Libyan Foreign Investments: Current Economic Scenario and Future Prospects

Running head: LIBYAN FOREIGN INVESTMENTS
LIBYAN FOREIGN INVESTMENTS
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LIBYAN FOREIGN INVESTMENTS
In recent times, most of the countries strive to magnetize foreign direct investment (FDI),
due to its immense acknowledged benefit that act as a tool of economic growth and development
in the home nation. Import of products and services from foreign nations improve the
productivity and effectiveness of domestic organizations resulting to economic development
(Bandyopadhyay, Sandler and Younas 2013). The growing rate of productivity not only occurs
in the host nations through international trades but also further motivates its economic
development. The essay will intend to focus on the current economic scenario of Libya by
shedding light on its current situational context related to investment and venture. In addition to
this, the paper will evaluate the ways in which Libya has transformed into a promising and
potential region for foreign investment as well as offering fundamental enhanced developments.
The Libyan economic development began to progress and measured by GDP with the
rapid development in bank loans related to the property sector. During the 1990’s certain
indications of surplus resource within the property marked was witnessed (Blanchard 2016). The
banking sector with extensive high price rates in the stocks as well as property markets had
become vulnerable to the risk of sudden decline in market prices. However, in 2010, Libya
managed to acquire one of the significant positions to enhance the expertise level and growth of
national constituent (Fairbairn 2013). It further increases its competence, productivity,
knowledge transfer as well as resettlement in the domestic economy. The current scenario of
Libyan investment primarily involves certain advancements in laws and policies governing aid in
the country (Salacuse 2013). This has been resulted in order to reach the interests of public along
with the areas that purposes to endorse capital as well as foreign investment assignments within
the context of precise and states of shares in the country (Burger, Ianchovichina and Rijkers
2013). These economic investments have developed with the rising economic signs in

LIBYAN FOREIGN INVESTMENTS
comparison to the earlier times, particularly with a contrivance to apply the essential aid and
further prioritise the investors by developing a focused and specialized centre in order to
establish future investment deals in all the regions of the country.
Libya’s economic growth has traditionally depended on a range of positive aspects
namely the excess of oil and gas supply, along with strategic and planned geographical location
between regions of Europe, Africa and the Gulf region (Wood et al. 2014). It must be noted that
the Libyan government has been struggling to transform the country in a full market economy.
The industrial sector relies majorly on oil refining, petrochemical along with iron and steel.
However, the current economic scenario of Libya is yet to be wholly pleasant and must not result
in several upcoming inflows of foreign trade and investment (Ali and Harvie 2013). The primary
concern for the country’s economic associates has been remaining on the situations under which
infrastructure ventures and projects along with recent developmental projects as well as
inducements for lubricant explorations reliant on a weak political stability will restart (Colgan
2014). Several reports of economic as well as investment enterprises revealed that Libya has
gradually transformed into a region possessing the best suitable climatic conditions along with
promising regions catering in the Middle East (Hehir 2013). These have further led to the whole
legal, economic as well as social conditions that enhances the course of ventures and investments
that have revealed that Libya has immense economic competence not only related to the
benefactions of resources and materials but further perform on its progress, development and
exploitation.
With the contribution of these riches, the country has developed in an attraction pole,
Libya, has embarked on various measures. The recent economic policies and legislations in order
to welcome the flow of foreign investment and further by promoting active association with both