Libya depends on the oil sector for 95% of export earnings, 25% of its GDP and 80% of government revenues but only 25% of its territory has been explored to date.
Its oil sector is underdeveloped as output has been in decline for most of the last 40 years and advanced production technologies have not been employed.
The petrochemicals sector is not as well developed as the country’s oil and gas markets.
The opportunity in Libya is both broad and deep as investment in the country has been neglected for decades across a number of key industrial sectors.
Libya has the natural resource wealth to finance its future development and reconstruction following the recent revolution.
Libya requires hundreds of billions of dollars of investment over the coming decade and needs the capabilities and technology of foreign companies to deliver the social and economic advances its people demand.
There is little to no merchant class domestically in Libya due to the totalitarian nature of the previous regime.
This means there are few competitors locally with the capabilities to capture the opportunities now appearing in Libya.
Domestic laws will require that most companies work with a local partner and the choices available to them are scarce.
At present there is a split in Libya, we expect that this will end in the next year with a new unity government, following successful elections in 2021.
Whoever comes into power, all sides maintain the same philosophy regarding the significance of the privates sector’s role in building a dynamic and open economy.