Investor Resources

Law No. 9 of 2010 on Investment Promotion is the primary legislation governing foreign direct investment in non-oil sectors. It provides tax exemptions, customs relief, capital repatriation rights, and asset protection guarantees. Oil and gas investments are separately governed by petroleum sector law and EPSA contracts with NOC.

Foreign investors typically enter through three vehicles: (1) a Branch — for projects exceeding LYD 50M or in oil/telecom; (2) a Joint Stock Company (JSC) — foreign ownership capped at 49%, extendable to 60% for strategic projects; (3) an Investment Law Entity — full foreign ownership permitted if project value exceeds LYD 5M.

Corporate income tax is 20% (flat rate). A 4% 'Jihad Tax' applies on the same taxable profits. Stamp duty is 1% on main contracts, 0.1% on subcontracts. Crucially, Libya has 0% VAT — no value-added tax. Projects under the Investment Law enjoy a 5-year corporate income tax exemption from commencement.

Yes. Article 12 of the Investment Law explicitly permits opening local/foreign currency bank accounts, receiving foreign loans, re-exporting invested foreign capital after liquidation or sale, and transferring annual distributable profits and revenues in a convertible currency. Article 13 allows expatriate employees to transfer salaries abroad.

Land ownership in Libya is restricted to Libyan nationals and wholly-owned Libyan companies. However, Article 17 of the Investment Law permits foreign investors to lease real estate from public holdings or private citizens for the purpose of establishing industrial zones, tourism resorts, and energy facilities.

Upstream oil and gas operates under Exploration and Production Sharing Agreements (EPSA) with the National Oil Corporation (NOC) as the primary commercial counterparty. Foreign companies typically establish a Libyan branch office and partner through EPSA or JV structures. The 2025 exploration round covered 20 blocks (9 offshore, 11 onshore) with 43 companies applying.

The UN Security Council's Libya sanctions regime (extended to August 2027) retains an arms embargo and restrictions tied to illicit petroleum exports. U.S. OFAC's Libya sanctions regime is not a blanket ban on commerce, but requires careful counterparty and payment-flow screening. Investors should conduct sanctions diligence at counterparty, beneficial-ownership, cargo, and payment levels.

The LIA manages approximately $70 billion in sovereign assets and has been implementing Santiago Principles for governance and transparency. In 2025, the UN Security Council allowed the LIA to reinvest frozen cash reserves into low-risk deposits — a significant step toward reintegration of Libyan sovereign capital into global markets. The LIA can serve as a potential domestic co-investment partner.