Transcript Slide 1

INVEST IN LIBYA
Gateway to Africa, Window to Europe
July 2,2009
Introduction
 Libya is a country of 6 million people, free of religious
and ethnic conflict, determined to keep moving
towards a mixed market economy. It's geographical
position in the center of the world’s map affords direct
access to Europe and Africa, with the rest of the world
at close proximity . These factors in addition to an
educated human resource base keen to acquire the
skills indispensable to doing business, make Libya an
attractive place for a center of commerce.
Economic
 The fiscal sustainability of the Libyan economy is
currently dependent on national oil exports, currently
estimated to constitute 95 % of national income .
 In the late 90's, emphasis was put on diversification of
the national economy away from hydrocarbon sector
dependence and on foreign direct investment (FDI)
playing a predominant role in economic development.
 With that in mind Libya has been diligent in the
creation of an investment environment favorable to
economic development .
Libya’s largely untapped natural resource base and
basic raw materials present excellent opportunities for
accelerated growth in foreign direct investment
inflows, to accomplish the goals of the current
economic development objectives which are :
 The transfer of modern technology .
 To build up Libyan technical cadres .
 Diversify national income sources .
 Contribute to development of national products to assist
entry thereof into the international marketplace .
 To achieve regional development .
Here are some statistics on the type and the
magnitude of investment projects currently
underway.
The ten years 1997 to 2008 the outcome of this activity.
201
180
160
120
81
140
120
100
80
60
40
20
0
Total
Under
Execution
Entered the
Operation
The percentage Of Investment Projects by sector
Services
13.6%
Real Estate
1.8%
Industry
42.6%
Agriculture
1.2%
Tourism
32.5%
Health
8.3%
The size of investments in Libyan Dinars
5321,897,062
3,748,202,982
1,573,694,080
Total
Under
Execution
Entered the
Operation
10,000,000,000
9,000,000,000
8,000,000,000
7,000,000,000
6,000,000,000
5,000,000,000
4,000,000,000
3,000,000,000
2,000,000,000
1,000,000,000
0
Yearly Investment Accumulation
Work Force
360
901
2637
4583
7293
13959
17372
Investment cost
256,000,000
519,348,566
839,416,720
1,301,956,994
2,267,874,642
4,447,027,661
5,321,897,062
NO: Of project
1
10
35
77
111
181
201
Year
2003
2004
2005
2006
2007
2008
)2009-02-28)
Incnease In number of project
250
200
150
100
50
0
2009
2008
2007
2006
2005
2004
2003
Yearly Increase of Investments
6,000,000,000
5,000,000,000
4,000,000,000
3,000,000,000
2,000,000,000
1,000,000,000
0
2009
2008
2007
2006
2005
2004
2003
Yearly Increase of Labor
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2009
2008
2007
2006
2005
2004
2003
Investment Policy
The principal aim of Libya’s investment policy is to
create a business climate conducive to capital
formation and to secure equal treatment for all
investors .
 The investment policy constitutes a vital instrument
for the increase of the overall production output of the
country, modernization of production and services
capacities and restructuring of the economy.
 Foreign investors are welcome and are granted several
privileges including preferential tax treatment and
preferential customs tariffs, as an example.
Investments are particularly desirable if aimed at :
 Export orientation (Establishing export orientated
industries or increasing levels of current exports).
 Development of modern industrial production with
high-value added content (restructuring investments) .
 Utilizing Libya’s abundant natural resources .
Investment opportunities are available in the following fields:
 Manufacturing of cement, steel and building materials.
 Industries dependant on the hydrocarbon sector in
addition to the oil and gas industry’s complementary
services.
 Assembly of Cars and Tractors.
 Seawater Desalination.
 Production of goods for national consumption and export .
 Incorporation of banks and financial services.
 Hotels, resorts and tourist villages.
 Specialized health centers/clinics .
 Establishing branches of Universities and specialized
schools.
 Training and development centers .
 Libya has several key attributes to support successful
investment projects in those areas, such as:
 The pristine Libyan coastline which extends from west
to east (approx. 2000 KM), presenting the necessary
factors for water desalination projects, as well as
tourist projects (hotels and resorts). Moreover, the
Great Libyan Sahara and mountain ranges present
additional unique features of the Libyan landscape.
 Libya is very rich in high grade mineral resources,
determined as sufficient raw materials to support large
scale industrial projects. These sources distributed
geographically as follows:
Darna
Tobraq
Benghazi
Gypsum
Basalt
Clay
Gadhames
Iron
Salt
Salt
Dlatomit
Sabha
Decorative Stones
Limestone
Al Kufra
Bolomite
Metallic Raw
Material, Gold
Modes of investment .
 Libya is open to all forms of investments by foreign
countries and investors which present mutual benefits
to all parties involved, with: Technical assistance ,
Turn-Key , BOT , BOO and joint –venture being some
of the options for direct investments.
 The clear - cut policy of the Libyan state has been to
prioritize further promoting economic development
driven by these kinds of investments.
In promoting various forms of economic cooperation with
foreign partners we are guided by the following principals :
 Priority is given to investments aimed at fostering export
orientated industries
 Investments requiring minimum initial hard currency to be
put up by Libyan partners are preferred .
 Cooperation based on long term partnerships for economic
and commercial stability are particularly desirable.
These various forms of cooperation and investment
agreements, or joint ventures, are based on contribution in
kind and win-win partnerships
Foreign Investment Law Number 5 of 1997,
amended in 2003.
 Foreign investors have been active in Libyan economy
in the last few years . The laws governing their
activities have been modified several times during that
period, in line with enhancements made to the
investment climate. Every amendment widened the
areas open to Foreign Direct Investment .
 Privileges, Exemptions and Rights Guaranteed
by The Law:
A. Machinery, equipment and tools shall be exempt of
all duties, customs and similar taxes.
B. Exemption from import duties for equipment, spare
parts and raw material required for the projects. All
duties or customs imposed on their importation, and
all similar taxes, are inapplicable for a period of 5 years.
C. Exemption of the project from all income taxes
concerning its activities, for a period of 5 years
from the start of production or operation of
project.
This exemption period may be extended for a
further 3 years. Profits re-invested in the project
shall also be exempted from duties. Investors are
also entitled to carry over any loss suffered by the
project during the exemption period to the
subsequent years
D. Export orientated businesses shall be exempt from
production taxes and any export duties, when
exporting their commodities.
E. Investment projects shall be exempt from stamp
duties levied in accordance with the fiscal tax
regulation in force.
 Law No.5 stipulates clear provisions as to the
protection under this law of the investor and of
any foreign direct investments
 Libya has also concluded several bilateral
agreements on investment protection which offer
additional guarantees to foreign investors .
Currently there are over 300 nationalities represented in more
than 600 investment projects in Libya.
Some internationally recognized companies that have invested
in Libya are:
BNP Paribas, Arab Bank of Jordan, Pepsi Cola , Coca Cola ,
Corinthia Hotels International,
Shell Oil , Occidental , Smith International ,
Petro Canada, Siemens International
This is in addition to a significant number of companies that
have opened offices or branches in Libya, such as Nokia, LG,
and Samsung to name few .
When focusing on European countries in terms of volume
of investment activity in Libya, we find as follows :
Netherlands
Malta
11,222,709
232,968,062
Cyprus
36,677,483
France
11,504,155
Switzerland
Bella Russia
Belgium
200,761,214
7,940,307
3,555,538
Britain
Italy
27,084,380
Greece
5,833,462
austria
1,717,392
Germany
14,739,873
Bosnia
2,972,384
spain
1,699,753
2,285,058,300
Italian investment projects
BY DINAR
Foreign
dollars
Participation
13,190,960
10,146,892
51.00%
1,276,920
982,245
75.00%
ANTRBLAST CORPORATION
961,359
739,507
60.00%
AOKMA CORPORATION
10,877,625
8,367,404
25.00%
556,335
427,950
9.51%
LIBYAN ITALIAN CORPORATION
LIBYAN- TUNISIAN –ITALIAN
CORPORATION
3,069,053
2,360,810
95.00%
ATB CORPORATION
1,800,000
1,384,615
4.00%
CONSTRUCTION COMPANY
5,525,120
4,250,092
89.00%
523,129
402,407
48.00%
821,798
632,152
42.00%
TOHAT ASMA CORPORATION
VNKER CORPORATION
HELTH-CARE CORPORATION
38,602,299
29,694,074
Project Name
AMITECH CORPORATION
TOTAL
Dr. Abdarrahman Algamudi