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Investment In Libya
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In Libya's FTZs
The
Libyan Foreign Investment Board
was established to facilitate implementation of foreign
investment procedures, like overseeing the application process and issuing
the required licenses for investment projects.
Libya produces 1.74 million barrels of oil
a day, of which about 1.5 million are exported.
This production is projected to reach about 3 million
barrels per day by 2012; but it will certainly run out some time in the
near future. Hence international investment and tourism are the ideal
alternatives to build on. Libya has set
up a sovereign wealth fund to benefit future
generations after the oil fields have run dry, and has already began
distributing some of the oil revenues for the poor people of Libya.
Owing to recent developments, Libya has witnessed
an increased interest of foreign investors in 2007.
Several investment projects, worth more than 35 billion
US dollars, have been announced, and more than
$100 billion has been set aside to buy foreign
assets around the world. In Libya itself, the government is planning
to spend $155 billion on local projects,
like housing, education and communications - sectors certainly will
attract foreign contractors.
Long term plans will include
investing in funds managed by western banks,
land, and companies that can train and provide jobs for local young
people.
However, key challenges must be addressed before
Libya can acheive these objectives, like upgrading its infrastructure,
developing its financial sector, and improving its business climate.
Three of the largest contracts have been signed by
Dubai, Dutch and Italian companies.
Emaar Properties has
recently signed the
Memorandum of Understanding (MoU)
to
develope the Zwara-Abu Kemmash Free Trade Zone.
The
Dutch company Ladorado has signed a $1.2 billion deal to build
10 tourist complexes by 2012 at Tobruk; and Italy's Gruppo Norman will
build the $268 million resort at Farwa Island, near the Tunisian border.
The Libyan Authority for Tourist Development (TDA) have also signed a
deal with the French Agency for tourist, observation, development and
engineering (ODIT) to develop tourist zones in the coastal regions
of Tobrouk and Sabratha.
One of the major changes announced recently is that
Libya will open the capital of more than fifty state-owned companies to
foreign investors, each valued at a minimum of 150 million dollars. Foreign
investors will be allowed to acquire majority holdings in the larger companies,
while small and medium firms will be offered to Libyan investors. Foreign
investors are authorized, under law (5)
and amended by law (7) of year 2003, to invest in
industry, health, tourism, agriculture, technology, training, construction
and oil related services (except drilling and exploration). Telecommunications
and finance currently remain the monopoly of the Libyan government.
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