Libyan economy after 2011: Maps of capabilities and challenges

D. Abu Azum al, Lafi Abu Jadiriyah

Professor, Department of Economics, Sebha University, Libya.

Summary:

This research aims to highlight the most important economic capabilities of the State of Libya with an explanation of the most important challenges that hinder investment in those capabilities. The researcher relied on the descriptive analytical approach, With the use of the quantitative approach in the presentation and analysis of statistics. The researcher concluded that Libya has many untapped economic capabilities, Including oil and gas, As well as elements in the industrial sector, transit trade, renewable energies and tourism, Which, if invested optimally, will enable the state to diversify its sources of income and reduce its dependence on oil as the main source of income.

However, Libya faces many challenges that hinder any efforts to diversify its economy. Among these challenges is what is historical related to the nature of the Libyan economy, Some of them are related to the events currently taking place in Libya. In this context, The study recommends the need to redefine the role of the state in economic activity and allow the local and foreign private sector to invest in these promising sectors to achieve non-oil growth and create jobs in order to diversify the Libyan economy.

Keywords: economic capabilities, Economic challenges, Libya.

Introduction:

Libya relies on oil revenues as its main source of income. The oil sector in the Libyan economy accounts for about 94% of foreign exchange revenues, 60% of government revenues and 30% of GDP. According to 2020 statistics, These large percentages make the performance of the Libyan economy dependent on fluctuations in international oil prices and the decline in production quantities, in addition to the fact that oil is a natural resource that is depleted[1].

Libya therefore needs to diversify its economy to reduce dependence on oil as its main source of income. Especially since it has many natural resources, oil and gas dispute, It has the potential to drive development but has not been optimally invested.

From this standpoint, this research seeks to highlight the most important economic capabilities of the Libyan state, And the extent to which these capabilities can contribute to diversifying sources of income to reduce dependence on oil. The research also seeks to clarify the most important challenges that could hinder any efforts to diversify the Libyan economy.

1- The most prominent features of the Libyan economy:

The Libyan economy is characterized by most of the characteristics of the economies of developing countries, It is a monolithic economy that relies mainly on oil revenues as the main source of government spending and the largest contributor to GDP[2], and is the least diversified oil economy. The Libyan economy is also a centrally managed directed economy and the public sector dominates economic activities.[3]

The Libyan economy is characterized by a weak production base for the non-oil sectors and is one of the most exposed economies to the outside world. Where openness is concentrated in the provision of food commodities to fill the existing deficit in local needs as well as the provision of production requirements required by the development process [4]. In addition, the phenomenon of the hidden economy is widespread and growing clearly in the Libyan economy[5].

2- The most important recent Libyan economic developments (current situation):

2.1 Economic growth:

Due to the closure of oil export ports in 2013, Production fell to record levels of around 190,000 barrels per day [6]. As a result, Libya’s economy experienced a four-year economic recession from 2013 to 2016.

The improvement in the political and security situation during 2017, to more than double oil production, This in turn led to record growth of 28.3% in 2017. However, the average GDP growth rate fell sharply to 2.5% in 2020 due to the blockade on oil exports. In addition to the decline in oil prices globally due to the repercussions of the Covid-19 pandemic[7]. Followingthe lifting of the oil blockade in late 2020, and the elasticity of global oil prices, The oil sector and the Libyan economy have witnessed a significant recovery, Oil production averaged 1.2 million barrels per day in 2021 [8].

2.2 Exchange Rate:

The political conflict has led to the continuous depreciation of the Libyan dinar since 2014. Where the dinar fell against the dollar to 75%, The official exchange rate remained steady at 1.4 dinars to the dollar. In 2017, The price in the parallel market reached 12 dinars against the bank check, The parallel currency market acted separately from the central bank until late 2018 [9].

The application of the policy of imposing fees on the exchange rate and facilitating the procedures for obtaining foreign exchange from commercial banks led to a significant decline in the average foreign exchange rate in the parallel market until it reached about 4.25 dinars in February 2019 [10] .

2.3 Inflation:

The Libyan economy witnessed a rapid increase in inflation rates during the years 2015-2022, It jumped from 9.9% in 2015 to unprecedented levels to about 25.8% in 2017. This is due to several reasons, including disruptions in the supply chain, a weak local currency and government subsidies for fuel and commodities, which have been directly affected by low oil production. As well as institutional division and the existence of two rival governments that financed their budgets by borrowing from commercial banks.[11].

Four years later, the inflation rate in Libya recorded a significant decline in 2019, reaching 2.2%, and this decline is due to the imposition of fees on foreign exchange sales in late 2018, but this decline in inflation rates did not last long, as it rose again to 4.8% in 2022, which is attributed to the same reasons mentioned above. [12].

2.4 General Budget:

The Libyan economy depends entirely on oil to finance the public budget. Thus, as a result of declining production volumes and low world prices, State revenues have declined and public budgets are financed by deficits, This deficit recorded 20 billion in 2014. It rose to 56 billion in 2016, before falling to 10 billion dinars in 2017. This forced them to resort to their foreign exchange reserves and borrow from local banks, The borrowing of the Ministry of Finance in Tripoli increased the total domestic public debt to 74 billion dinars in 2017. And lending to the Central Bank of Libya in Al-Bayda to the interim government about 43.7 billion[13].

During 2019, a surplus in the general budget of 11 billion dinars was achieved. Thanks to the tax on the sale of foreign currency, which generated a revenue of 21 billion, Without these revenues, there would be a deficit of 10 billion.

3- Maps of the economic capabilities of the Libyan state:

3.1 Oil and Gas:

Libya has the largest proven oil reserves in Africa at about 48 billion barrels[14] It ranks ninth globally with about 3.3% of the world’s proven oil reserves.[15]In addition, it has the fifth largest proven reserves of natural gas in Africa estimated at 1.4 trillion m³. In normal times (in 2010), Libya’s total oil production was about 1.8 million barrels per day. [16].

The oil sector contributes more than 70% of GDP, and over 95% of exports, and nearly 90% of government revenues[17]. These figures and this position indicate that Libya has huge potential to double production to more than 3 million barrels per day, achieving an additional $ 9 billion per year of net cash flow, to be the main pillar of any future development in the Libyan economy, but this depends on the price of oil and requires a significant increase in financing exploration and development activities.

Besides the possibility of doubling production, The oil and gas sector offers many opportunities for growth and economic diversification, As the demand for agrochemicals (fertilizers) may create a good investment opportunity in Libya, Libya currently provides intermediate products such as urea (wafers and ammonia) shipped as liquefied gas) to nitrogen fertilizer companies in the Middle East and North Africa. It can be developed to produce high value products such as nitrogen, and mixed or complex fertilizers. Another investment opportunity in this sector is the establishment of new refineries to eliminate the need for increased imports of automotive fuel and oils as much as possible.[18].

3.2 Agriculture Sector

One of the most important economic sectors in Libya as the main source of lunch, Libya has an area of about 1.8 million km₂, The arable area is estimated at about 2% of the total area, That’s about 3.6 million hectares, most of which are sandy or sandy loamy. About 80% of agricultural activity is concentrated in coastal areas[19]. Libya’s climate is a mixture of Mediterranean and desert climates, and the bulk of the country is located in hot climate zones, with the exception of coastal areas and northern highlands where the marine climate prevails.

Groundwater is one of the most important water resources that are exploited in Libya. Especially after connecting the artificial river water network to the Libyan coasts, Annual groundwater consumption is estimated at about 97% of the total water consumed in Libya and about 3% of other water sources.[20].

Desert areas with underground water reserves allow the cultivation of crops that need large amounts of water and some winter crops that have the ability to withstand drought. As for the coastal and mountainous areas where rainwater is available, it allows the cultivation of the majority of vegetables and fruits.[21]. Table (1) shows the most important agricultural crops produced in Libya and some of the associated investment opportunities needed by the local market and contribute to strengthening the food security system and the sustainability of the agricultural sector.

Given the limited natural resources of agricultural land and the amount of water, The agriculture sector cannot be an alternative strategic sector in diversifying sources of income as much as it can be relied upon to meet the needs of the local market and reach self-sufficiency in agricultural commodities. As well as contributing to the creation of job opportunities. These difficulties can also be overcome by developing plans and implementing policies commensurate with the available resources, with a focus on the cultivation of some crops such as: Wheat, barley, olives and palm as the most suitable for local conditions and their water needs are few compared to other crops.

Table (1): Illustrates the investment opportunities available in the field of agriculture

The most important agricultural crops produced in Libya		Investment opportunities available in the field of agricultural inputs industry
Cereals (cultivated area: 410 thousand AH – Production: 5 t/ha)		Factory for metallurgical agricultural equipment
Date Palm (8 million trees – Production: 140 tons)		Factory for plastic agricultural equipment
Olives (12 million trees)		Factory for the manufacture of poultry pens and greenhouses
Grapes		Investment opportunities available in the field of food industries
Citrus
Almonds		Factories for packaging
figs		Flour mills and thick
pomegranate		Silos for storing grain
Potatoes		Plant for extracting and packaging vegetable oil
Onions and garlic		Fruit juice factories
Honey		Cold and freezing stores for vegetables and fruits
		Markets for vegetables, fruits, meat and dairy

Source: National Planning Council (2013).

3.3 Industry Sector:

Many natural raw materials have been discovered that are considered as raw materials for many industries, especially in the field of cement industry and various building materials, Some of them have been used and built by many factories, However, others have not yet been exploited, despite the availability of good reserves, Which confirms the possibility of relying on them, especially in the building materials industry, in order to provide the needs of the local market and for export as well [22].

The quality, location, reserve size and use of these raw materials can be summarized in data (Table 2).

Table 2: The quality of raw materials present in Libya, their location, the size of their reserves and their uses:

Uses	Reserve m. ton		Where they are located	Raw material
	Probably	Certainly
cement and in the production of sharshur and as an auxiliary material in the iron and steel complex, There are many other sites that are still not being exploited yet	71	1,045	Highly concentrated in the north and other untapped locations in the east, and the middle (Jufra), and the south (Beach Valley).	carbonate rocks, limestones, dolomite, Calcarnite
Cement, porcelain, faience, pottery, brick bricks, paper, rubber, insulators, Oil Industries	500	175	Covers most areas, especially the southern region (Sabha and Wadi Al-Shati)	Clays
Glass, cement, building materials, in the manufacture of paints, production of sand bricks, synthetic rubber and insulators.	200	829	shore and the central region, Other sites are currently being exploited in Tripoli and Sebha.	Silica sands
Cement, pharmaceuticals, chemical industries, paint, paper and building materials.	8,240	348	West (sheep well), East and Central, Currently, a small part of it is exploited in the cement industry and as a gypsum pot in the Sawani factory.	Gypsum and salts
Rock wool and in paving roads, helipedes, railway tracks and granite rocks and can be used as stones for decoration and construction.	Large quantities	3,515 (iron)	Such as gold, copper, lead, zinc, iron, phosphate, coal and sulfur. It is found in the south and the central region.	Igneous rocks and metallic minerals

Source: Study by the Industrial Research Centre.

Through the previous review of the natural and mineral raw materials available in various regions of Libya, it is possible to propose 77 promising investment opportunities in the form of factories that will contribute to spatial development in 24 municipalities. All these proposed opportunities shall be subject to preliminary and detailed technical and economic feasibility studies prior to their implementation (Table 3).

Table (3): The proposed investment opportunity in the industrial sector

Number	Industrial activity
8	Cement industry
7	Glass industry
10	Establishment of Sharshur quarries
8	Brick industry
8	Refractory brick industry
1	Iron and steel industry
6	Ceramics industry
5	Tile industry (ground / walls)
9	Manufacture of lime sand bricks
2	Pottery industry
1	Sewer pipe industry
2	Coating plant
2	Concrete production plant
3	Salt Technology & Refining Plant
2	Concrete production plant
3	Plant for the production of detergents and chemical industries
77	Total

Source: Study by the Industrial Research Centre, National Planning Council (2013), Ibid.

We can see from the above table that in the cement industry, for example, There are eight investment opportunities in the form of cement factories distributed in different locations, Two of these sites studied in detail, The first location in the burned beach area, The second is located in the Sukna area, The production capacity of each plant is estimated at about half a million tons per year. Besides, There are seven investment opportunities in the form of glass factories. One of these sites in the beach area of Edri, Which studied in detail the establishment of a complex for glass industries to produce high-quality glass with a production capacity of 5000 tons per year of semi-frosted glass, and 4000 tons per year of crystal. Other sites need more detailed studies. [23].

All these and other potential would be a source of income and diversification of the GDP base, Especially since some of them can be exported abroad and be a factor in bringing in foreign currency. In addition, the industrial sector contains more than 180 industrial facilities that were established in Libya during previous eras and have been out of operation for years, and some of these facilities are in good condition. And that it attracted the attention of many foreign investors, led by Turkish businessmen and industrialists. [24].

3.4 Renewable Energy Sector

Libya has multiple resources that can be used in the production of renewable energy, The most important of which are solar radiation, wind, and the thermal energy of the hollow, and biomass, Where Libya is located in the sunbelt region, which enjoys the intensity of solar radiation and is the highest in the world, and the rate of solar radiation that Libya receives daily reaches 7.1 kilowatt hours / m² in coastal areas and to 8.1 kilowatt hours m² in the southern regions, This is what made it characterized by a long hours of high solar brightness of more than 3500 hours per year [25].

As for wind energy, the Libyan coast, which is about 1,880 km long, stretches from Tobruk in the east to Tripoli in the west, with high wind currents, The average annual wind speed in Libya ranges between (5-10 m / s)[26]. Solar power in Libya can provide about 140,000 terawatt-hours per year. Wind and biomass have potential of 2,000-15,000 TWh per year, respectively.[27].

Despite the availability of these resources, Libya depends on about 95% of its energy needs from oil and gas, and the country is suffering from a crisis of power cuts. The electricity deficit has reached about 2,500 megawatts per day, resulting in most Libyans relying on private generators.[28]. Therefore, this huge potential of solar and wind energy can be used to be a source of future energy extensions, especially since solar energy is a huge and inexhaustible reservoir, as is the case for oil and gas.

Solar energy achieves significant economic growth by reducing dependence on oil and gas for power generation, reducing the massive drain on the state budget, as well as reducing the proportion of imports of fossil fuels. Indeed, the huge amount of solar radiation, the vast area and the geographical location that characterizes Libya can qualify it to be at the forefront of exporting solar electricity and a pioneer in laying the foundations for international cooperation in this field.

In this context, Libya has started a plan that aims to generate 22% of its electricity from renewable energy sources by 2030.[29], through contracting to establish solar plants in the south, Ghadames and Jaghbub, and wind farms to produce energy in multiple locations. In addition to the NOC Partners initiative, Italy’s Eni has started the initial survey of the Rubaniyeh solar project. The foundation is studying with Spain’s Repsol how to exploit solar energy in the south.[30]. France’s Total has laid the foundation stone to start the first 500 MW solar project with a plug.[31]

Equipment for the implementation of the Derna wind farm project was also imported. In addition to the memorandum of understanding signed by the electricity company with the UAE company W Solar to produce 500 MW as a first phase with a long-term target of 2,000 MW, W Solar will invest in solar power generation and sale to the Libyan government for 25 years [32].

3.5 Transit Trade:

Based on the geographical location of Libya and its coastline, which is about 1.880 km long, Libya is qualified to be Africa’s gateway to the Mediterranean Sea and a transit trade corridor linking Africa to Europe. Its ports located on the Mediterranean Sea , which account for 29% of the volume of world trade and an annual growth rate of about 8% annually during the period from 1995 to 2005, According to World Trade Organization statistics.

The volume of trade exchange of the African continent with the world reached a significant level during the period 2000-2005, African imports from the outside world exceeded $249.3 billion in 2005. Africa’s exports for the same year amounted to $297 billion. The European Union is the most important trading partner of the Group of African States. Statistics show that more than 71% of the African continent’s imports come from the European Union. About 57% of Africa’s exports went to the European Union.

EU trade with African countries is concentrated in the North, West and Sub-Saharan region, where this region accounts for 86% of African trade with the European Union.[33]These statistics and components confirm that Libya has a great chance of success in playing a pivotal role in absorbing a large part of the growth of international trade between Africa and Europe through its ports overlooking the Mediterranean Sea. In this context, Libya has announced the transit trade project, which consists of operating three tracks: The first of these is through the port of Misurata, The second is through the port of Benghazi (Al-Mrayseh Free Zone), As for the third route through the port of Tripoli, Across the southern region to Chad and Niger.

3.6 Tourism Sector

Libya has many important tourism potentials, For example, the Greek and Roman cities of Shahat, Sousse and Benghazi, And the Phoenician and Roman cities of Leptis, Sabratha and Tripoli, Libya also has prehistoric monuments, represented in inscriptions and rock drawings in the mountains of Akakus, wells of Meji, Sharsara and Owainat. This is in addition to the desert oases, Such as the oasis of Ghadames, Ghat, Murzuq and Jaghbub. All these resources are important tourist attractions. However, these tourism potentials and potentials have not been well employed so that Libya can take its role and position on the tourist map. [34].

4- Maps of Libyan economic crises and challenges:

4.1 Political and security instability:

Libya has been living on the reality of a sharp political division between the House of Representatives and the state since 2014. This split has had a negative impact on oil production rates on the one hand, And on the Libyan economy as a whole on the other hand, Weak security conditions, political divisions and clashes over oil facilities have disrupted oil production and exports. Which harmed the overall economy [35].

The political divide has also led to random and parallel spending, money printing, high domestic public debt and inflation rates. In 2021, the public debt amounted to about 137 billion dinars, of which 84 billion for the unity government and 53 billion for the Libyan government. In addition to the fragile security situation, Violence and riots remain commonplace and militias and foreign forces continue to pose a threat to stability.

4.2 Directed economy policies that account for a large proportion of the public budget:

The Libyan economy witnessed extensive government intervention after its transformation into a socialist state in the early seventies of the twentieth century[36]The public sector still dominates the economy, employing 85 percent of the total workforce, and the state spends more than a third of the public budget annually on salaries and wages. Not to mention the increasing unemployment and the inability of the state to create new jobs. As well as government subsidies for basic commodities and fuel, which account for 28% of public spending, which burdens the state and contributes significantly to the waste of public money.[37].

4.3 Dependence on oil as a main source of income:

According to the nature of the Libyan economy, which relies on oil as the main source of government revenue, With this commodity affected by the decline in global oil prices, The political and security events taking place in Libya since 2011, Whether it is political division or conflict over oil fields, Which affected the volume of exports, which reached 400,000 barrels per day in 2015, This effect was a burden on the state’s general budget and affected the local currency and the emergence of the parallel market for foreign exchange[38].

This reflects the reality of the Libyan economy as a rentier economy that depends on oil as a main source of income and that the decline in oil prices or production and export quantities for any reasons leads to a sudden decline in the oil revenues of the Libyan state, which will negatively affect the public financial conditions. It will also entail many difficulties and problems, Perhaps the most prominent of them is the occurrence of a large deficit in the public budget and the balance of payments and the resort to public debt as one of the sources of financing the deficit[39].

4.4 Weak contribution of non-oil sectors:

Despite repeated efforts to diversify Libya’s economy, However, the oil sector remained the main source of GDP, contributing more than 70% of GDP. 90% of government revenues and more than 95% of exports in 2018 [40]At the same time, the contributions of non-oil sectors to the GDP remained at very low levels, as the average contribution of the agricultural sector during the last period was about 2.7%, the manufacturing sector 2.2%, and the public services sector 22.5%. Growth rates for non-oil sectors were also low.[41].

Sales of the oil sector have always constituted, the largest proportion of public revenues, Compared to other sovereign revenues such as taxes, customs, telecommunications and other fees. For example, in 2017, the oil sector generated 22 billion dinars, while other sovereign revenues achieved a total amount of 3 billion dinars. This weak contribution of sovereign revenue underscores the need for reforms to develop sovereign revenue collection and management. [42].

4.5 Limited natural resources such as water and arable soil:

Libya suffers from water shortages, limited arable land and sustainable mismanagement of natural resources. Studies show that about 97% of the total water consumed in Libya is groundwater and about 3% is from other water sources. The arable area is estimated at 3.6 million hectares, or about 2% of the total area of about 1.8 million km₂.

Through soil studies, it is found that a good area of these lands is characterized by a number of negative properties that hinder the growth and production of many agricultural crops due to their unsuitability for agriculture, or their rocky nature or natural topography, in addition to those used for non-agricultural purposes such as (urban, industrial, commercial and other uses, ….. etc). [43]

The lack of optimal use of available water resources in Libya led to a deficit of about 275 million m₃ due to the excessive withdrawal of groundwater as a result of the production of voracious crops and the deterioration in the quality of water, which made it unusable, due to its [44] high salinity.

Despite the limitations of these resources, However, these challenges can be overcome through rationalization in the consumption of limited agricultural resources and spending funds to prepare the necessary infrastructure for the development of the agricultural sector, as well as the development of plans and the adoption of policies commensurate with the available resources to enable the sector to contribute to achieving self-sufficiency in key agricultural commodities.

4.6 The business environment for the private sector and the competition of public companies and foreign companies:

The private sector is expected to contribute significantly to the development of the Libyan economy, diversify sources of income and absorb unemployment. However, it faces many challenges that hinder its development, Insecurity, bureaucracy and weak sources of funding have negatively affected the stability of the private sector. In addition, the preference of public companies over private companies in benefiting from government contracts, In addition to fierce competition from the informal sector and unequal competition with foreign companies with good experience and financial ability. All these challenges prevent the growth and development of the private sector to contribute to the development and development of the Libyan economy[45].

4.7 Rampant administrative and financial corruption in state institutions:

Libya has known corruption since independence, but it was limited and then spread and spread in all state institutions after the economic transformation in the second half of the seventies of the last century, After 2011, corruption became more rampant than before. [46].

Administrative corruption in all its forms, mediation and nepotism, As well as financial corruption represented by fictitious contracts and credits, and the payment of remuneration to those who are not entitled to them, and other financial and documentary abuses that greatly harm the Libyan economy, The danger of corruption and its consequences do not stop at the partial waste of public funds, Rather, corruption has significant economic repercussions that constitute a web of obstacles to development.

Financial corruption negatively affects the investment climate by asking for bribes from entrepreneurs. It also limits the state’s ability to increase the volume of financial revenues, And the high volume of tax and customs evasion, High inflation rates through high production costs as a direct result of bribery and commissions, and other negative repercussions on the economy. Thus, corruption represents a real challenge to building the Libyan economy and a major reason for the failure of all reform attempts pursued by the state a long time ago.[47].

Conclusion:

Despite the development plans, policies and programs implemented during the past four decades, Libya’s economy remains a monolithic economy that relies heavily on oil revenues. Its performance continues to be heavily influenced by fluctuations in global oil prices on the one hand and political and security events in Libya since 2011 on the other.

Libya is a country rich in natural resources and has huge potential, but it has not invested them optimally, Including oil, which is its main source of income, The sector has the potential to double its production to more than 3 million barrels from 1.6 million barrels per day. This generates an additional $9 billion a year.

In addition, Libya has a vast area and a distinctive geographical location that qualifies it to play a pivotal role in absorbing a large part of the growth of international trade between Africa and Europe through its ports overlooking the Mediterranean Sea. Not to mention its raw materials and metallic minerals, If optimally exploited, it can be a source of national income. Libya also has many important tourism potentials that represent important tourist attractions, if optimally employed, Libya will take its role and position on the tourist map.

As for the agricultural sector, due to the limited agricultural land and the amount of water, it cannot be an alternative strategic sector in diversifying sources of income as much as it can be relied on to reduce the import value and cover local requirements to reach self-sufficiency in the main agricultural commodities and contribute to job creation.

However, despite all these assets and potential, Libya faces many challenges that undermine any attempt at development and development. There are historical challenges inherent in the Libyan economy, Such as dependence on oil and directed economy policies, which account for a large proportion of the public budget and constitute an obstacle to the development of the Libyan economy. Other recent challenges related to the political division and the state of chaos that Libya is currently experiencing constitute an obstacle to employing Libya’s assets and benefiting from high oil prices.

Study recommendations:

1- Working to enhance political and security stability as they are the real challenge that may cause the prolongation of the crisis and lead to a new military escalation that threatens the unity of the country.

2- Achieving economic diversification by pushing the development of some promising untapped sectors, including the oil and gas sector, as well as sectors such as industry, transit trade, renewable energies and tourism, which enables the Libyan economy to diversify its sources of income and reduce dependence on oil as a main source of income.

3- Paying attention to the agricultural sector as a strategic sector, not as sources of income, To the extent that it can be relied upon to reduce the import value and cover the domestic requirements of agricultural commodities, Down to the stage of self-sufficiency.

4- Preparing an investment map that provides comprehensive and accurate information on all investment opportunities available in each of the promising economic sectors to be a database on which the investor relies in establishing or expanding his investment project.

5- Creating a sound investment climate that attracts foreign investment to contribute to the financing and implementation of investments in promising untapped economic sectors to contribute to increasing local production and creating more job opportunities.

6- Redefining the role of the state and its institutions by reducing the dominance of the public sector in economic activity and allowing the private sector to participate in the development of the Libyan economy.

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Margins:

[1] Hamida Abourunieh, “Libya: The impact of external rents on the Libyan economy: And how to move to a competitive productive economy” Journal of Economic Research and Studies, 3(2021) p. 39.

[2] Mustafa Al-Abdullah Al-Kafri, “Features of the Libyan Economy 19970-2005” Civilized Dialogue-Issue: 7212 – 2022 / 4 / 7 – 13:12، AM: 1.

[3] Abdullah M’hamed Shamia, “The Role of the State in Economic Activity”, report, Libyan Organization for Policies and Strategies, August (2016), AM: 1.

[4] Ali Saeed and Hamid Majhoud, “The impact of low oil revenues on the local economy: (Benchmark study during the period 1992-2012) University of Benghazi, AM: 10.

[5] Somaya Milad Bakir, “Estimating the size of the shadow economy in the Libyan economy during the period (1981-2010)”, Academic Forum Journal, 3(1) January (2019), AM: 69.

[6] ESCWA, A preliminary study on the economy in Libya: Reality, Challenges and Prospects”, Economic and Social Commission for Western Asia (ESCWA), 2020, AM: 13.

[7] Hamida Aburonia, (2021) Ibid., p. 41.

[8] The World Bank, “Libya Economic Update October 2021 (Arabic) MPO October 2021, p 165

[9] ESCWA, (2020). Ibid. p: 16.

[10] Central Bank of Libya, Consumer Price Index and Inflation Report (April 2020), p. 2.

[11] Hamida Aburonia, (2021) Ibid., p. 43.

[12] Central Bank of Libya, (April 2020), Ibid., P:2

[13] ESCWA, (2020), Ibid. p: 11.

[14] Nasser Abdul Karim Al-Fazwani: “The Libyan Economy: Reality and aspirations A simplified analytical study applied to the oil sector during the period from 1969-2014 “a research study, Arab Journal of Science and Research Publishing, 2(1), Yy: 315-349، March (2016), AM: 337.

[15] Ali al-Mahdi Nassef, “Challenges facing the Libyan economy: Reality and proposals”, university, Refereed Scientific Journal, 25 (2017), AM: 167.

[16] Nasser Abdul Karim Al-Fazwani, (2016), previous source, p. 337.

[17] World Bank “Report on the Financial Sector Review in Libya”, (2020), AM: 7.

[18] ESCWA, (2020), Ibid. p: 66.

[19] Nasser Abdulkarim Al-Fazwani, (2016), previous source, AM: 326.

[20] National Planning Council, “National Spatial Development Strategy” prepared by the Council team, June (2013), AM: 70، 90.

[21] National Planning Council, (2013), Previous source, pp. 91, 92.

[22] Nasser Abdulkarim Al-Fazwani, (2016), previous source, AM: 329.

[23] Industrial Research Center, “Results of research and studies in the field of geological mapping, research and exploration for mineral resources”, AM: 7، AM: 11، AM: 36.

[24] Libya Al-Ahrar, Libya, President of the Libyan Businessmen Association – Turks calls for investment in Libyan factories that have stopped working, May 20, 2023

[25] energy, Home/Renewable Energy/ Libya’s First Total-led Solar Project Begins, 2022-06-16, https://www.attaqa.net/

[26] Executive Authority for Renewable Energies, “National Plan for the Development of Renewable Energies (2013-2025)”, Regional Capacity Building Workshop on: Water-Energy Nexus – Renewable Energy, Beirut, Lebanon, 2017, AM: 19.

[27] ESCWA, (2020), Ibid. p: 40.

[28] energy, previous source, 2022-06-16.

[29] energy, Home/Renewable Energy in Libya Receives UAE Investments, 2022-06-27 https://www.attaqa.net/

[30] Ali Al Farsi, “The Future of Renewable Energy in Libya” article, Energy, 2021-06-22 https://www.attaqa.net/

[31] energy, previous source, 2022-06-16.

[32] energy, previous source, 2022-06-27 .

[33] Al Maraysa Free Zone, Unpublished visual presentation, (2017), AM: 10.

[34] Nasser Abdulkarim Al-Fazwani, (2016), previous source, AM: 330.

[35] World Bank, (2020), previous source, AM: 30.

[36] World Bank, Libya, Economic Report No.: LY-30295, 2006, AM: vi

[37] ESCWA, (2020), previous source, AM: 4.

[38] Ali Mahdi Nassef, (2017), previous source, AM: 169.

[39] Central Bank of Libya, Annual Report, Fourth quarter of 2014, AM: 11

[40] ESCWA, (2020), previous source, AM: 15.

[41] Abdullah M’hamed Shamia, “Libyan Economy: Reality and ways to advance”, Report of the Libyan Organization for Policies and Strategies, August 2018, AM: 3.

[42] ESCWA, (2020), previous source, AM: 20.

[43] National Planning Council, “National Spatial Development Strategy” prepared by the Council team, June (2013), AM: 70، 90.

[44] Nasser Abdulkarim Al-Fazwani, (2016), previous source, AM: 326.

[45] ESCWA (2020), previous source, AM: 59.

[46] ESCWA (2020), previous source, AM: 58.

[47] Libyan Organization for Policies and Strategies, “Financial Corruption in the Libyan Economy”, report, May (2016), AM: 47.

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