Business Environment Analysis of Libya

Running head: BUSINESS ENVIRONMENT ANALYSIS OF LIBYA
Business Environment Analysis of Libya
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1BUSINESS ENVIRONMENT ANALYSIS OF LIBYA
Executive Summary:
The report aims at providing an overview of the business environment of Libya. The discussion
of this report revolves around the oil and petroleum industry. The report gives an overview of the
customers, suppliers and competitors of this sector of the industry. There report also tries to give
an insight into the political, technological, legal, tax, labor and the cultural environment of
Libya.

2BUSINESS ENVIRONMENT ANALYSIS OF LIBYA
Table of Contents
Business Environment in the Oil and Petroleum Sector of Libya...................................................3
Customers:...................................................................................................................................3
Suppliers:.....................................................................................................................................3
Competitors:.................................................................................................................................4
Political Environment in Libya:.......................................................................................................4
Technological Environment in Libya:.............................................................................................5
Legal Environment in Libya............................................................................................................7
Taxation Environment of Libya.......................................................................................................8
Labor Environment of Libya...........................................................................................................9
Cultural Environment....................................................................................................................10
References:....................................................................................................................................12

3BUSINESS ENVIRONMENT ANALYSIS OF LIBYA
Business Environment in the Oil and Petroleum Sector of Libya
Libya represents one of the largest countries of North Africa that boasts of large oil and
gas reserves along with a strong consumer market (Tordo and Anouti 2013). The market of
Libya is both rewarding and challenging due to its good planning. This allows the companies in
availing business opportunities belonging to the sectors ranging from oil and gas reserves to the
telecommunications, agriculture and tourism. The economy of Libya primarily depends on the
oil reserves that contribute to around 95 percent of the earnings (Allan 2014). Moreover, the
recent hike in the oil prices has helped the company in accumulating foreign exchange reserve of
around 50 billion US dollars. The country however hugely suffers due to a higher unemployment
rate. The country however focuses on increasing its foreign investment that will enable it to
spread its arms in the other sectors that includes agriculture, mining, fishing, natural gas and the
tourism sectors. The construction and manufacturing sectors accounts for around one fifth of the
GDP of the country with expansion in the processing of steel, aluminum, petroleum and iron.
Customers:
Libya is one of the exporters of oil with its domestic consumption of around 270,000
barrel on a daily basis (Munir Ahmad and Elhuni 2014). Around 85 percent of the crude goes to
Europe while 13 percent is reserved for the east of Suez Canal in Asia. Close to around 32
percent of the Libyan Oil is reserved for Italy and 14 percent for the Germany. The portions of
France and China receive around 10 percent whereas the United States accounts for about 5
percent (Elmahdi et al 2014).