Jamahiriya initiated large development projects in order to diversify the economical base and income sources, as well as to disengage itself from the framework of a single economic control. In order to strengthen this orientation, the Great Jamahiriya chose to utilize its geographical advantages and the basic infrastructure it had developed to support the national economy. One aim to utilize national capabilities by attracting foreign investments, and technical expertise, and to encourage the investor to establish different projects in the country.
In order to achieve these objectives, the Great Jamahiriya chose two approaches. The first approach was the concept of the Free Zones, which had proven successful all aver the world, especially in the Middle East. The second approach to encourage direct investment of foreign capital owned by Libyans and foreigners in productive projects all over the world.
The implementation steps to these approaches include establishment of the General Authority for Free Zones, start of implementation of Misuratah Free Zone, establishment of Investment Promotion Authorities, and the approval of the foreign investment law.
Location of the Great Jamahiriya

The Great Jamahiriya is located in North Africa between eastern longitudes of 9 0 and 25 0 and northern latitudes of 19 0 and 33 0 approximately. Its coastline extends over 1800km along the Mediterranean Sea in the north. The sea connects no the countries of south Europe and the rest of the world. The territory extends over 1200 km to the south reaching Sudan, Chad and Niger. The vast area (1.7 million km 2 ) is generally flat, with the exception of the ridges of Al Akhdar and Al Gharbi mountains in the north, Al Huroul Al Aswad mountains in the middle, and the Akakus mountains, Al Awaynat mountains, and the Tibesti mountains in the south. The central location of the Great Jamahiriya facilitates easy access by sea to southern Europe, and other countries. The vast extension of its territory to the south facilitates easy access to some African countries to which it hod been connected to since ancient times through the commercial caravan routes, which extend between the farthest African countries and the harbours of the Mediterranean Sea. Furthermore the Great Jamahiriya has become the connecting link between eastern and western Arab countries.

MARKET VOLUME

The market formed by the Great Jamahiriya and its immediate neighbors is about 1 43,5 million people. The sum of the Gross Domestic Product of these countries is estimated at 191 billion US dollars, the total export value at 38 billion US dollars and total import value at 47 billion US dollars. The share of the Great Jamahiriya of these figures is about 13.7% and 13.2% respectively.

The market area of the Sahel countries (Sudan, Chad, and Niger) is about 48 million people. In 1 987, the estimated Gross Domestic Product was about 12 billion US dollars, value of exports about 897 million US dollar, and imports about 1546 million US dollars. Libyan economy can secure sufficient foreign currency revenues to satisfy the needs of the country for different productive projects and projects of basic infrastructure required for the continuation of its development process. The average cash income per capita in the Great Jamahiriya is the highest in Africa. It amounted to 6,064 US dollars in 1997.

Commercial Marine Fleet of the Great Jamahiriya

The commercial marine fleet of the Great Jamahiriya consists of 30 ships (1000 GRT or over) totaling 686,834 GRT and 1,209,263 DWT.

Ports

There are several equipped ports in the Great Jamahiriya. The ports include:

• Tripoli
• Benghazi
• Misuratah
• Ras Lanuf
• Al Brega
• Al Khums
• Zuwarah
• Darnah
• Tubruq

General Authority for the Free Zones

The Free Zones ore the areas, which are defined by law end allocated the exchange of commercial and industrial goods and service rendering free of any customs, taxes and monetary restrictions. In order to organize the operations in the Free Zones, the Great Jamahiriya established, in accordance with the decision of the General Peoples Committee no. 20 of 1 999, the General Authority for Free Zones. The Authority supervises the Free Zones and carries out measures to develop the commercial, industrial and service aspect for the benefit of the national economy. The tasks of the Authority include:

• The management and development of the Free Zones, the development of international commercial exchange, transit trade and export industries.
• Study and for development of local or joints Free Zones or canceling such
• Study of the laws and regulations related to local and foreign investments in the Free Zones.
• The establishment and development of different utilities and structures necessary for the Free Zones.
• Providing all modern telecommunication and transportation facilities and services needed for proper management of commercial, industrial and service activities within the Free Zones.
• Allocating, renting and leasing land and real estate for economical activities in the Free Zones
• Arranging procedures of entry and exit to and from the Free Zones.

Fields of Investment and economical activities in Free Zones

• Storage of transit and domestic goods, as well as goods produced within the Free Zones which ore intended for export zones and goods imported for re-export.
• The unpacking, cleaning, mixing, (even with local products), re-packing and similar operations which change the state of products in the Free Zone and guarantee their manufacture to meet the demand of the market.
• Performing industrial processes such as disassembling, assembling or full manufacture.
• Rendering financial, banking, insurance and other related service needed by the investors within the Free Zone.

Privileges and Exemptions of Free Zones

Privileges , exemptions and alleviation granted to the investors in the Free Zones are:

• Free repatriation of invested capital and gained profits.
• Movement of capital and products between the Free Zone and foreign countries is not subject to any monitory restrictions or monitoring regulations
• Income tax exemption for 5 years which can be extended by three more years
• Profits gained from activities also enjoy the same exemptions if reinvested
• Investors can transfer losses suffered during exemptions period to the following years
• Legal guarantees against the nationalisation of projects established in the Free Zone and against acquisition or subjecting projects to any procedure of similar effect
• Ownership of projects can either in full or in part be transferred to another investor
• Project periods according to clients demand
• Easy establishment of projects in the Free Zones
• Machines, equipment and instrumentation needed for projects established in the Free Zone are exempted from customs duties and other taxes of similar effect
• Equipment and spare parts necessary for the implementation of projects established in the Free Zone are exempted from all customs duties, import taxes and all taxes of similar effect
• Goods exported or imported from or to the Free Zone are not subjected to time limitation for warehousing
• Movement of goods between the Free Zone and outside of the Great Jamahiriya ore not subjected to customs duties
• Projects established in the Free Zone are not subjected to procedures of trade register and register of importers and exporters
• Investors are entitled to employ and import foreign labour with specialized technical qualifications needed for the establishment or operation of projects

Misuratcah Free Zone

The initiative of the Great Jamahiriya to establish Misuratah Free Zones represents highly interesting and wise thinking. Successful completion of projects like these will enhance the international trade and guarantee flexible and economic operations for local and foreign companies.
The first Free Zone in the Great Jamahiriya to be managed by the General Authority for Free Zones is "Misuratan Free Zone'. It occupies an area of 430 ha adjacent to Misuratah port and includes parts of it as an initial stage. The area is located at 207 km. east of Tripoli. The Mediterranean climate prevails in the area. Misuratah town, being cold and rainy during winter, and dry and hot during summer. The average temperature is 1 4,6 0 C in winter and 25.4 0 C in summer.
Close to the Free Zone there is the Steel Complex, which is the biggest comprehensive industrial complex in the Great Jamahiriya. It Occupies an area of 1200 ha. The annual out put of the complex is about 1 ,324,000tonsofsteel produced by direct reduction of iron ore using local natural gas.
The main end steel products of the complex are:

• Bars and wires
• Light and medium sections
• Hot rolled rolls and sheets
• Cold rolled rolls and sheets

Services available to investors

The following services, facilities, and utilities are available:

• Land plots of different sizes according to investors demand
• Modern offices and covered warehouses at reasonable costs
• Energy (oil, gas, electricity) at low price
• Potable water and sewage utilities and other services at suitable costs
• Modern and versatile financial and banking services according to investors needs
• Modern telecommunication services
• Marine transport services to different international ports
• Road transport services to African countries across the desert and to neighboring Arab countries
• Health insurance services to investors and employees working in projects established in the Free Zone
• Complete insurance services
• Legal and other consulting services

Data of Misuratah Port

The Free Zone utilises Misuratah port, which has the following characteristics:

• Depth 11 m
• Area 300 ho
• Total berths length 4440 m
• Capacity 6 million tons/year
• Open storage terminals 290 ha. of which:
  30 ha. Concrete paved
  60 ha. Asphalt paved
• Covered warehouses 67,500 m 2
• Grain silos, capacity 40,000 tons

Zone 1
The area of this zone is about 90 ha. It allows construction of 1 20,000 m2 of covered plants and warehouses

Zone 2
This zone is located in the northern part of the Free Zone behind administration and exhibition areas. The total area of this section is about 50 ha and it is allocated for electronic and light industry. It is connected to Zone 1 by special road.

Zone 3
This coastal zone is suitable for industries, which need proximity of sea. It can be allocated for heavy industry. The total area of this zone is about 10 ha.

Open Storage Zone A
Open storage zone is used for container handling, storing and re-distribution activities. In the future it can be used as loading and unloading area because of its closeness to the railway lines and a port. The total area of this zone is about 54 ha.
Open Storage Zone B

This zone is located south of the railway alignment. . The total area of this zone is about 30 ha. Large areas of this zone are allocated for car parking and storage of raw materials. It can be used for loading and unloading of railway cars.

Exhibition and Office Area

Exhibition and advertisement are essential elements for success of activities of the Free Zones. The proposed place for the exhibition centre is located at the northern gate of the Free Zone. There are car parking lots in this area. Office facilities could also be available for use as head quarters of foreign companies and their branches as well as for special offices and high quality accommodation. The total area is about 8 ha. It allows construction of over 30,000 m2 of covered spaces.

Administration Area

The administration area is located in the centre of the Free Zone and has an area of about 8 ha. Administrative, customs and security buildings are located in this area

Recreation Area

The recreation area includes sports facilities, parks and green areas. It is located adjacent to employees accommodation area and has about 26 hectares of land. This area can be expanded into the neighbouring area towards the sea in case of necessity for other sports activities.

Green Area

The green area is located between zones 1 and 2. It improves the overall environment of the Free Zone. Total area is 22 ha.

Accommodation Area

An area of 20 ha close to the recreational area is allocated for accommodation of employees.

Office/Camp Area

An area close to the accommodation area is allocated for various uses like offices and special camps of companies. Total area 13 ha.

Roads & Railways

Roads and railways occupy an area of about 39ha of the land area.
There ore also large areas east of the Steel Complex available to the General Authority for Free Zones for future expansion. There are also plans for the development of further Free Zones in some other ports and border points.

General Authority for Free Zones, Head Office

PC. Box
Telephone:
Telefax:
844, Misuratah. Libya
±218-51-629 333
-218-51-629 444