Up to date, 111 economic units have been privatised in the industrial sector ; within the next two years, it is expected that another 85 units will undergo privatisation and by the end of the next three years, it is envisaged that the total number of economic units privatised will reach 350. The ultimate goal is for 100 percent privatisation, which is still some way in the future.
These facts give a clear idea of Libya’s strong will and intent towards opening up to the right technology and expertise, which can only be beneficial for the economy and the workforce.
Libya is putting a special emphasis on the energy sector, from which great percentage of the economy’s revenue derives, with Alternative Energy considered to be the main “new” sector for the aim of investors. For example, Libya, with its low humidity and numerous sunny days, has the ideal conditions for the possible exploitation of solar power technologies.
Tourism is another sector which is receiving particular attention, as this industry in Libya is still in its infancy, but one that is gradually growing and Libya is emerging as an ideal location spot on the world tourism map.
Libya is a crossroads of history, continents and ancient empires, being home to the Mediterranean’s richest store of Roman and Greek cities and it is where the Sahara’s exceptional and accessible desert scenery meets the unspoilt Mediterranean beaches. One very important fact that should be kept in mind is that Libya has long enjoyed stability and is well known for its security and safety.
Libya’s infrastructure is currently undergoing a massive renovation and transformation, for which a budget of LYD160bn has been allocated over the next three to four years and which will greatly contribute to easing any previous difficulties.
Libya has taken all these facts into consideration and is encouraging investment in all the country’s sectors from both local and international investors, granting investors many attractive privileges and exemptions.
Investor privileges
» Open a bank account, in favour of investor’s project, in the local currency or foreign currency and receive loans from local and foreign financial institutions.
» Re-export the invested foreign capital, in the case of the termination of the project’s duration, liquidation, sale, or circumstances, beyond the control of the investor.
» Transfer abroad of distributable annual net interests and revenues earned by the foreign capital invested in the project.
» Recruit foreign manpower in the case that national manpower is not available; issuance of residence visas, valid for five years, renewable for the duration of the project and multiple exit/re -entry visas. Expatriate employees have the right to transfer their salaries and any other benefits offered to them abroad, as well as being exempted from customs duties relating to their personal effects.
» Exemption of the machinery, equipment and apparatuses necessary for the the project, from all taxes, customs duties, import fees, service charges and other fees and taxes of a similar nature.
» Exemption of facilities, spare parts, transport means, furniture, requirements, raw materials, publicity and advertising items, related to the operation and management of the project, for a period of five years, from all fees and taxes.
» Exemption of commodities, produced for export, from production tax, customs duties and such charges imposed on exports.
» Exemption of the investment project from income tax for a duration of five years, with the possibility that the exemption period could be renewed for a further three years, if the projects prove that:
1 They contribute to the achievement of food security.
2 Utilise measures that are capable of achieving abundant energy or water supplies or contribute to environment protection.
3 Contribute to the development of the area.
The investor may carry forward the losses that may incur, during the exemption years, to the following years.
